INDIAN AUTOMOBILE INDUSTRY | |
INDUSTRY Tata Motors launches JLR brands in India Tata Motors pins hope on new JLR launches Tata Motors, JLR will work closely over time JLR acquisition a terrific decision: Ratan Tata UK govt presence in JLR to be aligned with loan guarantee: Tata Tata Motors rolls out JLR at Rs 65L-1 crore Tatas drive in Jaguar, Land Rover; hopeful of solution to loan issue Tata Motors targets 120 units this year JLR sales down in traditional markets, but up in Russia, China Nano to rule cities as green norms push M800 off road INTERVIEWS/FEATURES COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY | ALLIED INDUSTRIES SBI car loans at 8% for the first year LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS GM to back future product liability claims GM picks Michigan for small car plant Hummer buyer to open talks with China regulators: Report VW denies having issued ultimatum to Porsche Porsche fumes at VW, Lower Saxony 'extortion' Daimler launches first German hybrid car Fiat open to retail, institutional bond ECONOMY & FINANCE
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AUTO COS WANT GOVT TO CONTINUE WITH SOPS PTI See this story in: The Hindu Business Line (Web Edition), The Pioneer (Web & Print Edition), mint (Web Edition) (June 29) New Delhi: With last year's decline in sales due to economic meltdown still haunting the auto makers, the industry wants the government to continue with sops announced in the two stimulus packages and ensure easy availability of finance in the forthcoming General Budget. Major auto players want the government to continue with the 4 per cent CENVAT cut and further bring down the excise duty to 8 per cent from 10 per cent, as announced in the two stimulus packages in December and January. To fuel sales of commercial vehicles, which are still falling, the auto makers feel that speedy implementation of infrastructure projects, coupled with some additional incentives, will be a strong way forward. Availability of finance at reasonable cost is important for the industry, without which sales of vehicles can't be revived, Maruti Suzuki India Chairman Mr R C Bhargava said. On the commercial vehicle front, he said: Better implementation of infrastructure will boost the sector. CV segment will grow if infrastructure projects grow, like highways, power plants etc. Benefits of the two stimulus packages should continue as the auto sector has not fully recovered yet and withdrawal of the incentives could even push the sales into negative territory, he added. http://www.thehindubusinessline.com/blnus/03281720.htm http://www.dailypioneer.com/185778/Snapshots.html http://www.livemint.com/2009/06/28123715/Auto-sector-wants-govt-to-cont.html?h=E TATA MOTORS LAUNCHES JLR BRANDS IN INDIA Business Standard (Web & Print Edition) See similar story in: The Hindu Business Line (Web & Print Edition), The Economic Times (Web & Print Edition), The Financial Express (Web & Print Edition), The Tribune (Web Edition), The Indian Express (Web & Print Edition), The Pioneer (Web & Print Edition), Deccan Herald (Web Edition), Asian Age (Web & Print Edition), Hindustan Times (Web & Print Edition), Deccan Chronicle (Web Edition), mint (Web & Print Edition) (June 29) Mumbai: The two distinguished British automotive brands revered across the globe for their style and brand statement - Jaguar and Land Rover (JLR) - officially hit the Indian shores, the home to their new owners - Tata Motors. The launch in India bears special significance to both the brands which have only recently seen massive erosion in demand following the turbulence in the economic health globally. To start with, both the brands will launch three models each from a exclusive company owned showroom in Worli, Mumbai. In fact, Land Rover has already accepted a booking for one of its models, said a senior executive from Land Rover. To specify, Jaguar will introduce the XF, XFR and the XKR sedans while Land Rover will start its business with Discovery 3, Range Rover Sport and Range Rover sport utility vehicles. Being fully imported models, all the six cars carry a heavy price tag starting Rs 63 lakh and going up to Rs 92 lakh (ex-showroom Mumbai). Ratan N Tata, chairman, Tata Motors said: "The launch of Jaguar and Land Rover is something that is quite memorable in the context of our history and heritage of Tata Motors. This is a company that belongs to us and we are proud of it." JLR sales operations will be carried out only from the Mumbai outlet for the time being. The company will take a call on the speed of the adding more sales outlets across the country on the basis of the demand for both models. Thane-based Navnit Motors who have been importing Land Rovers since the past 12 years will now sell Jaguars also through a new outlet in Bandra, Mumbai. The Thane outlet, which sells the entire range of Land Rovers with an average sales of 8-10 units every month, will now operate as a service and spares outlet. Given the uncertainty clouding the Indian automotive market, the company refused to provide any guidance on sales target it hopes to achieve in the country. David Smith, CEO, Jaguar and Land Rover said: "We believe the Indian market holds significant growth potential in the long term. Although the market in India is not very huge but we have seen excellent growth in the Russia and China we are keen to add India to that list." Meanwhile, on the issue to a pending guarantee from the UK government for the loan of about Rs 2,700 crore from the European Investment Bank (EIB), Tata said, "We are in talks with the UK government and we are hoping that we will find a solution so that we see ourselves out of this downturn. It is extremely important to find a solution. We are also working out on whether the UK government will have any representative for JLR that would commensurate their guarantee approval." Tata Motors is also planning to leverage the technological expertise of JLR into its own range of vehicles through sharing of intellectual property rights (IPR) as the company considers that the two brands together have 'tremendous capabilities'. Furthermore, the company has strictly kept the two brands as separate products from the Tata Motors stable and does not plan to have any dilution of the same. More so Tata Motors will refrain from tapping into the dealer infrastructure set up of JLR of the United States. Tata added, "We never tried to merge JLR with Tata Motors, but overtime the two brands will have some resemblance, including dealing with customers, spares, commonalised vendors and customer relations. However there are no plans to leverage the US foothold of JLR for the Tata Motors brands." Tata Motors has arranged finance from Tata Capital and is also holding talks with ICICI Bank and HDFC Bank for the two elite brands. http://www.business-standard.com/india/news/tata-motors-launches-jlr-brands-in-india/65830/on http://www.thehindubusinessline.com/businessline/blnus/02281620.htm http://www.financialexpress.com/news/jaguar-land-rover-roll-into-india/482343/ http://www.tribuneindia.com/2009/20090629/biz.htm#1 http://www.indianexpress.com/news/jaguar-land-rover-roll-into-india/482343/ http://www.dailypioneer.com/185787/Jaguar-Land-Rover-enter-Indian-market.html http://www.deccanherald.com/content/10566/jaguar-land-rover-roll-india.html http://www.asianage.com/presentation/leftnavigation/news/business/tata-rolls-out-jlr.aspx http://in.biz.yahoo.com/090628/139/batsvp.html http://www.deccanchronicle.com/business/tata-rolls-out-jlr-243 http://www.livemint.com/2009/06/28215037/Tata-Motors-launches-Jaguar-L.html The Hindu Business Line (Web & Print Edition) (June 29)
There will be ten vehicles, five from each brand, on display. These comprise the Jaguar XF, XFR, XKR and Land Rovers Discovery 3, Range Rover Sport and Range Rover. The prices of both brands will range from Rs 63 lakh to Rs 92 lakh (ex-showroom, Mumbai). Land Rover will launch the diesel version of the Freelander in October-December. We expect this vehicle to be our best selling model in India. It will be priced around Rs 32 lakh and its homologation (official approval) process will be completed by the last quarter of the year, said Mr Bob Grace, Director, Overseas Operations, Land Rover. JLR has already laid out a plan to expand to other Indian cities. Mr David Smith, CEO of Jaguar Land Rover, said at a press conference here on Sunday, We would like to expand to other cities after we establish ourselves in Mumbai. About 5-6 major cities have already been identified. He added that JLR had been successful in developing markets in Brazil, Russia and China. India is another opportunity for us. The company is focusing on emerging markets and India will be an important growth driver, said Mr Phil Popham, Managing Director, Land Rover. The brand was the premium market leader in Russia and Brazil last year. Mr Mike ODriscol, Managing Director, Jaguar said the company would also bring the newly launched XJ to India. Mr Grace said that JLR would develop dealerships here through the franchisee model. By mid-July, we will receive proposals and, in the next 3-4 months, negotiate with those individuals and select our franchisees. Our tradition is to work with independent dealers globally, he said. Interestingly, the present importer of these cars may be made one of our dealers. Mr Grace added that Land Rover had also initiated talks with the Indian Defence to sell its range of vehicles, primarily the armed Range Rover and Defender though it was far too early to talk about it. Initially Tata Capital will finance sales of JLR models. Mr Rajiv Dubey, President, Passenger Car Unit, Tata Motors said that the company was also in talks with ICICI and HDFC for this purpose. http://www.thehindubusinessline.com/2009/06/29/stories/2009062951060300.htm TATA MOTORS PINS HOPE ON NEW JLR LAUNCHES Swaraj Baggonkar Business Standard (Web & Print Edition) (June 28) Mumbai: Although Jaguar and Land Rover have dented Tata Motors consolidated bottom line for the 10 months starting June 2008, the Indian automobile major is banking heavily on these two British brands for revival of the luxury car market, which is grappling with falling demand internationally. On July 9, Jaguar will unveil a super premium XJ sedan sporting a solid V6 diesel and a super-charged 510 bhp V8 engine option. The XJ is comparable with Mercedes Benz S Class, BMW 7 Series and Lexus LS, say experts. Experts predict healthy demand for the car. But being a luxury car, volumes are expected to be on the lower side when compared with other models in the Jaguar stable. Deliveries of the XJ will start in early 2010 and bookings will commence after the cars official launch in London. Jaguar had launched the XFR and the XKR, supercharged versions of its XF and XK sedans, in January. Both are priced at Rs 10-20.5 lakh and belt out more power than the usually aspired for versions. At a press event on Friday, Tata Motors had said that Land Rover was developing a new model based on the LRX Concept vehicle platform, which was showcased at last years Detroit Motor Show. The UK government granted about Rs 200 crore to Land Rover in March for production of the all-new car, which will also be the smallest, lightest and the most fuel efficient Land Rover model yet. The total cost of developing the sport utility vehicle will be about Rs 3,100 crore. Furthermore, upgrades of Range Rover, Range Rover Sport and Discovery 4 were launched by Land Rover in April this year. These are also expected to boost the top line of the company. Ravi Kant, vice-chairman, Tata Motors, said, There was a kind of double whammy for both Jaguar and Land Rover last year because of the global meltdown as well as transition in ownership from Ford Motors to Tata Motors. However, now that those hurdles are gone, things are looking slightly better for both the brands. The launch of the XK has received a tremendous response and we hope to see a repeat of that for the XJ, which will be launched next month, he added. Even though Land Rover, which generates more numbers worldwide than Jaguar, reported a sharp dip in sales of nearly 40 per cent during the 10-month period starting June 2008, Tata Motors appeared bullish on the brand. Land Rover recorded sales of just 120,000 units during the period as compared with 198,000 units in the comparable period of the previous year. The United States, one of the biggest markets for the brand, reported the sharpest decline. Jaguar sales reported a near-flat growth during the period. It saw sales of 47,000 units, a drop of almost 2 per cent when compared with sales of 47,800 units in the corresponding period of the previous year. Sales in North America are expected to be flat this year, according to the country chief executive, Gary Temple. Tata Motors has inked a vehicle finance deal with Fiat Group Automobiles Financial Services. It was due to start business in February. Our view is that things will not improve very much this year. The situation has been improving only marginally in the last few months. We are confident that it will be a very profitable company moving forward, said Kant. http://www.business-standard.com/india/news/tata-motors-pins-hopenew-jlr-launches/362332/ TATA MOTORS, JLR WILL WORK CLOSELY OVER TIME The Hindu Business Line (Web & Print Edition) (June 29) Mumbai: The buyout of Jaguar Land Rover (JLR) is expected to translate into useful gains for Tata Motors too. Mr Ratan Tata, Chairman of Tata Motors, said that over time, the benefits of this acquisition would percolate down to Tata Motors where the family resemblance of facilities and the sophistication of dealing with customers or spares would have a common structure of sorts. Over time, Tata Motors would upgrade its level of customer interaction and satisfaction to its range while also managing the two other brands it represents. I would hope the two companies can work closely together in R&D and we will share in intellectual property created in one place or another, he said. On the significance of bringing these brands to India, Mr Tata said there was no general leaning on the fact that the brands are Indian-owned. On the contrary, the fact is that we now have an ability to take an extra interest in India which would otherwise have been lower on the priority list vis--vis other geographies. It gives us great pride to say that we have been able to bring these brands to India. I think Tata Motors has been extremely interested to upgrade the level of satisfaction that the Indian public has in motor cars, he added. According to Mr Tata, these British brands were emerging as those that the discerning public is beginning to recognise again in terms of what they stand for. He was confident that the brands would stand their test of time with competition. World over, these are brands that are distinctly on the path back to recouping the glory that they had, Mr Tata said. Asked if there were any plans to assemble JLR vehicles, he replied that this would depend on the business case prevailing at that time. I do not think we have any plans at the present moment to do so. Tata Motors, he said, has been extremely interested to upgrade the level of satisfaction that the public has in motor cars. In the past, we have helped to introduce Mercedes E-class into India (through the then joint venture with Daimler) and this is a special moment because this is a company that belongs to us and we are proud to see that we can introduce it with such panache in the Indian market, Mr Tata said. He also reiterated that the company would not leverage JLR for its own US foray (planned for the Nano in 2011-12) as the vehicles and brands were quite different. We would like to see Jaguar and Land Rover increase their penetration in the US market, he said. Mr David Smith, CEO of JLR, said the company had been successful in recent years in developing its business in key markets such as China, Russia and Brazil. It was now Indias turn to join the list. We see this positively and it also helps from the viewpoint of sourcing components and engineering/IT services. We are doing some collaborative research with Tata Companies in the UK and are exploring more opportunities together. There is potential to build the business further in the coming days, he added. http://www.thehindubusinessline.com/2009/06/29/stories/2009062951130300.htm JLR ACQUISITION A TERRIFIC DECISION: RATAN TATA PTI See this story in: Business Standard (Web & Print Edition), The Statesman (Web Edition) (June 28) Mumbai: Tata Group Chief Ratan Tata termed the buyout of Jaguar and Land Rover (JLR) as a "terrific decision" and hoped to bring back glory for the luxury brands. "We at Tata Motors are proud to have these brands...It was a terrific decision that we took to bid for these two brands and own them," Tata told reporters here after launching the premium brands in India. "...Together we can make them go back to the glory that they have quite rightly and deservedly had over the years," Tata said. The company posted a consolidated net loss of Rs 2,505.25 crore for 2008-09, primarily hit by the economic slowdown and fall in sales of Jaguar and Land Rover. Tata said the two premium brands have a terrific R&D behind them. "We are going through a downturn that has an unfortunately somewhat condemned JLR in perception, that perception is very wrong. "The two brands are terrific brands. There is a terrific R&D behind them. It is for us to manage to put them into products and bring the products into production," he said. Tata Motors acquired JLR for about $2.3 billion from the US car maker Ford Motor in June 2008. http://www.business-standard.com/india/news/jlr-acquisitionterrific-decision-ratan-tata/65838/on http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=259310 UK GOVT PRESENCE IN JLR TO BE ALIGNED WITH LOAN GUARANTEE: TATA PTI See this story in: The Economic Times (Web & Print Edition) (June 28) Mumbai: Tata Motors on Sunday said that it will consider representation of the UK government in its two iconic brands Jaguar and Land Rover considering the extent of loan guarantee that the auto maker is negotiating with the latter. TATA MOTORS ROLLS OUT JLR AT RS 65L-1 CRORE Reeba Zachariah The Times of India (Web & Print Edition) See similar story in: Hindustan Times (Web & Print Edition) Mumbai: Finally, the beast and the beauty kept their rendezvous with India. The niche, but growing, club of luxury car owners on Sunday got a booster shot with Tata Motors ushering in the British auto icons Jaguar and Land Rover (JLR) after almost a year of acquiring them from Ford Motor Co. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=BusinessSectionPage&id=dbd700e8-92fa-42c1-8050-3a7e32de9792&Headline=JLR+from+Tatas+start+at+Rs+63+lakh TATAS DRIVE IN JAGUAR, LAND ROVER; HOPEFUL OF SOLUTION TO LOAN ISSUE The Hindu Business Line (Web & Print Edition) See similar story in: Yahoo India (Web Edition) (June 29) Mumbai: Tata Motors is hopeful that talks with the UK Government on a loan guarantee for Jaguar Land Rover (JLR) will yield a positive result. The government is reportedly driving a hard bargain to guarantee the European Investment Banks 340 million loan. We are in discussions with the UK Government for the loan guarantee and are hopeful that we will find a solution. Our funding plans for JLR will then progress so that we can see ourselves through this downturn, Mr Ratan Tata, Chairman of Tata Motors, said at a press meet here on Sunday. Reports have been doing the rounds that the UK Government would like to have one or more representatives on the JLR board if it guarantees the loan. In fact, there have been reports of the UK Government taking a stake in the company also. If there is a large financial package from the UK Government, there should be a commensurate level of representation or answerability to them. It is a question of negotiating what will be fair, which is what we are in the process of doing, Mr Tata said without getting into the specifics. I just want to say that sustaining us is extremely important, in my view, because there has been such high levels of technological inputs into the products that I would really like to see these two brands come out of the downturn as companies with new models in a world that is reviving, he added. The press conference marked the launch of JLR products in India. Tata Motors had bought out the British brands from Ford in June last year for $2.5 billion. Mr David Smith, CEO of JLR, said that during this downturn, the company had had to take some extraordinary actions in its business such as reducing labour costs to improve its cash flow. If market conditions dictate, we might take further action and that could involve further job losses, plant shutdowns and we cannot rule that out, he cautioned. Even during the time of bidding for JLR, sceptics felt that Tata Motors had erred in paying so much for a brand which they considered increasingly irrelevant in the world market. However, the Tata Motors Chairman insisted that there were tremendous skills and capabilities in JLR which would come to the fore once the world economy was back on its feet. We are going through a downturn that has somewhat unfortunately condemned JLR in perception. That perception is wrong. These are terrific brands with terrific R&D behind them. It is for us to manage to put these into products and bring them(products) into production, he said. It was also Mr Tatas contention that JLR is a different company from what it might have been several years ago and that his company was very proud to have these brands in its stable. We hope that as we come out of this downturn, we can look back and say that it was a terrific decision that we took to bid for these brands and to own them. As an Indian, I am very proud that we have managed to have these brands with us and together we can make them go back to the glory that they have had quite rightly and deservedly over the years, he said. http://www.thehindubusinessline.com/2009/06/29/stories/2009062951310100.htm http://in.biz.yahoo.com/090628/50/batsxn.html TATA MOTORS TARGETS 120 UNITS THIS YEAR Manu P. Toms & Varada Bhat The Hindu Business Line (Web & Print Edition) (June 29) Mumbai: Tata Motors has targeted sales of 100-120 units of Jaguar Land Rover (JLR) vehicles this calendar, according to industry sources. The company had earlier conducted a market study and found that JLR would sell around 120 units in the first year. However, it will wait for a month after the launch and analyse market response to finalise its import plans, they added. Both Tata Motors and JLR officials did not get into specifics on numbers planned for the first year but said that they would be quite small. We are definitely looking at a certain number, but it is too small to talk about, Mr Rajiv Dubey, President (Passenger Car Division), Tata Motors, told Business Line. The company announced on Sunday that it would be retailing the Jaguar XF, XFR and XKR models as well as Land Rovers Discovery 3 and Range Rover models. Mr Bob Grace, Director (Overseas Operations), Land Rover, said, It takes 12 weeks to get the car to India. We will carry stocks based on our market assessment. One of the options being considered is to keep the vehicle at Customs warehouses till the company gets confirmed orders. This way, it would not have to pay the import duty, sources said. Increasingly, in this global downturn, carmakers are going in for direct imports based on confirmed orders only. The luxury range, in particular, has to be extra careful because of the 105 per cent import duty, which could result in a landed price of nearly Rs 1 crore. Incidentally, Land Rover sales totalled nearly 90 units in India last year and have already touched 40 units in 2009. Sales of Jaguar, in contrast, have been little to write home about. Tata Motors, which acquired JLR last year, will now be their exclusive importer in India. http://www.thehindubusinessline.com/2009/06/29/stories/2009062951070300.htm JLR SALES DOWN IN TRADITIONAL MARKETS, BUT UP IN RUSSIA, CHINA The Hindu Business Line (Web & Print Edition) (June 29) Chennai: Ever since Tata Motors acquired Jaguar and Land Rover in June 2008, sales of these two iconic brands have fallen in their traditional markets the US, the UK and Europe (excluding Russia) while they have increased in Russia and China, albeit on a much smaller base. Between June 2008 and March 2009, Jaguar and Land Rover sales fell by 35 per cent in the US, the UK and Europe, over the previous corresponding period, but increased by 8 per cent in Russia and China. Pulled down by the performance of Jaguar and Land Rover business, Tata Motors posted a Rs 2,505-crore consolidated net loss in 2008-09, with Jaguar Land Rover (JLR) accounting for a loss of Rs 1,777 crore. Sales figures obtained from a Tata Motors presentation to analysts on Friday, after it announced its consolidated financial results for the year, show that the fall in sales is much steeper at 38 per cent for Land Rover, a premium sports utility vehicle, and 0.70 per cent for Jaguar, the luxury car. While the sales increase in Russia and China is bound to bring some cheer to Tata Motors, the total base in these two countries is much smaller than the US, the UK and European markets put together. With sales of 24,600 units in June 2008-March 2009 period, Russia and China together accounted for nearly 17 per cent of Jaguar Land Rover sales, against sales of 22,600 units or 13 per cent of total sales in the previous corresponding period. The presentation a copy of which is available on the companys Web site shows that JLRs retail volumes fell 37 per cent in North America in the June 2008-March 2009 period over the previous corresponding period. It fell 31 per cent in the UK, 37 per cent in Europe (excluding Russia) and increased 12 per cent in Russia and 2 per cent in China, during the same period. In North America, Jaguar and Land Rover together sold 34,900 units in the June 2008-March 2009 period against 55,600 units in the corresponding previous period, 40,500 units in the UK (59,100 units), 45,900 units in Europe (73,000). In Russia, sales grew to 15,800 units from 14,000 units, and to 8,800 units in China from 8,600. According to the presentation, JLRs response to the fall in sales, triggered by the global economic meltdown, is to align production with demand resorting to single shifts and down time at all three UK assembly plants. It has taken steps to reduce working capital supplier payment terms extended from 45 days to 60 in line with industry standard; receivables reduced by 133 million, from 38 days to 27 days; and, inventory reduced by 217 million, from 70 days to 50. Tata Motors has also reduced costs across all areas of the business. The presentation says that Tata Motors had a total long-term debt of Rs 16,302 crore as on May 31 with Tata Motors standalone debt being Rs 11,593 crore and that of Jaguar Land Rover UK at Rs 4,709 crore. The company has a staggered repayment schedule with 11 per cent of the debt due to be repaid in FY10, 39 per cent next year, 12 per cent the following year and the last instalment of 8 per cent due to be paid back in FY16. http://www.thehindubusinessline.com/2009/06/29/stories/2009062951030300.htm NANO TO RULE CITIES AS GREEN NORMS PUSH M800 OFF ROAD Sachin Dave The Economic Times (Delhi Print Edition), See this story in: Hindustan Times (Web Edition) (June 29)
This (absence of Maruti 800 and Omni) would mean no direct competition to Nano. The important question is whether Tata Motors would be able to manufacture enough units of Nano that would meet the demand. said Kapil Arora, Partner (Automobile), Ernst & Young. The entry-level Maruti 800, the flagship product of Maruti Suzuki India, is priced at Rs 2.15 lakh. The basic version of the Nano is pegged at Rs 1.35 lakh though other version with more more features cost more. The pricing strategy of the product is not decided yet. The price of the Nano could go up. The margin at the moment is wafer thin, he added. The company spokesperson said: The first one lakh allotments (of the Nano) are price-protected as prices were declared at the launch. For others, should circumstances require any pricing decision, it will be intimated to them (customers who have booked the car) at the time of delivery. The company is also planning to launch the diesel version of the Nano. There has been speculation that the diesel Nano could cost around Rs 2 lakh, making it the cheapest car in the category. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=BusinessSectionPage&id=d8f6a4c0-0f63-41bd-8c25-95d05d00554f&Headline=Maruti+bags+a+Nano%2c+but+he%e2%80%99ll+have+to+learn+to+drive+first | |
INTERVIEWS/FEATURES Go To Top | |
CARS, SUVs, MUVs Go To Top The Hindu, Metro Plus The Honda Jazz is a car that doesnt allow your sight to wander past, once you lay eyes on its edgy shapes and tipped-forward stance. The pointed nose of the car is particularly stunning, with triangular headlights placed well back and up from the grille. The strong chin and the power bulge on the bonnet that catches light perfectly is a treat to the eye. Honda designers have used a bulging rear wheel arch with strong cut lines to break up the mass of the side of the car and at the rear a wide flush mounted windscreen makes the car look unique too. The design is aggressive and different. The brilliant packaging of the Jazz is clearly visible once you pop the hood. The engine takes up only a tiny amount of the overall length of the car, giving passengers more than an adequate amount of space in the 3900mm car. The wheelbase of this car at 2500mm however is shorter than that of the City and even the Hyundai i20. On the inside, the cabin is both massive and very modern. Large enough to seat four or full size passengers in comfort, the design and functionality of the dash and especially the central console, is very different from the conventional. The chunky aircon knobs function superbly, possessing a solid feel, Honda has packaged all the essentials into the top of the central console, freeing up storage space below and you even get a CD player (which new City lacks). Jazz components such as the steering wheel, dials and gear knob are the only bits that are shared with the City, but the Jazz has a completely different vibe to it. Plastic quality and grain are impressive and Hondas subtle changes in grey tones really work well and what this car also majors on, is an abundance of storage space. Theres two medium size glove boxes with a shelf in between, some storage space under the central console and between the seats, a secret box under the rear seats as well as ten cup-holders. You can also uniquely flip the rear seats up theatre style for more flexibility, as well as fold them flat to create a massive luggage space. The low floor of the boot also means you can keep a large luggage standing up in the rear, possible because the fuel tank is placed below the front seats, freeing up space at the rear. Theres also plenty of thought given to seating. The front seats are surprisingly large and full-sized for a hatchback. The rear seats are also well-contoured to offer good thigh support. The Jazz or Fit, as it is called in Japan, shares its platform with the new Honda City. But while the City is sold only in Asian markets, the Jazz sells in massive numbers in the U.S., Japan and across Europe. The motor under the hood however has been specifically tailored for India, to help it duck under the 1200cc capacity restriction for an excise sop. The Honda engine also generates power differently. Hondas new patented variable valve timing system is the companys answer to Maruti and Hyundai, who offer double overhead camshafts on their motors for greater performance and control. On the Jazz, one of the jobs of the V-tec system is to boost bottom end responses of this small capacity motor. This system de-activates one intake valve at speeds below 2100 rpmas the one valve deactivated V-tec causes the airflow to speed up. The theory being that there is a narrower passage for the same amount of airflow. This allows the Jazz to respond quickly to a slight dab on the accelerator. Theres little or no waiting as a jot of acceleration comes in almost instantly, making the Jazz easy to drive in traffic at low engine speeds. But as most of us know, all Honda motors do their best work at high engine speeds, and this motor is no different. Top end power is strong once you are past 5000 rpm, the motor churning out an impressive 89 bhp. Flat out acceleration is pretty strong considering the size of the motor. 0-100kph comes up in 13.2 seconds with 120kph taking a total of 18.6 seconds. This makes the Honda faster than the i20 and Fabia. The refined motor is almost inaudible at idle and purrs at low engine speeds. Its only when you hit the pedal to the metal that it gets slightly louder. However, this motor has an area of weakness, its midrange. Power delivery from 2500 rpm to 4500 rpm is not very strong, theres a dip in the torque curve at these speeds and this weakness is intensified if you short shift from second to third. So the slick shifting gearbox is not a chore to use, the gears slotting in almost without thought or any specific attention. Grip is average and body control is fairly good. Through better tuning, Honda has made the steering of the car more accurate than that of the City, but this falls short of instilling a great amount of confidence to the driver. Theres little feedback from the steering and brakes as you press on, overall grip is limited and you are much happier turning the pace down a notch. Its clear this car has been tuned for city driving, with its light steering and good visibility. This is where the Jazz excels. Ride quality however is only average. The 65 profile tyres dont absorb much at low speeds and the suspension which has been raised and slightly stiffened for our roads, doesnt help much. You do feel small amounts of discomfort over small, sharp bumps on the road and Jazz sometimes even crashes through larger holes. As speeds build, ride quality improves and rough patches are ironed out better by the long travel suspension. And there is some amount of road and tyre noise, especially over rough patches. For now, the Jazz will only be sold powered by a 1.2 engine, but there will be three versions of the car in the future. The standard Jazz will sell for 6.98 lakhs, the Mode variant will cost 7.28 lakhs and the top of the Active will cost 7.33 lakhs (all prices ex-showroom Delhi). The standard Jazz comes equipped with ABS, two airbags and steering mounted controls, with the Active and Mode getting an assortment of sporty body mods and add-ons. While some may find the prices too steep for a hatch, one has to remember that this is a car engineered first for world markets, which means it has to adhere to the highest standards. Verdict With all the flexible luggage space you know why Honda chose to call this car the Jazz it has the capacity to contain a Jazz band trumpet, trombone, saxophone, drum-kit and possibly the double bass too. Though the price of the Jazz may raise a few eyebrows, purchasing one means owners get themselves a car thats engineered to global standards. Precise Honda fit and quality and the promise of great fuel economy and reliability are also part of this package. If you are looking for an entry saloon or pure driving pleasure the Jazz is not the car for you. Its a smarter, more stylish and better packaged alternative to a saloon, but an expensive one. http://www.hindu.com/mp/2009/06/29/stories/2009062950390300.htm | |
COMMERCIAL VEHICLES Go To Top Ranju Sarkar Business Standard (Web & Print Edition) (June 28) New Delhi: Some signs of recovery, or green shoots, in medium and heavy commercial vehicle sales have emanated from the northern states. The North is seeing some activity but it is still early days, said Ashok Leyland Executive Director (marketing) Rajiv Saharia. The note of caution notwithstanding, North accounted for 37 per cent of the Chennai-based truck makers sale in April and May, up from 26 per cent in the two months of the previous year. According to a Tata Motors executive, the North accounted for 41 per cent of the industrys sales of medium and heavy commercial vehicles in April and May 2009, compared to 25 per cent in the same period in 2008. Analysts said the recovery in the North is led by the movement of cement and stone in Rajasthan. Truck sales, a barometer of the countrys economic health, have languished in the last few months as industry has faced a slowdown and foreign trade has come down. Matters were made worse when financiers offloaded the trucks they had repossessed from defaulting owners. Rentals rose a little till May as trucks were commandeered to transport the wheat crop. After that, rentals have softened a bit. To be sure, medium and heavy commercial vehicle sales have declined in the North too in the first two months of FY10 but the decline has been lesser than other regions. The North shrunk the least, 19 per cent, in April and May 2009, even as industry sales fell 50 per cent. The South has shrunk the most 77 per cent , said a Tata Motors spokesman in an emailed response to a questionnaire. The contraction in the West was in line with the South, though the estimate for the same was not available. These two markets have contracted more because of their dependence on manufacturing as well as foreign trade (a majority of the ports are located in the West and the South), said truck makers. The market in the East did not contract as the other markets. Some dealers in the North admitted that sales have picked up. Harcharan Laiker, managing director of Roshan Motors, a Tata Motors dealer in Jaipur, said sales have been recovering since January, after falling 40-50 per cent between September and December 2008, and have improved 25-30 per cent since March. http://www.business-standard.com/india/news/northern-truck-market-revs-up/362336/ | |
CONSTRUCTION & AGRI MACHINERY Go To Top | |
2/3 WHEELERS Go To Top PTI See this story in: The Statesman, The Indian Express New Delhi: TVS Motor Company will launch at least three new products in the current financial year in order to expand its product portfolio. The company will be expanding its product portfolio aggressively. We will expand our scooter platform to offer a scooter with a bigger engine than the existing Scooty, a TVS Motor Company spokesperson said. It would also introduce an executive segment motorcycle by the end of this financial year, the official added. The spokesperson, however, declined to give further details. In the three-wheeler segment, the company plans to introduce four-stroke TVS King in petrol, LPG and CNG versions, the official added. The company plans to launch the scooter and the motorcycle within the next four to five months, while the four-stroke three-wheeler would be offered in the next month.
TVS Motor reported a standalone net profit of Rs 31.08 crore in the last financial year as against Rs 31.77 crore in the fiscal year ended 31 March 2008. Its total income rose 14.26 per cent to Rs 3,736.67 crore in FY'09 from Rs 3,270.21 crore in the previous fiscal.
While motorcycles sales increased to 6.45 lakh units from 6.10 lakh units in 2007-08, scooters registered sales of 2.59 lakh units as against 2.58 lakh units in FY'08. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=259312 | |
COMPONENTS Go To Top Pankaj Doval The Times of India (June 29) New Delhi: Maruti Suzuki is driving competition home. After squeezing the best out of its 220-odd component suppliers through various efficiency programmes, Maruti is bringing in competition for them by buying parts from non-JV companies. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/Business/Maruti-injects-competition-for-own-JVs/articleshow/4713462.cms | |
ALLIED INDUSTRY Go To Top | |
FINANCE & INSURANCE Go To Top Business Standard See similar story in: The Hindu Business Line (June 28) Mumbai: Having grabbed pole position in the automobile loan market, State Bank of India (SBI), the countrys largest bank, upped the ante by dropping the interest rate by 200 basis points for the first year of the loan. The special scheme, which SBI had announced in February, provided loans at 10 per cent during the first year with the rate to be reset in the second year. Now, the loans will be available at a fixed rate of 8 per cent during the first year. During the second and third years, borrowers will have to pay 10 per cent. From the fourth year onwards, the rate will be linked to the prevailing interest rate in the automobile loan market. In a statement, the bank said, the new scheme will be on offer from July 1 to the end of September. The announcement came three days after SBI lowered its benchmark prime lending rate by 50 basis points by 11.75 per cent. With banks like ICICI Bank, Citibank, HSBC and Standard Chartered moving out of the automobile loan market due to large-scale defaults, the market is now confined to a handful of players. SBI and its associate banks have emerged as the largest player in the market, followed by HDFC Bank, Kotak Mahindra and Axis Bank. At the end of March 2009, SBI accounted for 12 per cent of new automobile sales, up from 10 per cent a year ago. SBI Chief General Manager P Nandakumaran said the bank wants to increase its market share in the segment by raising monthly loan disbursals to Rs 300 crore this financial year from around Rs 200 crore in 2008-09. The bank has set a target to increase the size of its automobile loan portfolio to around Rs 12,000 crore by the end of March 2010, another SBI official said. The banks portfolio rose 36 per cent to Rs 9,713 crore in 2008-09 from Rs 7,149 crore in 2007-08. SBIs latest move will infuse more life into the automobile loan market. It is large enough to support many players and we hope that our market share will not be affected much. Our rates are competitive and whenever the interest rate regime permits, we will pass on the benefits to our customers Axis Bank Senior Vice-President (retail assets) Sujan Sinha said. The head of automobile loans in another private bank, however, said that SBI was pushing for a larger presence without having put in place the infrastructure to handle delinquencies. Besides, he said, the interest rate cycle would turn towards the end of FY10 and this might put pressure on SBI. It is grappling with a situation where it is a late entrant and still wants to become the biggest player, he added. http://www.business-standard.com/india/news/sbi-stirs-auto-loan-mart/362337/ http://www.thehindubusinessline.com/2009/06/28/stories/2009062851140100.htm SBI CAR LOANS AT 8% FOR THE FIRST YEAR Agencies See this story in: The Financial Express, The Tribune, The Indian Express Mumbai: State Bank of India said that it was launching a car loan scheme 'SBI Ezee' for financing new cars on July 1 at interest as low as eight per cent for the first year. Car buyers can get loans at reduced rates of 8 per cent per annum fixed for the first year and 10 per cent per annum fixed for the second and third year, a press release issued said. Equated monthly installments (EMIs) for a SBI car loan for Rs 1-lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year, the release said. The interest rate will be reset from the fourth year at the card rate contracted as on date of sanction, depending on the tenure of the loan. The SBI car loan card rates are 0.25-0.75 per cent below the bank's PLR, the release said. The SBI Ezee Car Loan Scheme will have a full processing fee waiver during the scheme period. SBI, which had introduced a special 10 per cent per annum fixed interest rate for the first year from February 23, has now extended it up to September 30. This follows the tremendous response the scheme has evoked, the bank said. http://www.financialexpress.com/print/ http://www.tribuneindia.com/2009/20090629/biz.htm#6 http://www.indianexpress.com/news/sbi-car-loans-at-8-for-the-first-year/482100/ | |
LUBRICANTS & ALTERNATIVE FUELS Go To Top NO OIL PRICE HIKE IMMEDIATELY, SAYS DEORA The Financial Express (June 29) Mumbai: The much-talked about fuel price hike may not take place immediately. Petroleum minister Murli Deora hinted as much on Saturday when he said a decision in this regard would be possible only after carefully watching the international crude oil prices. The price of Opec basket of crude stood at $68.54 a barrel on Friday. Speaking to FE over phone from Goa, Deora said, The international crude oil prices have gone up. The government will wait a little more to check whether the prices stabilise. The Cabinet will discuss the matter before any decision is taken. The Centre is in a serious dilemma over whether to go for a hike. It is not in a position to overlook a strong opposition from UPA allies Trinamool Congress and DMK. Also, the ensuing Assembly elections in Maharashtra and Arunachal Pradesh are weighing on it. Deoras statement assumes significance as the Centre will have to issue Rs 71,000 crore oil bonds in 2008-09. The total revenue loss of oil marketing companies (OMC) had surged by about 34% to around Rs 1,03,000 crore during the same period and the upstream companies had to pull in about Rs 32,000 crore. The state-owned OMCs are currently losing Rs 2.96 a litre on diesel and Rs 6.08 per litre on petrol. The Congress-led government is fully aware that poor people suffer with a price hike. So we will try our level best to ensure that the prices are not hiked. We will increase the prices only when crude prices go high, the minister added. A Mumbai-based analyst, however, said the Centre could make its stand clear on fuel price hike and deregulation in the ensuing Budget. At present, the ministry is considering various options; one of them is permitting oil companies to increase prices if the global crude price goes below $75. Once it crosses $75, the government will intervene to check the domestic prices. Moreover, the Planning Commission has also supported the petroleum ministrys move to deregulate auto fuel prices. http://www.financialexpress.com/news/no-oil-price-hike-immediately-says-deora/482235/ | |
INTERNATIONAL NEWS Go To Top PTI See this story in: The Economic Times (June 29) New York: One of the famed models of British premium brand Jaguar -- Jaguar XK 120 -- has been named among the ten cars that have changed the world, by business magazine Forbes. Terming the Jaguar XK 120 as "one for the ages", Forbes noted that the model, launched in 1948, was Jaguar's first car to be produced after the Second World War. GM TO BACK FUTURE PRODUCT LIABILITY CLAIMS Agencies See this story in: The Economic Times (June 29) New York: General Motors has agreed to take on responsibility for future product liability claims, removing what could have been a sizeable roadblock on the automakers path to a quick sale of its assets and emergence from Chapter 11 bankruptcy as a new company. GM PICKS MICHIGAN FOR SMALL CAR PLANT Reuters See this story in: The Financial Express (June 29) Detroit/Washington: General Motors Corp will build a new small car at a plant near Detroit in a move that will save 1,400 jobs in Michigan, but shutter plants in Wisconsin and Tennessee. GM said it would make a new subcompact at its Orion Township assembly plant rather than plants in Janesville, Wisconsin or Spring Hill, Tennessee. The decision capped a month of intense lobbying aimed at sparing local jobs as GM slashes costs and drops auto brands and car dealers under a federally supervised bankruptcy. The announcement also moved GM closer to an attempt to make a small car profitably in the United Sates, something executives had long dismissed as impossible because of the segments tough competition and thin margins. GM had planned initially to import its upcoming subcompact model from China, but ran into intense opposition from the United Auto Workers union. A round of concessions from the union completed just before GMs bankruptcy filing earlier this month paved the way for a reversal of that decision, executives said. It is now possible for GM to produce these size vehicles in the US in a cost-competitive and profitable way, said Gary Cowger, who heads GMs manufacturing operations. The Orion plant will be closed for retooling in September and then brought back as a two-shift operation with the capacity to make 1,60,000 vehicles annually. It will employ 1,200 workers, some of them new hires at a starting wage of $14 per hour, or half of current assembly wages. Another 200 workers will be kept on at a nearby metal stamping plant in Pontiac. GM has high hopes for the subcompact. It expects to make over 1,00,000 of the still-unnamed cars per year in Michigan. By contrast, the Chevy Aveo sold just under 10,000 units in the United States in the first five months of 2009. The new subcompact will replace the Aveo, which GM imports from South Korea. We think this car in a year or two will be more and more toward the sweet spot of the market, said Troy Clarke, president of GMs North American operations. As part of its bankruptcy process steered by the Obama administration, GM is closing 14 additional US plants. http://www.financialexpress.com/news/gm-picks-michigan-for-small-car-plant/482401/ HUMMER BUYER TO OPEN TALKS WITH CHINA REGULATORS: REPORT Reuters See this story in: The Economic Times (June 28) The potential buyer of General Motors Corp's Hummer division will begin formal talks with Chinese regulators on Monday in an effort to win approval for its acquisition, The Wall Street Journal reported on Saturday. VW DENIES HAVING ISSUED ULTIMATUM TO PORSCHE Reuters See this story in: The Economic Times (June 29) Frankfurt: Volkswagen has said it had not presented Porsche with an ultimatum to accept its layout for a merger of the two carmakers, denying a media report and accusations from Porsche. There is no ultimatum, a VW spokesman told Reuters on Sunday. He would not comment further. Porsche on Saturday accused VW and its key shareholder Lower Saxony of extortion following a magazine report that VW and the regional state had demanded Porsche accept a tie-up of the two carmakers with VW in charge. PORSCHE FUMES AT VW, LOWER SAXONY 'EXTORTION' Reuters See this story in: The Economic Times (June 28) Der Spiegel magazine reported in its online edition on Saturday, that Porsche Chief Executive Wendelin Wiedeking and Chairman Wolfgang Porsche head been pressed to agree by the end of June that VW take a 49 per cent stake in Porsche's sports car business for 3-4 billion euros ($4.2-$5.6 billion). DAIMLER LAUNCHES FIRST GERMAN HYBRID CAR Agencies See this story in: The Economic Times (June 28) Frankfurt: German luxury car maker Daimler launched its first hybrid model last week, almost 10 years after the market leader, Toyota. The world's best-selling limousine, a favourite of world leaders, the Mercedes Benz S Class, is now available in Europe with two motors, one electric and the other petrol (gasoline), to save fuel and cut pollution. FIAT OPEN TO RETAIL, INSTITUTIONAL BOND Reuters (June 29)
Asked at an event in Venice on Saturday whether Fiat would be willing to issue a bond for the retail or institutional market, Marchionne said: "We are open to doing either, or a mix." "With the interest rates that are around at the moment, it could be a big deal for everyone," he added. Italian oil company ENI said on Friday offers for its retail bond topped 5.8 billion euros compared with a maximum offer amount of 2 billion euros. Marchionne also said it was premature to discuss any plans regarding production at its joint venture plant near Valenciennes in France with PSA Peugeot Citroen. Fiat has taken a 20 percent stake in U.S. car maker Chrysler CBS.UL and Marchionne is working to put together a plan for the U.S. car maker's product offer. Daily Il Giornale had cited rumors the Fiat-Chrysler plan could see the platform for Chrysler's Voyager model extended to the Phedra, affecting a collaboration Fiat has with PSA. "The Voyager platform will continue to be American because it was born there," Ansa quoted Marchionne saying. "It is premature to talk about convergence (until) we have decided with the French what Valenciennes will do," he said.
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ECONOMY & FINANCE Go To Top PTI See this story in: The Hindu Business Line (June 29) New Delhi: India's economic growth would suffer significantly, though not catastrophically, and inflation would rise, if delay in monsoon causes reduction in farm produce, Moody's said. The monsoon problem has negative implications on economic growth... the damages will be significant, though not catastrophic, Moody's economy.com economist Ms Sherman Chan said when asked about economic implications of delay in monsoon. Moody's said that as the monsoon is crucial to the farm business, the downside effect of its delay will be evident in the agricultural component of the GDP data. Agricultural output typically represents less than 20 per cent of the country's GDP compared with service-related sectors which account for more than 50 per cent, Ms Chan said. However, there would also be a spill over effects to other sectors, she said. For instance, a slump in agricultural output will hurt the income of some businesses and households. This will in turn weigh on business investment and household consumption, so service-related sectors may also feel a bit of the squeeze caused by the monsoon problem, she explained. Moody's further said that delay of the monsoon also an upside risk to Indias inflation outlook. http://www.thehindubusinessline.com/blnus/01281720.htm | |
Sunday, June 28, 2009
Indian Auto Industry Update June 29, 2009
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