| INDIAN AUTOMOBILE INDUSTRY | |
| INDUSTRY UK minister firm on conditions for Jaguar loan Hybrid cars to carry forward Delhis green Games mantra How Belgium's Zeebrugge drives the world's car mkt INTERVIEWS/FEATURES CARS, SUVs, MUVs Mercedes to sell 100 units in eastern India Peugeot to take final call on facility in India by year-end COMMERCIAL VEHICLES Ashok Leyland, Nissan JV to rework manufacturing plans CONSTRUCTION & AGRI MACHINERY Bajaj auto targets growth in motorcycle market COMPONENTS | ALLIED INDUSTRIES Goodyear to shut Philippines plant; cut 500 jobs Exide may exit its Aussie associate co FINANCE & INSURANCE Hyundai to invest US$183m in Czech plant VW to pay $11.28 billion for all of Porsche: Report No decision yet on Opel bidders, says German minister Delphi bankruptcy auction postponed ECONOMY & FINANCE
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| INDUSTRY Go To Top PTI See this story in: The Economic Times (Web & Print Edition), Daily News & Analysis (Web Edition) , The Times of India (Web Edition), The Statesman (Web Edition), Deccan Herald (Web Edition), mint (Web Edition), The Hindu Business Line (Delhi Print Edition), The Indian Express (Delhi Print Edition), Asian Age (Delhi Print Edition) (July 20)
London: Tata Motors has threatened to scrap its plan to launch Vista electric cars in the UK if it does not receive a 10 million pounds loan from the British government soon, The Observer reported on Sunday.
No money has been released by the government from its 2.3 billion pounds package, which it unveiled in January. The package is made up of loan guarantees and loans for car makers wanting to invest in fuel efficient technologies, the report said. http://www.dnaindia.com/money/report_tatas-threaten-to-scrap-uk-electric-car-project_1275504 http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=261369 http://www.deccanherald.com/content/14608/tatas-threaten-scrap-vista-electric.html http://www.livemint.com/2009/07/19114824/Tatas-threaten-to-scrap-Vista.html
UK MINISTER FIRM ON CONDITIONS FOR JAGUAR LOAN S Kalyana Ramanathan Business Standard (Web & Print Edition) See similar story in: The Hindu Business Line (Web & Print Edition), Daily News & Analysis (Web Edition), The Times of India (Web & Print Edition), The Indian Express (Web Edition), Yahoo India (Web Edition), The Telegraph (Web Edition), mint (Web Edition), Deccan Herald (Web Edition), Asian Age (Delhi Print Edition) (July 20)
London: The British government wont guarantee the much-awaited 340 million loan for Tata Motors luxury car maker, Jaguar Land Rover, unless it has a say in the companys future plans.
Business Secretary (Minister) and head of the Department for Business, Enterprise and Regulatory Reform (BERR), Peter Mandelson, has made this clear, according to The Sunday Telegraph. The loan is from the European Investment Bank (EIB) and is urgently needed by JLR, which has been making huge losses for the past 18-odd months, since Tata took control of its ownership.
Prolonged negotiations have been on between Tata Group and the UK government over the conditions the former must accept to secure the loan guarantee. According to this report, that cites its sources as people close to the situation, Tata is yet to give its response to this revised insistence by the UK government.
Responding to the report, a JLR spokesperson said: Talks are continuing between the government and our parent, Tata Motors, around the loan guarantees, but we have no further comment to make.
Ever since the loan from EIB was approved in early April, the UK government has been indicating it wants a say in JLRs future business plans, while Tata Motors have sought complete freedom in running JLR, without any operational intervention from the state. JLRs CEO, David Smith, in an interview to Business Standard last week, had said his company does not wish to offer a board berth to the UK government, and the loan guarantee would be accepted only on commercial terms, just as it would accept from any other lender.
Though the UK government is said to have come to terms with the counter-offer and not insist on a board berth, it has sought a say in participating in the business plans that Tata Group may chalk out for the revival of JLR.
Though JLR is scouting for fresh funding to smoothen its cash-strapped operations, the loan from EIB is considered vital for its future research and development, particularly in the area of developing green cars that can strengthen its competitiveness in the European car market for the low-emission cars of the future. Smith had also said that while JLR awaits the UK governments guarantee, the company is close to securing fresh funding from the Indian banking system as well.
Lack of money to run its operations has already taken a toll on its balance sheet. Due to falling demand for premium and luxury cars globally, JLR had reported a loss of Rs 2,400 crore for the 10 months ending March 2009. This loss coincides with the period Tata Motors came to own it. In recent public statements, TMs vice chairman and former managing director, Ravi Kant, had said he was hopeful of JLRs turnaround in two years. http://www.business-standard.com/india/news/uk-minister-firmconditions-for-jaguar-loan/364392/ http://www.thehindubusinessline.com/blnus/14191506.htm http://www.dnaindia.com/money/report_accept-revised-jlr-proposal-or-risk-the-plan-uk_1275505 http://www.indianexpress.com/news/uk-asks-tatas-to-accept-revised-jlr-proposal/491354/ http://in.biz.yahoo.com/090719/50/batwqr.html http://www.telegraphindia.com/1090720/jsp/business/story_11258229.jsp http://www.livemint.com/2009/07/19224801/Tata-asked-to-accept-revised-p.html http://www.deccanherald.com/content/14719/uk-asks-tata-make-choice.html
Raghuvir Srinivasan The Hindu Business Line (Web & Print Edition) (July 19)
A year is too short a time to judge the success or otherwise of an acquisition. Indeed, M&A deals are always done with an eye on the medium-to-long-term horizon. By that measure, it certainly is too early to pass a comment on the $2.52-billion Jaguar Land Rover (JLR) acquisition of Tata Motors, completed in June 2008.
Yet, one cannot escape the thought that maybe when Tata Motors looks back on the deal a few years from now in the medium term it will probably do so more with mixed emotions rather than a sense of achievement. At least, that is what the developments in the last one year point to.
Those who questioned the logic of the deal when it was signed and that was a lot of people, including auto industry pundits, analysts and investors probably feel vindicated now by the damage that the acquisition has caused to Tata Motors financials and balance sheet.
Just consider this. The 2008-09 consolidated earnings picture shows Tata Motors in the red by Rs 2,505 crore, mainly due to the loss of Rs 2,224 crore posted by JLR. Tata Motors has already infused $1.4 billion into JLR in the last year and it may need to spend another $1 billion this year, mainly for research and development (R&D).
No compelling logic Consequent to the large borrowings incurred for the acquisition and the erosion in net worth arising from the loss posted by JLR, the debt-equity ratio of Tata Motors is at a high 5:1. And all this at a time when the domestic commercial vehicles business is going through a recession and cash-flows are under strain.
The logic behind the JLR acquisition was neither compelling nor clear even when it was announced. There was, and is, little synergy between the mass-market cars business of Tata Motors and the luxury vehicles business of JLR.
Save for some minor benefits, Tata Motors was expected to benefit neither from JLR technology nor from its components base. Sharing of dealer network was not an option too, given the exclusive nature of JLRs products. And bringing JLRs vehicles to India was not the main objective either.
What does the road ahead now hold? A lot of rumblers, potholes and certainly an uphill gradient. The US, the UK and Europe together account for four out of every five vehicles sold by JLR and these markets are deep in recession. Worse, the US market is showing signs of a structural shift away from big, gas-guzzling vehicles which is bad news for JLR.
Meanwhile, Europe is cracking down on vehicle emissions, with stringent norms coming into force in the next couple of years that could require JLR to cut down emissions from its vehicles by as much as a fourth. While not impossible technologically, it means higher investment in R&D. Tata Motors has indicated that JLR will be in the red in the current financial year as well, while the prospects for the next one are uncertain. The company may have to keep the funds flowing into JLR.
And finding those funds is going to be rather difficult in the current environment, especially given the companys already high leverage. http://www.thehindubusinessline.com/iw/2009/07/19/stories/2009071950380700.htm
Sumi Sukanya The Times of India (Delhi Print Edition) (July 19)
Gurgaon: Thirty-five-year-old Satish Kumar, a farmer from Nakhraula village, about 20 kilometres from Gurgaon, was at a loss for words on Saturday when he received the keys to the worlds cheapest car Tata Nano and became its first proud owner in north India.
The car was delivered in the showroom of ABS Motors in Sector 29 near IFFCO Chowk amid thousands of curious onlookers and mediapersons. My life will never be the same now. I can take my family out in a car, safe from the scorching heat, said an exhilarated Kumar, who owned just a twowheeler till Saturday. He added that it was difficult to manage without a car as his two children had grown up and the family, including his wife and mother, could no longer be accommodated on a bike. I have a 13-year-old son and an 11-year-old daughter. It had become so difficult for the family of five to go out together. Though I felt a strong need for a car, my budget didnt allow me to get one till I heard of Nano, said Kumar, with his hands on the steering wheel of his Tata Nano LX (Lunar Silver). Kumar had applied for the wonder car in April this year and was lucky to get it in just three months. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
HYBRID CARS TO CARRY FORWARD DELHIS GREEN GAMES MANTRA The Indian Express (Web & Print Edition) (July 19)
The first hybrid car, to run alternately on petrol and electric energy, will be put together by a group of students from the Delhi College of Engineering (DCE). The college has received Rs 20 lakh from the Indian Oil Corporation (IOC) for the effort.
DCE director P B Sharma told Newsline that a team of eight undergraduate students from disciplines like electronics, mechanical and electrical engineering, will create a hybrid car out of a Maruti Esteem. Maruti Udyog has already given the car to the college. We have expertise in developing a hybrid car, Sharma said. We made the first hybrid, single-seater, which won us a prize in the US in 2005.
This project will take our innovation forward. The team of students will work on the project for the next few months and will also be graded on it. The students will be led by Sharma and another faculty member, S Maji.
Sharma said the car will be developed in such a way that it could set a precedent for commercially-viable hybrid cars.
According to Delhi government officials, the hybrid car will be displayed at a Commonwealth Games venue during the event and may even be used to give joyrides. An official said: Apart from showcasing our cultural and historical heritage to athletes and spectators arriving in Delhi, we would also like to project to the world our commitment towards the environment.
The team of students will work on the project for the next few months and will also be graded on it. The students will be led by Sharma and another faculty member, S Maji. Sharma said the car will be developed in such a way that it could set a precedent for commercially-viable hybrid cars.
According to Delhi government officials, the hybrid car will be displayed at a Commonwealth Games venue during the event and may even be used to give joyrides. An official said: Apart from showcasing our cultural and historical heritage to athletes and spectators arriving in Delhi, we would also like to project to the world our commitment towards the environment. http://www.indianexpress.com/news/hybrid-cars-to-carry-forward-delhis-green-games-mantra/491295/1
HOW BELGIUM'S ZEEBRUGGE DRIVES THE WORLD'S CAR MKT Pallavi Aiyar Business Standard (Web & Print Edition) (July 20)
The next time you step into the leather-scented comfort of a newly acquired imported car, pause for a second to consider the story of how it came to be in your hands. This is a tale of crossing stormy oceans in the hold of mammoth deep-sea carriers. And more often than not, it also involves a call at the little-known Belgian port of Zeebrugge.
Strategically located on the coast of the North Sea, on the axis of the maritime traffic routes between the United Kingdom and the European continent, Zeebrugge has emerged as the worlds womb for new cars. Over 2.1 million cars passed through its docks in 2008.
It has taken this upstart port less than two decades to challenge the established heavyweights in the region, Antwerp and Rotterdam, and emerge as the preferred port of call for all the big names in the auto logistics industry. Toyota, for example, has made the port its European hub, moving around 400,000 cars through it annually.
Wallenius Wilhelmsen Logistics (WWL), one of the worlds leading car shippers, is another important player to have embraced Zeebrugge. It has 400 sailings a year to and from the port. William Van Dessel, managing director of the companys Zeebrugge operations, explains that the new ports popularity has emerged from a combination of its ideal location and the room it has for the new development.
Unlike Antwerp or Rotterdam, Zeebrugge is located on the sea, so that ships do not have to navigate up rivers to reach it. And unlike the older ports, Zeebrugge has ample land available for expansion. This has proved to be especially important, given the boom in shipping that has seen container volumes between Asia and Europe double over the past five years. Ships deployed on the route are two-and-a-half times the size of the largest, a decade ago.
Moreover, the once relatively simple task of shipping new cars has grown enormously complex with the fragmentation of trade routes and the entry of new players. Only 15 years ago, auto shipping was confined to the movement of cars on three main routes - from Japan and South Korea to Europe, from the same countries to the United States and the transatlantic crossing between Europe and North America. Car production sites were mostly either near the sea or linked to ports by well-established logistics chains .
There are not only a range of new players from Chinas Cherry to Indias Tata, but a number of established manufacturers have also chosen to move production to lower-cost bases, in Asia, Africa and South America. Route networks are thus far more complex and production sites often far away from the coast, in countries still struggling to build modern infrastructure.
At Zeebrugge, WWL leases a 4.7 hectare terminal that houses both pre-delivery inspection (PDI) and vehicle personalisation centres. Here cars can avail of a body shop, a car wash and also be modified to suit customer tastes.
Zeebrugge and WWL are currently attempting to replicate their success thousands of kilometers east, in India. The Flemish port signed an MoU with the port of Chennai in November last year, pledging technical assistance to help the south Indian port meet its goal of moving away from the handling of dirty goods like iron ore to clean cargo like containers and cars.
In the meantime, WWL has signed an agreement with Mundra port in Gujarat to assist it in setting up a dedicated auto terminal. Mundra, Indias largest private port, wants to establish itself as the Zeebrugge of the East. Maruti is also investing Rs 40 crore towards a dedicated car terminal and PDI centre at the port. Already in January this year, a pilot consignment of 1,534 Maruti Suzuki A-Star cars, left for Europe from Mundra.
But despite all this stepped-up activity, the cold reality is that Indias ports are woefully under-prepared for any significant movement of cars. Eric Maurissen, founder of WWLs Zeebrugge operations went to India in 2007 to carry out a port study on behalf of EUKOR (Europe Korea Car Carriers). He says he was sorely disappointed with what he saw.
In Chennai, the port authorities claim they are serious about cars but in fact all their expansion plans until 2025 only focus on containers, containers, containers. Specific plans for cars are nowhere.
Its strange, he continues. On the one hand you (India) are promoting the cheapest car in the world (the Nano), but on the other hand there is no attempt to develop a long-term strategy to get these cars out to the world.
Maurissen says Chennai was keen for EUKOR to set up operations there, but the port lacked any room for expansion. The port said it can provide space for up to 450,000 cars. Thats a good beginning. But what happens afterwards? There are quick fix solutions but no strategy.
This judgment is borne out by the fact that only a couple of months ago, Hyundai Motor India Limited (HMIL) announced it will be looking to shift the production of its premium compact car, i20, from Chennai to Europe. One of HMILs main complaints is the lack of port infrastructure to support surging exports.
HMIL is Indias largest car exporter and is currently enjoying bumper sales in Europe as a result of incentives being offered by many European governments to people exchanging their old cars for new fuel-efficient ones. The company recorded a 33 per cent growth in exports year-on-year in June. But the lack of facilities at Chennai port is hampering its ability to keep up with the increased demand. Maurisson sums it up: India needs to understand: if you want to sell cars, you first need to ship them. http://www.business-standard.com/india/news/how-belgium%5Cs-zeebrugge-drivesworld%5Cs-car-mkt/364390/
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| INTERVIEWS/FEATURES Go To Top How, then, do societies with far less need for experimentation promote bold ideas with rigorous parameters? And with less fuss? No one will argue that the central premise behind the Nano is aspirational. Like a house or a watch, people will buy it less to enact a physical change in their life than as a symbolic improvement of their condition. Yet when it is driven, the mere action of its introduction on to the road makes the Nano a public act, to which both the car owner and the manufacturer owe a civic responsibility. Is the one-time payment of road tax enough compensation for the 10 years of congestion and pollution the car will cause?
Without fuss, or Beethovens music, Japanese firms have been quietly and effectively working on hybrid cars, taking them from mere experiments to marketable commoditieseach year refining the technology and design. Between them, Toyota and Honda have diligently reduced cost, increased electric and fuel efficiency and added features to cool the interiors without air-conditioning. Their understanding of driving conditions in the city and those on long country stretches has itself altered hybrid technologies to minimize environmental impact. A Chinese inverter company has produced a cheap electric car of such high standards that it is to be marketed in Europe. Chevrolet, a US subsidiary of General Motors, known the world over for its gas-guzzlers, is also promoting a new hybrid version, the Chevy Volt. An electric scooter has been introduced by the Italian firm Piaggio. Is there a Bajaj hybrid scooter in the making?
In a world living under the constant threat of depleting resources and increasing emissions, the Tata answer is a blip on the horizon. A conventional car run on ordinary fuel leaves little doubt on the primary intent behind the Nano being just another business opportunity. Yet among the business-minded in India, there are few people such as the Tatasinnovative, culturally conscious, urbane and ecologically awareto come up with a wholly different car for India. When that will happen is anybodys guess. The Nano, meanwhile, will slowly sink into the stream of Indian traffic, like all other brands, and be slowly forgotten. http://www.livemint.com/2009/07/19211726/A-big-no-to-Tata-Nano.html?h=B
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| CARS, SUVs, MUVs Go To Top The Hindu Business Line (Web & Print Edition) (July 19)
Mumbai, July 18 Maruti Suzuki, which has been averaging monthly sales of around 75,000 units during the April-June period of this fiscal, is likely to ramp up production by 25 per cent towards September to meet the Diwali season demand.
We are expecting the company to roll out at least 90,000 cars a month by end-September and maintain the momentum through November, top ancillary suppliers to Maruti told Business Line.
In the process, they add, the carmaker is poised to touch sales of one million units this fiscal, which marks a significant jump from nearly eight lakh units in 2008-09.
All the companys products are doing roaring business especially the A-Star, the Ritz, the Swift and the Alto. We have our order books full, said a supplier, who did not wish to be identified.
In a nutshell, Maruti is not going to give up its leadership slot in a hurry, despite the healthy competition emerging in the market.
By the end of the day, it offers customers a heady mix of value for money (even in used cars), sales and service support. In addition, the company has been churning out new products that have sustained customer interest, another supplier said.
Market observers maintain that the Tata Nano could end up eating into a share of Marutis market share but that is going to take some time.
In the first place, production of the Nano for this fiscal will be confined to barely 45,000 cars from Tata Motors interim plant at Pantnagar. Numbers will increase during 2009-10 when the Sanand facility in Gujarat is up and running but even then bridging the gap with an aggressive market leader will take some time longer, they say.
Exports look strong What has been equally heartening for Maruti is the fact that its exports have been surging lately to account for at least 15 per cent of its total output and tipped to rise even further in the coming months. This has largely been propelled by Europes scrappage schemes (especially in Germany, France and the UK) which have increased demand for fuel-efficient cars.
The company has also been going flat out on its rural drive and sales here are also taking up 15 per cent of production. The focus here will only sharpen in the future through a host of schemes intended to woo buyers in these markets.
Maruti has constantly been in the forefront for innovative finance schemes which have targeted specific customers such as teachers, lawyers, journalists, policemen and even panchayat chiefs. The lessons have been handy in evolving new retail initiatives to push sales, sources said.
In the midst of this buoyancy, there are some issues to ponder over. There is a huge demand for Marutis diesel cars but dealers say delivery schedules are still under some pressure thanks to the companys export commitments to east Europe.
There is also a degree of apprehension that with a slew of models, some could be marginalised but then, as experts say, this is only inevitable. The idea is to constantly keep buyers eager and excited. Not all products may work but the ones that do will make all the difference in the leadership stakes, they aver. http://www.thehindubusinessline.com/2009/07/19/stories/2009071950770200.htm
The Hindu Business Line (Web & Print Edition) (July 19)
New Delhi: Maruti Suzuki has launched in Delhi and the National Capital Region a CNG version of the Alto that costs Rs 43,545 more than the petrol version. This is the first model of the company with a CNG variant. However, the CNG kit will be fitted only in new Alto cars before delivery to the customer from the dealerships. The retrofitted CNG kit, which has a 12-kg tank with a capacity of 7-7.5 kg gas, offers a running cost of around Rs 1 for a kilometre. The company offers a warranty of two years or 40,000 km on the model, the same as on its non-CNG variant. http://www.thehindubusinessline.com/2009/07/19/stories/2009071950870200.htm
MERCEDES TO SELL 100 UNITS IN EASTERN INDIA Business Standard (Web Edition) (July 20)
Kolkata/ Bhubaneswar: Mercedes-Benz India Limited, a leading player in the luxury car market in the country is aiming at a sales volume of 100 units across all its models in the eastern region in 2009 out of which 20-25 units are expected to be sold in Orissa.
The German luxury car maker sold 82 units in the eastern region in 2008 out of which 18 were sold in Orissa. BMW India, the closest competitor of Mercedes in the luxury car market in India, clocked a sales volume of 72 units in the eastern region in 2008.
On a pan-India basis, Mercedes sold around 4,000 cars in 2008, the highest by any luxury car maker. The biggest markets for Mercedes in India are Delhi and Mumbai and together the two cities account for 45-40 per cent of the car makers total sales.
The eastern region of the country is a growing market for luxury cars. Mercedes has clocked a year-on-year growth of 14 per cent in the eastern region and we expect to sell 100 luxury cars in this region in 2009, said Hiteshwar Singh, chief executive officer of Interkrafts, the sole dealer for Mercedes-Benz in eastern India.
He was talking to reporters at the launch of the Mercedes M-Class sports utility vehicle (SUV) in the city.
The size of the luxury car market in India is estimated at 6,000-7,000 per annum and the segment is growing at the rate of 30 per cent every year.
The Mercedes M-Class is being imported as completely built unit unlike the C-Class, E-Class and S-Class which are assembled as completely knocked down kits at the assembly plant of Mercedes at Chakan (Maharashtra).
Mercedes has appointed a sales representative who will exclusively focus on the Orissa market. We are thinking of opening a Mercedes showroom in Orissa in the long run, added Singh. The new Mercedes M-Class with a price tag starting from Rs 55 lakh is available in petrol as well as diesel variants.
The SUV is equipped with safety features like reversible belt pensioners and adaptive belt force limiters apart from anti-lock braking system and brake assist system. http://www.business-standard.com/india/news/mercedes-to-sell-100-units-in-eastern-india/364361/
PEUGEOT TO TAKE FINAL CALL ON FACILITY IN INDIA BY YEAR-END PTI See this story in: The Economic Times (Web Edition), mint (Web Edition) (July 20)
New Delhi: The second largest carmaker of Europe, PSA Peugeot Citroen, will take a final call by this year-end on whether to enter India, although sometime back it was determined to set up shop in the country. http://www.livemint.com/2009/07/19150402/Peugeot-to-take-final-call-on.html
The Hindu (Metro Plus)
Maruti Suzukis handsome SUV, the Grand Vitara, has finally got the firepower it deserves. Since its launch, the Grand Vitaras weak two-litre, 120bhp motor affected the popularity of the car. The buzzy motor lacked refinement and tractability something that Hondas CR-V excelled in.
The Vitara has been pleading for a better engine, and now Maruti has fitted in a 2.4-litre that churns out a cracking 163.5bhp! Theres also a healthier 22.5kgm of torque to play around with. Apparently, the transmission has also been tweaked. So, we cant wait to get our hands on the Vitara for a full test drive. The Grand Vitaras foor-wheel drive system remains intact with the option to lock the differentials. The wheels have been upgraded to 17 inches. The grille at the front also sports some tweaks. On the inside you have a new multi-information display that amongst other things shows the driving range and the real-time fuel consumption.
The Grand Vitara retains its superb price tag even after the arrival of the new powerful engine. The 4-speed automatic is on offer for Rs. 17.97 lakh and the 5-speed manual version for 16.67 lakh. (All prices ex-showroom Delhi). http://www.hindu.com/mp/2009/07/16/stories/2009071651190300.htm
The Hindu (Metro Plus)
Honda has realised that a lot of customers for the Jazz might want more than a puny 1.2-litre engine. Considering the fact that the Jazz shares its platform with the Honda City, Honda is now considering slotting the 1.5-litre 110bhp engine from the City under the Jazzs bonnet too, but not before 2010.
This engine would definitely transform the Jazzs performance, but will add an estimated Rs. 70,000 to the price.
Honda also plans to offer an automatic transmission option with the 1.5-litre powerplant. With this option, the Jazz could be dearer by over Rs. 1 lakh. http://www.hindu.com/mp/2009/07/16/stories/2009071651180300.htm
The Hindu (Metro Plus)
Mahindra Scorpio Hybrid now comes with the Start/Stop system that improves fuel efficiency, writes Hormazd SorabjeeMahindras Start/Stop system developed jointly by Mahindra and Bosch is so good, it won Autocars Innovation of the Year award for 2009. After first testing this system dubbed by Mahindra as the Micro Hybrid in the Bolero last year, we found no discernible improvement in fuel economy.
However, we knew this clever yet uncomplicated system had the potential to deliver significant fuel savings with a little bit of fine-tuning, and this time around, its been fitted to Mahindras flagship Scorpio.
The Start/Stop system functions through a very simple process. When the car is stationary and idling (in neutral with no foot on the clutch), the engine waits for a few seconds before switching off automatically. Press the clutch and before you can select first gear, the engine fires up and you are ready to go.
The logic is clear cut switch off the engine and you burn no fuel ask any cab driver!
The hardware is pretty compact and sits deep inside the engine bay. All it consists of is a beefed-up starter motor to cope with the stress of frequent starting, an uprated alternator and a stronger battery to handle the extra electrical load. The crankshaft sensor sends information to the ECU, which in turn decides when to start or stop the engine.
Whats crucial here is the interval between selecting neutral when stationary and the engine shutting down. In the Bolero we previously tested, Mahindra had set an agonising 10-second delay which proved too long even during rush-hour traffic as cars constantly inched forward; so remaining completely stationary for more than 10 seconds is not that frequent. Okay, clogged intersections and major junctions can keep you waiting for several minutes, but more often, you are ready to move almost immediately after the engine shuts down. This really defeats the purpose of the Start/Stop system.
To register an improvement in fuel economy, the engine should idle less, and hence needs to shut off more frequently. We felt the idling time shoud be reduced to five seconds, which is exactly what Mahindra has now done. But has it made a difference? We tested the new Scorpio Start/Stop system for over 1,000km in Mumbai city, with the system switched on and off (theres a button on the dash which disables the Start/Stop function, and the Scorpio runs normally) to get a precise comparison.
In Start/Stop mode, the Scorpio returned a frugal 11.5kpl, a near one kpl improvement (0.9 to be precise) in normal mode. Thats a pretty impressive figure for a piece of kit that costs just around Rs 4,000. The biggest flaw in this system is that the air-con stops working when the engine switches off. Even the music system resets every time you restart the engine. Hybrid cars such as the Civic Hybrid dont have such problems as the additional run off on electric motor is powered by a bank of batteries.
The Start/Stop system or micro hybrid which costs a fraction, makes much more sense in the Indian context as compared to the pricing of the wallet-crunching Civic Hybrid. Now, if only they can find a way to keep the air-con running.
Technical data Price Rs 10.60 lakh (on-road Mumbai) Length: 4430mm Width: 1817mm Height: 1975mm Wheelbase: 2680mm Turning circle: 11.2m Kerb weight: 2510kg Engine 4-cyls in-line, 2179cc, turbodiesel. Installation Front, transverse, rear-wheel drive Power 120bhp at 4000rpm Torque 29.5kgm at 1800- 2800rpm/ Gearbox 5-speed manual Fuel tank 60 litres Brakes (F/R) Ventilated discs / drums Tyre size 235/70 R16 Tubeless http://www.hindu.com/mp/2009/07/15/stories/2009071550490300.htm
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| COMMERCIAL VEHICLES Go To Top PTI See this story in: The Hindu Business Line (Web Edition), The Financial Express (Web & Print Edition), The Indian Express (Web Edition), The Pioneer (Web Edition), The Telegraph (Web Edition), Asian Age (Web Edition), Deccan Herald (Web Edition), Yahoo India (Web Edition) (July 19)
Hyderabad: Auto major Mahindra and Mahindra (M&M) on Saturday launched the Bolero MaxiTruck with Micro Hybrid technology in Andhra Pradesh.
Talking to media persons after the launch, Mr Arun Malhotra, Senior Vice President, Sales and Customer Care, Automative Sector, M&M said, the new Bolero MaxiTruck features the sylish front look of the Bolero; the distinctive front grill gives the vehicl e a masculine yet aesthetic face, lending it a strong on-road presence and evoking a sense of pride for its owner.
The Bolero MaxiTruck is the first product in the 'Pick-Up' category to offer the revolutionary Micro Hybrid technology which has been pioneered by Mahindra in India. This path breaking system will help deliver considerable improvement in fuel efficiency, ensuring greater prosperity for our customers, Mr Malhotra said.
He said that Micro Hybrid technology is based on the simple principle of not burning fuel when it is not required. It automatically detects moments, during the journey, when the vehicle is idle and stops the engine.
This conserves fuel, leading to reduced running costs and reduced emissions. He said Mahindra has pioneered this eco-friendly and innovative technology in India and successfully implemented the same for use in vehicles such as Bolero and the Scorpio. The vehicle is priced at Rs 3.44 lakh (ex-showroom Hyderabad). http://www.thehindubusinessline.com/blnus/02181620.htm http://www.business-standard.com/india/news/mm-launches-bolero-maxitruck-in-ap/68177/on http://www.financialexpress.com/news/m&m-launches-bolero-maxitruck-in-ap/491117/ http://www.indianexpress.com/news/m&m-launches-bolero-maxitruck-in-ap/491117/ http://www.dailypioneer.com/190056/Snapshots.html http://www.telegraphindia.com/1090719/jsp/business/story_11255334.jsp http://www.asianage.com/presentation/leftnavigation/news/business/mm-rolls-out-maxitruck.aspx http://www.deccanchronicle.com/business/mm-rolls-out-maxitruck-560 http://in.biz.yahoo.com/090718/50/batwp0.html
ASHOK LEYLAND, NISSAN JV TO REWORK MANUFACTURING PLANS PTI See this story in: The Economic Times (Web & Print Edition), mint (Web Edition) (July 20)
Mumbai: In view of the current economic downturn and the reduction in demand for M&HCVs, the Hinduja Group-controlled Ashok Leyland has redrawn its capacity enhancement programmes to be in line with market outlook. http://www.livemint.com/2009/07/19133703/Ashok-Leyland-Nissan-JV-to-re.html
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| CONSTRUCTION & AGRI MACHINERY Go To Top | |
| 2/3 WHEELERS Go To Top The Hindu Business Line (July 20)
New Delhi: Two-wheeler sales have picked up this fiscal defying economic slowdown. Loan waivers, excise duty cut and high support prices on farm crops have enabled sales to grow at about 15 per cent.
Ironically, two-wheeler financing is not yet picking up and with a good reason it is costly. Interest rates on two-wheeler loans are still as high as 21-24 per cent, says Mr Ravi Sud, Chief Financial Officer, Hero Honda.
The two-wheeler market, mostly dominated by motorcycles, accounts for 75 per cent of the overall vehicles market in the country. Last fiscal, out of the 9.7 million vehicles sold in India, 7.4 million were two-wheelers, according to the data compiled by the Society of Indian Automobile Manufacturers. It is a market potentially worth about Rs 25,000 crore.
Despite this, banks and non-banking finance companies do not find it lucrative to tap the large market. Small ticket size of the loan, high operating costs in the rural and semi-urban areas and fear of non-performing assets are cited as the risks that curb greater lending in this sphere.
Private sector banks such as HDFC Bank, a leading player in the two-wheeler finance, offer a flat rate of 12.50 per cent (about 22-24 per cent on a declining balance basis). Even some non-banking finance companies charge a flat interest rate of 18 per cent (about 34 per cent on a declining balance basis). Fullerton, a subsidiary of the Singapore-based Temasek, offers loans at a flat rate of between 10 and 13 per cent. Generally loans in rural and semi-urban areas are costlier by 2 to 3 percentage points than those prevailing in urban areas, say officials.
Mr Sud said that high interest rates and reluctance among the banks had brought down the number of bikes purchased through finance. In 2006, when two-wheeler finance was at its peak, about 55 per cent of our bikes were financed. Now it is 25 per cent.
So what do financiers say? Two-wheeler loans are a small portfolio. Non-performing assets are still a concern. By keeping interest rates high we can ensure that only a genuine customer will come, said an industry official from a leading public sector bank. http://www.thehindubusinessline.com/2009/07/20/stories/2009072050521000.htm
BAJAJ AUTO TARGETS GROWTH IN MOTORCYCLE MARKET Business Standard (July 19)
Chandigarh: After having registered a negative growth in motorcycle market last year when the domestic motorcycle industry grew by around 3%, Bajaj automobile(Indias second largest two wheeler manufacturer) plans to reverse the trend this year. http://www.business-standard.com/india/news/bajaj-auto-targets-growth-in-motorcycle-market/68161/on
Business Standard (July 20)
Kolkata: After the Platina, Bajaj Auto launched another bike in the 100cc segment Discover DTS-Si and hopes that the fuel-efficient bike will be a hit with the cost-conscious customer. The Discover is priced at Rs40,000 ex-showroom in Kolkata, and offers a mileage of 80 kilometers to a litre under actual driving conditions, said a company release. Bajaj Auto Ltd currently enjoys a 9 per cent market share in the segment which is led by Hero Honda.
The company is a market leader in the 125 cc and 150 cc segments with 37 per cent and 43 per cent market shares respectively. The 100cc segment is the volume segment comprising nearly 55 per cent of the entire bike market. http://www.business-standard.com/india/news/bajaj/s-another-dts-si-bike/364379/
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| COMPONENTS Go To Top PTI See this story in: Business Standard, The Hindu Business Line (July 19)
Mumbai: Diesel engines manufacturer Kirloskar Oil Engines said its net profit stood at Rs 42.76 crore for the quarter ended June 30, 2009. http://www.thehindubusinessline.com/blnus/33181520.htm
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| ALLIED INDUSTRY Go To Top Chanchal Pal Chauhan The Economic Times (July 20)
New Delhi: Indian tyre makers are rolling out investment plans worth Rs 6,000 crore as rising popularity of radial tyres in the commercial vehicles (CV) segment is making international brands sit up and take notice. Currently, after a ban on Chinese radial tyres, only two international players Michelin and Bridgestone have a stake in this $10-million market, but thats set to change with the expected entry of companies such as Goodyear, Continental, Kumho, Pirelli, Yokohama and Hankook into the high-profit truck and bus radial tyre segment this year. Incidentally, Indias CV segment remains a weak spot in its auto industry, with sales dipping 33% to 1.83 lakh units in FY09. And the search for more bang to the buck is making consumers move towards high mileage, fuelefficient radial technology from the conventional cross-ply technology. As of now, radials make up only 9% of the Indian CV market against the world average of 65-70%. The industry estimates it to grow to 25% in the next three years. As per ATMA, Indian truck and bus tyre makers have lined up Rs 6,000 crore worth of investments for greenfield facilities and for increasing capacity at existing plants for new-age tyres. Mr Singhania, who owns JK Tyres & Industries, is investing Rs 700 crore at its Mysore plant to enhance truck and bus radial capacity to 12 lakh tyres from 3.68 in the next three years. Birla Tyres is setting up a dedicated CV radial plant and Apollo Tyres, a fringe players in the radial segment, has set up a new truck and bus radial plant at Baroda. Kolkata-based Dunlop Tyres is also entering the radial tyre segment while MRF is investing Rs 600-800 crore to increase capacity across its product portfolio. These investments come on the back of government restrictions on imports of Chinese tyres late last year. The government has also come up with a rule that every importer of any tyres must have a licence. Every month, over a lakh CV radial tyres were coming from China but after this diktat, only MNC companies are importing 70,000-80,000 radial tyres. Japanese tyre maker Bridgestone and French tyre company Michelin import CV tyres in small quantities. Goodyear, Kumho, Yokohama, Continental, Hankook and Pirelli, which import car tyres and have established distribution network, now plan to tap the high-margin CV tyre market. There is massive shift towards radial tyres with the dual-benefit of better mileage and improved fuel efficiency over the conventional cross-ply tyres. Like cars, 97% of which use radial tyres, the bus and truck segment will also witness a major shift in the next few years and foreign companies are likely to have a major pie, ATMA director general Rajiv Budhiraja said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
GOODYEAR TO SHUT PHILIPPINES PLANT; CUT 500 JOBS PTI See this story in: The Hindu Business Line (July 19)
Chicago: Tyre company Goodyear on Saturday said it will close its plant in the Philippines and cut 500 jobs as part of its strategy to trim production capacity and cut costs.
The plant in Las Pinas will shut down by September and reduce approximately 500 of the company's 600 associates in the Philippines, a company statement said.
Ohio-based Goodyear Tyre & Rubber Company said the move will lead to the reduction of nearly 2 million units of annual production capacity, which is a part of its strategy to remove 15 million to 25 million units of capacity over the next 2 years.
Production will be transferred to lower-cost plants in the company's Asia-Pacific Region, as Goodyear seeks to address uncompetitive manufacturing capacity globally. Due to high costs compared to other plants in the region, tyres produced in the Las Pinas plant are not competitive in the marketplace, Goodyear Asia-Pacific Region President, Mr Pierre Cohade said.
This action will neither affect the company's sales and marketing operations in the country, nor disrupt its services to wholesale, retail and original equipment customers. The company plans to record approximately $20 million as charges associated with the closure in the third quarter of 2009, principally for non-cash asset write offs. Goodyear, which has had a presence in the Philippines since 1919, opened the Las Pinas p lant in 1956. http://www.thehindubusinessline.com/blnus/10181209.htm
EXIDE MAY EXIT ITS AUSSIE ASSOCIATE CO Business Standard (July 20)
Kolkata: Exide Industries Ltd could exit its associate company in Australia, Ceil Motive Power Pty Ltd (CMPPL), where it has a 26 per cent stake as CMPPL has run into losses after the downturn hit the Australian markets. "We are open to many options, and have not particularly zeroed in on anything. Our brand is well established in Australia and we are bullish on continuing our business there", said Gautam Chatterjee, director, industrial, Exide. He also informed that Exide could look for a new partner to distribute and market its batteries in Australia.
Currently, CMPPL markets Exide's traction batteries in Australia. The company used to export around 4 lakh traction batteries per annum to Australia around two years back.
Last year it dipped to 230,000 traction batteries as the market almost halved, Chatterjee informed. T V Ramanathan, managing director and chief executive officer of Exide said "We are looking for a local promoter that can manage CMPPL profitably. We can sell our stake if something concrete works out". One of the two local promoters of CMPPL are also keen to quit the business. The battery manufacturer is,however, expecting exports to turn around in the second quarter. http://www.business-standard.com/india/news/exide-may-exit-its-aussie-associate-co/364375/
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| FINANCE & INSURANCE Go To Top | |
| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top | |
| PORSCHE BOSS TO GET 100 MILLION EURO PAYOFF: REPORT PTI See this story in: The Economic Times (July 20)
London: German car maker Porsche chief Wendelin Wiedeking is likely to get a pay-off worth about 100 million euros when he leaves the company, say a media report.
HYUNDAI TO INVEST US$183M IN CZECH PLANT AFP See this story in: The Hindu Business Line (July 19)
Prague: South Korean car maker Hyundai said on Friday it would invest 130 million euros (183 million dollars) in its Czech plant in the next two years to boost car and gearbox output as of 2011.
"The investment will allow us to raise output from the installed capacity of 200,000 cars a year to 300,000," Hyundai Motor Manufacturing Czech spokesman Petr Vanek told AFP.
Gearbox output is expected to rise from an installed 300,000 to 500,000 in 2011, he added.
"We produce gearboxes not only for ourselves, but also for the sister KIA plant in Slovakia, which is why there are more gearboxes than cars," said Vanek.
Along with Germany's Volkswagen and Japanese-French joint venture TPCA of Toyota, Peugeot and Citroen, Hyundai is one of three big car makers based in the Czech Republic, a former communist country traditionally leaning on car and machinery production.
Vanek said earlier the Czech plant had produced 50,000 Hyundai i30 cars in the first half of the year -- mainly for the German, Russian and British markets -- against its full-year plan to turn out 185,000 units.
The plant in the eastern Czech village of Nosovice has been grappling with thinning demand caused by the global downturn ever since it launched production last November, despite its focus on small and economical cars.
Hyundai has trimmed production to a single shift, but it is planning to start a second shift in the summer and to have three-shift operation in 2011.
"We have about 1,900 staff now, and another 100 will start on August 10," said Vanek, adding Hyundai was one of few large companies in the region that keeps hiring people amid the economic crisis.
He said that "everyone in the industry is convinced the car crisis is a temporary phenomenon that affected last year and will affect this year."
"But we are talking about 2011 here, and we are convinced output will get back to standard figures by that time," he added.
VW TO PAY $11.28 BILLION FOR ALL OF PORSCHE: REPORT Reuters See this story in: The Economic Times, The Indian Express
Frankfurt: Porsche SE's controlling families will agree on Thursday to accept an offer by Volkswagen to buy its sports car business Porsche AG for roughly 8 billion euros ($11.28 billion), Der Spiegel reported on Saturday. http://hosted.ap.org/dynamic/stories/E/EU_GERMANY_PORSCHE?SITE=
NO DECISION YET ON OPEL BIDDERS, SAYS GERMAN MINISTER See this story in: The Hindu Business Line (July 19)
Mr Guttenberg cited talks with a number of bidders as part of what he called a normal process, the newspaper quoted him as saying.
DELPHI BANKRUPTCY AUCTION POSTPONED See this story in: The Hindu Business Line (July 19)
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| 5.8 PC PROJECTED GROWTH: CMIE (July 19)
It has also given a grim prospect of the Budget deficit, saying that governments gross fiscal deficit is likely to overshoot the budgeted estimate of 5.5 per cent in 2009-10 on account of a hike in expenditure and slow pace of increase in tax revenue.
The CMIE also said the ongoing industrial recovery would be impacted and has projected that the industrial production growth at 4.8 per cent in the current fiscal against 5.1 per cent projected earlier.
The think tank said while the Budget is expansionary and conducive to growth, the failure of the monsoon and its significantly adverse impact on agriculture and industry will shave off 0.8 per cent from the GDP growth rate.
The poor progress of the south-west monsoon till the first week of July is expected to adversely affect the prospects of growth in agriculture, in industry and in the GDP of the country as a whole, CMIE said. It said because of the impact of the failed monsoon, production of sugar and edible oils will fall by 3.6 per cent and 2.5 per cent, respectively. http://www.tribuneindia.com/2009/20090719/biz.htm#3
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