| INDIAN AUTOMOBILE INDUSTRY | |
| INDUSTRY Tata prepares for global roll-out of Nano INTERVIEWS/FEATURES Final lap of Porsches solo run CARS, SUVs, MUVs Hyundai MD expects normalcy to return on Monday
COMMERCIAL VEHICLES Eicher Motors Q2 profit quadruples Delhi Metro to introduce AC CNG feeder buses CONSTRUCTION & AGRI MACHINERY | ALLIED INDUSTRIES Deloitte to submit Dunlop open offer valuation in a month FINANCE & INSURANCE OIL, LUBRICANTS & ALTERNATIVE FUELS Fuel price cut if oil falls below $50 INTERNATIONAL NEWS Mitsubishi Motors to post 20 bn yen quarterly loss: Nikkei Porsche told by Deutsche Bank to pump in cash fast Opel Trust says has not decided on takeover bids ECONOMY & FINANCE
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| INDUSTRY Go To Top Hindustan Times (Web & Print Edition) (July 27)
New Delhi: The automobile industry after suffering from the pangs of recession is on a rebound path . But a closer look into the numbers reveals that the growth is anything but uniform. Only six of the 16 manufacturers have managed to grow over April-June period year on year, while only four of them Maruti, Fiat, Mahindra and Mahindra and Honda have improved their market share.
While Maruti has not only maintained but bettered its market leadership courtesy the sustained demand for cars like Alto, WagonR and Swift, Hyundai and Tata Motors have both suffered as a result of this. American carmakers General Motors and Ford too had a rough ride with their respective marketshares falling below 3.5 per cent and 1.5 per cent.
In utility vehicles segment, M&M has been the biggest gainer due to the success of its newest launch Xylo. M&M now has an over 57 per cent share, well ahead of competitors like Toyota and Tata Motors.
In the two wheeler segment, the battle for supremacy has moved from Hero Honda-Bajaj to its own sister cousin Honda Motorcycle and Scooter India. While the latter is the biggest gainer in marketshare in motorcycles, the former is inching its way up in the scooter segment.
Hero Honda now has a 62 per cent marketshare a first in almost five years while second -placed Bajaj has shrunk to under 20 per cent.
In scooters though HMSI has suffered losses and only Hero Honda has managed to grow to a 14.5 per cent market share. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=
TATA PREPARES FOR GLOBAL ROLL-OUT OF NANO The Hindu (Web & Print Edition) (July 26)
New Delhi: After successfully launching worlds cheapest small car Nano on Indian roads, Tata Motors has now turned its attention to prepare for the global roll-out of the $2000 compact car. It is not only looking at markets like the U.S. and Europe, including Russia, but also banking on Latin America and South Asian nations to sell this fuel-efficient car.
Tata Motors, which has a tie-up with Fiat, is well-placed to leverage the marketing and sales network of the Italian car manufacturer across nations, particularly Europe and Latin America. Tata Motors believes that apart from India, developing South American economies like Brazil, Argentina, Chile and Venezuela could be a good market for Nano. For Fiat, Brazil is one of its biggest markets where it has strong dealership network and this may go in Tata Motors favour.
Tata Motors had already unveiled its Europe-specific model, Europa, in Geneva Motor Show, which it plans to introduce in 2011. Tata Group head Ratan Tata had said that though the European version of Nano would have different specifications vis--vis its Indian version, it will still remain a peoples car (in terms of pricing). Unlike the Indian model, the Europa model would be equipped with a sturdy bumper, a much rigid body, an air-conditioner, two airbags and power windows. Tata Motors already sells its models in Italy, Spain and Poland, and hence is comfortably placed to market its much-awaited model. It is also banking on Russia as a good market.
For Tata Motors, the good news came recently when Nano passed the crash test held in the U.K. recently. Interestingly, it was Nanos Indian model and not Europa (the model designed specially for Europe markets) which passed the 40 per cent offset crash test at 56 kmph and the side-impact tests at a high-tech test facility at Birmingham. It is mandatory to clear these basic tests before a car is allowed to be sold in Europe. Similarly, Nano is headed for the U.S. market in the next couple of years. Tata Motors would have to get safety and emissions certifications before selling Nano in the U.S., where it can take advantage of the Fiat-Chrysler distribution network. Its superb mileage and emissions conforming to European standards would help it become a big draw in the Western markets, particularly Europe and the U.S. that have so far remained glued to fuel-guzzling SUVs and sedans.
Tata Motors is also looking at South Asia and African markets. While countries like Thailand and Malaysia offer good prospects for Nano in Southeast Asia, in Africa, where Tata Motors is fast progressing, Nano might run on the streets of Nigeria, South Africa, Congo, Senegal and Namibia by 2011. http://www.hindu.com/2009/07/26/stories/2009072655881300.htm
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| INTERVIEWS/FEATURES Go To Top Worlds largest carmaker Toyota Motor Corporation has had a rather subdued presence in India so far with a marketshare of low single digit. But with the debut of its maiden small car next year and a host of other launches and refreshes, the company is hoping to chart a new course for itself. In a free wheeling chat with Hindustan Times, Sandeep Singh, deputy managing director, Toyota Kirloskar Motor India Ltd, talks about the companys roadmap for the future.
Globally, Toyota is at the fore front in the numbers game but in India it is just a passive player. Why?
Indias luxury car segment is very small. What was the intention behind launching the Land Cruiser in India and what kind of market do you see for the vehicle here? The premium SUV market in India has seen growth only recently, in the past few years. The Land Cruiser, which is the proven king of SUVs, will enhance Toyotas brand image in India before the introduction of the new compact vehicle and thus convey the message of Toyotas superior technological capabilities.
As of now, depending on the market demand and customers perspective, we are sure we would work on maximising sales.
What is the outlook on your bread and butter MUV segment? Will there be only the existing Innova or will you be launching more models in that space? Also considering the kind of response the Xylo has got, do you think a vehicle below Innova merits consideration?
The Innova has been maintaining leadership in the MPV segment. The new Innova has also been much appreciated for its advanced and dynamic styling. We are increasing our production of Innova by 15 per cent from this month.
There have been reports of Toyota increasing its investment beyond the Rs 3,200 crore that you had announced. What is the cumulative investment you are making in India?
How will you be positioning the Fortuner in India and what is the road ahead for the ageing Prado?
As regards Prado, currently we have no plans for its re-introduction, but depending on the market conditions, we will study this aspect. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=RSSFeed-Business&id=82444709-c50e-4a52-9ee7-6e728b188b8f&Headline=%e2%80%98We+are+very+serious+about+prospects+
FINAL LAP OF PORSCHES SOLO RUN Mohan Murti The Hindu Business Line, Opinion (July 27)
It was during my days as chief of CII in Europe that I had the pleasure of meeting Dr Wendelin Wiedeking, the hard-nosed engineer President and CEO of Porsche AG. In 1995, as part of an Indian CEOs delegation, , we had the rare privilege to be invited to the Porsche Zuffenhausen assembly line, outside Stuttgart, to meet and listen to the captivating story of Porsches turnaround straight from Wendelin Wiedeking. Also present at the meeting were two Japanese lean-production consultants, Mr Iwata and Mr Nakao, whose job it was to subject proud German engineers to a brutal shift in mindset.
Upstart sports carmaker Porsche entered a severe crisis in the early 1990s. There had been a sharp slump in the US market, where Porsche sold half of its vehicles. Toyota offered the equivalent of 1.5 billion for the company, but the family was unwilling to sell.
In 1993, Wendelin Wiedeking, who was head of production, was promoted to CEO. He was able to shine as the man who turned Porsche around even if his methods were sometimes unpopular. He brought Japanese consultants into the plant, which the proud Porsche assembly workers in Stuttgart perceived as an insult.
On one occasion, the young Wiedeking walked into the plant, angle-grinder in hand, and destroyed iron shelving, to show the suspicious employees that streamlined Japanese-style production required no excess inventory. CEO Weideking placed emphasis on quality workers were responsible for repairing defects discovered.
Porsche adopted a non-punitive management style. Production focus was towards the people, giving them the proper goals and keeping the proper spirit.
Tough Manager Wiedeking is known to have frequently used obnoxious language at managers, when someone refused to co-operate.
He himself portrayed this approach as the secret of his success. He even published a book called The David Principle, a reference to the Biblical story of David and Goliath.
No one could have imagined that this small carmakers profits would balloon to more than 8 billion, earning Wiedeking more than 80 million in annual compensation.
At last weeks extraordinary board meeting, the companys careworn chief executive, Wendelin Wiedeking, was asked to relinquish his role. Wiedeking, in the top job since 1993, was forced out. He became the scapegoat for Porsches failed attempt to take over Volkswagen that has saddled the company with debt.
The problems stem from Wiedekings David-and-Goliath effort, beginning in 2005, to take over the much larger Volkswagen. Porsche eventually acquired 51 per cent and until the end of last year was hailed for the move.
However, the global economic crisis put the brakes on luxury car sales hampering Porsches push to increase its VW stake to 75 per cent and, hopefully, take full control. Ferdinand Piech a grandson of Ferdinand Porsche, who developed the Beetle in the1930s and regarded as the founder of the modern Porsche company is viewed as a key figure in the drama. Piechs counterpart as board chairman at Porsche is another Porsche grandson his cousin, Wolfgang Porsche who appears keen for the sports carmaker to maintain its independence.
The Porsche and Piech families had already come to terms over the future of the two companies. Under the plan, Porsche AG would be sold to VW in two stages.
VW would initially acquire 49.9 per cent of Porsche, and would purchase the remaining shares at a later date. Porsche would then become the10th brand in the VW stable, which also includes Audi, Skoda, Seat, Bugatti and other brands.
The plan was developed by Ferdinand Piech, head of the VW supervisory board, who has been involved in a vicious power struggle with Wiedeking in recent months.
Why was it so important to Porsche that this relationship works? I took a look under the hood of my Boxter for an answer.
Manifestly, only about 20 per cent of what makes a Porsche a Porsche largely the engine and transmission is made by Porsche workers.
The rest is outsourced, mainly to VW. In effect, though Porsche was financially stronger, it needed VW more than VW needed Porsche. Buying stake protected Porsches access to VW factories. Besides, the share price was cheap.
Success to Failure Truly, an era in German car-making history has come to an end. The Porsche legend may live on but the days of the proud sports car manufacturer as an independent company are over.
The family-run luxury carmaker will now be taken over by a huge new company, whose structures and methods of decision-making remind one of a state-owned combine. It could be a strange marriage.
Profitable Family Feud If VW succeeds in avoiding acting like victors and perhaps learns from Porsches efficiency and nippy judgment, it could be the starting point for a new golden era: An integrated global company that, in the long term, could even knock the worlds No.1 carmaker, Toyota, off its ornate chair.
Wolfgang Porsche, for his part, refuses to admit defeat, at least not in public. The Porsche and Piech families have long come to terms over the future of the two companies. Well, this German feud beats any of our desi corporate family feuds.
The assets of the Porsches and Piechs have multiplied. Before the investment in Wolfsburg, they owned 100 per cent of Porsche, a small sports car maker.
Now they own more than half of the worlds second-largest automobile group. The merger places the German-Austrian industrialist clan on a level with the worlds biggest corporate dynasties: the Fords, the Agnellis and the Peugeots. As murky as it was, it was an extraordinarily profitable family feud. http://www.thehindubusinessline.com/2009/07/27/stories/2009072750630900.htm
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| CARS, SUVs, MUVs Go To Top John Sarkar & Anand Rawani (July 26)
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News-by-Industry/Carmakers-change-gears-/articleshow/4820806.cms
HYUNDAI MD EXPECTS NORMALCY TO RETURN ON MONDAY The Economic Times (Web Edition) (July 26)
Taking responsibility for the entire team of technicians as a family unit, he said, "I will never intentionally terminate even one employee. The new settlement covers so many details (how to improve productivity, attendance)." Mr Lheem expressed hope of completing the process of workers signing the acceptance letter within a week. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
HYUNDAI ADAMANT, SAYS NO TO UNION The Financial Express (Web & Print Edition) (July 26)
At a press meeting in Chennai to clear the air on the onging labour dispute at the factory premises, he said: We never ever allow unions to be formed. The existing workers committees (WS) have been given full bargaining power and are formed under the labour laws. We should not be get into unnecessary problems by recognising those who formed a group which has less support from the workforce.
Either they have been instigated by outsiders or they have aligned with somebody who try to exploit the treasure hunt (Hyundai has been a leading paymaster in the Indian automobile sector) of the company for their personal benefits, Lheem said.
Being the second largest car manufacturer and the leading exporter in India, the company would like to maintain discipline among workers to meet the target. The company is vary fair in accommodating every other demand of the workers committee and have made them live happily with all facilities. We found few were not following the company rules and discplines and the company was forced to tighten the screw on them, Lheem said.
Not happy with the measures taken by the company, these indiscplined workers have floated a group among themselves and have been insisting the company to recognise their group as a union, which the company opposed to do. Influenced by an outside force, these workers resorted to a stir inside the premises for the last two days.
We have lost production by 28% and we hope to makeover the lost production once the issue is settled. We hope we will be able to sell 5.8 lakh units as targed in the calender year, he said.
The parent company in Korea had also undergone a severe labour problem with the union in mid-2007 on wage settlement. But the issues were sorted out with the intervention of the management.
To a specific question what would happen if they decide to continue their strike, Lheem said: We have patience and we hope the issue will be sorted out soon (by Monday). We have already initiated discussions with these workers and the state labour department is also involved in sorting out this issue.
We are fully complying with the Indian labour laws. Ours is a public utility sector and has been one of the major forex earners in India. The labour laws in India are very complicated and any union formation would spoil the good industrial climite at Hyundai, he maintained.
300 HYUNDAI TECHNICIANS ON STRIKE, DEMAND RECOGNITION The Hindu Business Line (Web & Print Edition) (July 26)
Asserting that the company was not contemplating any punitive action against the workers, Mr H.S. Lheem, Managing Director, Hyundai Motor India, told journalists on Saturday, that he was confident the workers would accept the agreement.
The company signed an agreement last week with a Workers Committee, which was constituted after elections held among the 1,625 technicians in August 2007, giving the workers a wage increase of 21-24 per cent over three years, from April 1, 2009.
The increase works out to Rs 8,280 a month. The company had paid three month arrears to workers immediately after signing the agreement. Around 1,300 workers had participated in the election to the Workers Committee.
Company officials explained that nearly 900 workers had given their individual consent to the agreement, required under law.
Mr Lheem repeatedly asserted that the company was not in favour of granting recognition to a workers trade union and the workers committee model that it had followed since it set up shop here in 1996 had worked well for both the company and the workers. Why should I negotiate with them? Why should I give them bargaining power, Mr Lheem said.
Most of these technicians who had resorted to the sit-down strike belong to a group claiming to be Hyundai Motors Employees Association demanding recognition of the association by the company.
The dispute has come at a time when the company is looking to introduce a third shift at its second plant from September.
Mr Lheem said there had not been a major loss in production because of the agitation by a section of the workers.
Against a planned production target of 32,660 cars, the company had so far produced this month 31,647 cars representing 96.3 per cent productivity.
Of the 1,960 cars targeted to be produced on Friday, the company turned out 1,404 or 71.6 per cent of the target. The company was confident of being able to produce larger numbers. http://www.thehindubusinessline.com/2009/07/26/stories/2009072651130200.htm
HYUNDAI MAY SHIFT I20 PRODUCTION TO EUROPE The Hindu Business Line (Web & Print Edition) See similar story in: The Hindu (Web & Print Edition), Asian Age (Web & Print Edition), Business Standard (Web Edition), The Times of India (Delhi Print Edition) (July 26)
Mr H.S. Lheem, Managing Director, HMIL, said currently the company has identified three locations Czech Republic, Slovakia and Turkey to manufacture the i20. A decision on the exact location will be taken soon, he said.
The i20 is being manufactured at HMILs second plant in Sriperumbudur catering to domestic and export markets. The company launched the car in the domestic market in last December. Till June, the company manufactured 73,000 units and exported little over 60,000 cars.
Mr Lheem said the company was forced to consider shifting production of the i20 to a European destination because of the 6.5 per cent import duty levied by European nations on cars exported from India. This, and the logistics cost of shipping the cars, would be avoided by manufacturing in Europe, helping Hyundai price the i20 more competitively. What would happen to the excess capacity at the Chennai plant? Mr Lheem said the company expected the domestic market also to grow, thanks to the steps taken by the Centre.
Also, Hyundai Motor India was working on a car smaller than the Santro, its existing entry-level hatchback, which would go into production in the next couple of years. Currently, HMIL operates three shifts in its plant one and two nine-hour shifts in its plant two. From September, it hopes to have three shifts in both its plants. http://www.thehindubusinessline.com/2009/07/26/stories/2009072651140200.htm http://www.hindu.com/2009/07/26/stories/2009072660021300.htm http://www.asianage.com/presentation/leftnavigation/news/business/europe-to-host-i20-plant.aspx
SIX STRIKING HYUNDAI WORKERS FAINT, HOSPITALISED IANS See this story in: The Economic Times (Web Edition) (July 27)
Chennai: Six workers at India's second largest car company Hyundai Motor India fainted and had to be hospitalised Sunday evening when they were on a sit in strike for the fourth day.
Business Standard (Web Edition) (July 27)
Kolkata: C K Birla group company Hindustan Motors(HM), the makers of the Ambassador car, is all set to launch a niche car in the premium segment.
The company is now waiting for approval from the Automotive Research Association of India(ARAI), an industrial research organisation formed in collaboration with the automotive industry, Ministry of Industries of the government of India. ARAI has been providing technical expertise in research and development(R&D), testing, certification, homologation and framing of vehicle regulations in India.
R Santhanam, managing director of HM declined to give out further details. "It could be launched this year as well, if everything goes well. We are waiting for the homologation results of the vehicle", he said, adding that the technology would be sourced from Mitsubishi Motors of Japan. He,however, clarified that it would not be a small car and would make a unique style statement.
HM has a collaboration with the Japanese carmaker to manufacture the Mitsubishi Lancer, Pajero and Outlander here in India in its Tiruvallur plant near Chennai. Meanwhile, HM has also planned a net investment of around Rs 75 crore for the modernisation of its Uttarpara plant, particularly the forging,casting and stamping units. A part of the investment would go for the HM Winner, a one-tonne mini truck, and into revamping the autocomponents unit at Uttarpara. http://www.business-standard.com/india/news/hm-set-to-launch-premium-car/364975/
PROTON LOOKS TO DRIVE ON TO INDIAN AUTO TRACK PTI See this story in: The Economic Times (Web Edition), The Hindu Business Line (Web Edition), mint (Web & Print Edition), Business Standard (Delhi Print Edition) (July 27)
New Delhi: Malaysian car maker Proton is keenly looking to enter the growing Indian automobile market to expand its overseas operations amid global demand slump. http://www.thehindubusinessline.com/blnus/02261430.htm http://www.livemint.com/2009/07/26123946/Proton-looks-to-drive-on-to-In.html
The Hindu, (Metro Plus) (July 27)
Hyundai has taken the Indian compact car market by storm with its new version of the i20. Powerful yet fuel-efficient, the Hyundai i20 diesel comes with a 1.4L CRDi engine. It is contemporarily styled, and has well-designed interiors.
H.S. Lheem, managing director, Hyundai Motor India said, The i20 is available now with an automatic transmission. Both the variants (petrol and diesel), while offering the much needed fuel-economy to our customers, will provide superior technology and performance. The large and powerful 1.4 litre diesel engine represents safety and driving pleasure too. The performance and safety feature of the i20 has made it the first India-produced car to meet the stringent European safety norms and enjoys a 5 Star Euro NCAP rating.
With the launch of i20 diesel, Hyundai plans to tap the vast potential that exists in the diesel car segment in India.
The powerful, CRDi power plant boasts of state-of-the-art technological innovations such as the Electrical EGR (Exhaust Gas Re-circulation) with EGR cooler and eco-friendly oil filter that reduces pollution and the maintenance cost. http://www.thehindu.com/mp/2009/07/22/stories/2009072250570300.htm
The Hindu, (Metro Plus) (July 27)
The Honda Civic will see a few mild changes to its styling in a couple of months time. The design is so futuristic, according to Hondas engineers, that they saw little need to tinker with it.
The changes, though small, contribute to make the Civic that little bit more dynamic to look at.
The nose has been tweaked, with the grille now sporting a five-sided geometric edge instead of the earlier smiley outline, and the front bumper has re-profiled edges and fog lamps.
At the rear, the tail-lamp elements retain the after-burner look, albeit with squared-out edges instead of the earlier round elements.
The refreshed Civic will be available at a slight premium when it goes on sale here, and is the typical Honda mid-life tweak ahead of the all-new model expected in 2011. http://www.hindu.com/mp/2009/07/22/stories/2009072260130200.htm
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| COMMERCIAL VEHICLES Go To Top Chanchal Pal Chauhan The Economic Times (Web Edition) (July 27)
New Delhi: Sales of light trucks in the sub-one-tonne segment have risen 17% in the first quarter of the current fiscal, helping soften the blow of a deep sales slump on the wider commercial vehicles sector and setting the stage for a flurry of new launches, as new entrants look to tap the boom in so-called last mile vehicles. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
EICHER MOTORS Q2 PROFIT QUADRUPLES The Hindu Business Line (Web & Print Edition) (July 26)
The consolidated figures reflect stringent cost-cutting measures and a recovery of the struggling commercial vehicle segment.
Riding on substantial cost-cutting measures as well as a gradual but steadily recovering commercial vehicles market, Eicher has been able to post a manifold improvement in profitability, with the EBIT for this quarter at Rs 49.1 crore compared with Rs 11.3 crore recorded in the same quarter, last year, said Mr Siddhartha Lal, Managing Director and CEO, Eicher Motors, in a statement.
The figures also include interest earnings accrued on surplus funds created from Eichers joint venture for trucks and busses with Volvo, VE Commercial Vehicles.
Net sales for the second quarter were up 11.45 per cent to Rs 617.48 crore. Royal Enfields sales volume continues to surge, unaffected by the recent economic downturn. The first six months of this year recorded a sales growth of 20 per cent over the corresponding period last year, added Mr Lal. http://www.thehindubusinessline.com/2009/07/26/stories/2009072650660300.htm
DELHI METRO TO INTRODUCE AC CNG FEEDER BUSES PTI See this story in: Daily News & Analysis (Web Edition), The Hindu Business Line (Delhi Print Edition) (July 27)
New Delhi: The Delhi Metro has decided to introduce air-conditioned CNG feeder buses from its stations to various places for the convenience of commuters and placed an order for the purchase of 300 vehicles.
The buses will be manufactured by Swaraj Mazda and the first lot of 75 buses will be delivered within six months. Thereafter, 75 buses per month will be delivered for the next three months, so that all 300 buses are delivered within nine months.
"Each bus will cost Rs 19.8 lakh and will have powerful air-conditioners to achieve a temperature of 27 degree celsius within 10 minutes of start of the engine even in extreme summer conditions," DMRC chief public relations officer Anuj Dayal said.
The DMRC now runs feeder buses from its stations to various places. The new buses will also have pneumatic air suspension (as available in DTC low-floor buses) for greater comfort, wide doors between 800 to 1000 mm power-operated by the driver and semi-low floor design.
"They will be customised for DMRC's requirement and the interior side paneling will give the feeling of Metro coaches. Each bus will have a seating capacity of 26 with the seats being along the walls," Dayal said.
Each bus will have two fire extinguishers, besides a first-aid box. Destination display boards will be installed on the front and side of the buses.
"They will also have public address system and provision for ticket vending machines. The six-wheeled buses will have environment-friendly Compressed Natural Gas (CNG) fuelled engine," he said.
The other bidders for the supply of the AC buses were Tata Motors and Chongqing Hengtong Bus Co. of China. Tata Motors had supplied the 120 non-AC buses presently running as feeder buses on 15 routes.
DMRC at present operates 68 stations and another 76 are scheduled to be added by the completion of Phase-II. http://www.dnaindia.com/india/report_delhi-metro-to-introduce-ac-cng-feeder-buses_1277275
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| CONSTRUCTION & AGRI MACHINERY Go To Top | |
| The Hindu (Metro Plus) (July 27)
The 2009 edition of Bajaj Pulsar 220 DTS-i looks the same but you cannot miss its extra power. Rishad Cooper gives a first-ride account
Bajajs ideology behind the revised 220 is straightforward, billing it as the fastest Indian with typical sportsbike allure sheer power and straight-line performance. Bajaj has left most of the 220 unchanged, focussing purely on boosting power. But could this be enough to see the latest Bajaj nudge ahead of the competition?
As the photographs reveal, Bajajs 2009 edition Pulsar 220 DTS-i looks just the same. The only major visible change is a black theme that coats much of the new 220s lower section. A saving grace is that the 220 retains all its stylish and decal-free body panels.
The bikes voluminous front fairing doesnt turn with the handlebar; it houses a familiar set of stacked headlights that provide the best illumination from any Indian bike to date.
Clip-on handlebars are still standard kit, as are grips, levers and fully loaded switches. These features impart a perfect tactile feel, and come alive with subtle backlighting at night. Contact-free and crisp to operate, they also provide the luxury of self-cancelling turn indicators. The digital instruments sport a slightly altered face, retaining clever functions such as a contact-free speedometer, bold rev-counter, digital fuel gauge, engine revs red-lining indicator as well as trip-counter. Warning indicators include a choked air filter, low engine oil and fuel levels, side stand down, as also a battery needs charging indicators.
What stays the same are the raised letter decals on the fuel tank, the filler and tank pads that protect it from belts and zips, split seat, the LED-embellished tail section and the two-piece alloy grab bars. The new 220 enjoys superb paint lustre as well as decent levels of overall quality and fit-finish. Its battery is maintenance-free.
Fuel-injection technology An interesting feature of the new Bajaj Pulsar 220 DTS-i is its step back from fuel-injection technology. The new 220 adopts a UCAL, UCD 32 venturi carburettor, while otherwise retaining a four-stroke, twin-valve engine in slightly tweaked guise. The camshaft is altered to provide higher lift. This is still among the few motorcycles in India to use an oil-cooler to help its air-cooled single cylinder stay cool, and this coupled with twin-plug DTS-i technology makes for good efficiency. Although carburetted, cold starts wont pose much of a problem, thanks to an auto choke and thermal ignition mapping. The piston skirt has been kept as friction-free as possible, thanks to being screen-printed with a graphite-based coat. The piston also enjoys improved cooling via oil jets that fire inside it from the crankshaft big end.
Engine features such as roller bearings for the rocker arm pivots and camshaft interfaces can be taken for granted. Internal changes are the exhausTEC resonance chamber which is larger on the 2009 edition 220, and the silencer that houses a bigger catalytic converter to help keep emissions in check. An exposed and O ring sealed drive chain is used to transfer engine power to the rear wheel.
Power output has been pumped up, now 21.04bhp at 8500rpm, with 1.95kgm of torque maxing out at 7000rpm. The adequate one-down-and-four-up, toe-shifted gearbox on the Pulsar 220 DTS-I works in conjunction with its smooth clutch. Throttle response continues to be firm, with a strong surge of power available through the power band. The bike effortlessly pulls away cleanly in the higher gears without calling for excess play with the transmission.
We tested the 2009 Pulsar 220 DTS-i for acceleration and came away with figures that easily beat the outgoing model. It took just 3.77 seconds from zero to 60kph and 12.15sec from 0-100kph, top speed also slightly higher at 133kph.
Expect the same sporty riding posture and nice ride quality. Softer compound tyres are used, with the same sizes 90/90 x 17 inches in front and 120/80 x 17 inches at the rear both still riding on 17-inch rims. Kerb weight is up two kilos to 152kg, while the wheelbase remains constant.
Bajaj tells us the new 220 is not only faster than the old bike, but also gets the better of the fuel-injected version with regard to fuel economy. This however remains a claim we can verify only after we conduct a full road test of the bike. Pulsar 220 DTS-Fi has always been good value for money. It has improved leaps and bounds, for the new 220 undercuts the outgoing model by Rs 5,000.
A lot more was expected to change on the new 220 but Bajaj obviously thinks it got this motorcycle right the first time around.
Sure the new Pulsar 220 looks the same as the old edition and bares no Fi tag, but the latest Bajaj exonerates itself on the road, thanks to a significant power and performance gain.
Technical data Price Rs. 70,000 (est) (on sale now)
L/W/H 2035/750/1165mm
Fuel tank capacity 15 litres
Kerb weight 152kg
Engine layout Single-cylinder, air-cooled with oil-cooler, four-stroke
Power 21.04bhp at 8500rpm
Torque 1.95kgm at 7000rpm
Gearbox 5-speed, 1-down, 4-up
Front suspension Telescopic forks
Rear suspension Gas-charged shocks, elliptical swing arm
Front brake 260mm disc
Rear brake 230mm disc
Wheels 6-spoke alloy
Rim size (f-r) 17 inches
Tyre size (f-r) 90/90 x 17-120/80 x 17 inches http://www.thehindu.com/mp/2009/07/22/stories/2009072250090200.htm
The Hindu (Metro Plus) (July 27)
Yamaha Motor India has introduced the Fazer the new face in its motorcycle range. The Fazer comes with a fairing thats suited for touring and will share all other mechanical bits with the FZ16 and FZ-S. The Fazer resembles the international Fazer and is available in four colours.
Priced at Rs. 72,000 ex-showroom Delhi, the Fazer is Rs. 5,000 more expensive than the FZ-S.
The Fazer was unveiled at Yamaha Indias new plant at Surajpur in Uttar Pradesh. The plant will certainly shorten the wait for your favourite Yamaha as it is capable of producing six lakh motorcycles each year, though some of them will be exported to other markets.
Lets hope Yamaha also brings in some of their slightly more powerful motors for the FZ soon. http://www.hindu.com/mp/2009/07/22/stories/2009072260120200.htm
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| COMPONENTS Go To Top The Hindu Business Line (July 26)
For the quarter, net profit was Rs 188 crore on revenues of Rs 1,247 crore compared with a net of Rs 219 crore on revenues of Rs 1,235 crore in the year-ago period, the company said in a notification to the stock exchange.
Profits were affected on account of higher expense related to purchase of traded goods and higher employee costs.
Sequentially, the net profit grew 281.3 per cent from Rs 49 crore, while revenue increased 24 per cent from Rs 1,005 crore. In the March quarter, revenue had declined 17.1 per cent annually hurt by the slowdown, but the total expenditure remained high (Rs 972 crore.
Public shareholding in the company declined to 28.95 per cent of the total stock from 30.22 per cent in the corresponding period in the previous year. In the March quarter, it was 29.41 per cent. The shares of the company ended at Rs 3537.50, up 2.89 per cent on the BSE on Friday. http://www.thehindubusinessline.com/2009/07/26/stories/2009072650730300.htm
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| ALLIED INDUSTRY Go To Top Business Standard See similar story in: The Hindu, The Telegraph (July 26)
Kolkata: Dunlop India will decide whether to resume operations at its Sahagunj factory in West Bengal within the next 15 days, according to Chairman Pawan Ruia.
Speaking on the sidelines of the 82nd annual general meeting of the company, Ruia said, Given the present situation, we will not be able to bear the expenses for long. We will take a final decision within the next 15 days.
At present, of the 1,170-odd workers at the factory, 256 are reworking the infrastructure to resume operations Ruia said every month, the company was spending close to Rs 3 crore on plants where there was no production. Of this, Rs 60-70 lakh in on the Sahagunj plant. Production at the Sahagunj unit is stalled because of lack of electricity.
The factory had electricity dues worth Rs 15 crore, which according to me is not the liability of Dunlop India. The electricity department issued bills despite the fact that the plant was shut. The company has paid Rs 2.5 crore. Right now, the company does not have enough cash to pay the dues. So, we have asked the electricity department for a moratorium of around two years so that we can stabilise production at the plant and pay the remaining dues. The matter is pending with the electricity department, said Ruia.
The Chinsurah court had ordered completion of the hearing before July 15. The judgment is expected in a day or two. We are waiting for the judgement. If its in our favour, it will be good. Otherwise, we will have to appeal again, he added. The company plans to stabilise production at the Sahagunj factory at 40 tonnes per day to start with, which may require 5-6 Mw. Dunlop is also looking at setting up a 25 Mw power plant in the Sahagunj factory for captive use. It is, however, yet to make an official proposal to the state power authority for this.
Ambattur plant to resume soon
The land issue has been resolved. Negotiations are in final stages and we are very close to signing an agreement with the workers. We expect the plant to resume operations soon once the agreement is signed, said Ruia. However, he refused to give any dates. http://www.hindu.com/2009/07/26/stories/2009072655901300.htm http://www.telegraphindia.com/1090726/jsp/business/story_11283556.jsp
DELOITTE TO SUBMIT DUNLOP OPEN OFFER VALUATION IN A MONTH PTI See this story in: The Hindu Business Line (July 27)
Kolkata: Consultant Deloitte Touche Tohmatsu India, appointed by the Securities Appellate Tribunal, is expected to submit the valuation of the shares for open offer of Dunlop in a month.
The valuation report is expected in a month,'' Dunlop India chairman P K Ruia said. The Tribunal has for the first time appointed another independent firm to evaluate the open offer price for the ailing tyre-maker that has already been valued by a prev ious SEBI-appointed firm. The appeal to re-value the shares was made by Wealth Sea Pvt Ltd, the acquirer of Dunlop India Ltd (DIL).
If the price arrived by Deloitte is accepted by the Dunlop management then buyback will be done soon, sources said. We have rejected the open offer price finalised as we believe it should be much less than what they have valued and thus we have reques ted SAT to get revalued,'' Ruia said.
The SEBI appointed independent valuer Bansi S Mehta & Co had valued at Rs 43.73 a share as against Dunlop's offer price of 17.50.
On November 28, 2005, Wealth Sea Pvt Ltd indirectly acquired 74.5 per cent of the shares and voting rights in Dunlop India Ltd (then a sick company) through acquisition of DIL RIM & Wheel Corporation, a subsidiary of Jumbo World Holdings Ltd. Exemption was sought from open offer but SEBI declined to accept, officials said.
Meanwhile, Ruia said relisting of Dunlop shares at BSE was expected in two months as the hindrances had been overcome. BSE had suspended trading in Dunlop scrip in February 2003. Few formalities for relisting have to be done from our end and it will be done in the next board meeting,'' Ruia said.
Earlier, demat of shares could not be done due to an observation of the market regulator but now the depositories are carrying the demat of the shares,'' Ruia said. Already, 4.5 crore out of 7.2 crore shares had been converted to demat. For demateralisation of the rights offer of 2.7 crore shares in 2007, we have sought relief from court,'' he said. http://www.thehindubusinessline.com/blnus/02261405.htm
The Hindu Business Line (July 26)
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| ICICI BANK SEES GROWTH FROM HOUSING, CAR LOANS The Hindu Business Line (July 26)
Giving the banks report card for the quarter, she said the share of net Non-Performing Assets to total assets increased to 2.33 per cent (1.8 per cent). Due to the decline in assets, the proportion of NPAs looks higher, she pointed out.
In the first quarter the bank restructured new cases worth Rs 1,500 crore. Of the total restructured assets, about Rs 3,500 crore worth assets got upgraded. Given the banks focus on corporate assets, the share of retail assets in the balance-sheet fell to 47 per cent from 55 per cent a year ago.
The share of unsecured personal loans, within retail loans, declined to 15 per cent (18-19 per cent) and is likely to reduce even more, Ms Kochhar said. http://www.thehindubusinessline.com/2009/07/26/stories/2009072650930500.htm
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: Hindustan Times
New Delhi: Fearing oil regulator Petroleum and Natural Gas Regulatory Board may favour Adani Group for Noida's gas licence, Indraprastha Gas Ltd has written to the regulator saying it is the sole entity authorised by the Centre and the Supreme Court for supply of CNG and piped gas in the NCR.
The firm, which retails CNG to automobiles and piped gas to households in the national capital, on July 23 wrote to the Petroleum and Natural Gas Regulatory Board (PNGRB) questioning its move to consider Gujarat-based Adani Group for grant of city gas distribution (CGD) licence for Noida.
In the strongly worded 10-page letter, IGL said it was authorised by the central government through a letter dated April 8, 2004, for retailing of CGD operations in Noida.
Besides, the Supreme Court had also vide order dated March 11, 2005, and April 29, 2005, mandated the company to start CNG outlets in Noida and the Uttar Pradesh government had granted no-objection certificate (NOC) on August 30, 2007.
"IGL is the only entity authorised by the central government to lay and build city gas distribution network in Noida, as would appear from the letter dated April 8, 2004, of the central government, which names IGL as the implementing agency for the city of Faridabad, Noida and Gurgaon and 0.7 mmscmd of gas was allocated to IGL for the said cities," it said. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=
FUEL PRICE CUT IF OIL FALLS BELOW $50 Anupama Airy Hindustan Times
New Delhi: Petroleum Minister Murli Deora has said petrol and diesel prices would be reduced if global crude oil prices currently ruling at around $63 per barrel stabilises around $50 a barrel.
If the global crude oil price comes to $50 a barrel and stay for a month, we will reduce domestic prices of petrol and diesel and give consumers the benefit of the falling crude oil prices, Deora told Hindustan Times.
Deora said the government has no plans to completely de-regulate prices to align them with international prices.
My government is not against de-regulation but we want to pursue reforms with a human face, he said.
We have seen the global crude oil prices touch $145 a barrel last year. If it happens again, a full deregulation would only lead to abnormal price hike for the consumers. These are not the kind of reforms we want to usher in.
Commenting on the recent price hike of Rs 4 per litre for petrol and Rs 2 per litre for diesel on July 1, Deora said, What more pricing reforms are you looking at? We have increased fuel prices when global crude prices shot up and we will reduce the same once the international prices come down.
Deora said the government does not want to completely give the strings of fuel pricing to the market.
Fuel prices should be aligned in line with international crude oil prices to an extent that the interests of both the consumers and oil PSUs (public sector undertakings) are taken care of, he said.
India imports nearly 80 per cent of its crude oil needs. All petroleum products except petrol, diesel, LPG (cooking gas) and kerosene are priced in line with the international market. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=HomePage&id=7fd93a65-1c7a-42db-94c1-eb6908363df0&Headline=Fuel+price+cut+if+oil+falls+below+50+
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| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times (July 26)
components, a BMW board member told German magazine on Saturday.
MITSUBISHI MOTORS TO POST 20 BN YEN QUARTERLY LOSS: NIKKEI Reuters See this story in: The Economic Times (July 26)
PORSCHE TOLD BY DEUTSCHE BANK TO PUMP IN CASH FAST Reuters See this story in: The Indian Express
Frankfurt: Deutsche Bank CEO Josef Ackermann has told Porsche's owner families of the urgency to stump up cash in order to pay down the company's debts, which have risen to 14 billion euros ($19.88 billion), a German magazine said on Saturday.
Ackermann himself told Porsche supervisory board chairman Wolfgang Porsche that a mere capital increase from the Porsche and Piech families would not be sufficient to pay for the carmaker's financial obligations, a pre-release of Der Spiegel said, citing banking sources.
The debts include some bonds that needed to be paid, it added.
Porsche on Thursday agreed it would increase its capital by at least 5 billion euros ahead of a planned integration with Volkswagen.
A Porsche spokesman told Reuters he could not confirm the 14 billion euros figure. He said Porsche's net debts total around 10 billion euros. In January, the total was around 9 billion euros. http://www.indianexpress.com/news/porsche-told-by-deutsche-bank-to-pump-in-cash-fast/494451/
OPEL TRUST SAYS HAS NOT DECIDED ON TAKEOVER BIDS Reuters See this story in: The Indian Express
Frankfurt: The Opel Trust, the German body which has been responsible for Opel since June, said on Saturday it has not made any decisions yet regarding the takeover offers for the carmaker.
"The Opel Trust has announced that neither the Trust nor its members have taken any pre-decisions regarding the takeover proposals for Opel," according to a statement. It said General Motors, Opel's parent, has so far neither made a recommendation nor submitted a request for the Trust's decision.
The Trust, which holds 65 percent of Opel shares, has been overseeing the fate of the carmaker since General Motors went into bankruptcy in June.
It said on Saturday that General Motors, which holds 35 percent of Opel, has decided to continue negotiations only with Magna and RHJ International. Magna and RHJ submitted their offer documents to General Motors on July 20.
The Trusts board is comprised of two General Motors representatives and two for Germany one for the national government and a delegate for the four federal states in which Opel has a plant. A fifth "neutral" board member has no vote. http://www.indianexpress.com/news/opel-trust-says-has-not-decided-on-takeover-bids/494446/
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| ECONOMY & FINANCE Go To Top
See this story in: The Times of India (July 27)
Panaji: Finance minister Pranab Mukherjee on Saturday said India would be back in the 9 per cent growth trajectory in the next one and a half years as a result of stimulus measures announced by the government. http://timesofindia.indiatimes.com/NEWS/Business/India-Business/India-will-achieve-9-GDP-in-18-months-FM/articleshow/4820037.cms
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Monday, July 27, 2009
Indian Auto Industry Update July, 27, 2009
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