Indian Automotive Industry News

INDUSTRY
Automakers pass on excise benefits to customers
Automobile sector disappointed
Auto, durable firms reduce prices
Vehicle testing process to be made smoother

INTERVIEWS/FEATURESCARS, SUVs, MUVsCar cos ride the green wave in Europe
Budget gain: Big cars will cost you a little less
Diesel variants to drive growth in passenger car segment
Hyundai to shift part of i20 production out of Chennai next year
Hyundai to export 3 lakh cars this yearHindustan Motors to revise vehicle prices
Ford, Honda cut car prices by up to Rs 6,000
New GM to acquire Indian operations

COMMERCIAL VEHICLES

Excise cut on petrol trucks may bring in new players CONSTRUCTION & AGRI

MACHINERY

TRF takes over Dutch Lanka Trailer

2/3 WHEELERS

Indonesian operations drag down profits at Bajaj, TVS

COMPONENTS

ALLIED INDUSTRIES

P K Ruia may step down from boards of all group cos

JSW Steel rules out hike in prices

FINANCE & INSURANCE
OIL, LUBRICANTS & ALTERNATIVE FUELS

Oil hovers above USD 64 per barrel

INTERNATIONAL NEWS

GM seeks court OK to drop 38 holdout dealerships
GM creditors will let asset sale go forward while they appeal
Germany's BMW: June sales down nearly 13%

ECONOMY & FINANCE

Rupee a tad higher
Markets up again; Sensex gains 127 points
I took calculated risks for high growth: FM


INDUSTRY

AUTOMAKERS PASS ON EXCISE BENEFITS TO CUSTOMERS

Mumbai: Car makers in the country have begun to slash prices on large cars/utility vehicles with engine capacity of 2000cc and above following the reduction of excise duty from Rs 20,000 to Rs 15,000 in the Budget. The industry had been looking at scrapping of the additional excise duty levied by the government on large cars as they were not doing well.

VG Ramakrishnan, director, automotive & transportation, Frost and Sullivan, South Asia and Middle East, said: "The additional excise duty levied by the government on large cars over 1500 cc has not done anything for the segment. Rather, premium car makers have been affected immensely because of this, and hence, the duty should have been scrapped." Abdul Majeed, auto analyst and partner, PricewaterhouseCoopers (PwC), said:

"There is a huge gap in the excise duties on small and large cars. The need is to levy duty not on the basis of size, but on the fuel efficiency."

In June last year, the government had announced additional excise duty over and above the 24% on large cars/utility vehicles. The government had introduced a specific rate of excise duty of Rs 15,000 on large cars/utility vehicles with engine capacity of 1500-1999 cc and Rs 20,000 on cars with engine capacity of 2000 cc and above.

Indicating that the bright side of the Budget is that the stimulus packages remained, Jnaneswar Sen, senior GM-marketing, Honda Siel Cars India, said: "We will definitely pass on the full benefit to customers, with reduction of Rs 5,000 on Accord and CR-V." The new prices of Accord and CR-V will be in the range of Rs 17.67 lakh to Rs 23.57 lakh (ex-showroom New Delhi).

Though the manufacturers see this as a small excise cut, they believe that times are of cherishing small gains. Tim Tucker, vice president, sales, Ford India, said, ''The additional duty reduction has been a welcome step taken by the government though the reduction is limited only to large cars. We are pleased to pass the benefit of the reduction on the Endeavour to consumers in entirety." Ford India has also announced a reduction in the price of its SUV-Endeavour-by Rs 6,000. The price reduction will be applicable to all three variants of the car. The base model (2.5 litre) of the Endeavour will now be available at Rs 15, 01,000 (ex-showroom New Delhi). Endeavour is available in two other variants-2.5L XLT and... the 3.0L Thunder Plus.

Hindustan Motors has reduced prices by Rs 6,000 on its SUVs including Pajero, Outlander and Montero with effect from July 7, 2009. The new ex-showroom India prices of three cars are Rs 20.64 lakh, Rs.20.69 lakh and Rs.41.88 lakh, respectively. General Motors has also slashed prices by Rs 5,600 on its Tavera with effect from July 7.
Toyota Kirloskar Motors too plans to pass on the full benefit to customers of the excise cut across its range. The company sells New Land Cruiser, Corolla Altis, New Camry, Innova and Prado in the country.

Other companies including BMW, Audi, Mercedes-Benz, Tata Motors, Mahindra & Mahindra (M&M), Skoda and Volkswagen (VW) till Tuesday late evening had not made any announcements yet.
http://www.financialexpress.com/news/automakers-pass-on-excise-benefits-to-customers/486330/2
http://www.thehindubusinessline.com/blnus/05071236.htm
http://timesofindia.indiatimes.com/Business/India-Business/Auto-shares-rise-7-on-excise-duty-cut/articleshow/4748313.cms


AUTOMOBILE SECTOR DISAPPOINTED
The Hindu (Web & Print Edition)

New Delhi: The Union Budget 2009-10 on Monday failed to enthuse the slowdown-hit auto industry. Though some reduction in excise duty on large cars and utility vehicles has been announced, the industry leaders said a complete package was the need of the hour for the revival of the industry, particularly for passenger car and commercial vehicle segments. The industry has, however, welcomed continuation of CENVAT cuts that were announced in December last.

In his budget speech, Mr. Mukherjee announced the reduction of excise duty applicable to large cars and utility vehicles of engine capacity of 2000 cc and above to Rs. 15,000 from Rs. 20,000 per vehicle. Similarly, the excise duty on petrol driven trucks and lorries has been reduced from 20 per cent to 8 per cent; while on chassis of such trucks and lorries, the reduction is from 20 per cent to 8 per cent.

Commenting on the budget, Society of Automobile Manufacturers President, Ravi Kant, who is also Managing Director of Tata Motors welcomed the reduction of the additional levy on large cars and utility vehicles and hoped that further rationalisation of tax rate would take place and the excise duty on utility vehicles and cars, other than small cars, would go down. While these proposals will have a positive impact on the automobile industry, these will be visible in the medium term and long term rather than having any immediate impact, more so for the commercial vehicle segment, which is going through severe downturn.

Hyundai Motor India Managing Director H. S. Lheem said their demand for I ncentives for promoting exports have been ignored. I am very disappointed as no attention was given to the exports of the auto industry. We expected some incentives for exports. It is the time to promote exports not only for the vehicle industry, but also for the auto component sector, he added.

Similarly, General Motors India President and Managing Director Karl Slym said the budget failed to meet the expectations of the auto industry. We were expecting some rationalisation of taxes. But these have not happened, he said. The automotive industry is one of the growth drivers of the economy and as such some tax relief would have helped the industry to generate some volumes, he said.

Expressing his disappointment, Ford India Managing Director Michael Boneham said: The majority of demands of the automobile industry have not been addressed. The opportunity to rationalise excise duties on the passenger car segment has not been considered.

Automotive Component Manufacturers Association of India President J. S. Chopra said overall, the Budget was neutral for the auto-component industry as it did not contain anything new for the industry. The small reduction in the excise duty on large cars and petrol driven trucks would have a very marginal positive impact on vehicle sales.
http://www.hindu.com/2009/07/08/stories/2009070855981400.htm
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AUTO, DURABLE FIRMS REDUCE PRICES
Business Standard (Web & Print Edition)

Mumbai: Less than a day after Finance Minister Pranab Mukherjee announced cuts in excise and customs duties, some automobile and consumer durables firms agreed to pass on the full benefit to customers.

Yesterday, the additional excise duty on large passenger vehicles was brought down to Rs 15,000 from Rs 20,000, while customs duty on LCD panels was halved to 5 per cent from 10 per cent.

Auto players such as Mitsubishi, Ford, Toyota, General Motors and Mahindra & Mahindra, and Samsung and LG from the consumer durable industy all said theyd pass on the benefit to the customer.

The Budget directed a cut of Rs 5,000 in excise duty on all passenger vehicles with engines larger than 2000cc. As 70 per cent of sales in passenger vehicles comes from the small car segment, few vehicles qualify for the benefit. All sedans, which have powerful engines, and all the sports, utility and multi-purpose vehicles will get the benefit.
As a result, many car lines, including Mitsubishis Outlander, Pajero and Montero, Fords Endeavour, Toyotas Camry and Innova, General Motors Tavera and vehicles from Mahindra & Mahindra have become cheaper (see table).

Sandeep Singh, deputy managing director (sales and marketing), Toyota Kirloskar Motors, said: We have decided to pass on the full benefit of the excise duty cut to the customer. Our models will have revised prices.

Mahindra & Mahindra (M&M), Indias largest utility vehicle manufacturer, will also reduce rates of its popular models; how much is yet to be decided. The Xylo, Scorpio and Bolero qualify for the benefit. A year earlier, former Finance Minister P Chidambaram had specified additional excise duty of Rs 15,000 on all passenger vehicles with engines more than 1500cc but less than 2000cc, and Rs 20,000 on all vehicles with more than 2000cc engines.

This step was primarily taken to discourage purchases of bigger vehicles, for reasons of fuel efficiency. Likewise, Samsung Electronics has decied to cut the prices of its large format display (LFD) monitors between Rs 1,200 and Rs 3,500. The Samsung 32-inch LFD monitors will get cheaper by Rs 1,200, the 40-inch LFD monitor by Rs 2,000 and the 46-inch LFD will cost about Rs 3,500 less, said a Samsung India spokesperson.
The company is also considering revising the prices of LCD TVs. A Samsung 32-inch LCD TV costs about Rs 38,000, with prices touching Rs 2.85 lakh for 52-inch models.

The company spokesperson reasoned, Since Samsung is running a promotion on its LCD TVs where an Airtel set-top box is bundled along with the panel, we will not be reducing the prices in the month of July. Globally, LCD TV, monitor and notebook panel prices had increased significantly on tight supply, with suppliers aiming at profits for the third quarter of 2009, according to a report from DisplaySearch.

LG, which had around 23 per cent of the LCD TV market in India last year, had hiked its LCD panel prices on July 1. An LG India spokesperson said: We had raised the LCD panel pricing by 5 per cent on July 1, due to a steady rise in global LCD panel supply. But with the Budget reducing the customs duty by half, we intend to scale back the earlier price hike.

An unresolved panel shortage, primarily the result of insufficient supply of glass substrates, is forcing the worlds major panel makers to raise prices more aggressively, as they hoped to end several quarter losses in the July-to-September period.
http://www.business-standard.com/india/news/auto-durable-firms-reduce-prices/363279/
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VEHICLE TESTING PROCESS TO BE MADE SMOOTHER
Samar Srivastava
Mint (Web & Print Edition)

New Delhi: Auto makers often complain about the time and cumbersome procedure involved in readying their cars for the Indian market through a process the industry calls homologation.

Now, a move by the National Automotive Testing and R&D Infrastructure Project (Natrip), a vehicle-testing body, promises to cut the time taken by around one-third.

Starting April, car makers will be able to electronically submit documents needed for homologation. These generally run into thousands of pages and include details on engine specifications such as compression ratios, power output and other details of the vehicle.
At present, the documents must be submitted on paper, which often leads to delays as the homologating authorities may ask for more information at a later stage.

The main aim behind this is to make sure manufacturers get more transparency and save time, said Rajesh Singh, Natrip chief executive and project director.
Auto makers would be able to log on and check to see at what stage in the process their vehicle is at.

It takes, on an average, about 90 days to homologate vehicles for the Indian market. Natrip plans to reduce this to 60 days.

Also, for cars on the same platform such as the Swift and Ritz from Maruti Suzuki India Ltd, companies would not have to submit documents for common parts all over again.
Initially, Natrip plans to roll out this plan at the International Centre for Automotive Technology (iCAT), located at Manesar in Haryana at a cost of Rs2-3 crore. Most cars in India are homologated at iCAT or the facility of Automotive Research Association of India at Pune.

In recent months, cars such as the Ritz, the Honda Jazz and the Toyota Corolla Altis have been homologated at iCAT.

Car makers have welcomed the move but say that there are other steps that Natrip needs to take to make the process smoother.

This will definitely help manufacturers in terms of eliminating paperwork, but what we really need is a facility where all tests can be completed, said I.V. Rao, managing executive officer, engineering, Maruti Suzuki.

For instance, iCAT does not have a test track and cars have to be sent elsewhere for brake testing.

Natrip also plans to link road transport offices around the country to send them data on the vehicles homologated for the Indian market. So far, certificates of homologation have to be sent individually to each such offices, which are authorized to then start registering the cars.

On their part the transport offices, which come under the purview of state governments, will have to be computerized first. At present, theyre fully computerized, besides in New Delhi, only in Andhra Pradesh.
http://www.livemint.com/2009/07/07220643/Vehicle-testing-process-to-be.html Go To Top

INTERVIEWS/FEATURES Go To Top- - - - -
CARS, SUVs, MUVs Go To TopCAR COS RIDE THE GREEN WAVE IN EUROPE
Chanchal Pal Chauhan
The Economic Times (Web Edition)

New Delhi: Indian carmakers are reaping the benefits of the incentives offered by the governments of Germany, France and the UK to people exchanging their old cars for new fuel-efficient ones. The country's largest car exporter, Hyundai Motor India, recorded its highest export growth last month, while Maruti Suzuki is raising its export target, as the scrappage policy in Europe that gives e750-5,000 (Rs 50,000-350,000) to people buying fuel-efficient cars has led to an increase in demand for their small cars. The 11-year-old subsidiary of Korean carmaker Hyundai Motor recorded a 33% growth in exports in June to 24,241 cars over the same month last year. On a sequential basis, exports increased 21% in June from 20,125 cars in May.
Maruti's exports rose 176% to 13,336 cars last month over 4,836 cars sold overseas in the same month last year. Month-on-month exports increased 47% from 9,087 cars in May this year. Three small cars A-Star, i10 and i20 are the biggest grossers in Europe, as these fuel-efficient models emit low volumes of carbon dioxide per kilometer. Thanks to booming exports, Hyundai's production schedule for exports is already booked for the next two months and the company is now looking at bagging orders for September and beyond, helping the company post handsome profits. This is likely to help the company that recorded a loss of Rs 87 crore in the quarter ended March due to currency fluctuations. "Exports have jumped, as monetary incentives for fuel-efficient and eco-friendly cars, low on emission, have gone up in Europe. We fit the bill, as our new cars i10 and i20 adhere to such standards," Hyundai's senior vice-president (sales & marketing) Arvind Saxena said. Germany, better known for its luxury marques BMW, Audi and Mercedes, has set aside e5 billion to make the country eco-friendly by encouraging fuel-efficient cars. Those exchanging big cars for small fuel-efficient ones will get e2,500. Spain will barter two-lakh cars by giving e2,000 in cash to people exchanging fuel guzzlers. France offers an incentive of e1,000 with deferred tax benefit of up to e5,000 on each car with carbon dioxide emissions less than 160 gm/km. Italy is extending a e3,000 payout for all new cars emitting carbon dioxide below 130 gm/km. "Our parent Suzuki Motor's distribution network in Europe is clogged with bookings," Maruti's executive officer (sales & marketing) Mayank Pareek said. Maruti aims to export two lakh cars in FY10 from the 70,000 cars it exported in FY09. The spurt in demand for 'made in India' cars is likely to be a major growth driver for other carmakers entering the small car space. Toyota, GM, and Ford are looking at a possible debut in compact cars by next year. Eyeing the potential in mind, Toyota Kirloskar Motor, the Indian unit of Japan's Toyota Motor Corp, has increased investment by an additional Rs 800 crore, taking it to Rs 4,000 crore till 2016 in its small car manufacturing facility near Bangalore. "The Indian subsidiary will play a larger role in global operations. Besides the domestic market, our small car, coming next year, will also cater to several overseas markets," said a TKM executive, requesting anonymity.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/articleshow/4750802.cms
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BUDGET GAIN: BIG CARS WILL COST YOU A LITTLE LESS
The Times of India (Web & Print Edition)
See similar story in: The Tribune (Web Edition)

New Delhi: Cars over 2000cc saw a minor drop in prices following Rs 5000 concession the government gave on excise duty in the Budget. Companies like Honda, Ford, General Motors
and Hindustan Motors-Mitsubishi passed on the benefit to the consumers, though the amount passed appears negligible considering their high sticker price. Honda said its luxury sedan Accord and SUV CR-V would now be cheaper by Rs 5000 with immediate effect. The starting ex-showroom Delhi price of the Accord will now be Rs 17.67 lakh while the CR-V entry model will now cost Rs 22.87 lakh. Ford also reduced prices, slashing the price of its Endeavour SUV by Rs 6000 across variants, whose base model will now cost Rs 15.01 lakh (ex-showroom Delhi). "The additional duty reduction has been a welcome step taken by the government, though the reduction is limited only to large cars," Ford India V-P (sales) Tim Tucker said. HM-Mitsubishi combine also cut the price of Pajero, Outlander and Montero models by Rs 6000. The Pajero will now cost Rs 20.64 lakh, Outlander Rs 20.69 lakh and Montero Rs 41.88 lakh. "With the government announcing a reduction in the excise duty, on some of our vehicles in the relevant segment, we are passing on the entire benefit to our customers," R Santhanam, MD of Hindustan Motors. General Motors also slashed the price of its Tavera multi-utility by Rs 5000.
http://timesofindia.indiatimes.com/Business/Big-cars-will-cost-you-a-little-less/articleshow/4750815.cms
http://www.tribuneindia.com/2009/20090708/biz.htm#7
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DIESEL VARIANTS TO DRIVE GROWTH IN PASSENGER CAR SEGMENT
Neha Rishi
Daily News & Analysis (Web Edition)

Mumbai: What comes to your mind when you say diesel engines? Ninety-nine times out of 100, it is an image of a colossal truck or a utility vehicle.

Not anymore. For diesel engines are now becoming popular in the passenger car segment and fast gaining acceptance among original equipment manufacturers (OEM), who earlier favoured only petrol variants.

Though India is still to meet the rates of dieselisation in mature markets such as Europe, it is nonetheless doing well with a dieselisation rate of 30% in cars.

Arvind Saxena, vice-president (marketing and sales), Hyundai Motor India Ltd (HMIL) said, "Almost all the cars we sell are with diesel engines. There are two reasons for the increasing popularity-- first, diesel costs far less than petrol, and two, in the last 5-6 years, the diesel technology has become as refined and smooth as that of petrol engines."
Common Rail Systems, also known as CRDi, has revolutionised fuel efficiency and also reduced emissions drastically. Bosch India, one of the largest auto component manufacturers, is a pioneer in this technology and is a supplier to almost all the OEMs dealing in diesel engines.

V K Vishwanathan, managing director, Bosch India, said, "Over the last two years, we have invested Rs 800 crore in this technology. The usage of diesel engines is bound to go up due the torque and power it gives along with better mileage compared with petrol." He added, "Besides having 20-30% higher fuel efficiency against petrol engines and cost effectiveness, diesel engines also give better mobility solutions for both passenger and freight movement. Moreover, diesel engines also allow high load factor, which will play an important role in popularising dieselisation."

Ashish Nigam, analyst with Antique Stock Broking, said, "Diesel cars are increasingly being accepted as refined and reliable cars. Back in the day, a diesel car sounded almost like a truck... But now, you wouldn't know the difference between a diesel and a petrol engine... and technologies like the CRDi have a lot to do with that. The share of diesel cars has increased from around 15% in FY07 to over 20% currently. This basically means that over the last 3 years, diesel cars have grown at around 25% and petrol cars have grown at 3-4%. So it's pretty clear where the growth in passenger cars is coming from.

Now, almost every OEM has plans to launch a diesel variant of their petrol models."
The growing popularity of diesel engines also is apparent from the long waiting period for Maruti Suzuki's diesel models Swift and Swift Dzire. A company official said even during the downturn, there was a waiting period on these two models. "...it is true that, diesel is a preferred choice for customers. We have an engine capacity of 2 lakh diesel engine units, which we will ramp up to 3 lakh units by March 2010. Despite the downturn, our resources have to be mobilised to produce more vehicles with diesel engines," said a Maruti Suzuki official.

P Balenderan, vice-president (corporate affairs), General Motors India, added that no OEM can emerge as a volume player unless they were aggressively present in the diesel market. In the south and Punjab markets, diesel variants of cars are very popular. Going forward, GM will have in its product portfolio a diesel variant for all its models, he said.
http://www.dnaindia.com/money/report_diesel-variants-to-drive-growth-in-passenger-car-segment_1272061
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HYUNDAI TO SHIFT PART OF I20 PRODUCTION OUT OF CHENNAI NEXT YEAR
Chanchal Pal Chauhan
The Economic Times (Web & Print Edition)
See similar story in: The Tribune (Web Edition), The Hindu (Web & Print Edition), Deccan Herald (Web Edition), The Times of India (Web & Print Edition), The Hindu Business Line (Web & Print Edition)

New Delhi: Hyundai Motor India (HMIL) has decided to shift part of the production of its popular i20 hatchback for the export market from Chennai to save on logistics costs and import duties in Europe. By December 2010, Indias largest car exporter will shift part of the production of the model to one of its facilities in Turkey, the Czech Republic or Slovakia to take production closer to its large overseas markets such as Germany, France, Italy and the UK. We are looking at competitive pricing for the i20 and will shift some portion of its production next year. While India will remain as the main production hub for the car, the European orders will be met from the new production facility, HMIL CEO & MD HS Lheem told ET. Logistics costs and import taxes add 10-15% to the price of cars exported from India. A nearly three-week-long strike by workers at its plant near Chennai in April and May hit output, leading the company to shift production of some models to other manufacturing sites. The strike led to a 5% drop in production, forcing the company to re-think on its export target. The company on Tuesday launched two new variants of the i20 for the domestic market. The 1.4-litre CRDi diesel variant comes at a price of Rs 6.2 lakh-Rs 7.2 lakh (ex-showroom Delhi). The automatic variant of 1.4 litre petrol starts at Rs 7.31 lakh and the top-end variant will cost Rs 7.72 lakh in Delhi. It has already sold 12,000 units of the 1.2-litre petrol i20, whose starting price is Rs 4.8 lakh onwards in the domestic market. The i20, Hyundais latest hatchback, has been a success in overseas markets, with the company selling around 72,000 units since the cars launch in December last year. Some 60,000 of these were exported. We have resumed normal production now and will be starting our third shift in the second plant, where newer models are produced, from July 10, Mr Lheem said. The Chennai facility is a major global manufacturing hub for Hyundais small cars and has the capacity to produce 6 lakh units a year. Exports accounted for about half of the companys sales of nearly 5 lakh units in 2008. The wholly-owned Indian arm of the South Korean company exported 1.35 lakh cars in the first six months of 2009, a 22% increase over the year-ago period. The i20 is expected to account for over 40% of exports for 2009-10. Hyundai is banking heavily on the stimulus packages being rolled out by various European nations, where cash incentives the equivalent of up to Rs 3 lakh are being provided to buy fuel-efficient cars such as the i20.
http://economictimes.indiatimes.com/articleshow/4750831.cms
http://www.tribuneindia.com/2009/20090708/biz.htm#5
http://www.hindu.com/2009/07/08/stories/2009070855951400.htm
http://www.deccanherald.com/content/12317/hyundai-launches-two-variants-i20.html
http://timesofindia.indiatimes.com/Business/Hyundai-bets-on-i20-to-drive-sales/articleshow/4750732.cms
http://www.thehindubusinessline.com/2009/07/08/stories/2009070850610200.htm
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HYUNDAI TO EXPORT 3 LAKH CARS THIS YEARRakesh Bihari Jha
The Pioneer (Web & Print Edition)

New Delhi: Hyundai Motor India, which launched two variants of i20 on Tuesday, said it plans to sell about 5.8 lakh car during the year out of which 3 lakh car will be exported.We plan to sell about 5.8 lakh cars during the year and have set a target of 3 lakh cars for export. But target achievement depends on market condition, said Hyundai Motor India Managing Director and CEO HS Lheem, adding, as regards last years export target we have more than achieved that.The company had produced 4.9 lakh units last year out of a total installed capacity of 6 lakh units a year. Our exports grew by over 22 per cent in the first half. We expect to maintain the same rate. We hope domestic market will improve and the company is aiming to close the year with an overall jump of about 10 per cent, said LheemAsked about launching its SUV Santa Fe in the country, Lheem said the company is currently carrying out a feasibility study and would act accordingly.The i20 1.4-L diesel version is priced at Rs 6.1 lakh and goes up to Rs 7.20 lakh, while the 1.4-L petrol is priced between Rs 7.31 lakh to Rs 7.72 lakh. Hyundai is currently importing CRDI engines from South Korea as it doesnt have facility to produce the same here in India.http://www.dailypioneer.com/187599/Hyundai-to-export-3-lakh-cars-this-year.html
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HINDUSTAN MOTORS TO REVISE VEHICLE PRICES
IANS
See this story in: Deccan Herald (Web Edition)

Kolkata: "Hindustan Motors is passing on the entire benefit to the customers who can expect a Rs 6,000 cut in Pajero, Outlander and Montero prices effective from July 7," a company statement said.Mukherjee said in his budget speech that specific component of excise duty applicable to large cars and utility vehicles will be reduced to Rs 15,000 per vehicle from Rs 20,000 earlier."HM-Mitsubishi Motors believe in giving the best value for money to their customers," R. Santhanam, managing director, Hindustan Motors Ltd said.The ex-showroom prices of these models will be same across the country under HM-Mitsubishi's "one country, one price" concept in India.
http://www.deccanherald.com/content/12297/hindustan-motors-revise-vehicle-prices.html
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FORD, HONDA CUT CAR PRICES BY UP TO RS 6,000
PTI
See this story in: The Economic Times (Web Edition), Business Standard (Web Edition), The Indian Express (Web & Print Edition), The Hindu (Web & Print Edition), The Pioneer (Web & Print Edition), The Tribune (Web Edition), The Telegraph (Web Edition), The Hindu Business Line (Delhi Print Edition)

New Delhi: Car makers Ford India and Honda Siel Cars India on Tuesday cut the prices of some of their models by up to Rs 6,000 a piece to pass on the benefit of excise duty cut on large cars announced in the Budget. While Ford India announced a price cut of Rs 6,000 for its sport utility vehicle (SUV) 'Endeavour', Honda Siel Cars India (HSCI) reduced the prices by Rs 5,000 for its luxury sedan 'Accord' and SUV 'CR-V'. "The price reduction of Rs 6,000 will be applicable to all three variants of the Endeavour," Ford India said in a statement. "The duty reduction has been a welcome step taken by the government though the reduction is limited only to large cars. We are pleased to pass the benefit of the reduction on the Endeavour to the consumer in its entirety." Ford India Vice-President (Sales) Tim Tucker said. Meanwhile, HSCI said following the price cuts, its Accord would be available between Rs 17.72 lakh and Rs 24.80 lakh. Its CR-V would now come at Rs 22.92-Rs 23.62 lakh. Hindustan Motors had already reduced the prices of its partner Mitsubishi's Pajero, Outlander and Montero by Rs6,000. GM India, Toyota Kirloskar Motor and BMW had also said they would pass on the benefit of excise cuts to consumers. The government had proposed to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit in the Budget for 2009-10. It also announced a duty cut on petrol-driven trucks to eight per cent from 20 per cent at present.
http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Ford-Honda-cut-car-prices-by-up-to-Rs-6000/articleshow/4749984.cms
http://www.business-standard.com/india/news/ford-honda-cut-car-prices-byto-rs-6000/66993/on
http://www.indianexpress.com/news/ford-cuts-endeavour-price-post-budget-09/486233/
http://www.hindu.com/2009/07/08/stories/2009070855911400.htm
http://www.dailypioneer.com/187597/Snapshots.html
http://www.tribuneindia.com/2009/20090708/biz.htm
http://www.telegraphindia.com/1090708/jsp/business/story_11209625.jsp
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NEW GM TO ACQUIRE INDIAN OPERATIONS
PTI
See this story in: Business Standard (Web & Print Edition), The Financial Express (Web Edition), The Hindu Business Line (Web Edition), Hindustan Times (Web & Print Edition), The Statesman (Web Edition), The Telegraph (Web Edition)

New Delhi: Beleaguered General Motors (GM) said it would acquire its strongest operations, including the Indian business, once the company steered itself out of bankruptcy.

General Motors, which went bankrupt on June 1, has received approval for its restructuring plan from the US Court. After closing of the transaction, the new GM will be known as General Motors Company.

"The new company will acquire GM's strongest operations. They include GM subsidiaries outside the United States, including its operations in India and rest of the Asia-Pacific region, which will continue to operate without interruption," General Motors India (GMI) said in a statement.

The new GM would have a stronger balance sheet, allowing it to reduce its risk, operate profitably and reinvest in key areas such as product development, it added.

"The new GM will have a very positive impact on GM's operations in India as well. It will enable us to continue to take advantage of our company's global resources through the introduction of exciting new products and the continued commitment to our expansion plans for India," said Karl Slym, president and managing director, GMI.

He said future plans for the Indian operations were on track and the company would go ahead with its proposed launch of a luxury sedan and a mini car within this year.
"It may be recalled that GMI has already announced the launch of three brand new cars for this year. The premium luxury Chevrolet Cruze sedan will be launched in September. An all-new segment, leading mini-car will also hit Indian roads towards the end of this year," the statement said.

This year, the company launched an advanced version of its utility vehicle Captiva and LPG variant of Spark. It is planning to introduce the CNG variants of existing models.
Earlier, the company had said it was facing difficulties in raising funds for its under-construction engine transmission plant in Talegaon, involving an investment of $200 million, due to the apprehensions of financial entities.

GMI is setting up a power-train facility at Talegaon with an initial investment of $200 million, which was in addition to the $300 million already invested in the car manufacturing facility having a capacity of 140,000 units.

In its two manufacturing facilities, Halol and Talegaon, GMI has a combined capacity of 225,000 units per annum. It produces the Optra Magnum, Aveo, SRV, Aveo U-VA, Spark, Tavera and Captiva for the Indian market.

The once-mighty car maker had filed for bankruptcy on June 1, after being severely hit by falling sales due to the financial turmoil. The restructuring proposal would see the US government snapping up over 60 per cent in the new company. Going by the plan, General Motors' assets would be sold to NGMCO Inc, an entity funded by the US Department of Treasury, for nearly $50 billion.
http://www.business-standard.com/india/news/new-gm-to-acquire-indian-operations/363292/
http://www.financialexpress.com/news/new-gm-to-acquire-indian-operations/486232/
http://www.thehindubusinessline.com/blnus/14071903.htm
http://www.hindustantimes.com/redir.aspx?ID=776c09b7-12b9-465c-bbaf-711dd894faf3
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=260316
http://www.telegraphindia.com/1090708/jsp/business/story_11209625.jsp Go To Top

COMMERCIAL VEHICLES Go To TopEXCISE CUT ON PETROL TRUCKS MAY BRING IN NEW PLAYERS Chanchal Pal Chauhan
The Economic Times (Delhi Print Edition)

New Delhi: The governments decision to reduce excise on petrol trucks to 8% has benefited only one auto player, Maruti Suzuki, which has announced a price cut of Rs 25,000 with immediate effect on its Omni Cargo.
The petrol truck segment is one of the smallest in the entire truck market, where close to 4-lakh units are sold every year. Around 500 units of Omni Cargo are sold annually in the domestic market. Omni Cargo comes at the price of Rs 2.17 lakh (ex-showroom Delhi) and will now be available at under Rs 2 lakh. The excise cut is expected to encourage more companies to launch new products in the segment.
According to executives in the automobile industry, truck market leader Tata Motors is working on a petrol variant of its highly successful ACE mini-truck , which is likely to hit the market in new future. The company is working on several new variants with the ACE platform and a petrol engine is also being developed. The new truck will be much bigger than the current 0.5 tonner ACE and will have a load carrying capacity of close to a ton, a Tata Motors vendor said. Tata Motors leads the light truck segment and sells more than a lakh units of ACE every year. But the company refused to confirm any such plans. There is nothing to our knowledge and as a company , we do not discuss or share our future product plans, the company spokesman said.
The countrys truck market is only dominated by dieselrun vehicles. All major domestic players such as Tata Motors, Ashok Leyland and Eicher are present only in the diesel market. The entry of several global companies such as Daimler Trucks, Volvo, Navistar, Hino, Nissan and MAN Motors, which already have petrol-fired trucks in their product line-up , could be looking at launching these in India in the near future.
The government has reduced excise on all petrol trucks to 8% from the earlier 20% to popularise eco-friendly vehicles and to rectify the anomaly in the excise rate, thus bringing all trucks under a uniform 8% excise rate. Petrol trucks currently available in India are mostly used for intra-city transport and short-haul operations in urban market as they emit lower emission than diesel trucks.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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CONSTRUCTION & AGRI MACHINERY Go To TopTRF TAKES OVER DUTCH LANKA TRAILER
The Hindu Business Line

Kolkata: TRF Ltd, a Tata group company, has acquired controlling stake in Dutch Lanka Trailer Manufacturers Ltd (DLT) of Sri Lanka. In a disclosure to the stock exchange, TRF on Tuesday said that in the first phase, it would acquire 51 per cent stake of DLT for $8.67 million. It would have a call and put option agreement for acquisition of the balance 49 per cent for $8.33 million.

Through its joint venture with Tata International Ltd in India, DLT manufactures and sells trailers in India. DLT has manufacturing facility in Sri Lanka and sells trailers in 30 countries. Dutch Lanka Engineering (Private) Ltd, a 100 per cent subsidiary of DLT in Sri Lanka, is engaged in repairs, maintenance and service business for trailers. DLT also has a subsidiary in Oman, which manufactures and sells trailers in the West Asian markets.

TRF, an engineering and material handling equipment manufacturer, has formed a joint venture with Tata Capital and Jasper Industries for automotive applications through fabrications and machining for vehicles to be used as trailers, tippers, load bodies and refrigerated bodies.

TRF also has a Singapore-based subsidiary, York Transport Equipment (Asia) Pte, engaged in manufacturing of trailer undergears in India, Australia and Singapore.
http://www.thehindubusinessline.com/2009/07/08/stories/2009070851160300.htm Go To Top

2/3 WHEELERS Go To TopINDONESIAN OPERATIONS DRAG DOWN PROFITS AT BAJAJ, TVS
Shally Seth
mint

Mumbai: The Indonesian subsidiaries of two-wheeler makers Bajaj Auto Ltd and TVS Motor Co. Ltd have dragged down profitability at the two firms.

According to Bajaj Autos annual report, Bajaj Auto Indonesia PT, the companys subsidiary in which it has a holding of 97.5%, posted a net loss of Rs48.75 crore in fiscal 2009, pulling down Bajaj Autos consolidated net profit by 28.5% to Rs535 crore.

Similarly, TVS consolidated net loss widened 125% to Rs63 crore in the year to March over the last year. Its not known how much of it is attributable to PT TVS Motor Co. Indonesia. TVS did not respond to emails sent by Mint.

Analysts believe the Indonesian subsidiary accounts for at least two-thirds of TVS consolidated losses. Mahantesh Sabarad, an analyst with Centrum Broking Pvt. Ltd, pegged the companys losses at the Indonesian unit to be around Rs40 crore. Another analyst from a different brokerage firm, who did not want to be named, said as the company reported a profit of Rs31 crore on a stand-alone basis, the consolidated losses are largely on account of Indonesian operations.

TVS, which sells the Neo and Apache brands in Indonesia, sold 10,000 two-wheelers in 2008-09 and expects to at least triple the sales volumes in the current year mainly on back of enhanced sales and distribution network, said Sabarad.

Even with these volumes, the company will not be able to break even, at least for another two years, he said. TVS sells its products in 13 provinces through a network of 105 dealers. Bajajs annual report states that considering the challenges involved in setting up an appropriate dealer and service network, creation of brand awareness, appropriate tie-ups with finance agencies, understanding customer behaviour and preferences, in addition to setting up an assembly plant, the gestation period is expected to be long but eventually profitable. Hence, diminution in the value of the investments made in Indonesia is not considered to be of a permanent nature.

Both Bajaj and TVS have adopted different market entry strategies for the country. Bajaj Auto adopted a low-risk strategy and chose to tap into the high, premium-end bike market and started operations through an assembling facility for semi-knocked-down (SKD) units. TVS chose to enter in the mass-market segment and established a unit that can assemble the Indian models and also develop models that are specifically meant for the Indonesian market.

To get a foothold in the six million-plus per annum Indonesian two-wheeler market, which is a stronghold of Japanese two-wheeler makers Suzuki Motor Corp., Honda Motor Co. and Yamaha Motor Co., Bajaj and TVS entered Indonesia in fiscal 2006 and 2007, respectively.

The firms, however, have not been able to make a dent into this market so far and continue to be fringe players. Bajaj Auto Indonesia sells the Pulsar and the XCD models in the country through its 63 showrooms in 46 cities. It sold at least 19,000 two-wheelers in fiscal 2009. To be able to price its products more competitively and expand the product offerings in the region, Bajaj Auto also plans to commence assembly of completely knocked-down (CKD) kits in the second half of the current year. The move, the annual report said, will help the company trim the high customs duty on the imports. Duty on imported CKD parts in Indonesia is 15%, 10% lower than that of SKD parts.

Mohit Arora, director, India, JD Power, says one of the reasons why the Indian manufacturers have not been able to make a difference in a market, which is the third largest for two-wheelers by volume after China and India, is the low recall value and low awareness of the Indian brands.

Unlike Honda and Suzuki, they are not global brands. They, hence, need time to prove themselves with their products before this market blossoms for them, he said.
Arora believes that Indonesia being a competitive market, Indian players cannot succeed by merely exporting bikes made for India into this country and they have to develop models that have been designed specifically for the region. In this sense, TVS, which has a full-fledged manufacturing unit, is said to be better off, he added.

He believes with the Association of Southeast Asian Nations (Asean) being a promising but competitive two-wheeler market, Indian manufacturers in order to rake in enough volumes, need to have a well rounded strategy for the whole region and not one specific country. Asean sells more two-wheelers than China and India put together.

In 2008, China sold 25.9 million two-wheelers while India sold 9.7 million. What works in favour of the Indian manufacturers is the Indo-Asean free trade agreement, which waives excise duty on all exports, he added.
http://www.livemint.com/2009/07/07221737/Indonesian-operations-drag-dow.html?d=1 Go To Top

COMPONENTS Go To Top- - - - -
ALLIED INDUSTRY Go To TopP K RUIA MAY STEP DOWN FROM BOARDS OF ALL GROUP COS
PTI
See this story in: Business Standard

Kolkata: Ruia group Chairman P K Ruia may step down from the board and allow the group companies to be managed by professionals, while he would remain group chairman.

Ruia, who had last year stepped down from the board of wagon manufacturer Jessop & Co, said that the model of management in the group companies could be based on the one in Jessop.

This model would be followed only in companies which were on the right track.
When asked about Dunlop India, Ruia said it was not on the right track. He did not categorically say whether he would continue as executive chairman of the ailing tyre company. On commencement of operations at Dunlop, Ruia said funds were ready, but it hinged on a court case related to non-restoration of power in the plant.

Speaking about Jessop, Ruia said he was planning to list Jessop on the stock exchanges.
"To get it listed our holding has to be brought down to 75 per cent from over 94.5 per cent currently. There are a few options like inducting strategic investors and disinvestment," Ruia said while speaking on the sidelines of Jessop & Co AGM.
The Durgapur facility of Jessop may reopen this year. The company would install the machinery of Mukund Foundry. So far, Ruia has invested Rs 30 crore in the plant.
http://www.business-standard.com/india/news/p-k-ruia-may-step-downboardsall-group-cos/66987/on
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JSW STEEL RULES OUT HIKE IN PRICES
PTI
See this story in: The Hindu Business Line, The Statesman
New Delhi: The country's largest private steel producer by capacity, JSW Steel, on Tuesday ruled out any increase in prices of its products even as demand has improved significantly from the consuming sectors like automobile and construction. Right now there are no plans to hike prices as cost has come down drastically in the last six months,'' said Mr Sajjan Jindal, Vice-Chairman and MD, JSW Steel. JSW Steel has a capital expenditure programme of 3,000-4,000 cr in the current fiscal he added.
http://www.thehindubusinessline.com/blnus/02071337.htm
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=260317 Go To Top

FINANCE & INSURANCE Go To Top- - - - -
OIL, LUBRICANTS & ALTERNATIVE FUELS Go To TopOIL HOVERS ABOVE USD 64 PER BARREL
AP
See this story in: The Indian Express
Singapore: Oil prices hovered above $64 a barrel on Tuesday in Asia after falling 12 per cent in a week on investor doubts about a global economic recovery. Benchmark crude for August delivery rose 26 cents to USD 64.31 a barrel by mid-morning Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, it fell USD 2.68 to settle at USD 64.05.

Prices reached an eight-month high last week above USD 73, but quickly tapered off as dismal unemployment figures suggested that the US and Europe would be slower to rebound out of recession than expected.

Some analysts expect prices to rally again soon on signs that the worst of the economic slowdown is over. "I think the market will look for some positive news and head back up toward USD 70," said Gerard Rigby, an energy analyst at Fuel First Consulting in Sydney. "There's been some profit taking in the last week, but I don't think there was a real change in sentiment".

More attacks on Nigeria's oil infrastructure helped boost prices. Nigeria's main militant group said yesterday it seized a chemical tanker with six foreign crew members aboard and attacked a second oil facility.

Investors will be looking to a weekly inventory report from the Energy Department's Energy Information Administration for signs that crude demand may be growing.
http://www.indianexpress.com/news/oil-hovers-above-usd-64-per-barrel/486045/ Go To Top

INTERNATIONAL NEWS Go To TopGM SEEKS COURT OK TO DROP 38 HOLDOUT DEALERSHIPS
Reuters
See this story in: The Economic Times

Detroit: General Motors Corp asked a federal bankruptcy court on Tuesday for permission to drop 38 US dealers who have rejected the automaker's offer of a payout to wind down their operations. GM has used its US government-sponsored bankruptcy process to slash dealerships and retail franchise obligations it says have cost it about $2 billion annually to support. In a filing with US bankruptcy court in Manhattan, GM asked Judge Robert Gerber for approval to drop 38 dealers in 20 states that have not agreed to its closure terms. T he termination of the dealer franchise agreements would be effective this week if GM is allowed to cut free of the holdout dealerships. When it entered bankruptcy last month, GM had about 6,000 US dealerships, a sprawling retail network built up when it had more than twice the U.S. market share that it now holds. About 4,100 GM dealers have signed agreements to continue with the new GM expected to emerge from bankruptcy as soon as this week, the automaker has said. The remaining dealers have been offered "wind-down" agreements offering them up to 16 months to sell off their remaining vehicle inventory and operate their repair shops. About 98 percent of GM dealers being dropped by the automaker have signed such wind-down offers, which also give them a one-time cash payout. In 1980, GM commanded a 45 percent share of the US market. That fell to 22 percent in 2008 and is expected to dip as low as 19.5 percent this year under the automaker's restructuring plan. But GM dealerships, which are run as independent businesses and protected under state franchise laws, have not declined by the same margin as its sales in recent years. GM said in its court filing on Tuesday that more than half of its dealerships were unprofitable and on average more than 89 dealerships were going out of business each month in 2009. In its filing, GM named the holdout dealerships it is seeking to drop, the first time it has named individual dealerships in the bankruptcy process that began on June 1. Late Sunday GM won approval from Gerber to sell its best assets to a new company underwritten by the U.S. government. The US Treasury will have a 60-percent stake in the new GM in exchange for its $50 billion in financing. A hearing on GM's request to terminate the holdout dealerships is set for August 3.
http://economictimes.indiatimes.com/News/International-Business/GM-seeks-court-OK-to-drop-38-holdout-dealerships/articleshow/4751064.cms
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GM CREDITORS WILL LET ASSET SALE GO FORWARD WHILE THEY APPEAL
Bloomberg
See this story in: The Financial Express

General Motors Corps sale of most of its assets to a US Treasury-funded buyer wont be stalled by the only appeal of a decision approving the transaction, a lawyer for objecting creditors said.

Steven Jakubowski, a lawyer for creditors appealing a July 5 ruling, said he wont seek a stay blocking the sale while the appeal is being considered. His clients are people with accident-related claims involving GM vehicles. Jakubowski said the new company should take responsibility for claims that predate the sale.

US Bankruptcy Judge Robert Gerber, who approved the sale, said it was the only option available to the bankrupt Detroit- based automaker, which filed for court protection June 1. The appeal should go directly to a federal appeals court, Jakubowski said.

This is a matter of public importance, Jakubowski, an attorney with the Coleman Law Firm in Chicago, said in a phone interview on why he appealed yesterday.

Gerber stayed his order through noon New York time July 9 to give opponents a chance
to appeal. GM asked that the order to be made effective immediately. The Unofficial Committee of Family & Dissident GM Bondholders said in an e-mailed statement from their lawyer Michael Richman that it doesnt plan to appeal the sale due to the potential cost. The committee members on Tuesday simply lack the resources needed to mount an effective appeals process on the accelerated basis that would be required here, chairman Hal John said. The group of three investors said they were representing as many as 2,000 others who own as much as $500 million of GM debt. Richman of Patton Boggs LLP had argued Gerber should call the Obama administrations bluff that it would let GM liquidate if the sale werent approved. He wanted Gerber to force the automaker to file a complete reorganization plan on which creditors could vote.

GMs lawyer Stephen Karotkin, of Weil, Gotshal & Manges LLP, said that barring a further stay the sale will close promptly, a comment repeated by GM Chief Executive Officer Fritz Henderson on a company blog.

The company will have a leaner and meaner management after the sale closes, said Steven Rattner, the Treasurys chief auto adviser. The new GM will be a smaller company than it was and somewhat less global so it will be natural for the management structure to change, Rattner said yesterday during a conference call.

GM has said it will fire about 35% of its top 1,300 executives, leaving it with 845. Gerbers decision largely followed the ruling of another Manhattan bankruptcy judge, Arthur Gonzalez, who approved the sale last month of most of the assets of GMs smaller rival, Chrysler LLC, to an entity to be run by Fiat SpA. That decision was affirmed by the Second Circuit, though the court has yet to issue a full opinion.

This is going to be a hard appeal to win, at least in the initial rounds, Seton Hall University professor Stephen Lubben said, noting Jakubowski would need to get the case before the Second Circuit very quickly without a stay beyond July 9. Gerber decided the GM sale, like Chryslers, could be done free and clear of claims, meaning the reorganized company neednt take on product-liability and asbestos claims from before the transaction is completed....
http://www.financialexpress.com/news/gm-creditors-will-let-asset-sale-go-forward-while-they-appeal/486291/2
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GERMANY'S BMW: JUNE SALES DOWN NEARLY 13%
AP
See this story in: The Times of India

Frankfurt: BMW AG saw group's car sales for June decline nearly 13 percent as the global recession continued to cut into demand, the German carmarker said on Tuesday. BMW sold 127,546 cars in the month, compared with 146,136 in the same month a year ago, the Munich-based company said. BMW produces its hallmark BMW brand, the Mini brand, as well as Rolls Royce.
http://timesofindia.indiatimes.com/Business/Germanys-BMW-June-sales-down-nearly-13/articleshow/4748816.cms Go To Top

ECONOMY & FINANCE Go To TopRUPEE A TAD HIGHER
The Hindu Business Line

Mumbai: The rupee gained marginally by 10 paise against the dollar on Tuesday in a volatile market. The domestic currency opened at 48.42 and strengthened to touch an intra-day high of 48.28. It then weakened to touch an intra-day low of 48.75, before closing at 48.45, against the previous close of 48.55. The rupee opened with gains tracking the capital inflows into the equity markets, said a dealer with a public sector bank. However, the strength of the dollar against other curre ncies pushed the rupee to its days low. When the rupee was trading at 48.75, nationalised banks sold dollars at these levels on RBIs behest, added the dealer. In the overseas markets, the dollar lost most of its gains and weakened against the other currencies after the European markets opened. In the forward premia market, the six-month closed unchanged at 2.47 per cent and the one-year closed lower at 2.28 per cent (2.32 per cent).
http://www.thehindubusinessline.com/2009/07/08/stories/2009070851370600.htm
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MARKETS UP AGAIN; SENSEX GAINS 127 POINTS
PTI
See this story in: The Hindu Business Line

Mumbai: After the mauling it got on a disappointing Budget yesterday, the market on Tuesday found its winning ways again with the benchmark Sensex on BSE gaining over 120 points.

The markets witnessed some buying activity as blue-chip stocks at their current low levels attracted investors. The bellwether index yesterday tanked close to 870 points as the Budget, on which high hopes were placed by market participants, turned out to be damp squib as it fell short of expectation on infrastructure spending, was silent on financial sector reform s and raised the minimum alternate tax.

Giving hopes of quick recovery of heavy losses, the index gained over 200 points in early trade, but it never got the big buying momentum to make up for the heavy losses. Finally, it ended the day with a gain of 127.05 per cent at 14,170.45.

The key-index shuttled between 14,251.88 and 14,000.68 during the day with 18 of the 30-BSE Sensex stocks gaining and 12 ending with losses.

In similar fashion, the wide-based National Stock Exchange index Nifty rose by 36.45 points at 4,202.15, after moving between 4,231.80 and 4,155.50 points.
Market men said a firm opening at European stock markets also fueled the upward march. Among the indices, the auto sector index gained the most Mahindra and Mahindra, Hero Honda and Maruti Suzuki recording gains in the range of 5-6 per cent. - http://www.thehindubusinessline.com/blnus/05071901.htm
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I TOOK CALCULATED RISKS FOR HIGH GROWTH: FM
Agencies
See this story in: The Financial Express

New Delhi: Finance Minister Pranab Mukherjee on Tuesday said the government has taken the calculated risk of high fiscal deficit to help stimulate growth, but would strive hard to bring it down to 4 per cent in the next two fiscals.

Noting that a fiscal deficit of 6.8 per cent was on the higher side, the minister said: "The global economic slowdown is likely to continue in the current financial year... (but) we must come back to growth path as fast as possible."

"No doubt, I have taken a risk... We cannot say we are out of the economic slowdown as yet," he said.

Mukherjee also ruled out any roll back of the stimulus measures announced earlier by the government.

Speaking at an interactive session with industry leaders here, Mukherjee said the government has taken the risk of letting the fiscal deficit rise to achieve a higher growth rate.

Setting a target of bringing down the fiscal deficit to 5.5 per cent in 2010-11 and 2011-12, he said the finance ministry would work hard in the next 7-8 months to achieve this target.

"A single budget cannot solve all the problems," he added.
http://www.financialexpress.com/news/i-took-calculated-risks-for-high-growth-fm/486157/