Indian Automotive Industry News

Tuesday July 14, 2009

INDIAN AUTOMOBILE INDUSTRY

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INDUSTRYTata Motors' first consignment of Nano sent to Hyderabad
DHL unveils roadmap to power auto sector
JLR clarifies summer shutdown will be shorter than normal
INTERVIEWS/FEATURESCARS, SUVs, MUVsPassenger vehicles defy export slowdown
Toyota thinks big for India small car
Toyota set to export cars via Ennore port
Bavina Cars to outsource parts
COMMERCIAL VEHICLESCONSTRUCTION & AGRI MACHINERYEscorts arm to market Chinese firm's truck cranes
Ashok Leyland, John Deere complete pact for venture
2/3 WHEELERSBajaj Auto to raise stake in Austria's KTM
Bajaj Auto Discovers future's in 100cc bikes
COMPONENTSPune auto part units limp back to normal
ALLIED INDUSTRIESNatural rubber rates fall as crude weakens
MRFs Arakonam plant resumes production, supply to OEMs
FINANCE & INSURANCEIndusInd Bank in loan pact with Maruti Suzuki
OIL, LUBRICANTS & ALTERNATIVE FUELSOil falls below $59 on economy worries
INTERNATIONAL NEWSGM studies continuing Pontiac G8 as a Chevrolet
Ford eyes Asian small-car market with Thai plant
ECONOMY & FINANCERupee weakens
Sensex dips to two-month low on weak global trends


INDUSTRY Go To TopTATA MOTORS' FIRST CONSIGNMENT OF NANO SENT TO HYDERABAD
PTI
See this story in: The Economic Times (Web Edition), Deccan Herald (Web Edition), Rediff India (Web Edition), Hindustan Times (Delhi Print Edition), Business Standard (Delhi Print Edition)

Haldwani (Uttarakhand): Tata Motors' Pantnagar facility sent its first consignment of Nano, world's cheapest car, to Hyderabad.

A total of 50 Nano cars were sent to Sanatnagar railway station of Hyderabad from Haldi Road station near Pantnagar through high-capacity BPU coaches yesterday, railway sources said. Along with 50 Nano cars, 34 Tata magic vans were also sent. Railway sources said Izatnagar division of railways has earned a revenue of Rs 8,71,145 from the loading of first consignment of Nano. Tata Motors had demanded specially designed coaches, known as NMG coaches in railway parlance, from the railway board for smooth transport of Nano but instead they provided them high-capacity BPU coaches in which the small cars were loaded. Although the mother plant of Nano has been set up in Sanand of Gujarat, Nano is currently being manufactured in Pantnagar facility, where it is also producing Ace trucks.
http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Tata-Motors-first-consignment-of-Nano-sent-to-Hyderabad-/articleshow/4773325.cms
http://www.deccanherald.com/content/13535/tata-motors-ships-50-nanos.html
http://business.rediff.com/report/2009/jul/13/tata-nano-cars-sent-to-hyderabad.htm
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DHL UNVEILS ROADMAP TO POWER AUTO SECTOR
The Hindu Business Line (Web & Print Edition)

Pune: DHL has identified the key logistics factors in the three core areas of inbound to manufacturing, aftermarket, and international supply chain that would determine the success of the auto sector in India in the near and long term.

Unveiling its roadmap to power Indias auto sector to over 50 key customers at an automotive conference here, Mr Bill Olver, Vice-President for Automotive, DHL Global Customer Solutions Asia Pacific, said, The current crisis has escalated the need for change and re-engineering of the auto supply chain to drive out cost. DHL, along with its domestic arm Blue Dart, is working with customers to manage through these difficult times ensuring that their priorities are addressed by delivering scalable and sustainable solutions to capitalise on the opportunities. Our goal is to maximise our customers ability to take advantage of the turn when it comes.

Expansion as small car hub
Within India, DHL has dedicated automotive teams that provide strategic consulting for a variety of customers, from international players seeking to expand their presence in the domestic market to domestic companies aiming to go global, servicing more than 50,000 customers across India.

Experts predict that over 50 per cent of growth in the automotive sector will occur in emerging markets through 2015, and India is at the forefront of this trend, playing an increasingly prominent role in the global industry; its automotive sector is expected to contribute 10 per cent of its GDP by 2016.

DHLs executives said that much of this growth would be driven by Indias expansion as a small car hub, increased sourcing of component parts, expansion of the domestic dealer network, development of higher volume production plants and an increasingly global presence.
http://www.thehindubusinessline.com/2009/07/14/stories/2009071451060500.htm
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JLR CLARIFIES SUMMER SHUTDOWN WILL BE SHORTER THAN NORMAL
S Kalyana Ramanathan
Business Standard (Web & Print Edition), The Hindu Business Line (Delhi Print Edition)

London: Jaguar Land Lover, the loss-wracked luxury car maker owned by Tata Motors, clarified that the planned maintenance shutdown of its three units in the UK this summer will be for a shorter period than the usual annual shutdown.

In a statement correcting media stories that appeared on Sunday suggesting its plants would be shut for longer, a company spokersperson said, The reality is that our annual summer shutdown begins at the end of next week (July 23) as scheduled and will last for two weeks, with the plants due to restart on August 10. This two-week break is actually a week shorter than the traditional three-week break our plants have previously had.
This statement confirms that despite the fall in demand for cars globally, JLR is not planning to reduce its production to a level lower than what it is now.

JLR spokesperson added, At Solihull, we have just reinstated the second shift as we build up production of the new 10MY Discovery, Range Rover Sport and Range Rover; at Castle Bromwich, with orders for XK and XF to fulfill, plus our work to finalise production of the new XJ; and at Halewood with Freelander and X-TYPE, we will not be extending the annual summer shutdown period.

Annual shut down of plants for maintenance, ranging from a week to two weeks, is a regular and established practice among most car makers in the world and does not conclusively prove a production cut.

However, for the year ending March 2009, JLR had to make production cuts to adjust to the demand for its cars. The company had in March stated there had been a series of non-production days at all three of its UK assembly plants Castle Bromwich and Solihull in the West Midlands and Halewood on Merseyside. Each plant lost an average of 25 days production, which equated to a volume reduction of approximately 25 per cent, month on month.
http://www.business-standard.com/india/news/jlr-clarifies-summer-shutdown-will-be-shorter-than-normal/363887/ Go To Top

INTERVIEWS/FEATURES Go To Top- - - - -
CARS, SUVs, MUVs Go To TopPASSENGER VEHICLES DEFY EXPORT SLOWDOWN
S. Hamsini Amritha
The Hindu Business Line (Web & Print Edition)

The automobile sector appears to be defying the trend of shrinking merchandise exports from India in recent months. Even as the countrys total exports were down nearly 30 per cent in value terms in April-June, automobiles (number of units) shipped out grew 1.3 per cent over the same quarter of 2008.

Hyundai Motor India and Maruti Suzuki are the major exporters that drove this trend. Most Indian cars find their way to Europe, Asia, West Asian and Latin American markets. A shift in customer preference to fuel-efficient and environment-friendly compact cars and the monetary incentive from the governments of these countries are the major demand drivers.

A Maruti Suzuki spokesperson said, The impact of the slowdown and rising fuel prices is forcing people to shift their preference in favour of small cars, especially in Western markets. The current scrappage incentive across Europe to replace nine-year old cars with small, fuel efficient vehicles is a big attraction for customers and has given a huge opportunity to scale up export of small cars.

The scrappage incentive scheme lasts till December in most countries. Once the scheme comes to an end, the volumes are likely to see a drop, said the official from Maruti Suzuki.
http://www.thehindubusinessline.com/2009/07/14/stories/2009071452160100.htm
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TOYOTA THINKS BIG FOR INDIA SMALL CAR
Murali Gopalan
The Hindu Business Line (Web & Print Edition)

Mumbai: Toyota is drafting an aggressive strategy for India, which will see its small car emerge as a critical growth driver.

The next 10 years for Toyota Kirloskar Motor will be different from the last decade. That time was spent usefully to stabilise the India business and put it in order. It is now time for a new vision and mission, Mr Hiroshi Nakagawa, Managing Director of TKM, told Business Line.

It is here that the compact car, codenamed 800 L, will play a big role though it will be up against stiff competition in the form of established players such as Maruti, Hyundai and Tata Motors.

Toyotas closest Japanese rival, Honda, is also planning a small global car in India, which will also debut by end-2011.

The challenge for us lies in the positioning of the car from the customers viewpoint. It should ideally create that sense of awe. The Toyota brand stands for a whole lot of attributes and the car must ideally strike the right balance, he said.

What was even more important, Mr Nakagawa added, was for Toyota to be the most loved and admired company in India. The key is to be known and appreciated by customers here. We still have not done that in terms of mass volumes since only a select few drive the Corolla or Innova. This is where the small car will be a vital part of our growth plans, he said.

Even while the core centre of R&D for the 800 L project operates out of Japan, some Indians from TKM are actively working with their Japanese counterparts. Toyota believes that this will help enhance knowledge and capability levels while paving the way for the country to house some key R&D functions too in the coming years.

Between 2015 and 2018 , the Japanese car-maker has targeted a market share of 10 per cent in India, which could translate into 4,00,000 units annually. The small car and its derivatives from the platform will play an important role in achieving this goal. The company had, earlier, set itself the same 10 per cent share for 2010 but has set back the date.

It is in this context that experts believe that Toyota has been late in launching the car at a time when almost every manufacturer is part of this competitive segment. At one point, the company had planned to join hands with its subsidiary, Daihatsu, to make a small car here but shelved the idea because the economics were not working out. I do not think being late put us at a disadvantage because this entire effort requires a lot of research, Mr Nakagawa maintained.

Manufacturing hub
The small car has, incidentally, been planned for BRIC (Brazil, Russia, India and China) economies too. To that extent, India could end up being one of the important manufacturing hubs globally on the lines of Thailand for the Innovative International Multipurpose Vehicle (IMV) project. This will be good news for local ancillary suppliers who could be part of Toyotas programmes worldwide.

Mr Nakagawa was the leader of the IMV programme in Thailand for five years since its inception in 2001. His objective was to make the country the hub for vehicles rolling out of this platform, the Innova being one of them.

It is his belief that though (in terms of Toyotas overall volumes) Thailand is comfortably ahead of India, it is only a matter of time before the converse happens.

It is possible for India to do better but it would be hard to fix a timeframe. This is a big market which, in addition, has an educated and competent workforce, he said. TKM is gearing up to launch the Fortuner sport-utility vehicle (again from the IMV platform) in the coming months.
http://www.thehindubusinessline.com/2009/07/14/stories/2009071451330200.htm
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TOYOTA SET TO EXPORT CARS VIA ENNORE PORT
Jaishankar Jayaramiah
The Financial Express (Web & Print Edition)

Bangalore: Toyota Kirloskar Motor (TKM), the Indian subsidiary of Japanese auto giant Toyota, will ink a pact with Ennore port in Tamil Nadu to export its small cars, which would be manufactured at the companys upcoming plant near Bangalore from 2010-11, the companys deputy managing director (commercial) Shekar Viswanathan said.

TKM would apply for space in Ennore port soon, Viswanathan added on the sidelines of 32nd AGM of Bangalore Chamber of Industry and Commerce. We have analysed both Mangalore Port Trust and Ennore port in Tamil Nadu. Ennore would be more suitable for us to export to countries in the east, he said, while adding that TKM would export small cars to Indonesia, Malaysia, Philippines, Thailand, and Vietnam.

Currently, TKM is constructing a second production plant at its existing 420-acre factory complex in Bidadi near Bangalore to manufacture small cars. The company has invested Rs 3,200 crore to build the plant that would have an annual production capacity of one-lakh units. Although the small car rolled out from the new plant would be primarily for the Indian market, the company has also decided to ship it overseas.

If the deal was through, Toyota would be the second automaker to export cars through Ennore port.Already, Nissan has signed an agreement with Ennore port to export around 1.1 lakh cars per annum, primarily to Europe.
http://www.financialexpress.com/news/toyota-set-to-export-cars-via-ennore-port/488923/


BAVINA CARS TO OUTSOURCE PARTS
The Hindu Business Line (Web & Print Edition)

Chennai: Bavina Cars India Ltd plans to outsource over 80 per cent of the components for its plug-in series hybrid passenger car. The company will import transmissions from BorgWarner in the US and outsource sheet metal parts from Caparo and motors from Bosch and Siemens. Plug-in series hybrid cars are battery operated with an on-board petrol engine of smaller capacity to power the batteries, enabling the car to run longer distance on a single charge. Mr K Babu, Managing Director, Bavina Cars, told Business Line that the company would outsource most of the items except for skin panels. Bavina is investing Rs 300 crore to set up a manufacturing facility in the Special Economic Zone in Ranipet, about 110 km from Chennai. Of this, Rs 75 crore would be equity and the rest from banks. It would have a capacity to make 40,000 cars per year with technology support from Velozzi of the US. A one-time technology fee would be paid to Velozzi for technical support and hand-holding, he said. The company will roll out two variants a base version and a fully loaded version by early 2011.
http://www.thehindubusinessline.com/2009/07/14/stories/2009071451400200.htm Go To Top

COMMERCIAL VEHICLES Go To Top- - - - -
CONSTRUCTION & AGRI MACHINERY Go To TopESCORTS ARM TO MARKET CHINESE FIRM'S TRUCK CRANES
PTI
See this story in: The Economic Times

New Delhi: Escorts Construction Equipment Limited (ECEL), part of the Escorts Group, has signed an agreement with the Chinese Hunan Zoomlion International Trade Co Ltd for marketing the latter's truck cranes in India. ECEL will market a range of truck cranes of Hunan Zoomlion, including the 'All-Terrain Truck Cranes', the company said in a statement. "Given the planned growth and focus on infrastructure projects like flyovers and bridges, this arrangement will provide a boost to ECEL's ongoing growth plans," ECEL Executive Director and CEO Kanwal Kishore Vij said. Currently ECEL has Pick-n-Carry cranes 5T-23T and Rough Terrain Slew Cranes 17T-40T under its product portfolio.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Escorts-arm-to-market-Chinese-firms-truck-cranes-/articleshow/4773499.cms
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ASHOK LEYLAND, JOHN DEERE COMPLETE PACT FOR VENTURE
The Hindu Business Line
See similar story in: Asian Age, Deccan Chronicle, The Financial Express

Chennai: Ashok Leyland, the flagship of the Hinduja Group, and John Deere Construction & Forestry Company has announced the completion of all legal formalities for the formation of the joint venture company Ashok Leyland John Deere Construction Equipment Pvt Ltd.

A press release from the company said the joint venture will initially manufacture backhoes and wheel loaders and will market backhoes, wheel loaders and excavators in India and abroad.

The range will be expanded to include a full-line of construction equipment. Pilot production will commence in October 2010 and serial production by January 2011, at a manufacturing facility to be situated near Chennai.

Ashok Leyland will bring to the table its expertise and pan-India distribution network, while John Deere will provide its technical know-how and vast experience in the construction equipment business.

The construction equipment industry in India is estimated at $2.5 billion, growing 20 per cent annually. This new range of construction equipment will complement Ashok Leylands range of commercial vehicles such as tippers, cement bulkers and tip-trailers.
http://www.thehindubusinessline.com/2009/07/14/stories/2009071450960300.htm
http://www.asianage.com/presentation/leftnavigation/news/business/all,-john-deere-jv-to-start-production-in-2010.aspx
http://www.deccanchronicle.com/business/all-john-deere-jv-start-production-2010-160
http://in.biz.yahoo.com/090713/50/batvmh.html
http://www.financialexpress.com/news/ashok-leyland-completes-jv-formalities-with-john-deere/488909/ Go To Top

2/3 WHEELERS Go To TopBAJAJ AUTO TO RAISE STAKE IN AUSTRIA'S KTM
Swaraj Baggonkar
Business Standard

Mumbai: The equity holding of Bajaj Auto, Indias premium bike manufacturer, in Austrias power bike company KTM Power Sport AG will be scaled up in the coming years to leverage on the foreign companys superior expertise in technology and brand name.

Bajaj Auto, through its 100 per cent Dutch subsidiary, Bajaj Auto International Holding BV, will buy the additional stakes in the Vienna Stock Exchange-listed KTM on-behalf of the company.

The Pune-based company has so far spent Rs 700-800 crore (119.62 million) in buying 31.72 per cent stake in KTM. Rajiv Bajaj, managing director, Bajaj Auto has already secured a seat on the KTM Board.

KTM will form a crucial part of Bajaj Autos overseas strategy, including merger and acquisition, as the European company brings with it intricate knowledge of key overseas markets like Europe and North America.

Bajaj will have the upper hand, as it stands to gain from KTMs extensive research and development (R&D) support, as well as its dealership size globally. KTM will look to tap into Bajajs low-cost supplier base to gain economies of scale.

Speaking to Business Standard, Rajiv Bajaj stated, We looked at a number of companies (prior to KTM). We were primarily looking for a powerful brand, with premium priced products. We chose to go in for a qualified and best managed company than a limping organisation which hoped for a revival (by selling to us); thus, KTM fits the bil.
KTM, which is Europes second largest bike producer, will start production of its high-end bikes at Bajajs Chakan facility (near Pune) in the next few months, which will be subsequently launched in the Indian market.

We have a clear understanding between us. Looking at a time frame of five years, we would have scaled up our holding in KTM. To what level is something we havent thought about, but something like 50 per cent is a possibility in the future. This a slow process of integration between the two companies, added Bajaj.

Before settling on KTM, Bajaj Auto was in talks with UKs Triumph, a super-bike making company specialising in cruisers and also with Italys famed motorcycle company, Ducati, as both firms were in need of funds, with an eye on making a foray into the Indian two-wheeler market.

Meanwhile, Ducati has forayed into India on its own with the help of an official importer, while Triumph is yet to finalise its import plans.

The first of the Bajaj-KTM alliances products to be sold here will perhaps be a four-stroke 125cc-250cc sports bike, to be launched within a year. Work on these joint products started in 2007.

KTM will also launch locally assembled as well as fully imported bikes in the domestic market. It will also seek to take advantage of Bajajs growing presence in the Chinese market.
http://www.business-standard.com/india/news/bajaj-auto-to-raise-stake-in-austria/s-ktm/363882/
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BAJAJ AUTO DISCOVERS FUTURE'S IN 100CC BIKES
Adil Jal Darukhanawala
The Economic Times

Not content with pushing its performance-minded Stars Ahead team (as the R&D department under Joseph Abraham is termed) to churn out the most exciting sports bike in the country the Bajaj Pulsar 220 DTSI it seems that finally, the Pune-based bike maker Bajaj Auto might just have readied its best shot at 100cc glory. The weapon it has now developed is a combination of the proven with all-new technology, hitherto the domain of bikes in a larger capacity and a higher segment. Critically, Bajaj Auto rules the larger segments and has brought to bear all its expertise with a bike, which is larger, more comfortable, surer, handles better and is armed with an engine which might displace 100cc, but has response, power and refinement of a higher class. Many might think there is a catch here, but again, thanks to finely-developed technology by the Stars Ahead team, fuel efficiency will play a critical role in the overall appeal of the bike. It is no secret that for well over a decade, Bajaj Auto has been seriously burning the midnight oil to get to take on the bestselling Splendor and Passion from Hero Honda. While it did put in tremendous effort, Bajaj never achieved the results needed to see these two old-in-the-tooth evergreen hundreds being engaged in battle. Things could change though when the new Bajaj Discover 100 begins to roll off the assembly lines from Bajaj Autos Chakan plant on July 17. While everyone assumed that Bajaj Auto, and indeed its leading light Rajiv Bajaj, did not seem to be interested in the 100cc class of motorcycle, the big man himself set the record straight talking exclusively to ET ZigWheels. "In 2007, we said we really don't believe that 100cc bikes are the future. Now, as far as I'm concerned, the first erroneous interpretation was that Bajaj is not interested in 100cc customers, which we clarified by saying that were interested in every customer, we just want them to upgrade to something that's more fun." Mr Bajaj further added, "The second assumption was that Bajaj is not interested in making a '100cc' bike. And, in my view, that is both right and wrong. It is right because we're not interested in making a bike that is 'born' as a 100cc bike, like a Boxer, or a 4S, or a CT, or a Platina. It was very clear that the 100cc bike territory belongs to someone else and whether you are TVS, Yamaha or Bajaj, no one has been successful in exploiting that." He added: "To get the normal 100cc customers to upgrade, we had to use something which was already proven, so ultimately, price as a reflection of brand strength in the market place was what we chose to base our premise on. And so, our concept was, 'let's move people up to Discover, but without the high premium this bike in 125 cc and 135 cc displacements commands and delivers." What will emerge on July 17, is an all new 100cc engine with more power and torque, even better engine response than any other 100cc engine in the country and surely a bike which should break the ton, not in speed, but in fuel efficiency. In fact, while the ARAI figures for ideal fuel efficiency under standard test conditions could exceed the three-figure mark, the bike has already set am 89 kmpl figure in the Indian Driving Cycle tests.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Bajaj-Auto-Discovers-futures-in-100cc-bikes/articleshow/4774143.cms Go To Top

COMPONENTS Go To TopPUNE AUTO PART UNITS LIMP BACK TO NORMAL
Kaustubh Kulkarni
Business Standard
Pune: After a rough patch of more than eight months, proprietors of small and medium enterprises (SMEs) in the auto component segment are heaving a collective sigh of relief. Capacity utilisation, which had dipped as low as 25 per cent in a large number of units, has climbed to nearly 70 per cent over the last three months, keeping workers and executives busy.

More than 4,500 SMEs operate in the automotive and engineering verticals in and around Pune city. These units had been facing poor demand from Indian as well as global original equipment manufacturers (OEMs) owing to the slump.

Rajeev Ranadive, president of Automotive Robotics, said, I can see a change happening for auto ancillary units in the wake of rising sales of vehicle makers. However, this transformation is happening slowly. The Indian auto industry was overheated and now it is growing in a gradual manner. The recent increase in sales can only be a short-term phenomenon. But it has definitely helped the SMEs.

Automotive Robotics, an active unit in vehicle engineering, prototypes and testing, provides services to India's top vehicle makers. Like others, it has seen increased inquiries and demand over the last three months.

Members of Alucast, the Aluminum Casters Association of India, too believe there has been a gradual turnaround. Aluminum casters were counting their last days for almost six months. However, automobile sales have grown in the months of April, May and June. This has made survival possible, said R T Kulkarni, honorary secretary of Alucast.

The increased sales of almost all vehicle makers come as oxygen for aluminum casting units. Demand has certainly gone up. But still, the market will take some time to recover. Most units however have seen capacity utilisation increase up to 70 per cent, Kulkarni added.

Some SMEs in Pimpri-Chinchwad, neighbouring Pune, have seen a sudden spike in demand. Suresh Mhetre, president of the Pimpri-Chinchwad Small and Medium Industries Federation, said the demand-supply equation was returning to normal.

In January and February, a handsome number of units were shut down for a specified period due to a heavy slump in demand. Almost every working unit delivered only 25 per cent of its capacity. But during April and May, things seem to have turned around. Now, capacity utilisation has touched 70 per cent at most units, Mhetre said.

Most big companies are using the old stock of auto components they have. But they have also placed orders for the future, which has given SMEs a lot of work, he added.

When the auto slump hit Pune-based SMEs, more than 15,000 workers lost their jobs either permanently or on a temporary basis. According to Mhetre, more than 50 per cent of them have returned to their workplace.

A prominent camshaft maker, Precision Camshafts Ltd from Solapur, has seen increased demand from domestic vehicle makers. Whoever is supplying components to domestic players is busy with work. Post-February, the demand has gone up and we are working at full capacity. We expect this to continue over the next few months at least, said Precision Camshafts managing director Yatin Shah.
http://www.business-standard.com/india/storypage.php?autono=363812 Go To Top

ALLIED INDUSTRY Go To TopNATURAL RUBBER RATES FALL AS CRUDE WEAKENS
M Sarita Varma
The Financial Express

Thiruvananthapuram: Due to crude prices weakening and surge in import, the natural rubber (NR) price has declined. The NR price has come down to Rs 96 per kilo this week, compared to the Rs 98-99 range in the last fortnight.

Crude prices had been squeezing synthetic rubber (SR) demand so much through out 2008-2009 that NR to SR ratio in automobile sector consumption had stretched to its most comfortable high of 75:25. Apparently, this trend is shifting to reverse gear in July, experts told FE. As monsoon improved in the plantations in Kerala, the increase in production would halt further jacking up the prices. Meanwhile the Rubber Board estimates say that the output in the first three months of the crop year to be 11% lower than last year.

However, because of the substitution-effect of crude-linked synthetic rubber in tyre manufacturing, NR price had remained weak when crude oil prices surged to $67.97 per barrel on 1 June 2009. Crude oil price is now below $60 per barrel. International price for the high grade RSS-4 is as low as Rs 79 per kilo. Compared to last years volumes, exports in the first quarter have shrunk to one-third and imports have more than doubled, Rubber Board spokesperson said.

The NR stocks of June closed at about 1.9 lakh tonne while the corresponding period in the previous year, it was only about 1.4 lakh tonne. Together with imports, this could cater to a consumption-appetite of about 72,008 tonne. The rubber farmers look at low range of international price with alarm, Josekutty Antony, President, Rubber Nursery Owners Association says. While NR production in almost all major countries saw setback, 2 medium producers found their rubber output zooming. NR production in China grew 138% and that of Sri Lanka was up by 10% in the five months ending in May. Secondly, yen gaining strength against dollar also favoured easing of international price for premium rubber grades. http://www.financialexpress.com/news/natural-rubber-rates-fall-as-crude-weakens/488870/
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MRFS ARAKONAM PLANT RESUMES PRODUCTION, SUPPLY TO OEMSThe Financial Express

Chennai: MRFs Arakonam plant has resumed supply of tyres to original equipment manufacturers (OEMs) following the return of normalcy at the factory premises. Hit by labour problems for over a month, the management said it has witnessed the return of a large number of workers and has started supplying to the OEMs.

In a statement, MRF said that Arkonam unit always maintained good industrial relations since its inception. Of late, the unit has hit rough weather due to the emergence of militant splinter groups, which have scant regard towards workers interest and have a single-point agenda of carrying a vilification campaign against the company.

It has been very disturbing to note that misinformation campaigns against the industrial climate prevailing in Tamil Nadu and more particularly against the company is being carried out with vested interest in the name of trade unionism and also for their personal gains, acompany spokesperson said here on Monday.

In spite of a popular settlement of wages being entered with the recognised trade unions which offered substantial benefits to the MRF Arkonam workers, the splinter militant groups in the garb of trade union activities had gone berserk and indulged in violent activities and also tried to scuttle the settlement being implemented there upon.
However, majority of the workers, who saw malafide intentions of the leader of the splinter group, has resumed their work in large numbers. Thus near normalcy has been restored in the production and resumption of supplies to the OEMs, dealers and other undertakings have started.http://www.financialexpress.com/news/mrfs-arakonam-plant-resumes-production-supply-to-oems/488911/ Go To Top

FINANCE & INSURANCE Go To TopINDUSIND BANK IN LOAN PACT WITH MARUTI SUZUKI
PTI
See this story in: The Economic Times, Business Standard, The Financial Express

Mumbai: Private sector lender IndusInd Bank has entered into a tie-up with auto major Maruti Suzuki to provide loans to the latter's customers.

Under the agreement, IndusInd Bank will offer financing facilities to all eligible customers for purchasing Maruti vehicles, a release said here. "This strategic alliance is a part of our expansion strategy in the consumer finance segment. We see excellent synergy in this relationship for both organisations," IndusInd Bank Executive Vice-President S V Parthasarathy said. The financing will be available through the bank's branch network across the country. IndusInd Bank has a network of 180 branches, spread over 147 geographical locations and has 484 distribution outlets.
http://economictimes.indiatimes.com/News/News-By-Industry/Banking-Finance-/Banking/IndusInd-Bank-in-loan-pact-with-Maruti-Suzuki/articleshow/4773705.cms Go To Top

OIL, LUBRICANTS & ALTERNATIVE FUELS Go To TopOIL FALLS BELOW $59 ON ECONOMY WORRIES
Reuters
See this story in: The Indian ExpressPerth: Oil prices fell $1 to below $59 a barrel on Monday, extending last week's losses to languish at a seven-week low, as lingering concerns about the pace of a global economic recovery encouraged a further sell-off.

Crude oil for August delivery fell $1 to $58.89 a barrel by 0651 GMT. London Brent crude fell 88 cents to $59.64.
http://www.indianexpress.com/news/oil-falls-below-59-on-economy-worries/488680/ Go To Top

INTERNATIONAL NEWS Go To TopGM STUDIES CONTINUING PONTIAC G8 AS A CHEVROLET
Reuters
See this story in: Yahoo India

Detroit General Motors Co, which plans to wind down the Pontiac brand, is considering bringing the Pontiac G8 full-size sedan into the Chevrolet brand, Vice Chairman Bob Lutz said on Monday.

The G8, which is assembled in Australia, could be a casualty of a GM restructuring that is trimming the number of brands it offers and concentrating on four core brands: Chevrolet, GMC, Buick and Cadillac.

However, Lutz said in a Web chat that the G8 had finally been discovered by a broader percentage of the public. "We consider it too good to waste," Lutz said. "So we're studying the feasibility of bringing it in as a Caprice for both law enforcement and the public."

Sales of the G8 have jumped in recent months and were up 150 percent at nearly 16,000 vehicles in the first half of 2009 compared with last year.

A version of the Chevrolet Caprice was a mainstay of U.S. law enforcement agencies.
The G8 is built in Australia, but contains numerous U.S.-built components and it is "so American in character that I don't believe the law enforcement agencies would have any problems with the assembly origin of the vehicle," he said.
http://in.biz.yahoo.com/090713/137/batvmz.html
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FORD EYES ASIAN SMALL-CAR MARKET WITH THAI PLANT Reuters
See this story in: The Hindu Business Line
Rayong/Thailand: Ford Motor launched a new $500-million passenger car plant in south-east Thailand on Monday, a move aimed at raising its share of a lucrative small car segment in Asia dominated by Japanese firms.

The plant, a joint venture with Japans Mazda for producing Ford Fiesta and Mazda2 models, will export 85 per cent of its annual capacity of 1,00,000 cars a year. Go To Top

ECONOMY & FINANCE Go To TopRUPEE WEAKENS
The Hindu Business Line

Mumbai: The rupee fell to a two-month low due to uncertainty about the economic recovery in the global markets. The rupee opened at 49.10/12 and touched a low of 49.44/46, during day trade. It closed at 49.08/10, against Fridays close of 49.02. There was volatility in both the domestic and overseas forex markets. It just proves that there was two-way movement, but the direction is not clear, said a forex dealer with a public sector bank. The trend for the rupe e seems to be downward and it may touch 50 shortly, the dealer added. The dollar also gained against other Asian currencies. In the forward premia market, the six-month closed at 2.32 per cent (2.41 per cent) and the one-year at 2.25 per cent (2.26 per cent).
http://www.thehindubusinessline.com/2009/07/14/stories/2009071451110600.htm
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SENSEX DIPS TO TWO-MONTH LOW ON WEAK GLOBAL TRENDS
PTI
See this story in: The Hindu Business Line

Mumbai: Stocks fell on Monday on sustained selling by funds on the BSE, dragging down the benchmark Sensex further lower by 104 points to a two-month low.

The Sensex, which had lost nearly 9.5 per cent during the past week, extended losses by dropping 103.90 points at 13,400.32, a level last seen in early May. The key index touched the day's low of 13,219.99 and a high of 13,461.68 points.

In a similar fashion, the 50-share National Stock Exchange index Nifty dropped by 29.85
points at 3,974.05, below the psychological 4,000 point level.

The market remained volatile and recovered from its early lows on operators short-covering and buying by domestic institutional investors after European stocks cut losses in late morning trade. European markets were virtually flat after a weak start.
The plunge was led by Tata Steel and other metal producers after commodity prices fell on concerns that the Government measures may not be enough to revive economic growth. A weakening trend in Asian stock markets fuelled the falling trend.
http://www.thehindubusinessline.com/blnus/05131901.htm