INDIAN AUTOMOBILE INDUSTRY
Daily Updates on: Insurance...Banking...Metal & Minerals...Infrastructure....Energy
This Update also carries stories featured on Sunday, August 02, 2009
INDUSTRY
Autocos back on recovery road as July sales rise
Auto sales to stay on fast track in coming months
New players, launches rev up auto mood
Maruti, Hero Honda race ahead in July
Scindia to inaugurate 'Made in India' show at Jakarta
Tata Motors to deliver 60,000 Nano by July 2010
Tata close to signing aid deal with UK
INTERVIEWS/FEATURES
CARS, SUVs, MUVs
Maruti sales jump 33.36 pct in July
Mahindra looks at Renault to revive sales for Logan
M&M automotive sales grow 22% in July
Honda looks inwards to Jazz things up
Honda Car sales rise 12% in July
Volkswagen planning India rollout of Polo by next year
COMMERCIAL VEHICLES
CONSTRUCTION & AGRI MACHINERY
2/3 WHEELERS
Bike sales grow 24% in July
Hero Honda sales up 30.39% in July
Bajaj to launch new motorcycle in four months
Bajaj launches fuel-efficient bike
India Yamaha Motor sales rise 47% in July
TVS motorcyles sales dip 20% in July
Service industry growing at 10% every year: TVS CMD
Suzuki motorcycle sales up 20.35% in July
COMPONENTS
Cummins India Q1 profit at Rs 89cr
ALLIED INDUSTRIES
JK Tyre looks to set up radial unit in TN
TVS Srichakra sets up plant in Uttarakhand
Dumping duty on carbon black from 4 nations
Essar may close Shree Precoated buy soon
FINANCE & INSURANCE
OIL, LUBRICANTS & ALTERNATIVE FUELS
INTERNATIONAL NEWS
German car industry says slump bottoms out
GM likely to back RHJ offer for Opel
Ford Spain said seeks 600 voluntary redundancies
Labour talks at Ssangyone break off
Honda recalls 440,000 cars for airbag risk
Electric cars to be 10 per cent of demand: Nissan
Beijing Auto eyes stake in Daimler venture
ECONOMY & FINANCE
Sensex companies score big in Q1
INDUSTRY Go To Top
AUTOCOS BACK ON RECOVERY ROAD AS JULY SALES RISE
The Financial Express (Web & Print Edition)
See this story in: See this story in: The Tribune (Web Edition), The Economic Times (Web Edition), Business Standard (Web & Print Edition), The Indian Express (Web & Print Edition), The Pioneer (Web & Print Edition), Daily News & Analysis (Web Edition)
(Aug 02)
New Delhi: Auto companies are on a slow but sustainable recovery path if the latest sales numbers are anything to go by. While the countrys largest car maker , Maruti Suzuki India, registered a 27.6% jump in domestic sales in July, Honda Siel Cars India (HSCI), which recently forayed into the compact car category with its premium small car Jazz, posted a growth of 12% in sales last month. Mahindra & Mahindra, meanwhile, saw an almost 27% jump in y-o-y sales in July.
Though industry body Siam is yet to release the sales numbers, it is expected that the overall passenger car industry will see positive growth for the seventh consecutive month in July as well.
Driving on the back of huge demand for its recently launched A-Star and Ritz in the compact car segment and Swift Dzire in the A3 or the sedan segment, Maruti Suzuki reported sales of 67,528 units in July as against 52,911 units during the same month last year. In fact, the company registered its highest-ever monthly sales in the A3 segment, which comprises Swift Dzire and SX4, at 9,101 units in July 2009 as against 6,009 units in July 2008, a growth of 51.5%. Honda Siel Cars registered sales of 4,857 units last month vis--vis 4,337 units in July 2008.
However, while Maruti has also seen a 9.3% increase in demand on a month-on-month basis as the company sold 61,773 units in June, sales of HSCI declined in July vis--vis 5,039 units sold by the company in June.
Total July domestic sales volumes (including joint ventures) of Mahindra & Mahindra rose to 21,957 units, as against 17,302 units clocked in July 2008. Total sales of utility vehicles in July, including Scorpio, Bolero, Xylo and pick-up, stands at 16,688 as against 10,672 in the same period last year, a growth of 56.4%. The company sold 22,463 vehicles (domestic and exports) in July 2009, as against 18,407 vehicles sold in July 2008.
With banks coming back into the market and auto loans at comparatively lower rate of interest vis--vis last few months and the economy on a revival mode, people are getting attracted by the series of new launches since January and therefore the increase in demand, said a Mumbai-based analyst. The two-wheeler industry also continued to maintain its growth trajectory in July with industry leader Hero Honda Motors witnessing a growth of 30.4% in total sales last month at 3,66,808 units as against 2,81,317 units during the same period last year.
While Chennai-based TVS Motors saw a marginal 2% increase in sales at 1,20,994 units as compared to 1,18,545 units in July 2008, its closest competitor, Honda Motorcycle and Scooter India, saw a 32% surge in sales at 1,12,855 units in July vis--vis 85,343 units during the corresponding month last year.
Even smaller players like India Yamaha Motors and Suzuki Motorcycle India posted an increase of 47% and 20%, respectively, in July. Yamaha Motor sold 17,316 units in July as compared to 11,792 units in July last year and sales of Suzuki Motorcycle India stood at 12,585 unit vis--vis 10,457 units in July 2008.
http://www.financialexpress.com/news/autocos-back-on-recovery-road-as-july-sales-rise/496932/0
http://www.tribuneindia.com/2009/20090802/biz.htm#2
http://www.business-standard.com/india/news/car-sales-revin-july/365633/
http://www.indianexpress.com/news/Auto-companies-continue-their-uphill-drive-in-July/496950
http://www.dailypioneer.com/193081/Automakers-continue-uphill-drive.html
http://www.dnaindia.com/money/report_motown-vrooms-on-to-the-fast-lane_1279204
AUTO SALES TO STAY ON FAST TRACK IN COMING MONTHS
The Economic Times (Web & Print Edition)
See this story in: The Times of India (Web & Print Edition)
(Aug 02)
New Delhi: The green shoots and the action its all happening in Motown. In fact, auto makers expect the growth momentum in sales to continue in the next few months, especially in the upcoming festival season. And that after posting double-digit jump in sales in July. Car sales in the domestic market registered a 28% growth to 67,528 units in the month.
The countrys largest car maker, Maruti Suzuki India (MSI), reported a 33% jump in sales to 78,074 cars. Exports continued to perform well on strong demand from Europe. Marutis overseas sales jumped 87% to 10,546 cars in July. The major growth for the company came from new models such as A-Star and Ritz, along with Swift and WagonR in the premium hatchback segment. The sedan segment, comprising of SX4 and Dzire, increased 51% to 9,101 cars in July, though sales of the companys oldest model M800 declined 44% to 2,796 cars in the same period. The domestic market is buoyant with strong demand for all the segments. While the new models are generating huge sales in metros, the entry level cars are doing well in rural markets, MSI executive officer (sales & marketing), Mayank Pareek said.
Premium car maker Honda Siel Cars India (HSCI) posted a 12% increase in sales to 4,857 cars in July. The major jump came from flagship model City, of which 3,268 units were sold in July, while sales of the superhatch Jazz also boosted growth. Utility vehicle major Mahindra & Mahindras sales grew 27% to 21,957 vehicles in July, on the back of strong demand for its Scorpio, Bolero and XYLO vehicles. The company sold 16,688 of these utility vehicles in July.
Analysts tracking the auto sector have painted a positive outlook for the next few months. Demand for all segments is bound to grow with general improvement in consumer sentiment and the expected revival of economy in the next few months. Passenger car sales will be in top gear for the next three months as customers spending will go up in the festive season, said an auto analyst with HSBC Bank, asking not to be named.
The two-wheeler market also followed the car segment in posting high sales. Hero Honda, the worlds largest seller of bikes, posted a sales jump of 30.4% to 3.66 lakh units in July. The company aims to sell over a million bikes in the July-September quarter.
We are targeting sales of 40 lakh vehicles in the current fiscal. With huge demand expected in the festive month of September, we expect to cross the million mark, Hero Honda senior VP (sales & marketing) Anil Dua said. Honda Motorcycle and Scooters India posted a growth of 32% to 1.12 lakh units in July. TVS Motors posted a marginal 2% increase in sales to 1.20 lakh units in July, as its motorcycle sales dipped 20.44% while demand for its scooters was high. Japanese bike maker India Yamaha Motors sales grew 47 % to 17,316 bikes in July. Rival Suzuki Motorcycle India posted a 20% increase in sales to 12,585 units in July this year, on the back of strong demand for its newly launched 150 cc bike, GS 150R.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
NEW PLAYERS, LAUNCHES REV UP AUTO MOOD
Garima Singh Neogy
The Telegraph (Web Edition)
(Aug 03)
New Delhi: The auto industry is betting on the entry of new players and launches to pep up the market.
Toyotas commercial vehicle arm Hino Motors plans to set up a facility in India. At present, the Japanese company imports vehicles from Thailand.
Headquartered in Tokyo, Hino makes diesel trucks, buses and diesel engines.
The company will cater to the premium segment in India and compete with Volvo and Mercedes Benz.
Hinos entry is at a time when its rivals are scaling back capacity and revising growth targets because of the economic slowdown.
Sources in the company said Hino was keen to enter the market on expectations that it would open up further in the next few years.
Growth in the CV (commercial vehicles) segment is essential to keep the backbone of the industry strong. The industry is bound to do well once the slowdown cycle nears its end by the second half of this fiscal, said auto analyst Murad Ali Baig.
The Society of Indian Automobile Manufacturers, an industry body, estimates passenger vehicles to record a sales growth of 3-5 per cent in the current fiscal. Commercial vehicles are expected to clock a growth of 7-10 per cent, while two-wheelers and three-wheelers are likely to grow at 0-5 per cent and 5-8 per cent, respectively. Though multinationals are doing a rethink on big-ticket investments, local firms are expanding.
Bajaj Auto and Honda Motorcycle & Scooters India are creating capacity in the 100cc market. The former is all set to launch the 100cc motorcycle Discover DTS-Si later this month, aimed at the premium entry-level segment.
Bajaj plans to produce 30,000 units in the first year. At present, the company enjoys a nine per cent market share in the 100cc segment. We have very ambitious plans for this bike, and together with other brands, target a monthly sale of 200,000 bikes this festive season, said S. Sridhar, CEO (two wheelers), Bajaj Auto.
Andhra Pradeshs MLR Motors is also expected to begin its small car project.
http://www.telegraphindia.com/1090803/jsp/business/story_11314038.jsp
MARUTI, HERO HONDA RACE AHEAD IN JULY
The Hindu Business Line(Web & Print Edition)
(Aug 02)
Mumbai, Aug. 1 Maruti Suzuki and Hero Honda are the undisputed market leaders in the car and two-wheeler segments as evident from sales in July.
While the former clocked 78,074 units, a 33 per cent growth over the corresponding period last year, Hero Honda reported sales of 3.66 lakh units.
Compact cars do well
Maruti sold 4,000 units more than the preceding month in June. Its portfolio of compact cars A-Star, Ritz, Alto, Wagon R, and Swift has been doing brisk business. Volumes grew 38 per cent to 48,115 cars, while exports almost doubled to 10,546 units.
Incidentally, its mid-size offerings SX4 and DZire grew 51 per cent to 9,101 units in the month. Sources say Maruti is on track to report sales of one million units this fiscal. Volumes will be ramped up in the coming months to meet the festive season demand which means monthly output could be around 90,000 cars.
Focus on Jazz
Being a Saturday, only a handful of carmakers reported their July sales. Honda Siel Cars India recorded 12 per cent growth at 4,857 units. The recently launched Jazz did 1,037 units, which was below Junes 2,032 units.
On the other hand, sales of the flagship, City increased from 2,351 to 3,268 units. Indications are that the company will adopt a wait-and-watch attitude for the Jazz since it is barely two months old and will need time to consolidate its position.
Good month for M&M
Mahindra & Mahindra also had a good month with its utility-vehicle sales up 56 per cent to 16,688 units.
The Scorpio, Bolero and Xylo along with its pick-up have been doing well. However, compared to June, sales were down by 1,000 units.
Bike sales up 65%
In the two-wheeler segment, while Hero Honda reigned supreme, its sibling HMSI (Honda Motorcycle and Scooter India) reported its highest-ever monthly sales of 112,855 units, compared with 85,343 units in July last year.
Gearless scooters, led by the Activa with a little support from the Aviator and Dio, accounted for 67,107 units. Motorcycles posted sales of 45,748 units which marked a 65 per cent growth from July 2008.
Combined sales of Hero Honda and HMSI were close to 4.8 lakh units which gives Honda a vice-like grip in the domestic two-wheeler market. TVS Motor posted a two per cent growth with sales of 1.21 lakh units.
http://www.thehindubusinessline.com/2009/08/02/stories/2009080250840200.htm
Hindustan Times (Web Edition)
(Aug 03)
New Delhi: Car market leader Maruti Suzuki India Ltd drew first blood in a month when the worlds cheapest and the most talked about car Tata Nano hit the roads. Tata Motors will release its sales figures for July on Monday, which will also include the number of Nanos it despatched for the month.
Maruti reported a 27.6 per cent growth in sales in July 2009 at 67,528 units against 52,911 units sold during the same month last year. All other car and two-wheeler manufacturers, barring TVS Motor Ltd, also reported high double-digit growth during the month.
Two-wheeler market leader Hero Honda continued to mock at the economics of high base effect with an over 30 per cent growth during the month. Its sales figure of 366,808 units in July were more than thrice that of third-placed TVS Motor's 120,994 units. Others like Yamaha, Suzuki, Honda Motorcycle, too, registered gains.
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=
BusinessSectionPage&id=2b98f40f-cfd8-49ae-89cb-b31c7a6d392a&Headline=Maruti+braced-up+for+Nano
Asian Age (Web & Print Edition)
See similar story in: Deccan Herald (Web Edition)
(Aug 03)
New Delhi: The auto sector saw a healthy growth in July helped by a recovery in the
market sentiments and softening of loans.
"The jump in car sales could be attributed to softening of loans. Banks like SBI are offering loans at 8 per cent for the first year, which is a great help," said an auto expert with a brokerage firm.
He said that the market sentiments have improved in the last couple of months and the fear of losing jobs has also come down significantly. "Therefore, earlier people who had postponed their decision to buy cars are now slowly coming back," he added.
Maruti Suzuki India, which has more than 50 per cent market share, saw domestic sales grow by 27.6 per cent. The companys volume in the domestic A2 segment, where the company has models like Alto, Wagon-R, Zen, Swift, A-Star and Ritz grew by 38.3 per cent.
In the A3 segment in which the company has two models SX4 and Dzire the sales grew by 51.5 per cent during the month.
In July, the company has exported 50,000 units of A-Star However, the sales of Marutis small car M800 fell by 43.5 per cent. M800 had been witnessing a fall in sales over a period of time as consumers are showing a preference for cars with more space and features.
Honda Siel Cars India (HSCI), a leading manufacturer of premium cars in India, recorded a 12 per cent increase in sales for the month of July 2009 with 4,857 units as against 4,337 units sold in July 2008.
The company has sold 17,625 units in the period AprilJuly 2009 as against 16,412 units in the corresponding period last year marking an increase of 7.4 per cent in sales. Mahindra & Mahindra also reported a good increase in sales in July.
Among two-wheeler manufacturers, India Yamaha Motor registered a growth of 47 per cent in sales in July 2009 as compared to the corresponding period last year.
http://www.asianage.com/presentation/leftnavigation/news/business/soft-rates-put-auto-on-track.aspx
http://www.deccanchronicle.com/business/soft-rates-put-auto-track-256
SCINDIA TO INAUGURATE 'MADE IN INDIA' SHOW AT JAKARTA
PTI
See this story in: The Hindu Business Line (Web & Print Edition)
(Aug 03)
New Delhi: Indian automobile components manufacturers, earthmoving and construction equipment makers and several other firms will exhibit 'Made in India' goods in Jakarta
next week.
Industry body CII in association with the Commerce Ministry has organised the four-day exhibition scheduled from August 7 where over 50 firms would display their products. The Indonesian Minister of Industry, Mr Fame Idris, and the Minister of State for Commerce and Industry, Mr Jyotiraditya Scindia, would inaugurate the exhibition, the CII said.
The CII would like to see more Indonesian business come to India for investments in areas such as infrastructure, oil and gas, tourism, CII Director General Mr Chandrajit Banerjee said.
Products which would be put on display include garage equipment, IT and communication, mining and railway equipment, food processing, packaging and pharmaceutical. Soft services such as travel and tourism, fashion would also be on display.
The CII is also leading a business delegation which would be meeting senior Indonesian ministers and officials besides the Indonesian Chamber of Commerce and Industry.
The Indian business persons would also be meeting officials in the ASEAN Secretariat. Trade between India and Indonesia was $6.98 billion in 2007-08 and is expected to touch $10 billion in 2008-09.
http://www.thehindubusinessline.com/blnus/14021206.htm
TATA MOTORS TO DELIVER 60,000 NANO BY JULY 2010
PTI
See this story in: The Economic Times (Web Edition), The Times of India (Web & Print Edition), Deccan Chronicle (Web Edition), The Telegraph (Web Edition), mint (Web & Print Edition), Hindustan Times
(Delhi Print Edition), The Pioneer (Delhi Print Edition)
(Aug 03)
New Delhi: Country's largest auto maker Tata Motors will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car by July next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in Sanand goes on stream.
Tata Motors Chairman Ratan Tata said in the company's Annual Report for 2008-09 that 95 per cent construction work at the Singur plant was completed before the project was "thwarted" by Trinamool Congress last year, forcing the company to relocate it to Gujarat.
He said the new plant in Sanand is likely to be ready by the end of this financial year. It would have an initial production capacity of 2.5 lakh units per annum.
"In the meantime, the Nano is being produced in other plant facilities so as to enable around 50,000-60,000 cars to be available to customers over the next 12 months until the main new facility in Gujarat comes on line," Tata told shareholders in the report.
The company is currently manufacturing the car at its Pantnagar facility, which has an annual capacity of 50,000 units.
Meanwhile, a Tata Motors spokesperson said, "Once the upcoming Sanand facility comes on line after completion of the last quarter of this financial year, it will supplement Pantnagar, completing the first 1,00,000 deliveries in October-December 2010."
Referring to the violent agitation in Singur led by Trinamool Congress Chief Mamata Banerjee on land acquisition issues, Tata said relocation of the Nano facility to another state was the only option left.
"The company's plans of spearheading industrial investment in West Bengal by locating the manufacturing plant for the Nano in the state was thwarted by a local political party, citing injustice done to the residents of the area by the state government in the acquisition of land for the project," he said.
Praising the Gujarat Chief Minister Narendra Modi for "an impressive display of leadership and pragmatism", Tata said all necessary approvals were received within just three days.
"The equipment from the plant in West Bengal, which was 95 per cent complete, was dismantled and is being transported to Gujarat," he added.
Conceived in 2003, the Nano project has cost over Rs 2,000 crore to the company. Tata Motors launched the car on March 23 this year and delivered it to the first customer last month.
http://www.deccanchronicle.com/business/tata-motors-deliver-60000-nano-july-2010-021
http://www.telegraphindia.com/1090803/jsp/business/story_11314035.jsp
http://www.livemint.com/2009/08/02125158/Tata-Motors-to-deliver-60000.html?h=E
TATA CLOSE TO SIGNING AID DEAL WITH UK
PTI
See this story in: Business Standard (Web & Print Edition), mint (Web & Print Edition), The Hindu Business Line (Web & Print Edition), The Statesman (Web Edition), Asian Age (Web & Print Edition), , The Pioneer (Delhi Print Edition), Hindustan Times (Delhi Print Edition)
(Aug 03)
London: After year-long negotiations, Tata Motors edged closer to signing a financial aid package with the British government for its struggling UK subsidiary Jaguar Land Rover, a media report said.
The agreement could now be reached as early as this week, The Observer claimed.
Tata wants the government to underwrite a 170 million commercial loan to secure the short-term survival of Jaguar Land Rover but baulked at the conditions the government originally set.
Executives from Tata and Jaguar Land Rover met officials from Lord Peter Mandelson's business department on Friday to discuss the agreement. Tata's advisors are still going through each clause but no substantive areas of disagreement remain, the report said.
The British government had originally demanded representation on the board of Jaguar Land Rover and a veto on redundancies in return for loan guarantees. These conditions were now off the table, it said.
Tata Motors is now seeking government guarantees for a much smaller loan than the 400 million it had sought earlier because it is confident it can raise the capital independently.
In May, it successfully completed the refinancing of the $3 billion (1.8 billion) bridging loan it had taken out to buy Jaguar Land Rover from Ford in 2008. Moreover, the drastic decline in vehicle sales in India has eased.
The consortium of banks that has offered loans to Tata Motors now includes Indian banks. Ministers had envisaged that Lloyds Banking Group, in which the government has a 65 per cent stake, would take a lead role in providing the loans, but other banks have offered to lend more.
Simultaneously, separate talks were on between the government and JLR about providing guarantees to the 340 million loan offered by the European Investment Bank. This proposed loan is designed to help JLR adopt more fuel-efficient technologies and is not tied to its short-term survival.
http://www.business-standard.com/india/news/tata-close-to-signing-aid-dealuk/365713/
http://www.livemint.com/2009/08/02120417/Tatas-close-to-signing-aid-dea.html
http://www.thehindubusinessline.com/blnus/14021316.htm
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=263308
http://www.asianage.com/presentation/leftnavigation/news/business/jlr-to-roll-out-hybrid-cars.aspx
INTERVIEWS/FEATURES Go To Top
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CARS, SUVs, MUVs Go To Top
MARUTI SALES JUMP 33.36 PCT IN JULY
Agencies
See this story in: The Financial Express (Web Edition), Business Standard (Web Edition), The Economic Times (Web Edition), The Hindu Business Line (Web Edition), Yahoo India (Web Edition), The Times of India (Web Edition), The Indian Express (Web Edition), mint (Web Edition), Hindustan Times (Web Edition), The Statesman (Web Edition)
(Aug 02)
New Delhi: The country's largest car maker, Maruti Suzuki India Ltd, reported a 33.36 per cent jump in sales at 78,074 units in July.
It had sold 58,543 vehicles in the same month last year. Sales in the domestic market grew by 27.63 per cent to 67,528 units in July from 52,911 units in the same month last year. Exports rose by 87.25 per cent to 10,546 units compared to 5,632 units in the year-ago period, Maruti Suzuki India (MSI) said in a statement.
During the month the company crossed the 50,000 units export mark for its A-Star which was introduced internationally in January this year, it added.
Sales of the company's oldest and once bread-and-butter model M800 declined by 43.55 per cent at 2,796 units compared to 4,953 units last year, while A2 segment (comprising Alto, Wagon R, Zen Estillo, Swift, A-Star and Ritz) witnessed a growth of 38.28 per cent at 48,115 units compared to 34,795 units in the same month last year.
Sales in the A3 segment (consisting of SX4 and DZiRE) increased by 51.47 per cent to 9,101 units compared to 6,009 units in the corresponding period last year, the company said.
MSI's passenger car sales rose by 29.43 per cent at 67,314 units against 52,010 units in the same month in 2008, the statement said.
http://www.financialexpress.com/news/maruti-sales-jump-33.36-pct-in-july/496869/
http://www.business-standard.com/india/news/maruti-sales-jump-3336-in-july/69623/on
http://www.thehindubusinessline.com/blnus/02011201.htm
http://in.biz.yahoo.com/090801/50/batz98.html
http://www.indianexpress.com/news/maruti-sales-jump-33.36-pct-in-july/496869/
http://www.livemint.com/2009/08/01114117/Maruti-sales-jump-3336-in-Ju.html
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=263119
MAHINDRA LOOKS AT RENAULT TO REVIVE SALES FOR LOGAN
Swaraj Baggonkar
Business Standard (Web & Print Edition)
(Aug 02)
Mumbai: After making several failed attempts to revive the dwindling sales of the Logan sedan, Mahindra and Mahindra is now looking to joint venture partner Renault to take some remedial measure. M&M has already cut sales target for the car.
The loss-making 51:49 JV company, Mahindra Renault Private Limited, posted a whopping Rs 490.21 crore loss during the last financial year, according to M&Ms latest disclosures in its annual report.
Sales of the mid-sized sedan, costing Rs 4.39 lakh (ex-showroom, Mumbai base version), nearly halved to 13,423 units last year a drop of 48.15 per cent from 25,891 units sold last year. The company has further curtailed its sales target for the car to 500-600 units per month from its earlier forecast of 700 units despite improving external buying conditions, including better availability of vehicle finance and reduced inflation rates.
M&M President (Automotive) Pawan Goenka said: Looking at market conditions, we have redefined our business plan for the Logan JV with Renault. We are comfortable with monthly sales of 500 to 600 units.
When asked if the JV was planning more launches, Goenka said, We can move forward once Renault is clear about what it wants to do. But, as of, there are no plans to launch more products.
In June, the company had said that sales of the Logan had stabilised at 700 units a month and that there was no expectation of the demand going higher than this. Due to heavy losses following a worldwide dip in demand for new cars, Renault decided to go slow on all new international projects, including its three ventures in India.
Due to heavy financial losses following a worldwide dip in demand for new cars, Renault decided to go slow on all new international projects, including its three ventures in India.
Soon after the Logans launch in April 2007, the French company had planned to roll out various derivatives of the model in the subsequent period. However, there have been no new roll-outs from the Rs 700-core Nashik plant, which is capable of producing 50,000 units per annum.
From monthly peaks of 3,068 units of the Logan reported in March last year, sales of the sedan which is also the cheapest car in Europe slumped to a lows of 272 units in December during the same year.
Its downward trend continued despite the company offering discounts at regular intervals, including a whopping cash discount of Rs 60,000. The discount was a combination of a direct cash discount and a 4 per cent reduction in Cenvat rate.
M&M AUTOMOTIVE SALES GROW 22% IN JULY
PTI
See this story in: The Hindu Business Line (Web Edition)
(Aug 02)
New Delhi: Auto major Mahindra & Mahindra on Saturday reported 22.04 per cent growth in its total automotive sales in July at 22,463 units compared with 18,407 units in the corresponding month last year.
Domestic sales during the month stood at 21,957 units, against 17,302 units in the year-ago period, up 26.90 per cent, the company said in a statement. Sales of utility vehicles registered 56.37 per cent growth at 16,688 units, against 10,672 units in th e same period last year.
http://www.thehindubusinessline.com/blnus/02011920.htm
Swaraj Baggonkar
Business Standard (Web & Print Edition)
(Aug 03)
Mumbai: For four decades, Fiat was the only well-known car brand in India other than Ambassador. Whats more, while Ambassador was for the officialdom and families, Fiat was the car of the yuppie, forward-looking folks. So strong was the brand name that it did not get diluted even though the badge changed to Premier as far back as 1973.
However, what time could not do, competition did. The advent of Maruti in the early 1980s, which quickly captured 80 per cent of the market (it also had 80 per cent of the industry capacity) left Fiat and Ambassador gasping in its wake. And the unbridled entry of foreign multinationals in the second half of the 1990s dramatically altered the look of Indias roads. So much so that Fiat had to turn to a brand ambassador, Sachin Tendulkar, in 19XX to re-establish itself when it sought to regain lost glory with Sienna, Uno, Palio and Adventure. (Maruti, well-entrenched as Fiat once was, has largely shunned brand ambassadors except for brief flirtations with Amitabh and Abhishek Bachchan for Versa and Farhan Akhtar for A-Star.)
Fiat entered into a technical tie-up with Mumbai-based, Doshi family-owned Premier Automobiles to produce the Uno in 1995 though their association was formed way back in the 1950s. It took control of the Kurla (suburb of Mumbai) operations three years later when Fiat Indias automotive division was spun off as a seperate unit. Fiat India Auto (FIAL), the holding company, held 51 per cent in the new entity which was subsequently renamed to Fiat India (FIL), where the Italian company increased its joint stake further to almost 100 per cent by 2005.
Sachins magic, which quickly made TVS Victor motorcycle a large-selling model, failed to work in the face of the reputation that Fiats cars acquired: Mainly, not very fuel-efficient, and not very well-serviced after the sale. Now, Fiat India is in the throes of a third coming in India, with cricketer Yuvraj Singh, with a muffler around his neck of the same shade as the Grande Punto on the hoarding, as its new face. And the early signs are encouraging.
Fiat India Automobiles, an equal stakes venture between Fiat Group Automobile S.p.A and Tata Motors, has launched two new models in six months Linea, an upper C segment sedan, and Grande Punto, an upper B segment hatchback backed up by a dealer and supply network that boasts the reach and penetration of Tata Motors.
Fiat sales grew 135 per cent last year to 8,000 vehicles. This is more than six times the number the company managed to sell three years ago, when it had hit a low of 1,245. Through Yuvraj Singh and Fiat 500 (an iconic little car), we wanted to stand out in the Indian market as a brand having style, sophistication and technology all bundled into one. We suppose we have managed to do just that, says Fiat India Chief Executive Rajeev Kapoor.
The partnership with Tata has given Fiat a 99-dealer network spanning the length and breadth of the country. We got a ready-made dealership network with most of them in the best possible locations. Our distribution channel has quickened and so has our after-sales service. We want the customer to have an international buying experience when he chooses a Fiat as each showroom is similar to any of our international ones, says Kapoor.
The aggressive pricing of the two new products, made possible through rigorous localisation, has helped. Linea costs Rs 35,000 less than Marutis SX4, and Rs 1.7 lakh less than Honda City. Grande Punto is priced Rs 81,000 below Hyundais i20, Rs 1.12 lakh below Skoda Fabia, and on a par with Marutis Swift. Prices taken were for ex-showroom Delhi. By the end of the year, Linea will have a localised content of 90 per cent and Punto 85 per cent, up from 30 per cent and 48 per cent, respectively. Every month we increase the local content. This will help us manage our inventory better and cut a lot of hidden costs, says Kapoor.
With the apparent revival, attitude has followed. The launch of Fiat 500 last year was perhaps not designed to garner volumes Rs 14.82 lakh for a small car is a bit much for most buyers. But it has raised the sophistication quotient in Fiats image.
We wanted to say to the Indian car buyer what as a company we really are. Style, passion and elegance are what we have brought. The Bravo (another import model), Ferrari and Maserati will continue to do just that, says Kapoor. And then perhaps the wheel of time will turn backwards.
http://www.business-standard.com/india/news/fiat%5Cs-third-coming/365701/
HONDA LOOKS INWARDS TO JAZZ THINGS UP
John Sarkar
The Economic Times (Delhi Print Edition)
(Aug 02)
New Delhi: Its Like caring for a new baby. And Honda has always been a dutiful parent. So, when its premium hatchback Jazz broke norms with its audacious pricing, detractors smiled because no carmaker has yet been able to crack the premium small car segment here. General Motors tried and failed miserably with its pricey SRV. Skoda is selling a mere 300 units of its Fabia. All hints point towards one end. But Honda is not ready to throw in the towel yet.
In a country where most small cars are priced in the Rs 3-5 lakh bracket, the Jazz is being sold for around Rs 7-7.5 lakh, which pushes it into the category of full-blown sedans. So will Honda be able to decipher the price code? Jnaneswar Sen, VP (marketing), Honda Siel Cars India (HSCI), feels that it will. We presently have a customer base of 3.5 lakh people. About 70% of these customers are multiple car owners and to begin with, we are targeting these customers for the Jazz, he says. Till date, HSCI has been able to sell 2,032 units of the Jazz after deliveries started on June 10th, this year. And if Mr Sen has done his homework well, more is on the cards.
According to HSCI, for each of the Honda models the repeat purchase is very high. Sample this: 42% of Jazz buyers have owned a Honda car previously. 30% of City customers are old Honda customers. Then 50% of the Civic customers are also old Honda customers. Also 61% of the Accord customers are old Honda customers too.
But there is a catch. Competition is closing in fast. Hyundai recently launched two new variants of the i20, its premium hatchback a 1.4 litre CRDi and a 1.4 litre petrol automatic transmission. Priced in the range Rs 6.19-7.2 lakh the base version of the diesel i20 is almost Rs 60,000 cheaper than the cheapest Jazz. And its a diesel too. According to Arvind Saxena, Sr VP, marketing and sales at Hyundai Motor India, the Korean carmaker is planning to sell 4000 units of the i20 here shortly. We have already sold 13,000 units in the domestic market in the last six months, he said.
Then a senior official from General Motors also explained the rationale behind launching the highly expensive SRV here. We never thought that the SRV would become a volume player. No manufacturer can sell a lot of hatchbacks at that price, especially in India. Our experience shows that its a niche segment which can only be used to showcase your range, thats all, he said.
But then Honda is also planning to launch its small car here after three years. The sketches on the design board are already in place, according to HSCI officials. Can the Jazz help prop up things for HSCIs original volume player? The next three months will tell.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
HONDA CAR SALES RISE 12% IN JULY
PTI
See this story in: The Hindu Business Line (Web Edition)
(Aug 02)
New Delhi: Car maker Honda Siel Cars India on Monday reported 11.99 per cent rise in its sales at 4,857 units in July as against 4,337 units in the year-ago period.
The company's premium hatchback Jazz, launched in the country in mid-June has sold 1,037 units during the month. Honda Siel total sales comprised 3,268 units of flagship sedan City, 299 units of premium sedan Civic and 223 units of luxury sedan Accord, t he company said in a statement.
The company sold 17,625 units in the April - July period as against 16,412 units in the corresponding period last year, up 7.39 per cent.
http://www.thehindubusinessline.com/blnus/02011921.htm
VOLKSWAGEN PLANNING INDIA ROLLOUT OF POLO BY NEXT YEAR
Deccan Herald (Web Edition)
(Aug 02)
Bangalore, DH News Service: Eyeing growth markets to revv up its sales, Volkswagen (VW) is all set to roll out its new Polo in India by next year, VW Passenger Vehicle Director Neeraj Garg said on Saturday.
The company will bring out the new car in to the A2 (compact car) segment and compete with cars like Hondas Jazz.
Currently operating with Jetta and Pasat both high-end cars it aims at deriving volumes through Polo. However, the price and other details were not disclosed. This is part of our strategy. We make an entry with the high-end vehicles and then move to small, compact cars to make volumes, Garg said.
Pushing latest models
With an investment of Rs 3,300 crore (Euro 580 million) in the country, the company believes that pushing its latest models in to growth markets like India, and concentrating on environmental friendly technology is the way forward.
Ruling out investment in the State, Garg said the new vehicle will be assembled at its Chakkan plant in Pune. We have a production capacity of 1,10,000 and will not invest further untill we reach optimum capacity, he added.
The company plans to expand dealership network from existing 19 dealerships to 40 by the end of 2009 and has set a target of 60 for year 2010 and as part of this Volkswagen announced the launch of its second dealership in the City Volkswagen Palace Cross.
We are focused on India, as it is a growth market. Thereby, we will do everything that is required of us to tap the potential here, including expanding dealerships and workforce based on the demand, Garg said.
http://www.deccanherald.com/content/17242/volkswagen-planning-india-rollout-polo.html
The Hindu (Web Edition)
(Aug 03)
Kochi: General Motors India has launched an LPG version of Chevrolet Spark in Kochi. The engine can run on petrol in the absence of LPG. Ankush Arora, vice-president (Marketing , Sales and After sales), said the car with the factory fitted LPG kit was being offered with three year or 1,00,000 km warranty.
http://www.hindu.com/2009/08/03/stories/2009080351101700.htm
COMMERCIAL VEHICLES Go To Top
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CONSTRUCTION & AGRI MACHINERY Go To Top
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2/3 WHEELERS Go To Top
BIKE SALES GROW 24% IN JULY
Business Standard
(Aug 02)
New Delhi: On the back of 14 per cent growth in sales in the first quarter of financial year 2009-10, two-wheeler makers have reported 24 per cent growth in sales in July. The segment comprises motorcycles and scooters. The growth is a result of low base as annual sales growth last year was a mere 3 per cent.
Hero Honda, the countrys largest motorcycle maker, posted 30 per cent rise in sales as compared with the same month last year. The manufacturer of bestselling 100-cc brands like Passion and Splendor sold 366,808 motorcycles as against 281,317 in the corresponding period last year.
The companys urban-rural market mix is roughly 60:40. Piyush Parag, an analyst at Religare Securities, says the growth for Hero Honda has come basically from good volumes generated by its 100-cc brands. Rural markets continue to contribute to the companys total sales, which is a result of the strong distribution network.
In the second half of the year, Parag expected sales to dip since the company had gained market share rapidly last year, when the entire market shrunk. Hero Hondas market share stands at 59 per cent.
July sales for Chennai-based TVS Motor grew 5 per cent to 107,883 units as against 102,530 units in July 2008. Exports dipped about 19 per cent to 13,061 units.
India Yamaha Motorcycles sales grew 47 per cent to 17,316 units. The rise comes from good demand for the companys high-performance motorcycles belonging to the FZ and YZF series.
Suzuki Motorcycles sales grew 20 per cent last month. It sold 12,585 units of motorcycles and scooters. The company says the demand for its 150-cc motorcycle, the GS 150 R, has been robust.
Honda Motorcycles and Scooters India Ltd (HMSI) sold 112,855 units both in export and domestic markets. This number also includes exports of CKDs (completely knocked-down kits.)
http://www.business-standard.com/india/news/bike-sales-grow-24-in-july/365627/
HERO HONDA SALES UP 30.39% IN JULY
Agencies
See this story in: The Financial Express, The Indian Express, The Hindu Business Line, The Financial Express
(Aug 02)
New Delhi: The country's largest two-wheeler maker Hero Honda Motors Ltd reported a jump of 30.39 per cent in its sales at 3,66,808 units in July compared to the sales in the same month last year.
Hero Honda had reported a jump of 83.28 per cent in its net profit at Rs 500.11 crore for the quarter ended June 30 on account of robust sales amidst softening of input costs.
The company sold 2,81,317 units in July last year.
The net profit for the first quarter for the last fiscal was at Rs 272.87 crore.
The total income of the company had grown by 33.72 per cent to Rs 3,864.92 crore during the April-June period of this fiscal from Rs 2,890.25 crore of the same quarter a year ago.
The company had crossed 10-lakh units mark in a single quarter for the first time by selling 11,18,987 units from 8,94,244 units in the year-ago period, up 25.13 per cent.
http://www.financialexpress.com/news/hero-honda-sales-up-30.39-in-july/496908/
http://www.indianexpress.com/news/hero-honda-sales-up-30.39-in-july/496908/
http://www.thehindubusinessline.com/blnus/02011922.htm
http://www.financialexpress.com/news/hmsi-july-sales-up-by-32.24/496909/
The Hindu (Metro Plus)
(Aug 03)
Launched in July 2008, the Hondas CBF Stunner offered buyers an irresistible combination of big-bike styling and 125cc fuel efficiency at a price that didnt burn a hole in your pocket. Now, in an attempt to take the game further, Honda has launched the Stunner with its proven PGM-FI technology.
Visually, minor details differentiate this fuel-injected Stunner from its carburetted sibling. For starters, the front forks, cylinder block and head have undergone all-black treatment. The Stunners low-set handlebar sports end weights, which should reduce vibrations that usually make their way to a riders hands.
The malfunction indicator beacon is the only addition to the formers instrument console. However, the absence of a tachometer remains a glaring omission on this bike.
What gives the bike a stylish appearance is the black muscular tank, which now comes standard. The new Stunner does away with the prominent racy graphics on the original models tank and fairing.
A dull golden finish can be seen on the neat crankcase. The new bike doesnt feature a kick start relying solely on a thumb starter to spring to life. Towards the rear, the silencer heat shield has been given a brushed finish, while an attractive new sporty cover leaves most of the chain exposed.
The CBF Stunner PGM-FIs 124.7cc single-cylinder, air-cooled, four-stroke engine delivers a peak power output of 11.6bhp at 8000rpm, a negligible 0.6bhp more than the original Stunner.
Hondas PGM-FI fuel-injection system supplies highly pressurised fuel for combustion while the ECU makes use of information from eight different sensors, including an oil sensor and oxygen sensor to calculate the quantity of fuel to be supplied. The bike also deploys a back angle sensor to safely cut its fuel supply lines to the engine in the event of an accident.
Honda claims the CBF Stunner is capable of delivering 65kpl with the benefit of PGM-FI and reaches a top speed of 100kph (which is yet to be confirmed by us through testing).
The bike deploys a single downtube frame retaining the original Stunners front telescopic fork and hydraulic rear shock absorber setup. As before, the bike rides on 17-inch tubeless tyres both on the front and rear.
The CBF Stunner PGM-FI will be sold in a single fully-loaded variant with a front disc brake and electric starter being part of standard equipment. The bike will be on offer in two dual-tone paint schemes red-and-black and silver-and-black.
Priced at Rs. 68,825 (ex-showroom, Mumbai), the CBF Stunner PGM-FI will become the most expensive 125cc motorcycle in India. In fact, at this price the bike is more expensive than most 150cc motorcycles.
Whether the new Stunner with fuel-injection is actually able to supply real-world performance and economy benefits to justify its approximately Rs 14,500 premium over a similarly specced CBF Stunner remains a question only a full road test can answer.
http://www.thehindu.com/mp/2009/07/29/stories/2009072950340300.htm
BAJAJ TO LAUNCH NEW MOTORCYCLE IN FOUR MONTHS
Danny Goodman
Business Standard
(Aug 03)
New Delhi: Come November, Bajaj Auto will launch its second new motorcycle for the year. Rajiv Bajaj, MD, will not speak much about it, except to say it will create a new category or segment in the motorcycle market.
Most probably, feel analysts, it would be in the 100-125cc segment. The new Discover 100cc with a DTSi engine, launched last month, is billed by the company as the worlds most fuel-efficient motorcycle, with a certified 89 km to a litre of petrol. Most 100cc motorcycles will deliver a mileage of around 70 km/litre.
This is Bajaj Autos fourth attempt to break into the 100cc segment, which is largely dominated by Hero Hondas Splendor and Passion. Each attempt has helped the company improve its market share, says Vaishali Jajoo, senior analyst, Angel Broking.
Currently, Bajaj Autos market share in the 100cc segment stands at 9 per cent, while that of Hero Hondas is pegged at around 80 per cent. How can Bajaj Auto pull away customers from Hero Hondas 100cc motor cycles? The answer lies in clear differentiation, says Bajaj, which currently commands a market share of 21 per cent in the total motorcycle segment. We hope to hope to regain our former market share of 36 per cent by all that we are doing. The sooner we gain, the better.
The 100cc segment roughly contributes about 33 per cent of all motorcycle sales in the country. The rest is brought up by the 125cc (about 54 per cent) and the premium 150cc and more (13 per cent). To understand how Bajaj Auto can increase its market share in the 100cc segment, consider the trends.
The 100cc motorcycle segment is dominated by companies like Hero Honda, TVS Motor, and Yamaha. The category is broadly divided into two segments, the entry-level motorcycle (prices around Rs 35,000) and the premium end (prices between Rs 40,000 45,000). The entry-level motorcycles brought up by models like Hero Hondas Dawn and CD Deluxe, and the upper end constituting the Passion and Splendour.
Pradeep Saxena, senior vice president (automotive practice) of TNS Global says the ratio between entry and premium 100cc motorcycles is in the ratio of 30:70. Contrary to the popular perception that only urban consumers buy the premium 100cc motorcycle, even rural buyers opt for the premium 100cc models. Its difficult to pinpoint geographical discriminators for the 100cc segment. It has got to do with income levels. Prosperous rural buyers are buying premium 100cc motorcycles. Over the last two years, weve witnessed equal rate of growths in both categories of the 100cc motorcycle segment.
Bajaj Autos second segmentation in the 100cc segment lies in disruptive marketing. Bajaj says by introducing the new Discover 100cc, which is derived from the Discover 125/135 cc lineage, consumers would perceive the 100cc as a 125 cc. Those who till now could not afford the 125cc motorcycle can now buy the vehicle at the cost of a 100cc bike.
The third differentiation lies in offering more features in a 100cc motorcycle. The new Discover 100cc offers long-distance commuters enhanced comfort by offering features like gas filled Nitrox rear shock absorbers and anti-friction front forks.
Hero Hondas 100cc models are CD Dawn, CD Deluxe, Splendour, and Passion. Factoring the variants in each of these models, the total number for Hero Honda number seven. Bajaj Auto has the Platina and the Discover in the 100cc segment. There are no variants currently.
Honda is another motorcycle manufacturer which has plans to enter into the 100cc segment next year. Our 100cc motorcycle will be positioned as a sporty performance motorcycle, says Shinji Aoyoma, President & CEO of Honda Motorcycle and Scooters India Ltd.
http://www.business-standard.com/india/news/bajaj-to-launch-new-motorcycle-in-four-months/365729/
BAJAJ LAUNCHES FUEL-EFFICIENT BIKE
The Hindu
(Aug 02)
Visakhapatnam: Bajaj Auto on Saturday launched a new 100 cc Discover DTS-Si 100 cc bike with digital twin spark and swirl induction version. The two-wheeler in 2.0 engine series costs Rs.40,150 (ex-showroom). It is available in five colours and has features like electric start as a standard for quick hassle free starting, Nitrox suspension for high level of comfort on rough roads, long wheelbase, full DC electrical system, five speed gearbox and exhaust TEC for combination of mileage and power. Launching the vehicle in the city, Bajaj Auto Regional Manager Sadananda Swamy said this was the most fuel-efficient two-wheeler in the world. With rising fuel costs, the new vehicle will have a huge appeal and relevance for the cost-conscious customers as it can potentially save a lot making it an unbeatable value proposition, he stated. Varun Motor CEO T. Vinod Kumar said that they were expecting a huge response to the new bike for its amazing mileage of 80 kmpl on road at an unbelievable price. He said the bike was now available for test ride at all Bajaj outlets in the city with an offer for easy finance and exchange of old vehicles.
http://www.hindu.com/2009/08/02/stories/2009080258100300.htm
The Hindu (Metro Plus)
(Aug 03)
Bajaj Auto has re-entered the 100cc segment via its new Discover 100cc. Like all new generation Bajaj products, the Discover 100cc also boasts of lots of kit. The Discover 100 is fitted with an electric start, Bajajs Nitrox shocks at the rear and an auto-choke system for hassle free starts even in cold conditions. The Discover 100cc has a big bike feel as it shares its chassis and design with the Discover 135. This should translate into decent on-road behaviour.
Bajajs DTS-Si technology and a five-speed gearbox (a segment first) have been used to achieve class-leading fuel-efficiency.
The company claimed 80kmpl figure under real world conditions, which is exciting. The stunner in this package is the price tag at Rs 40,000 (ex-showroom Delhi) the Discover 100cc is a promising piece of kit.
The Discover 100cc was unveiled by R. Chidambaram, Principal Scientific Advisor to the Government at Bajajs Chakan Plant and will roll into showrooms, across the country, by the end of this month.
Well test it out and let you know how it fares. Stay tuned.
http://www.hindu.com/mp/2009/07/23/stories/2009072351150200.htm
INDIA YAMAHA MOTOR SALES RISE 47% IN JULY
PTI
See this story in: Business Standard, The Economic Times, Yahoo India, The Hindu Business Line
(Aug 02)
New Delhi: Two-wheeler maker India Yamaha Motor said its sales rose by 46.85 per cent to 17,316 units in July.
It had sold 11,792 units in the same month last year. "As we enter the festival season, we aim to sustain the growing demand by enhancing our dealership networks and giving customers an array of options to choose from," India Yamaha Motor Managing Director and CEO Yukimine Tsuji said in a statement.
"We are overwhelmed by the customer response to the recently introduced Fazer which is fast catching the imagination of biking and touring aficionado," he added.
The company had recently inaugurated its new manufacturing facility at Surajpur in Uttar Pradesh. Products like the R 15, the FZ Series, Gladiator SS and RS and the Alba have received good customer response, the company added.
http://www.business-standard.com/india/news/india-yamaha-motor-sales-rise-47-in-july/69628/on
http://in.biz.yahoo.com/090801/50/batz9b.html
http://www.thehindubusinessline.com/blnus/02011303.htm
TVS MOTORCYLES SALES DIP 20% IN JULY
PTI
See this story in: Business Standard, The Statesman, The Hindu Business Line, Hindustan Times
(Aug 02)
New Delhi: TVS Motor Company reported a 20.44 per cent fall to 42,998 units in motorcycle sales in July compared to 54,042 units in the same month last year.
Total two-wheeler sales, however, stood at 1,20,994 units in July against 1,18,545 units in the same month of 2008, up 2.07 per cent, the company said in a statement.
The company's scooter sales went up by 14.56 per cent to 27,673 units in July, it added.
During the month, TVS exported 13,061 units of two-wheelers against 16,015 units in the corresponding period of 2008, down by 18.45 per cent.
The company's recently launched TVS Scooty Streak have contributed to the growth of scooter sales, it said, adding that the Apache RTR 180 and TVS Flame SR 125 have also received good response from customers.
http://www.business-standard.com/india/news/tvs-motorcyles-sales-dip-20-in-july/12/15/69624/on
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=263119
http://www.thehindubusinessline.com/blnus/02011420.htm
SERVICE INDUSTRY GROWING AT 10% EVERY YEAR: TVS CMD
The Pioneer
(Aug 02)
Chennai: TVS Motor Company CMD Venu Srinivasan on Saturday said the share of the services sector such as trade and tourism had grown by 51 per cent and was growing at over 10 per cent per year.
Delivering his convocation address at the VIT University, Srinivasan said Indias current growth rate was pegged at 7.5 to 8.5 per cent in terms was far ahead of what India had seen for over 50 years. It was only after the mid 1980s that the presence of the Indian consumer began to be felt. Consumption led growth is changing the face of the economy, he said, adding that one of Indias great advantages, as an investment destination, which was acknowledged by all observers was the fact that most of India's manufacturing was still absorbed by domestic demand.
http://www.dailypioneer.com/193152/Service-industry-growing-at-10-every-year-TVS-CMD.html
SUZUKI MOTORCYCLE SALES UP 20.35% IN JULY
PTI
See this story in: Business Standard, The Hindu Business Line
(Aug 02)
New Delhi: Two-wheeler maker Suzuki Motorcycle India reported a 20.35 per cent rise in its sales in July at 12,585 units compared with 10,457 units in the same month last year.
"Suzuki's continuous growth month by month is attributed to the quality products and customer satisfaction...This growth momentum will further accelerate in coming months," Suzuki Motorcycle India Vice-President (Sales and Marketing) Atul Gupta said in a statement.
The company's latest offering to the market GS150R was the major factor contributing to growth of Suzuki's sales, the company added.
http://www.business-standard.com/india/news/suzuki-motorcycle-sales2035-in-july/69632/on
http://www.thehindubusinessline.com/blnus/02011520.htm
COMPONENTS Go To Top
CUMMINS INDIA Q1 PROFIT AT RS 89CR
The Economic Times
(Aug 02)
Pune: Cummins India, the engine maker, has reported a marginal rise in net profit despite a drop in net sales during the quarter ended June 30, 09. During the quarter, net profit was up, at Rs. 89.66 crore (Rs. 88.24 crore) on sales of Rs. 639.43 crore (Rs. 707.03 crore), even as the company has drawn up a three-year programme to take costs out. On a sequential basis, Cummins has reported an over Rs. 400 crore drop in net sales, from Rs. 1071.39 crore although it has grown its domestic business 32%, over the same period.Cummins India chairman and managing director, Anant Talaulicar, said the outlook for the rest of this fiscal is that the top line will fall while they are working to ensure a stable bottom line. He added that the process of cost reductions has meant an across-the-board salary freeze for the current calendar year, a reduction in working capital, a 5% reduction in professionals last fiscal and a reduction of contract workers.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
ALLIED INDUSTRY Go To Top
JK TYRE LOOKS TO SET UP RADIAL UNIT IN TN
Hemamalini Venkatraman & Nandini Sengupta
The Economic Times
(Aug 03)
Chennai/New Delhi: JK Tyre could soon join the bandwagon of radial tyre companies setting up shops near Chennai. The New Delhi-based corporate group has held preliminary discussions with the Tamil Nadu government as part of evaluating possible locations to establish a car radial facility. Multiple sources, including analysts and senior officials in the auto industry, told ET the company is considering TN and Karnataka to house its greenfield unit.
A top official from an auto MNC said JK Tyre has been scouting for land in the Sriperumbadur belt so that it could be located close to the OEs in the bustling auto corridor. The project would entail an investment of Rs 1,600 crore in phases. Company officials, when contacted, said nothing has been finalised yet.
Though it has a sizeable land bank in Mysore where JK Tyre had acquired the erstwhile Vikrant tyres in the early 90s the tyre major is also keen on setting up a facility in Tamil Nadu given the concentration of several domestic and global car and commercial vehicle manufacturers in the state, an industry expert in the know told ET on condition of anonymity.
It is also reliably learnt that a senior official from Apollo Tyre has joined J K Tyres. According to an industry tracker, Chennai has been consolidating its position as the Detroit of the country. If Hyundai and Ford were the first movers into the auto corridor of Sriperumbadur, the entry of Nissan in recent times too has enlarged the business pie in this area. Also, in all likelihood, Peugeot could settle for TN, even as the race for luring investments is hotting up among southern states.
ET had recently reported that the unit could be for a Rs 300-crore car radial factory. The company has 7 tyre plants with an aggregate capacity of about 16 million tyres per annum and a tonnage of over 1,000 metric tonnes per day. For the quarter ending June 2009, JK Tyre had reported a net profit of Rs 40.7 crore (Rs 20.2 crore).
JK Tyre VC-MD Raghupati Singhania said: Radialisation of commercial tyres segment is catching up at a faster pace. The growth momentum shall continue in the coming months with benefits available from recent completion of Truck Radial Expansion Project of doubling the capacity to eight lakh tyres per annum involving a capital expenditure of Rs 315 crore.
It may be recalled that JK Tyre, which has an off-the-road (OTR) plant at Mysore, had announced expansion plans to tap the demand from the OTR segment. TN has been widening its net to attract investments into the auto sector even as it is gearing up for the MoU signing ceremony with French tyre biggie Michelin. Apollo is setting up a mega radial tyre unit on 135-acres in Oragadam. Expected to go onstream by this year-end, it has committed an initial investment of Rs 500 crore.
Warburg Pincus-funded ATC Tires inked an MoU in June 2008 with the TN government to set up a unit for exports in the product-specific SEZ in Gangaikondam industrial park. Due to global meltdown, the $190 million-plus company has been delaying commercial production, sources said. It had committed to invest Rs 300 crore in three years and another Rs 100 crore thereafter.
TVS SRICHAKRA SETS UP PLANT IN UTTARAKHAND
PTI
See this story in: The Hindu Business Line
(Aug 02)
Chennai: Makers of two- and three-wheeler tyres TVS Srichakra said on Saturday said it has set up a plant at Pant Nagar in Uttarakhand.
Declining to give details about the investment, TVS Srichakra Director Mr P Vijayaraghavan said that the new plant will start operations by September and would produce three lakh tyres and tubes per month.
With this new plant at Uttarakhand TVS Srichakra tyres is poised to increase its production capacity from 11 million to 15 million by the end of this fiscal, he said.
The company has a plant in Madurai and produces over 1 crore tubes and tyres per month. On the company's financial performance, he said the company has a net profit of Rs 6.84 crore for the quarter ended June 30 against Rs 2.29 crore for corresponding pe riod year ago.
The total income for the quarter ended June 30, 2009 stood at Rs 158.48 crore against Rs 137.93 crore in the corresponding period of last year.
http://www.thehindubusinessline.com/blnus/02011421.htm
DUMPING DUTY ON CARBON BLACK FROM 4 NATIONS
K.R. Srivats
(Aug 02)
New Delhi: The Finance Ministry has imposed provisional anti-dumping duty on imports of carbon black from Australia, China, Thailand and Russia. This will be applicable only on carbon black used in rubber applications.
Carbon black is an important raw material for the manufacture of tyres. The Association of Carbon Black Manufacturers, Kolkata had filed the petition seeking levy of anti-dumping on carbon black imports.
http://www.thehindubusinessline.com/2009/08/02/stories/2009080251280300.htm
ESSAR MAY CLOSE SHREE PRECOATED BUY SOON
Shubhashish
Daily News & Analysis
(Aug 03)
Mumbai: The Ruia-controlled Essar Steel may sign on the dotted line to buy Shree Precoated Steels in a week, a company official told DNA on condition of anonymity.
The deal will make Essar Steel India's largest cold-rolled steel producer. The official said the deal is likely to be inked in a week. Shree Precoated Steels is part of real estate developer Ajmera group. It has the capacity to produce 6 lakh tonne of cold-rolled steel, 4.5 lakh tonne of galvanised steel and 3.5 lakh tonne of colour-coating line.
DNA had broken the news on July 7. Essar Steel declined to comment on the deal but said it is looking to increase its sales to the auto sector. Vikram Amin, executive director (sales and marketing), Essar Steel said, "We sold 25% of our 3.1 million tonne steel production last year to the auto sector and are looking to sell over 1 million tonne this year."
The company supplies majorly to Maruti, Hyundai and Tata Motors in the passenger car segment, and to Tata Motors, Ashok Leyland and Eicher Motors in the commercial vehicle space.
It also supplies steel to two-wheeler makers. Amin also said that the company is in talks with German carmaker Volkswagen to supply raw material for the company's India plant.
Amin said Essar currently has 1.4 mt of cold-rolled capacity and caters to the domestic market only. It is looking to increase this capacity. "The automotive sector is growing and we are looking to increase our cold-rolled production in line with the market demand," Amin said.
The company is currently expanding capacity at its flagship Hazira unit from 4.6 mt per annum to 10 mt. "The expansion is likely to be completed by 2010-11," said Amin.
http://www.dnaindia.com/money/report_essar-may-close-shree-precoated-buy-soon_1279255
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GERMAN CAR INDUSTRY SAYS SLUMP BOTTOMS OUT
Reuters
See this story in: Yahoo India
(Aug 02)
Berlin: The downturn in the German car industry has bottomed out but it will take time before sales recover to the levels of recent years, the president of Germany's car industry association (VDA) said on Saturday.
VDA President Matthias Wissmann told the "Neue Osnabruecker Zeitung" newspaper that the steep drop in exports since the autumn of 2008 had finally been brought to a halt.
"We're seeing a stabilisation at a lower level," he said.
"Now the issue at hand is to try to work our way out of this deep valley," he said, adding he expected to start seeing "some light at the end of the tunnel" at the Frankfurt car show in September.
"There we'll be able to see the first elements of the coming upturn ," he said. "But there is no quick magic solutions." He said it will take longer to return to the previous sales levels. The automobile industry is one of Germany's most important sectors. It is also heavily reliant on exports.
The German government helped prop up the car industry with a 5-billion euro ($7 billion) "cash-for-clunkers" scheme earlier this year that runs until Dec. 31 or when the cash runs out. The popular incentive programme gives new car buyers a 2,500 euro rebate for scrapping cars that are at least nine years old. The scheme has funds for 2 million new cars. Buyers of more than 1.7 million new cars have already claimed their rebate.
http://in.biz.yahoo.com/090801/137/batza7.html
GM LIKELY TO BACK RHJ OFFER FOR OPEL
Bloomberg
See this story in: Business Standard, Yahoo India
(Aug 02)
Berlin: General Motors Opel unit may be forced into bankruptcy should the US auto maker and the German government fail to agree on a buyer, according to three people close to the trust that controls the division.
The trusts five-member board doesnt back an offer by Magna International Inc, the Canadian parts maker preferred by Germany, said the people, who asked not to be identified because the talks are private. They said the officials favor a bid from investor RHJ International SA or pushing Opel into insolvency.
Im surprised at that, said David Cole, chairman for the Center for Automotive Research in Ann Arbor, Michigan. I would think that its a whole lot better to deal with somebody in the business already than a pure financial buyer.
GM is concerned that a Magna deal might imperil control of some patents, one of the people said. Germany, which agreed to back Opels sale with 1.5 billion ($2.1 billion) in short-term loans, picked Magna as its preferred bidder in May to protect jobs amid the worst recession since World War II.
The Opel trust was set up as an interim owner of the Ruesselsheim, Germany-based unit, and oversees talks with the suitors. It also has to approve any business decisions by Opel, including which bidder will win.
A final decision on the sale will be made by GM, which emerged from bankruptcy July 10 and is controlled by the US Treasury.
Opels fate has been an interesting soap opera, said Joseph Phillippi, an analyst at AutoTrends Consulting in Short Hills, New Jersey. GM might be interested in regaining control of Opel because theres a tremendous amount of technology at stake.
Nicole Mommsen, a spokeswoman for the Opel trust, declined to comment and referred to a July 25 statement by the trust that it hasnt yet made a preliminary decision on the bids.
GM signed a non-exclusive memorandum of understanding with Magna in May. It has continued to hold talks with Brussels-based RHJ, whose automotive assets include some former holdings of Ripplewood Holdings LLC. With the Magna deal at risk, bankruptcy becomes an option while Detroit-based GM still prefers a sale.
We wouldnt be doing all these negotiations if we wanted to liquidate Opel, said Chris Preuss, a GM spokesman. We simply cannot move forward on the bid presented by Magna, a bid that is substantially out of line with the memorandum of understanding the government endorsed, and were working with Magna to get the bid to a level that can be executed.
Magna, whose offer is backed by financing from Russias OAO Sberbank, has made promises to its partner on assets that were never in the original agreement with GM, said one of the people close to the trust.
GMs board will review bids for Opel during a meeting starting August 3, people familiar with the planning have said.
http://www.business-standard.com/india/news/gm-likely-to-back-rhj-offer-for-opel/365615/
http://in.biz.yahoo.com/090801/137/batzal.html
FORD SPAIN SAID SEEKS 600 VOLUNTARY REDUNDANCIES
Reuters
See this story in: The Economic Times
(Aug 02)
Madrid: Ford Motor Co has told unions it wants 600 redundances at its plant in Valencia, and hopes they will be voluntary, Spanish newspapers reported on Saturday.
The company will negotiate the proposals for the permanent reduction in the plant's 5,000-strong workforce with unions in September, La Gaceta reported.
Union officials said they wanted to see details and do not think the plant has too many workers despite depressed demand, the newspaper said. The company reduced production at the plant earlier this year.
LABOUR TALKS AT SSANGYONE BREAK OFF
AP
See this story in: The Indian Express
(Aug 03)
Seoul, South Korea Talks to end a months-long strike at ailing South Korean automaker Ssangyong Motor Co. broke off Sunday, with management threatening to take steps toward bankruptcy unless the union accepts a compromise offer on layoffs.
The fifth-largest South Korean carmaker has been in court-approved bankruptcy protection since February amid falling sales and mounting red ink. Troubles have deepened in the past two months with hundreds of dismissed workers occupying its a paint shop packed with flammable materials at its main plant to protest the massive layoffs. The latest talks to resolve the dispute began Thursday, but no breakthrough was reached.
"We've ended all negotiations as it is impossible to move the talks forward any more," Lee Yoo-il, a management representative in the negotiations, told reporters at Ssangyong's plant in Pyeongtaek, some 45 miles (70 kilometers) south of Seoul.
Lee said the company offered to keep more workers than before in a compromise proposal, but the union insisted on no layoffs. He said the company would be left with no other choice but to take steps toward bankruptcy if the union refused to compromise.
"It is meaningless to have additional dialogue unless the union changes its attitude," he said.
HONDA RECALLS 440,000 CARS FOR AIRBAG RISK
Reuters
See this story in: The Economic Times
(Aug 02)
Detroit: Honda Motor Co said on Friday that it is recalling another 440,000 vehicles - including some of its best-selling Accord and Civic models - for a potentially lethal airbag defect.
Honda said that the airbag inflators in some of its top-selling sedans can rupture because of too much air pressure causing metal fragments to shoot through the airbag and strike vehicle occupants.
One fatality and a number of injuries have been linked to the defect, Honda spokesman Sage Marie said.
The recall covers certain 2001 and 2002 Accords, 2001 Civics and some 2002 and 2003 model Acura TL sedans. The driver's side airbag is the defective component on the affected vehicles.
Honda said owners of those models can check to see if their vehicle is covered by the recall by checking the automaker's website at www.owners.honda.com/recalls.
The Japanese automaker said it was encouraging owners to wait until they received a recall notice to go to a dealership and have the inflator for the steering-wheel airbag replaced.
Honda had originally announced that it would recall some 2001 Accord and Civic sedans for the defect last November.
The notice issued on Friday added another 440,000 vehicles to the recall.
ELECTRIC CARS TO BE 10 PER CENT OF DEMAND: NISSAN
Bloomberg
See this story in: Business Standard, The Times of India, Hindustan Times
(Aug 03)
Tokyo: Nissan Motor Co Chief Executive Officer Carlos Ghosn said electric cars will make up at least 10 per cent of global vehicle demand by 2020, depending on conditions.
Ten percent by 2020 is very reasonable, Ghosn said, referring to research by Massachusetts Institute of Technology. Demand estimates are based on Nissans assessment of rising energy prices and tougher environmental regulations, Ghosn said at a news conference after the opening of the automakers new headquarters in Yokohama, south of Tokyo.
Nissan, Japans third-largest carmaker, unveiled an electric car able to travel 100 miles (160 kilometers) on a full charge, saying it plans to start sales in the US, Europe and Japan next year. Nissan spent 17 years developing the cars lithium-ion battery, which it expects to help make the auto maker the biggest supplier of electric vehicles.
Its an aggressive number but I think its achievable as the number of eco-conscious people will grow, said Yasuhiro Matsumoto, senior analyst at Shinsei Securities Co. Ghosn gave that forecast partly to urge governments, manufacturers and his companys partners to cooperate in promoting electric cars, Matsumoto added.
The price of the five-passenger electric Leaf will be competitive, Ghosn said at the unveiling. Excluding battery, it will cost about the same as an equivalent gasoline-powered car, he said.
We are going to go for mass market, Ghosn said. The car will be reasonable for consumers with zero emissions, and that is just a cherry on the cake.
The compact Leaf is modified from the platform used for Nissans Tiida hatchback, sold in the US as the Versa.
The cars lithium-ion battery pack can be fully recharged at a 200-volt outlet in eight hours, or in less than 30 minutes from a so-called fast-charge station, according to Nissan. The auto maker is preparing to produce about 350,000 electric vehicles a year globally.
Nissan aims to use a $1.6 billion US loan to retool a factory in Tennessee so battery-powered cars can be made on the same line that currently produces hybrids and other models. The automaker will also receive grants and loans from the UK and Portugal to build factories for lithium-ion batteries. The company hasnt disclosed the amount of aid it will receive.
The Japanese automaker has said it will have the capacity to produce 200,000 electric vehicles in the US, 100,000 in Europe and 50,000 in Japan. Nissan and partner Renault SA plan to offer electric vehicles in the US and Japan starting in 2010 and globally in 2012.
Automakers have begun to develop gasoline-electric hybrid models as higher fuel prices and rising environmental concerns spur demand. Toyotas Prius hybrid was the best-selling vehicle in Japan last month, while Hondas Insight ranked fourth, excluding minicars.
Ghosn has said Nissan didnt have the financial resources to develop gasoline-electric hybrid technology in the late 1990s. The automaker is planning to deploy electric powertrains in compact cars and hybrids for bigger and luxury models.
Nissan aims to sell a hybrid car using its own system in fiscal 2010 in Japan and the US Currently, the automakers sole hybrid, the Altima, uses Toyota technology and is only available in the US
http://www.business-standard.com/india/news/electric-cars-to-be-10-per-centdemand-nissan/365720/
http://in.biz.yahoo.com/090802/137/batzb5.html
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?
sectionName=BusinessSectionPage&id=b5217249-54e9-401b-a5d1-baa6e581b439&Headline=Nissan+unveils+zero-emission+hatchback+Leaf
BEIJING AUTO EYES STAKE IN DAIMLER VENTURE
See this story in: The Hindu Business Line
(Aug 02)
Shanghai: Beijing Automotive Industry Holding Corp will pay 700-800 million yuan ($103-117 million) for a 40 per cent stake in Fujian Motor Industry Groups 50-50 commercial vehicle venture with Daimler AG in southeast China, an official newspaper said on Saturday.
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SENSEX COMPANIES SCORE BIG IN Q1
PTI
See this story in: The Hindu Business Line
(Aug 03)
New Delhi: India Inc is back to profitable ways, with every three out of four blue-chip companies reporting a surge in bottom line for the June quarter.
Analysis of the net profit of the top 30 Sensex firms in the April-June quarter shows that their bottom line rose, on average, 36 per cent over the year-ago period, after three quarters of weak earnings.
The global economic gloom notwithstanding, the Bombay Stock Exchange Sensex firms together saw their top line climb an average of eight per cent in the June quarter.
Earnings for corporate India remain meaningfully ahead well into the current reporting season ... average earnings growth is mid-teens, and a good 5-10 per cent ahead of our expectations, across various aggregates, Citigroup said in its India Equity St rategy report.
Companies that have reported a significant surge in June quarter profit include Jaiprakash Associates (292 per cent), Mahindra & Mahindra (152 per cent), Tata Power (144 per cent), Hero Honda (83 per cent), and cement firm ACC Ltd (79 per cent).
Analysts say that even as the margins of the companies are improving, sales are poor as there is slack in demand.
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