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| INDUSTRY Nano facility in Gujarat to be ready by January: Tata Tata to build higher capacity Nano engines Tatas look to cut operating costs at JLR Tata confident of JLR turning the corner INTERVIEWS/FEATURES Maruti Suzuki targets over 10% growth in sales Maruti to sell 8 lakh cars this fiscal A Manesar-Mundra rail link for Maruti Mercedes-Benz India expects to sell 60% C-Class model in Gujarat TKM launches Fortuner in Chennai COMMERCIAL VEHICLES 2/3 WHEELERS | ALLIED INDUSTRIES Essar to renew focus on auto grade steel FINANCE & INSURANCE OIL, LUBRICANTS & ALTERNATIVE FUELS INTERNATIONAL NEWS Honda Japan sales up 13% first 3 wks of Aug: Sources Toyota to cut global capacity by 1 million vehicles US extends clunker-rebate filing deadline by a day ECONOMY & FINANCE 9% growth will require longer time, says Pranab
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| INDUSTRY Go To Top AFP See this story in: mint (Web & Print Edition)
Mumbai: Tata Motors, is seeing signs of recovery in the global auto sector, its chairman Ratan Tata said on Tuesday.
We are seeing the first signs of recovery, but we have to work very hard to make it happen, Tata said.
The Jaguar-LandRover acquisition was labelled as too ambitious, or too high-priced. I refute this. Tata Motors and Jaguar-LandRover will emerge as lean and cost-effective, he told shareholders at the companys annual meeting.
We are a global company now, but have to face the challenges, he said.
He said that there were some encouraging signs from Jaguar-LandRover, which the company acquired for $2.3 billion in June last year. There are new products to come, Tata said.
This month, Tata Motors said it had secured 175 million ($288 million) in additional funding for the luxury brands.
The chairman said that the company needs to cut costs and improve profit margins.
Its first earnings to include Jaguar and Land Rover figures showed a net loss of Rs25 billion ($520 million) in the year to the end of March, against a net profit of Rs21.7 billion in 2007-08.
The company launched the Tata Nano the worlds cheapest car in April this year.
Indian car sales jumped by nearly a third in July the countrys sixth monthly rise in car sales as new model launches and cheaper loans prompted customers to flock to automobile showrooms. http://www.livemint.com/2009/08/25180244/Auto-sector-recovering-but-ch.html?h=E
NANO FACILITY IN GUJARAT TO BE READY BY JANUARY: TATA PTI See this story in: The Economic Times (Web Edition), Business Standard (Web Edition)
Mumbai: The work on the Nano plant in Gujarat is on in full swing and will be completed by January next year, Tata Motors said on Tuesday.
"The Sanand plant will be ready by January next year. At first stage, the plant will produce more yellow and silver coloured cars as they are in demand in the market," Chairman Ratan Tata said at the company's Annual General Meeting here.
TATA TO BUILD HIGHER CAPACITY NANO ENGINES Business Standard (Web & Print Edition) See similar story in: Rediff India (Web Edition)
Mumbai: European, African and some Asian countries have expressed great interest in Nano, said company chairman Ratan Tata at the companys annual general meeting here.
The companys much publicised car was launched to cater to the lower income group, but demand from the export market has prompted it to upgrade the Nano to a higher version.
Currently, the designated factory for Nano is under construction in Gujarat and will be commissioned in January, with an annual capacity of 2,50,000 cars. The company plans to raise this to 3,50,000 in 12 months.
On the land in Singur, West Bengal, the originally planned site for manufacture, taken on lease from the state government, the company said it was willing to, if the government gave permission, transfer the land to a different company. Tata Motors had to move its plant from Singur to Gujarat after a prolonged agitation on behalf of those who had lost their land to the factory.
The company, which has been running a fixed deposit scheme to accept money from investors for its ongoing requirement, said it would be soon launching a revised one.
Answering shareholders query on the acquisition of Jaguar and Land Rover brands from Ford Motor Company, Ratan Tata said the company would have preferred to buy Land Rover alone.The company wanted to get into the high-end SUV segment with this acquisition. But Ford wanted to sell both the brands together.
External factors are playing in a rather devastating manner, said the chairman, defending the purchase of the two brands, which has impacted the overall performance of the company. http://www.business-standard.com/india/news/tata-to-build-higher-capacity-nano-engines/368128/ http://business.rediff.com/report/2009/aug/26/soon-tatas-nano-will-have-more-power.htm
TATAS LOOK TO CUT OPERATING COSTS AT JLR The Economic Times (Web & Print Edition)
Mumbai: Tata Motors is working on a plan to bring down operating costs at Jaguar Land Rover (JLR) in a bid to boost margins and turn around the UK subsidiary, said chairman Ratan Tata, at the companys 64th annual general meeting.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
TATA CONFIDENT OF JLR TURNING THE CORNER The Hindu Business Line (Web & Print Edition) See similar story in: The Tribune (Web Edition), The Times of India (Web & Print Edition), The Hindu (Web & Print Edition), The Telegraph (Web Edition), Rediff India (Web Edition), Yahoo India (Web Edition), The Financial Express (Web & Print Edition)
Mumbai: Tata Motors and Jaguar Land Rover will come through this tough period as leaner and more cost-efficient companies, said Mr Ratan Tata, Chairman of Tata Motors, at its annual general meeting here on Tuesday.
According to him, a year or two was not enough in the life of a corporation to evaluate its success. There is an expert opinion that the JLR acquisition was highly priced. I would like to refute those comments. Yes, there is a challenge; it is caused by an external phenomenon and has nothing to do with the product portfolio or management, Mr Tata said.
Asked by a shareholder on the rationale behind the JLR acquisition, the Chairman replied, For us to develop a high-end high performance vehicle, it will take several years. A single company which gave us hope for a position in the SUV segment and a position in high performance vehicles was thiswe would have taken Land Rover, perhaps not Jaguar. But they came together.
Mr Tata said JRL was profitable in 2007 when the brands were part of Ford Motor Company. They would not have been profitable had it not been for the downturn. It is unfortunate that external factors affected the company, he said.
The slowdown has had a devastating effect on countries, companies, investors and individuals, he added. As for the likely breakeven forecast for JLR, he said, I cant announce when JLR will break even. That depends on the environment around us.
He said that Tata Motors would still go back to Singur, the original home for the Nano peoples car, if the situation improved. Tata Motors had to move the plant from West Bengal to Sanand in Gujarat following agitations over land acquisition. The land is still with us. We will go back to Singur if the situation is not as agitated as it was, Mr Tata said.
Export prospects On export prospects for the Nano, he said that many European, African and Asian countries had expressed interest in the car. However, the companys top priority was the Indian market. We have already announced that we would launch the Nano Europa in 2011-12, he added.
Mr Tata said the company had held talks with Fiat on retailing the Nano in Latin America which, however, was also going through a downturn. Tata Motors has, incidentally, invested Rs 640 crore in the joint venture with Fiat to produce cars at a plant near Pune.
He said the launch of the electric Indica was not viable now in India given the high price of its battery.
The company is also upgrading production keeping in mind the new emission standards (Bharat Stage 4) effective April next year. On emission reduction efforts at JLR, Mr Tata said, JLR has a greater problem than we do as their vehicles are heavy consumers of fuel. They have a five-year programme to take care of this.
A special word of praise was reserved for SBI. When commercial banks had reneged on their commitments to us, the one that stood by us was the State Bank of India, he said. http://www.thehindubusinessline.com/2009/08/26/stories/2009082651830200.htm http://www.tribuneindia.com/2009/20090826/biz.htm#10 http://www.hindu.com/2009/08/26/stories/2009082657581700.htm http://www.telegraphindia.com/1090826/jsp/business/story_11409956.jsp http://business.rediff.com/report/2009/aug/25/tata-defends-jlr-acquisition.htm http://in.biz.yahoo.com/090825/50/bau32i.html http://www.financialexpress.com/news/after-nano-tata-motors-to-focus-now-on-jlr/507028/
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| CARS, SUVs, MUVs Go To Top
New Delhi: The country's largest car maker, Maruti Suzuki India, has launched a new version of its small car Estilo with a fuel efficient engine at an introductory price between Rs 3.12 lakh and Rs 3.95 lakh (ex-showroom, Delhi).
The company currently produces Bharat Stage-III, Bharat Stage-IV and Euro-V emission norms compliant K-series engines. It produces two different petrol engines -- 1 litre (A-Star) and 1.2 litre (Ritz) -- from the fully integrated engine manufacturing facility, located at MSI's Gurgaon plant.
MARUTI SUZUKI TARGETS OVER 10% GROWTH IN SALES
New Delhi: Maruti Suzuki India, the countrys largest passenger car manufacturer, is expecting its sales to grow by over 10% during the current financial year on the back of new models and relatively lower base of last year.
Our target is to sell eight lakh units this fiscal, which will translate into a growth of over 10% compared to the last financial year, when the company sold 7.22 lakh units, said Shinzo Nakanishi, managing director and CEO, Maruti Suzuki India.
Nakanishi said the industry went through a demand slump in the second half of 2008-09 after the global meltdown, adding that as such, the base for comparison was very low. We are expecting good growth in the upcoming festive season with new models and plan to ramp up production in the next few months, he said, without divulging details. Maruti Suzuki launched A-Star late last year, followed by Ritz in the compact car category, as well as the new Grand Vitara in the sport utility vehicle category.
According to the Society of Indian Automobile Manufacturers, MSI sold 2,64,936 units in the domestic market during the April-July period this year, a jump of 13.7% over the same period in the last financial year. With a huge demand for its recently launched A-Star in the European market, the company is also eyeing over 57% growth in exports. Probably we will end up selling about 1.1 lakh cars in the overseas markets in 2009-10, against over 70,000 passenger vehicles that were shipped out of India last year, Nakanishi said.
The company on Tuesday launched a new version of its small car, Estilo, priced between Rs 3.12 lakh and Rs 3.95 lakh (ex-showroom, Delhi).
The new 998-cc petrol car is equipped with the latest K-series engines that also runs the recently launched A-star and Ritz, and is in line with the companys plans to upgrade all existing models with the new engine that is Euro-V compliant.
MARUTI TO SELL 8 LAKH CARS THIS FISCAL The Pioneer (Web & Print Edition)
New Delhi: Maruti Suzuki India (MSI) on Tuesday said it is targetting to sell 8 lakh cars this fiscal as against 7.22 lakh cars it sold last year. The company sells more than 50 per cent of total small cars sold in India. http://www.dailypioneer.com/198095/Maruti-to-sell-8-lakh-cars-this-fiscal.html
Asian Age (Web & Print Edition)
Hyderabad: Maruti Suzuki India is bullish its sales in the upcoming festive season. "We are expecting a good growth in the upcoming festive season. We will ramp up production in the next few months," the MSI managing director, Mr Shinzo Nakanishi, said without giving any details.
Maruti has sold 2.64 lakh units in the domestic market during the first quarter of this fiscal, a 13.7 per cent rise over the year-ago period. http://www.asianage.com/presentation/leftnavigation/news/business/maruti-bets-on-festive-season.aspx
A MANESAR-MUNDRA RAIL LINK FOR MARUTI Sindhu Bhattacharya Daily News & Analysis (Web Edition)
New Delhi: Maruti Suzuki India is eyeing incremental exports in the next few years, thanks to the dedicated export model A Star.
To augment exports, India's largest car maker has also been seeking a dedicated railway line to transport its cars from the Manesar manufacturing plant to the Mundra port in Gujarat. At present, the company has to load its cars on to trucks which take them to the nearest railway station in Gurgaon -- a distance of 18 km.
Maruti has begun work with the Haryana government and the Ministry of Railways to get a dedicated railway track laid between the nearest station (called Patli) and its factory.
"This is a two-year project which will enable us to load cars directly on to the railway wagon instead of using trucks. Also, the cars so loaded will directly be put on the ships waiting at Mundra port without having to use any other mode of transport in between," a senior company official said.
The official declined to speak about the cost involved in this project. Having already
Also, the company is targeting an over 10% growth in domestic sales this fiscal, to eight lakh units against 7.22 lakh in 2008-09, its managing director and CEO Shinzo Nakanishi said.
Maruti attributes the current uptick in sales to festive demand and said any revival would depend only on consumer sentiment post October.
Its sales have risen 21% till date in the current financial year, while that in April-June quarter, they grew 17.7%. In 2008-09, Maruti Suzuki's sales grew 3.6% on year. "Current demand looks good. But we would have to wait for October and November to see if there has been a real revival in demand. Current sales are up on festive demand," executive officer, marketing and sales, Mayank Pareek said.
Maruti launched the new Estilo on Tuesday, which comes with the advanced, K-Series engine and design changes. The base version is priced at Rs 3.12 lakh while the top end (with ABS) comes for Rs 3.95 lakh (ex-showroom Delhi). http://www.dnaindia.com/money/report_a-manesar-mundra-rail-link-for-maruti_1285179
MERCEDES-BENZ INDIA EXPECTS TO SELL 60% C-CLASS MODEL IN GUJARAT Business Standard (Web Edition)
Mumbai/ Ahmedabad: Mercedes-Benz India, which launched its special edition C-Class in Ahmedabad through Benchmark Motors, expects the model to form 60 per cent of its total sales in Gujarat. Currently, the car maker sells around 12-14 cars in the state per month.
"Gujarat has evolved as a market and we expect the C-Class model will be accepted widely here. We expect the model to do 60 per cent of our total sales in the state. the special edition C-Class is specifically designed to address those young Indian customers who seek sporty and aggressive styling and individual expression in their car, complimenting their lifestyle," said Debashish Mitra, Director, Sales and Marketing of Mercedes-Benz India..
Available in two variants - C 200 KOMPRESSOR and C 220 CDI, the model comes in three colours including Carneol Red, Obsidian Black and Calcite White. The company plans to produce only 60 units of this special edition vehicle in order to maintain exclusivity.
The Special Edition C-Class showcases the sporting genes of the Mercedes-Benz brand with the Avantgarde styling package, highlighted on the radiator grille, which includes the elaborate individual elements of the re-designed air intake sills, chrome surrounds on the fog lamps, the aerodynamic enhancements of the front apron spoiler, roof spoiler, rear apron spoiler and the rear spoiler lip to further accentuate the sporty stance of the car. The Special Edition C-Class features the 17-inch light-alloy rims with the exclusive five twin-spoke design.
The car also features the 'Universal Media Interface' (UMI) which allows customers to connect to mobile entertainment and communication devices such as USB-based MP3 players, music mobiles, iPod or the iPhone to the on-board audio system. The sporty special edition C-Class will be offered at a competitive price of Rs 30 Lakhs onwards at Ahmedabad.
TKM LAUNCHES FORTUNER IN CHENNAI The Hindu (Web & Print Edition), The Hindu Business Line (Delhi Print Edition)
Chennai: Toyota Kirloskar Motor (TKM) announced the launch of Fortuner, the sports utility vehicle in Chennai on Tuesday. Speaking at the launch, Sailesh Shetty (General Manager-Sales) said Fortuner had already sold over 250,000 units in more than 60 countries since its launch in 2005.
According to R. Venkatakrishnan (DGM-Sales, South and East Zone), Toyotas Fortuner boasted advanced features and has been tested to suit Indian conditions. The Fortuner will be priced at Rs. 18.42 lakhs (ex-showroom Chennai). http://www.hindu.com/2009/08/26/stories/2009082657551700.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top Pranav Nambiar Daily News & Analysis
Bangalore: BEML, the mining and construction equipment maker, is setting up operations in Indonesia.
"An investment of Rs 215 crore will be used to set up a marketing office, a spare part depot and a product services centre in Balikpapan (East Kalimantan)," said a source familiar with the development.
The new entity will be called PT BEML Indonesia. The Rs 3,000 crore public sector enterprise has been exporting equipment to some Indonesian companies, including listed coal giant PT Bumi Resources.
"We are seeing a lot of interest from several other companies for our equipment from the coal mining and construction sectors. Hence, we plan to get closer to customers and become more competitive with the new setup," the source added.
By setting foot in Indonesia, the company hopes to supply equipment to customers at lower prices, speed up delivery time and warranties of up to 17 years.
Currently, BEML is exporting equipments like conveyer systems, dump trucks and bulldozers to Indonesia. Around 95% of the heavy equipment market in Indonesia is controlled by 4 key players --Japan's Komatsu (51%), US' Catterpillar (22%), Hitachi (13%) and Kobelco (9%).
M Poongavanam, director, mining & construction, had then said the company would also look to explore opportunities with SMJ to bid for mining contracts in Indonesia. This is another venture BEML could look to further with its new office in Indonesia. http://www.dnaindia.com/money/report_beml-stepping-up-indonesia-play_1285198
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| COMPONENTS Go To Top V Balasubramanian The Economic Times
Chennai: Rane Group, a leading player in auto components sector, hopes to ride on the recovery in the domestic market and reverse the setback suffered last year following the global slow down. While focusing on consolidation of operations, it will take a couple of initiatives to sharpen its cost competitiveness.
DOMESTIC DEMAND PUTS PEENYA UNITS ON RECOVERY PATH Chethan Kumar Deccan Herald
Bangalore: Thanks to the slew of measures by the Centre, and benign stance by financial institutions, industries in Peenya are seeing a revival though they are yet to be out of recessionary woods. Sources said this is true only to industries mainly dependant on the domestic market. http://www.deccanherald.com/content/21424/domestic-demand-puts-peenya-units.html
BHARAT FORGE: ONLY PARTLY BETTER Shobhana Subramanian Business Standard (The Compass)
Mumbai: Bharat Forge plans to raise up to $150 million (approximately Rs 730 crore) through equity or equity-linked securities to meet long-term capital requirements. Since the stock has done well to rally from its lows it had fallen to nearly Rs 80 to Rs 225 levels at present, its a good time to issue shares, even if it results in dilution of the equity base by 10-12 per cent.
While the home market for automobiles is showing signs of recovery, the weakness in the overseas markets could continue to impact the auto-parts maker probably for another year. The Rs 4,774-crore companys revenues came off sharply in the June 2009 quarter to Rs 360 crore, a drop of 44 per cent year-on-year, with exports particularly badly hit (by over 50 per cent). That wasnt really unexpected given the poor demand in the overseas markets.
In fact, consolidated revenues plunged 54 per cent year-on-year to Rs 600 crore. The weak top line, together with high outflows on interest and other expenses, resulted in the company posting a loss. If the Pune-based companys revenues rose sequentially with both domestic business and exports reporting a reasonably good growth and if the operating profit margins showed a sequential improvement to 20.9 per cent from 14.6 per cent in the March 2009 quarter, it was largely due to some improvement in the core business, favourable currency movements and a higher contribution from the non-automotive parts division. Nevertheless, the domestic commercial vehicles market appears to have bottomed out and the demand for medium and light vehicles has been improving over the past few months.
However, it could be a while before the European and the US truck markets recover; industry watchers believe this could happen sometime in 2010-11 with the European market lagging the US market.
The company has managed to sustain margins at its overseas subsidiaries by restructuring operations but the benefits of these initiatives should come through only next year. So, its surprising that the stock has had such a sharp run-up; at Rs 225, the stock trades at over 20 times estimated 2010-11 and is expensive. http://www.business-standard.com/india/news/bharat-forge-only-partly-better/368094/
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| ALLIED INDUSTRY Go To Top Bloomberg See this story in: Business Standard
Rubber production in India, the worlds fourth-biggest grower, will increase from September and meet a target for a full-year gain as latex yield improves during cool weather, a government board said.
Output is forecast to advance 0.3 per cent to 867,000 tonnes in the 12 months to March 31, after dropping 13 per cent to 209,825 tonnes in April-July because of dry weather, Sajen Peter, chairman of Rubber Board, said in an e-mail.
The peak production season is yet to come and any revision of the target will be considered only after December, Peter said. Similar early shortages in previous years had been largely offset by a later increase, Peter said.
A rebound in Indias natural rubber production may help cool a 42 per cent jump in local prices in the past six months and meet rising demand for the commodity from tiremakers including MRF, JK Tyre & Industries and Apollo Tyres. Indias rubber demand has gained from February because of steps taken by the government to boost demand, Peter said.
Rubber futures in Tokyo rallied the most since July 31 yesterday amid optimism a global economic recovery will boost consumption. The January-delivery contract fell 1.9 per cent to 0.9 yen per kg ($2,137 a tonne) at 2:23 pm Tokyo time.
Indias output is forecast to rise from last years 864,500 tonnes as production seasonally rises from September during cooler weather after the monsoon ends. More than 90 per cent of the countrys rubber is from Kerala state in southern India.
Consumption in the year to March is forecast to rise 1.7 per cent to 881,000 tonnes as a recovery in economic growth from the fiscal second half boosts manufacturing, Peter said. April-June demand in India, the worlds third-biggest rubber user after China and the US, gained 1.4 per cent, the board said. http://www.business-standard.com/india/news/rubber-output-likely-to-risecooler-weather/368077/
ESSAR TO RENEW FOCUS ON AUTO GRADE STEEL Suresh P. Iyengar The Hindu Business Line
Mumbai: Essar Steel plans to increase sale of auto grade steel from 7.50 lakh tonnes to one million tonnes this fiscal, keeping an eye on the boom in the car sector and India rapidly emerging as a global hub for compact cars.
Mr Vikram Amin, Executive Director, Essar Steel, said that as part of its efforts to be closer to the end-user the company has increased its service centre capacity to over two million tonnes by rolling out three modern facilities at the key auto clusters of Chennai, Pune and the National Capital Region.
The facilities here include HR/HRPO (hot-rolled, pickled and oiled coils) skin-passed capacity of 1.2 million tonnes and CR (cold-rolled) processing equipment with stringent tolerances.
Essar Steels CR product basket for the automotive segment ranges from drawing quality, high strength steels for fuel saving to ultra-low carbon IF (interstitial free) grade of steel which adhere to international standards.
The service centres have helped auto companies reduce inventory and processing costs besides improving their productivity, said Mr Amin.
The renewed focus on auto-grade steel is likely to push up the annual turnover by Rs 3,500-4,000 crore, sources said. Auto grade steel commands a premium over other qualities and is currently priced at Rs 35,000 a tonne.
The company derives 35 per cent of its revenue from the white goods and automobile sectors, 40 per cent from the construction industry, 15 per cent from line pipes and the balance 10 per cent from the engineering sector.
Pact with Kobe Steel Our umbrella agreement with Kobe Steel of Japan for the latest technology will help in offering a wide range of the latest Japanese technology including skin panels, quenched and tempered plates, to name a few, said Mr Amin.
The new generation high strength cold-rolled steels with dent resistant developed by Essar Steel offer the twin benefits of cost reduction and high performance. They are used for the manufacture of high-end cars.
Other products from Essar Steel include dual phase and high strength steels for wheel discs and rims, which are of high grade steel with minimal inclusions and impurities. The steel has good fatigue resistance, high strength and toughness. Fatigue is also an issue for components such as wheels, chassis and axles where fluctuations could lead to fatigue cracks.
We will introduce a new high strength grade equivalent to 80 Ksi (kilo-pound [force] per square inch) material for Mahindra Navistars international truck project next month. The use of 80 Ksi material will provide the benefit of weight reduction and high payload for trucks, said Mr Amin. http://www.thehindubusinessline.com/2009/08/26/stories/2009082650780300.htm
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| NON-LIFE PREMIUM COLLECTION UP, COURTESY RISING AUTO SALES Shilpy Sinha Business Standard
Mumbai: Riding on the back of rising auto sales last month, the non-life insurance industry has recorded a marginal rise in premium collection.
According to data collated from companies, the general insurance industry recorded a growth of 6.72 per cent in premium collection to the tune of Rs 11,684 crore in April-July 2009 as against Rs 10,947.8 crore in the corresponding period last year. The industry has grown at 4.57 per cent during the April-June 2009.
In the current financial year, while private players grew at 4.21 per cent in April-July compared to 1.21 per cent in April-June, the public sector ones reported a 8.52 per cent growth in April-July as against 7.01 per cent in April-June.
In July, auto sales zoomed 24.3 per cent. While domestic car sales were up 31 per cent and commercial vehicles witnessed a 9.6 per cent increase in sales.
Insurers see a surge in collection when auto sales go up. Although vehicle sales have risen, the unfortunate part is that premium collection has not shot up in line. Insurers are pricing more aggressively, which is bringing down their overall collection, said Iffco Tokio Chief Executive Officer S Narayan.
Private players such as ICICI Lombard and Bajaj Allianz General Insurance have reported a decline of 18.3 per cent and 12.61 per cent, respectively, in premium collection. The third largest public sector insurer also recorded a marginal 0.13 per cent drop in collection.
ICICI Lombard General Insurances CFO and Director Rakesh Jain said, There is one-month lag between consumers taking possession and booking a vehicle. Insurance comes into effect only after the vehicle comes on road. We can see the impact of robust auto sales in August collections. Market prices have bottomed out and we want some bit of correction and are writing business prudently.
During the beginning of the financial year, insurers had expected that the industry to grow at below 10 per cent during 2009-10.
PTI See this story in: Yahoo India
New Delhi: Auto maker Mahindra & Mahindra said it has entered into an agreement with public sector lender Vijaya Bank for vehicle finance. Vijaya bank will now be a preferred financier for the company''s commercial and passenger vehicles, Mahindra & Mahindra (M&M) said in a statement.
"The MoU with Vijaya Bank will provide our customers with additional retail finance options for both commercial vehicles and passenger vehicles. A low rate of interest is just one of the benefits of opting for Vijaya Bank as a preferred financier," M&M Senior Vice President Sales and Customer Care (Automotive Sector) Arun Malhotra said.
He said M&M is also seeking to strengthen its presence in the hinterland and rural market through the network of Vijaya Bank''s over 1,000 strong branches. As party of the tie-up, customers of both commercial and passenger vehicles can avail of a loan up to 85 per cent of the on road price of the vehicle with a tenure of five years at a rate of 11.25 per cent annually. http://in.news.yahoo.com/20/20090825/372/tbs-m-m-ties-up-with-vijaya-bank-for-veh.html
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top
See this story in: The Times of India
New York: Oil prices fell 3 percent on Tuesday as dealers rushed to take profits from a rally that had culminated in a 10-month peak earlier in the day. U.S. crude oil dropped $2.32 to settle at $72.05 a barrel, down from a high of $75, in the biggest percentage loss since Aug. 14. Brent crude dropped $2.44 to $71.82. "It looks like crude tested the $75 level and failed," said Tom Bentz, a trader with BNP Paribas. Players said oil's more than 65 percent rally this year was a good opportunity for some to lock in profits. "There's been profit-taking in the energy markets," said Tim Evans, analyst at Citi Futures Perspective in New York. Oil prices had shot up in earlier trading after US reports showed increased consumer confidence and higher home prices in the world's largest energy consumer -- adding to a string of encouraging economic indicators. http://timesofindia.indiatimes.com/news/business/international-business/Oil-tumbles-from-10-month-peak-on-profit-taking/articleshow/4934891.cms
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| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Financial Express
Frankfurt: General Motors may make clear within the next 24 hours whether it wants to keep its European carmaker Opel rather than sell it, a German labour representative said on Tuesday.
Armin Schild, IG Metalls leader in the state of Hesse where Opel has its headquarters, said the fact that GMs options for Opel had come to light ahead of an official announcement could mean that they were under serious consideration. I see that as a bad sign for the future of Opel, Schild told German television station ZDF.
Sources with knowledge of the deliberations told Reuters on Monday GM was considering a plan to raise $4 billion to keep Opel rather than selling the unit to one of two biddersCanadian auto group Magna or Belgium-based RHJ International. GM decided earlier this year to spin off Opel, its unit for some 80 years, saying it needed billions of euros in state aid to avert job cuts and site closures.
The possible reversal of that plan comes against a backdrop of escalating labor tension and political pressure over GMs slow-moving effort to sell control of Opel and British affiliate Vauxhall.
Talks to sell Opel have gone on for months and have become a political hot potato ahead of German elections in September, because of the state support involved and the thousands of job cuts expected to follow any sale.
German Chancellor Angela Merkel and German states have been putting pressure on GM to pick Magnas offer, made together with Russian partner Sberbank, because they think Magna would can save more jobs.
In Germany, Opel employs over 25,000 in four major plants making everything from three-door Corsa subcompacts to Zafira vans. In the UK there are two factories producing automobiles under the Vauxhall badge. Opel has other facilities in Belgium, Poland and Spain.
GMs board was expected to pick a buyer for Opel at a meeting on Friday, but the US carmakers directors declined to endorse a sale to either party, prompting unions to threaten spectacular measures to force a decision. http://www.financialexpress.com/news/gm-likely-to-make-opel-plans-clear-within-24-hrs/506983/
Agencies See this story in: The Economic Times
New York: The newly svelte US auto giant General Motors that emerged from a bankruptcy reorganization appears sufficiently confident to be willing hit like a bombshell: GM is trying to assemble $4.3 billion (3.0 billion euros) to keep its ailing subsidiary Opel.
In recent weeks the "new" GM, in which the US government owns more than a 60 percent stake, has been in close touch with German Chancellor Angela Merkel's government to try to reach an agreement on one of two rival bidders: Canadian auto parts maker Magna, backed by Russian state-owned bank Sberbank, and Brussels-based investment firm RHJ International. http://economictimes.indiatimes.com/New-GM-takes-U-turn-on-Opel/articleshow/4934924.cms
HONDA JAPAN SALES UP 13% FIRST 3 WKS OF AUG: SOURCES Reuters See this story in: The Economic Times
Tokyo: Honda Motor Co's car sales in Japan rose 13 per cent in the first three weeks of August from the same period last year, helped by government incentives to boost auto demand, two sources familiar with the matter said.
TOYOTA TO CUT GLOBAL CAPACITY BY 1 MILLION VEHICLES Reuters See this story in: The Economic Times
Tokyo: Toyota Motor Corp, the world's biggest automaker, will cut its global production capacity by 10 percent, or 1 million vehicles, the Nikkei business daily reported.
US EXTENDS CLUNKER-REBATE FILING DEADLINE BY A DAY Reuters See this story in: The Hindu Business Line
The U.S. Transportation Department extended the deadline for automobile dealers to file applications for cash for clunkers rebates until noon tomorrow Washington time.
The deadline for transactions is now 8 p.m., which had been the deadline for filing applications, according to an e-mailed statement. Auto retailers trying to send repayment requests have been hindered by malfunctioning government computers, a dealer group said.
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee traded in a range as it tracked the equities market. It opened at 48.80 and closed at 48.76, slightly lower from the previous close of 48.60. There were alternate bouts of buying and selling, said forex dealers.
According to a forex dealer with a public sector bank, there was selling by exporters by higher levels, but these were matched by month-end driven buying by importers.
In the overseas market the dollar was rangebound against other major currencies like the euro and pound. There is not much movement in the dollar as it is consolidating at these levels.
In the forward premia market the six-month closed at 2.6 per cent (2.72 per cent) and the one-year at 2.39 per cent (2.41 per cent). http://www.thehindubusinessline.com/2009/08/26/stories/2009082650800600.htm
PTI See this story in: The Hindu Business Line
Mumbai: Erasing initial losses, the Bombay Stock Exchange benchmark Sensex on Tuesday gained nearly 60 points on an upsurge in IT, consumer durables and refinery sectors. After gains of three consecutive days, the BSE barometer had lost nearly 195 point s in early trade.
However, by mid-session buying interest revived in stocks across all counters, barring PSU and banking. The 30-share index finally ended with a gain of 59.72 points at 15,688.47, thus extending the gains for the fourth day in a row.
The National Stock Exchange index, Nifty, rose by 16.55 points at 4,659.35. Brokers said markets fell in early trade due to investors covering pending positions ahead of August contract expiry in derivatives.
Marketmen said the uptrend was supported by heavyweight stocks of Tata Motors, Wipro, RIL, NTPC and Grasim. In the 30-BSE Sensex stocks, 15 closed higher. Tata Motors surged gained the most among Sensex stocks at 7.10 per cent. Wipro led the gains for IT scrips after US dollar strengthened against the rupee. About 60 per cent revenue of the technologies firms comes from the US markets. http://www.thehindubusinessline.com/blnus/05251901.htm
9% GROWTH WILL REQUIRE LONGER TIME, SAYS PRANAB PTI See this story in: The Hindu Business Line
New Delhi: Faced with the impact of the global downturn as well as drought, the government said on Tuesday it would take longer time'' for the country to achieve the 9 per cent growth as witnessed before the financial crisis hit the world in September, 2008.
To achieve 9 per cent growth (it) will require little longer time'', Finance Minister Mr Pranab Mukherjee said, participating in a function organised by a private TV channel.
Mr Mukherjee said this fiscal we will have six per cent plus growth.'' Whether that will be 6.5 or 6.2 per cent I cannot say. To achieve 7 to 8 per cent, (it) will be possible in the short term.''
Promising to continue reforms in various sectors of the economy, the minister said, the process (which) began in the early 90s will continue in the right earnest so that the economy is back on the path of 9 per cent growth at the earliest.''
Having grown by 9 per cent during the three years ending March 2008, India's economic growth rate slipped to 6.7 per cent during 2008-09, mainly on account of the impact of the global financial crisis.
With 246 districts out of a total of about 600 facing drought, the growth rate is estimated to decelerate further to little over 6 per cent.
The Reserve Bank of India in its first quarterly review of the credit policy projected 6 per cent growth rate for the current fiscal with upward bias. http://www.thehindubusinessline.com/blnus/01251591.htm
Last Financial closing
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Tuesday, August 25, 2009
Indian Auto Industry Update August 26, 2009
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