Indian Auto Industry News: Indian Auto Industry Update August 27, 2009

Kolkata: Bright prospects of battery demand from the passenger car segment may keep Exide Industries Ltd growing in the remainder of the current fiscal.

However, due to poor rainfall, the company is not so hopeful about the demand from commercial vehicles and tractors segment accounting for nearly 50 per cent of the total automotive battery sales. We expect both the original equipment (OE) and replacement demand from passenger car and 2/3-wheeler segments to grow further in the second half, Mr P.K. Kataky, Director (Automotive) of Exide Industries, told Business Line. Together the segments contribute nearly 50 per cent of automotive battery sales volume of the company.

According to him, though the OE demand for batteries for commercial vehicles improved marginally in last two months, the crop outlook might impact the sales in future.

The company is a marginal player in the replacement market for commercial vehicle batteries, which is dominated by the unorganised sector. Similarly, Exides market in tractor battery segment is limited to OE sales. The profit margins are also reportedly lower compared to passenger car segment due to fierce competition from unorganised sector.

We may face a lower demand situation for automotive batteries for commercial vehicles and tractors due to any shortfall in agricultural production. However, we are confident of maintaining the overall growth in automotive battery sales, riding on growth in passenger and two-three wheeler segments, he said.

Exide Industries posted a 49 per cent growth in net profit to Rs 122 crore during the April-June 2009 quarter compared to the corresponding period in the last fiscal.

The companys share closed at Rs 86.10 on the BSE on Wednesday, up by 0.88 per cent from the previous days close.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751960300.htm

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BHARAT STAGE-IV NORMS TO BE OPERATIONAL FROM APRIL 1

The Hindu Business Line (Web Edition)

Hyderabad: All automotive manufacturers will have to conform to Bharat Stage-IV norms beginning April 1, 2010 for vehicles sold in all the four metros plus Hyderabad and eight other select cities in the country.

Only such vehicles which conform to the BS-IV norms will be allowed to be sold and registered in Hyderabad from April 1 next year. This includes both passenger cars and commercial vehicles, said Mr Raymond Peter, Transport Commissioner, Government of Andhra Pradesh.

Answering a query, Mr Peter said that not just the vehicle manufacturers, but the oil companies too will market fuel with low sulphur content.

Many manufactures, including Maruti with Ritz, A-Star and Estilo and Hyundai with i-10 and 1-20, have come up with cars that conform to these norms.

Emission norms

Typically, Indian norms are about six years behind the European emission norms. They are now looking at Euro VI norms. Therefore, most of the manufacturers are either upgrading to conform to these norms or coming up with new engines.

Earlier, the Transport Commissioner launched the first batch of newly unveiled Estilo range of fuel efficient cars at RKMotors. Mr Vinay Saboo, Chairman of RKS Motors, said that Maruti is now offering cars with a price gap of Rs 25,000 each, making it an attractive proposition to stay in the Maruti stable. The newly launched Estilo is being positioned as an ideal upgrade for Maruti 800 and Alto owners.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082750831700.htm

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M&M TO DEMONSTRATE HYDROGEN POWERED HY-ALFA IN 10

The Pioneer (Delhi Print Edition)

See this story in: Business Standard (Delhi Print Edition)

Mahindra & Mahindra on Wednesday said it would carry out a demonstration of its hydrogen, power three-wheeler vehicle Hy-Alfa here in 2010. The vehicle is powered with internal combustion engine and is available in both passenger (three-seater) and cargo versions, M&M said in a statement.
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CARS, SUVs, MUVs Go To Top

CARMAKERS EYE FESTIVE DEMAND, HIT HIRING LANE

Chanchal Pal Chauhan

The Economic Times (Web & Print Edition)

New Delhi: Some of the countrys biggest carmakers plan to hire 5,000 more hands in the next month to help them ramp up production in anticipation of an additional demand for about 70,000 cars this festival season.

Maruti Suzuki, Hyundai Motor, Honda Siel Cars India, Toyota Kirloskar Motors and others have been waiting for this sales peak as demand has been building up since December following five months of low sales.

While higher sales in the past four months of 2008-09 could not make up for lost numbers, the fiscal year ended flat with 1.3% growth.

Auto companies see huge offtake of their vehicles during the festival season, which falls in September-October every year.

The carmakers are looking at producing 50,000-70 ,000 more units over the average monthly output of 1.3 lakh cars with the help of new recruits, who will be on their rolls as contract and permanent workers.

Market leader Maruti Suzuki has said it will recruit 150 skilled personnel for its production team this quarter. Its part of a medium-term business plan to have a consistent production cycle and maintain quality skilled manpower, said SY Siddiqui, managing executive officer for administration at Maruti Suzuki. The company also plans to hire 215 engineers for its R&D team to take the total to 975 by March 2010.

Hyundai Motor

India will recruit the maximum number of hands this season to meet rising demand for its cars in domestic and overseas markets. On the back of about 1,000 workers it has hired, the 100% arm of South Korean car firm Hyundai is looking at recruiting a similar number in September, taking the total number of people on its rolls to 12,000.

"We will start the third production shift at our second car plant at Chennai from September 14 and induct another 1,000 people this month to start a third shift, said HS Lheem, MD and CEO at Hyundai Motor India.

Carmakers are already in a festive mood, as domestic sales in July saw a 30% jump over the same month last year, and expect the pace to continue till December. Exports too have jumped 40% during April-July 2009 to 1.3 lakh units.

Honda Siel Car India, the maker of Jazz hatchback and City sedan, has recruited 700 associates as it plans to start a second shift at its Greater Noida factory. While other carmakers such as Tata Motors and Toyota Kirloskar Motors too are increasing their workforce, the two-wheeler companies are as much in hiring mode to increase production and meet rising demand.

Hiring of new recruits is an ongoing process at Hero Honda, and we will keep up this process depending on our requirements. We have flexible production systems and processes and will be induct people in all the three plants, a Hero Honda spokesman said without giving details.

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Carmakers-eye-festive-demand-hit-hiring-lane/articleshow/4939000.cms?curpg=2

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GLOBAL AUTO COS BET ON SMALL CAR MARKET HERE

Lijee Philip

The Economic Times (Web & Print Edition)

Mumbai: Global car makers such as Volkswagen, Toyota, Nissan and Ford are rushing with new launches in the compact car segment to increase their presence in India, which is widely considered to be the worlds fastest-growing automobile market after China. The compact car segment the category above the entry-level hatchback which accounts for more than three-fourths of Indias total car sales, is the fastest-growing segment at 20-25% annually.

The global firms will now compete with Maruti Suzuki, Tata Motors, Hyundai, Fiat, Skoda, Honda and General Motors for a share of the compact car market, which, according to industry statistics, saw sales of 3.35 lakh cars in the April-July 2009 period. The new entrants plan to differentiate their products through competitive pricing and additional features such as added space, fuel efficiency and better performance, said people involved in the development. The popularity of compact cars is evident from the high sales seen in most quarters.

In the April-July period, all seven companies sold 3.35 lakh compact cars, of the total car sales of 4.38 lakh units. Maruti Suzuki, the countrys largest car maker, accounts for the biggest share of the compact segment at 1.94 lakh units, followed by Hyundai at 81,843 units and Tata Motors at 37,412 units for the same period.

While Volkswagen and Nissan plan to launch the Polo and Micra, respectively, Toyota and Ford are launching all new compact models for the Indian market. The India-specific cars are likely to be launched in 2010, and companies are currently working on the pricing and product mix, said people privy to the development.

Volkswagen, which currently markets the Jetta and Passat in India, plans to launch several models from the VW stable, including the Golf compact car, while Japanese carmaker Nissan, which currently retails the Teana sedan and SUV X-Trail, plans to export large units of Nissan Micra to the overseas market. Ford, currently present only in mid-sized cars and SUV segments, is not yet seen as a volume-pusher in the automobile industry.

The Ford small car will be a 4-door hatchback, powered by an indigenous diesel engine manufactured at its Chennai plant. We are on track to bring the new small car to India by early 2010. Unfortunately, we are not able to reveal the timing of our future product introductions, said a Ford India spokesperson.

Toyota, which currently retails the Innova, Corolla and Camry, says the small car would spruce up its presence in the Indian market. Our Indian operations will see a major change once we launch our small car next year, TMC senior MD Dato Akira Okabe said at a recent launch. Toyota plans to export its small car, scheduled for a launch next year.

Given the fact that these compacts or premium hatchbacks have as much cabin space as their saloon counterparts, occupy a smaller footprint on terra firma, have more luggage space than the standard hatchbacks, deliver zestful performance and even better fuel efficiency at a lower price point than saloons with similar powerplants, it is not easy to see such cars dominate mindspace in the land, said Adil Jal Darukhanawala, editor, Times Zigwheels.

http://economictimes.indiatimes.com/Global-auto-cos-bet-on-Indian-small-car-market/articleshow/4938493.cms

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MOTOWN SPEEDS ON JUST A FEW FAITHFULS

Pranav Nambiar

Daily News & Analysis (Web Edition)

Bangalore: Though carmakers have begun to drive in good volumes, it's only a handful of models that are contributing to this momentum in Motown. It is a case of just one horse pulling all the wagons in the yard.

Most carmakers, with the exception of Maruti, have one blockbuster model accounting for over half their sales despite a large portfolio of offerings.

For instance, in the case of Hyundai Motors, despite 10 cars in the portfolio, i10 contributes close to 50% of its sales.

The previously dominant Santro now contributes less than a third of the company's sales, while the remaining eight models are not adding up to significant numbers.

"The i10 plays in the mass compact car segment and hence its volumes are bound to be higher," said Arvind Saxena, Hyundai Motor's senior vice-president, marketing and sales.

However, having a presence in the mass compact/hatchback segment does not necessarily mean that the model will outsell others in the portfolio.

General Motors (GM) saw a 35% y-o-y decline in the sales of its once popular Tavera model between January and June 2009. But its Spark model, which contributes close to 60% of its sales, grew by over 20% during the period.

For Fiat India, the sale of its once popular compact car Palio is plunging. Its new premium sedan Linea contributed around 75% of the yoy growth in the company's car

sales. It sold 7,000 units in the first half of the year.

According to analysts, the market is not large enough for car makers to excel in all segments.

"Car makers push sales of a few models that drive revenues. While other models are a showcase of technology and to show that they have a presence all segments," said an analyst who did not want to be named.

At the launch of the new Toyota Camry (sedan) held recently, Sandeep Singh, deputy managing director of Toyota Kirloskar Motors (TKM), said they have no plans to sell huge volumes of the car.

The January-June period this year saw around 80% of TKM's sales coming in from the Innova. It sells 6 models in the country. The company sold just around 44 units of its Camry this April-June quarter compared to 182 in the year-ago period.

Mahantesh Sabarad, analyst with Centrum Capital, said some products do exceptionally well driving volumes for 6-7 years, before they start to fade away. "This is true for models like Santro and Maruti 800," he added.

Industry insiders say the slowdown has extended the gap between blockbuster and other models in the portfolio.

"We have a wide range of cars including the Jazz, City, Civic, Accord and CR-V. While City surely has an advantage of being the most popular model...some models like Civic have been impacted by the slowdown," said Jnaneswar Sen, vice president - marketing, Honda Siel Cars India Ltd.

Most carmakers say that the industry in India is still maturing and they are working to get an ideal mix of cars to reduce reliance on just a few models. Also high selling mass models do not necessarily mean good margins and hence getting the balance right is important.

"We are looking to at the compact Grande Punto to drive volumes going ahead. While our current highest selling sedan model Linea will continue to do good numbers," said Rajeev Kapoor, CEO, Fiat India Automobiles Ltd.

Globally, most companies have blockbuster models. However, the other models clock decent sales as well.

http://www.dnaindia.com/money/report_motown-speeds-on-just-a-few-faithfuls_1285415

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MARUTI TO SET UP WORLD-CLASS R&D COMPLEX IN HARYANA

The Hindu (Web & Print Edition)

New Delhi: Further reiterating its commitment towards the Indian market, Maruti Suzuki India Ltd. (MSIL) has decided to develop a world-class research and development complex in the country. The Rs. 1,000-crore complex, the sole such facility by Suzuki Motor Corporation outside Japan, would come up at Rohtak in Haryana and house an R&D centre for passenger cars, including Indias first state-of-the-art test track with a proving ground, wind tunnel and crash facility. The Haryana Government had already handed over 700 acres to MSIL, out of which 100 acres would house the suppliers park where MSILs vendor partners would bring in further investment. While the development of the allotted land and construction of the test tracks would be completed by 2012, the overall R&D facilities would be completed by 2015.

http://www.hindu.com/2009/08/27/stories/2009082755081600.htm

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MARUTI ROLLS OUT VARIANT OF ESTILO

The Times of India (Delhi Print Edition)

New Delhi: Eying a 10% growth in sales this fiscal, the countrys biggest carmaker Maruti Suzuki strengthened its compact car portfolio by rolling out a refurbished version of its Estilo compact car with an introductory price between Rs 3.12 lakh and Rs 3.95 lakh (ex-showroom, Delhi).

The car sports a new Euro IV 998 CC K-series petrol engine, and the company said it has plans to upgrade all its models to BS-IV emission norms by March 2010.

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HONDA SEES CITY SALES ZOOM, THANKS TO JAZZ

Murali Gopalan

The Hindu Business Line (Web & Print Edition)

Mumbai: Honda Siel Cars India believes that the Jazz has been the best piece of news from the viewpoint of boosting sales of the City.

The car is also helping the company gather key market inputs for the global small compact car scheduled to be launched during 2011-12.

Interestingly, the City is dearer at Rs 8.8 lakh-Rs 9.5 lakh (ex-showroom-Mumbai)

compared to the Jazzs range of Rs 7.4 lakh-7.8 lakh. The global small car that will follow is expected to be in the Rs 5 lakh-plus range, on the lines of the Suzuki Swift, though Honda has not made any official comment on its pricing.

Our market research tell us that there are a considerable number of customers who come in to have a good look at the Jazz and end up buying the City, top sources told Business Line. The company has reason to be pleased because, by the end of the day, sales are showing an upward curve. The Jazz, which is barely three months old, did over 2,000 units in June, only to see July sales halve to slightly in excess of 1,000 cars. Indications are that August would be at par with July though this could be nearly three times as much for the City. Yet, there is considerable word-of-mouth going on the Jazz which sources say augurs well for the car.

A section of industry observers believe that the Jazz has lost out because of its high price tag, especially for a small car. Honda, though, insists that sales are on course and refutes the theory about it being overpriced.

The Jazz is not just another small car; it has a whole lot of new features and has a premium feel, quite unlike run-of-the-mill small cars, sources say.

The small car definition is also by virtue of the fact that the Jazz conforms to the specifications of length capped at four metres with a 1.2-litre petrol engine (in the case of diesel, the norms cap it at 1.5 litres).

In fact, even during its launch, the management had indicated it would be happy if the car did even half the numbers of the City. Both are produced on the same platform with nearly 60 per cent of their parts being common. To that extent, every unit sold (be it a City or Jazz) is profitable.

The Jazz has been positioned as a model for people who think young. Initial market feedback shows that the age profile of its user is five years younger than the Citys which is around 41 years. This does not mean that the car is intended only for teenyboppers but it could even include a 60-year-old who, by the end of the day, is still youthful, sources said.

The fact also remains that not all young people can afford a Rs 7-lakh plus car like the Jazz right now. However, from Hondas viewpoint, this category of customers could well move up the affluent scale and buy a relatively more affordable car like the global compact due in 2011-12.

The Japanese automaker had also targeted more women users for the Jazz (22 per cent) as against the City at 16 per cent. Thus far, things are moving on the projected lines.

Interestingly, nearly 45 per cent of Jazz buyers are existing customers of Honda cars which include the City, Civic, Accord and CR-V. From the companys point of view, this augurs well for the next small car because of the Honda brand recall.

Incidentally, the Jazz was to have been produced at the new plant in Rajasthan but the global slowdown prompted the company to use the existing facility in Greater Noida, Uttar Pradesh.

Critical parts for both cars come from Rajasthan as part of Hondas endeavour to focus aggressively on localisation and keep costs in check. The plant could end up being home to the global small car, especially if the Japanese automaker uses it as an export hub.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751360200.htm

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TOYOTA INDIA PLANS 200,000 UNITS BY 2015

Business Standard

Mumbai/ Ahmedabad: At a time when Japanese car-maker Toyota Motor Corporation has announced its plans to cut overall capacity by between 700,000 and one million vehicles a year, the company's India unit is planning to touch a production of 2 lakh units by the year 2015.

"Our target is to achieve a production of 200,000 units by 2015. With the launch of the compact car by the end of 2010 or beginning 2011, we aim to reach our target. The compact car will be manufactured at Toyota India's upcoming second manufacturing facility in India," Yusuf Haji, manager, western regional office, sales operations division, Toyota Kirloskar Motor, told Business Standard on the sidelines of the launch of Toyotas third sports utility vehicle (SUV) brand in the domestic market, called the Fortuner.

The company, which is present in India through a joint venture with the Kirloskar Group, expects to sell over 2000 units in 2009. "Fortuner has sold 250,000 units in more than 60 countries since its launch in 2005. Toyota has launched Fortuner in India with an aim to gain at least 50 percent of the market share in the SUV segment. The SUV segment is two per cent of the total passenger car segment in India.

The Fortuner, with a 3.0-liter diesel engine, is priced at 1.85 million rupees at showrooms in New Delhi. The model will be assembled at the company's plant Bidadi in India. Toyota Kirloskar has a market share of three per cent in the passenger car segment and aims to sell 52,000 units this year, compared with 51,800 vehicles in 2008.

http://www.business-standard.com/india/news/toyota-india-plans-200000-units-by-2015/368175/

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NEW FORD SUV IN SEPT

The Financial Express (Delhi Print Edition)

See this story in: Business Standard (Delhi Print Edition)

Come September, and car maker ford is ready to drive in its new version of sports utility vehicle (SUV) Endeavour and also increase the price tag of its flagship sedan Ikon by up to Rs. 8,000 to cope with the rising cost. We would be launching a new Endeavour next month. It will be a significant step in our companys future plans in India, Ford India ED (marketing, sales and services) Nigel Wark said.

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DSK MOTORS TO ENTER CAR LEASING BUSINESS

Business Standard

Mumbai/ Pune: City-based DSK Motors Ltd has entered car leasing business for corporates and hotels through 25 initial deals. The company, that operates Toyota dealerships in eight districts in western Maharashtra and Konkan, plans to have 50-car-fleet for leasing business to be launched in September.

DSK Motors launched the premier segment SUV Toyota Fortuner priced at Rs 18.4 lakh (ex-showroom) in Pune. Speaking to reporters after the launch, DSK Motors executive director Jitendra Mali said, "A large number of corporates and business hotels in city need a reliable car leasing facility at an attractive pricing. We are looking at such high-end customers who would hire a car with a driver, fuel and maintenance for a minimum period of six months. We have already signed 25 deals with different clients and another 25 deals are due."

The company, through this leasing business, will provide cars of different brands and manufacturers, as asked by clients. "We will finance these cars through bank loans. The pricing would be lower with us due to our in-house servicing and maintenance facilities," Mali added.

DSK Motors operates Toyota dealerships and service stations in Pune, Satara, Ahmednagar, Kolhapur, Sangli and Solapur districts. It has recently expanded its dealership network to Ratnagiri and Sindhudurg districts as well.

http://www.business-standard.com/india/news/dsk-motors-to-enter-car-leasing-business/368176/
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CONSTRUCTION & AGRI MACHINERY Go To Top

TRACTOR MAKERS CONFIDENT OF GROWTH DESPITE DROUGHT

Sagar Bhadra, Manu P. Toms

The Hindu Business Line

Mumbai: The Indian tractor industry expects to register marginal growth this fiscal despite the second half being impacted by the drought and its impact on the agricultural sector. This optimism stems from a strong performance in the first half of the year coupled with growth in non-agricultural use for tractors and a renewed thrust on exports.

According to industry sources, combined tractor sales grew nine per cent to 1.33 lakh units during April-July with annual sales expected to register nearly 3.4 lakh tractors. Despite a likely drop in growth in the second half as a result of the poor rains, experts believe the overall performance will still be better than 2008-09 which saw poor sales due to lack of credit and high interest rates.

The third and fourth quarters of last fiscal were severely affected by the slowdown in the global market. In contrast, I expect the second half of this year to show some growth, albeit small, when seen purely on a year-on-year basis, said Mr Anjani Kumar Chaudhari, the President, Farm Equipment Sector, Mahindra & Mahindra (M&M), the market leader with a 41 per cent share.

Overall for the year, I believe that we can still expect annual growth of six to eight per cent in the domestic tractor market, he added. The monsoons impact will be there for sure. However, from speaking to customers, we see strong demand and better performance of the tractor industry over last year, said Mr S. Venkatasubiramanian, the Executive Director (Manufacturing), Simpson, a major supplier of engines to nearly 30 per cent of tractors in India.

The company expects to sell 90,000 tractor engines this year, up from 84,000 units sold in 2008. According to an official in TAFE (Tractors and Farm Equipment), the countrys second largest player, there is increased activity of tractors non-agriculture applications such as haulage, drilling and construction activity. Tractors are no longer used just for agricultural purposes but for a whole lot of multiple other applications including transportation, said Mr L.D. Mittal, the Chairman, Sonalika, one of the top three tractor manufacturers in India.

Exports

Further, exports are expected to grow with rising demand from foreign countries, especially from Africa where there is no emission restrictions that otherwise disqualify certain Indian tractor models elsewhere. Exports of tractors this year so far declined to 8,300 units from 14,311 units. Although the sector is still down year-on-year, demand from foreign countries will help in numbers picking up, Mr Mittal added.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751860300.htm

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ESCORTS EYES 15% GROWTH IN ONE YEAR

Business Standard

Kolkata: Engineering conglomerate Escorts Group, is expecting to register a turnover of Rs 2,300 crore as of September 2010 from Rs 2,000 crore now (the company follows a October-September calendar year), on the back of new products, especially diesel generators. Shenu Agarwal, business head of Escorts Group, said, We have got into a partnership with Fabricon Generators for manufacturing and marketing our products in East India. Fabricon is investing Rs 6 crore here to set up a new automated manufacturing facility, spread over 50,000 sq ft, for Escorts diesel generator (DG) sets.

We have close to seven such manufacturing and marketing tie-ups in the country. Our existing plants in India currently manufacture 100,000 units per annum, said Agarwal.

Vivek Malik, DGM - sales, Escorts, said, We have more than a million diesel engines in market supported by sales and service network. We have a 10 per cent share of the retail genset market and target to achieve 30 per cent in three years. The company launched silent diesel generator sets in association with Fabricon, to cater to power demand and to keep up pace with technological advancement. These are priced between Rs 1.9 lakh and Rs 3.2 lakh for 10 KVA to 32.5 KVA models.

http://www.business-standard.com/india/news/escorts-eyes-15-growth-in-one-year/368210/

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ESCORTS PLANS JV IN GHANA

Kaushik Pradhan

Asian Age

Kolkata: The Rs 2,050 crore Escorts Group, one of the leading engineering companies in the country is planning a joint venture company in Ghana to cater to the market in West Africa. The proposed joint venture will be formed with a local company in Ghana.

Confirming the development, Mr Shenu Agarwal, business head, Escorts said, "We are in a very advanced stage of discussions for setting up the joint venture which is expected to be formed in 60 days. A government agency of Ghana will also take some equity participation."

According to the plan, the proposed JV will have an assembling line in Ghana to assemble tractors, diesel generator sets and construction equipment of Escorts. The products will be marketed under the Escorts brand. "We may also go for co-branding in future," Mr Agarwal added.

http://www.asianage.com/presentation/leftnavigation/news/business/escorts-plans-jv-in-ghana.aspx
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HERO HONDA HOLDS TALKS WITH U'KHAND GOVT OVER LAND ISSUE

Shishir Prashant

Business Standard

New Delhi/ Dehra Dun: With a piece of land at the Haridwar industrial plant of Hero Honda becoming a bone of contention with the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (Sidcul), the company has begun talks with the state government over the issue.

The auto giant held talks with top government officials over the issue last evening.

The talks were inconclusive and there was no outcome, said Chief Secretary I K Pandey. The talks came after Sidcul served a final notice on Hero Honda for taking back the vacant plot, claiming the company did not pay its land premium.

Hero Honda officials also held separate talks with Principal Secretary, Industries, P C Sharma late in the evening but there was no outcome, officials said. However, the officials expressed hope that the company would be able to reach an understanding with the state government.

Sidcul, the state governments nodal agency for industrial development, had allotted 265 acres of land to Hero Honda for setting up a manufacturing facility at Haridwar in 2006. According to Sidculs latest notice, the group set up its facility on only 119 acres and kept 50 acres for its vendors, the land premium for which has been paid to Sidcul. But for 94 acres of unused land, Hero Honda is still to pay the land premium of Rs 50 crore at the allotment rate of Rs 1,000 per sq metre.

Haridwar is now the key facility of Hero Honda, in view of heavy tax breaks available in the hill state. However, Hero Honda differs with Sidculs version. A Hero Honda spokesman said according to the companys estimate, the industrial area, leaving roads, etc, would be 54 acres, and we are ready to pay the premium for 54 acres, subject to resolution of these issues with Sidcul.

We hope to have mutually beneficial resolution of all these issues at the earliest, as we believe mega projects such as ours will certainly create wealth and economic value for the people of the state, the Hero Honda spokesman added.

Nevertheless, in an ultimatum to Hero Honda, Sidcul Managing Director Kunal Sharma has given time till August 31 to deposit the land premium or else the vacant land would be taken back.

http://www.business-standard.com/india/news/hero-honda-holds-talksu/khand-govt-over-land-issue/368257/

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TVS BIKES TO ROLL OUT OF MAHABHARAT FACTORY

Manish Basu

The Hindu Business Line

Hosur: TVS Motor Company Ltd would roll out in two months two-wheelers from the Uluberia factory of Mahabharat Motors in West Bengal and the vehicles would be manufactured on contract basis, said the President, Mr K.N. Radhakrishnan.

TVS would not have any equity participation in the venture and would only provide technical support for assembling bikes, he said.

TVS, which has factories in Tamil Nadu, Karnataka and Himachal Pradesh, does not have any manufacturing unit in the eastern region.

We plan to start slowly in West Bengal with an assembling facility for the TVS Star Sports motorbike and would consider manufacturing other ranges of vehicles later, Mr Radhakrishnan told a group of visiting media persons from West Bengal at its factory here recently.

The company had plans to increase its market share in West Bengal from 13 per cent to 20 per cent within the next two quarters, he said.

Three-wheelers

Initially, 1,000 motorbikes a month would be rolled out from the Uluberia unit, Mr T.G. Sridhar, Chief Operating Officer, Mahabharat Motors, said, adding that up to 5,000 bikes could be produced every month at a later stage.

TVS was also mulling to roll out of the Uluberia factory its LPG version of three-wheelers, TVS King. However, these vehicles, likely to be launched this fiscal, would be under a different brand, Mr Radhakrishnan said.

Mr Sridhar did not rule out the possibility of the three-wheeler being named Arjun, the name Mahabharat Motors had chosen for its own range of motorbikes. The LPG version of three-wheelers had a captive market in Kolkata with the West Bengal Government issuing a directive to auto-rickshaw drivers to switch over to vehicles using only LPG, an officer at Mahabharat Motors said. TVS, it was estimated, could supply 15,000 vehicles out of the 35,000 due for immediate replacement.

Mahabharat Motors, a joint venture between Indonesias Salim Group and Universal Success Enterprises Ltd promoted by Mr Prasoon Mukherjee, an NRI, did not have any plans to manufacture its own brand of vehicle in the Uluberia factory in the near future, Mr Sridhar clarified.

The company has invested Rs 100 crore in the venture so far and planned to invest Rs 50 crore more soon, he said, pointing out that about 100 people would be employed at the factory initially. Further investment decision would be guided by the assembling contracts of TVS, he added.

Mahabharat had proposed to invest over Rs 1,200 crore in the factory.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751310200.htm

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TVS SEES 10-15% DROP IN RURAL BUSINESS

Manish Basu

The Hindu Business Line

Hosur: With scanty rainfall hitting agricultural production this year, TVS Motor Company Ltd, the third largest motorbike manufacturer in India, is apprehending 10-15 per cent drop in rural business, according to its President, Mr K.N. Radhakrishnan.

The rural business accounts for nearly 50 per cent of the company's total business.

"The less than normal rainfall has been worrisome for the rural market and its impact on our business will be felt after six months," he told mediapersons at the TVS factory here recently, while announcing his company's contract manufacturing joint venture with the Mahabharat Motors in West Bengal.

Vehicle Financing

The company is growing at 10 per cent in the current fiscal vis-a-vis industry growth of 12 per cent. "We plan to surpass the industry growth," he said. Another factor which, according to Mr Radhakrishnan, was causing concern was the drying up of vehicle financing this year. The company's proposed vehicle financing arm might be launched in six months, he said, adding that a pilot scheme on this, already launched in Tamil Nadu, would be rolled out in other States "systematically."

"Drying up of vehicle financing has hit two-wheeler sales recently," he said, adding, in-house financing for its own vehicles could be a viable solution to the crisis.

"Only about 15 per cent of its vehicles are currently financed by different financing partners, down from nearly 60 per cent earlier.

"We expect financing to be extended to 20 per cent of our vehicles soon," he said.

Exports, which contributed 15 per cent of its total revenue, had also taken a hit this year due to shrinking of global demand, he said, pointing out that exports had so far declined by 10 per cent against 40 per cent growth last fiscal.

The company was planning to strengthen foothold in existing and new global markets to clock 10 per cent growth in exports by the end of this fiscal vis--vis last year, he added.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751370203.htm
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COMPONENTS Go To Top

MOTHERSON SUMI CLINCHES RS 4K-CR GERMAN CONTRACT

The Financial Express

See similar story in: Business Standard, The Hindu Business Line, The Telegraph, The Times of India

New Delhi: Motherson Sumi System (MSSL), the flagship company of the Samvardhana Motherson Group, has bagged a contract worth 500 million euro (Rs 4,000 crore) from a group of German car makers to supply rear-view mirrors for six years.

Motherson Sumi has bagged the contract through its subsidiary Samvardhana Motherson Reflectec (SMR), and the delivery is slated to begin from 2011.

We have bagged contract worth 500 million euro from a group of German auto majors, including BMW and Volkswagen, for supply of rear-view mirrors to their cars, Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group (SMG), said, adding that the orders would be supplied from SMRs European plants, including the one at Hungary. We will start delivering the orders by 2011 and the deal is spread over a period of five-six years, which means a business of 80-90 million euro annually, Sehgal said.

SMR is a new entity formed after Rs 7,000-crore SMG acquired the rear-view mirror business of British auto component maker VisioCorp for 25 million euro in March this year. While MSSL holds 51% in the new company, the groups holding firm Samvardhana Motherson Finance has the remaining 49% stake. VisioCorp had 14 plants across the globe, including two in India.

Considering the financial condition of Visiocorp before acquisition some of the customer had put orders on hold. After acquisition by Motherson Sumi Systems and Samvardhana Motherson Finance, the customers have not only released the orders on hold but also placed orders for forthcoming models. This will also mean a growth in the top line by over Rs 500 crore every year, the company said in a statement.

Sehgal termed the long-term contract as a revival of confidence in the European auto market. VisioCorp had a 700-million euro business in the rear-view mirror segment and we hope to expand it, he said, adding that it has turned bidder positive within the first quarter of forming the new company.

SMR has approximately 30% market share in global production of exterior automotive mirrors and its main clients include BMW, Chrysler, Daimler, Ford, General Motors, Hyundai, KIA, Mahindra & Mahindra, Mitsubishi, Porsche, PSA, Renault/Nissan, Suzuki, Toyota, Tata and Volkswagen.

The group produces and distributes exterior and interior mirrors for all vehicles and price segments and supplies products to nearly every automotive manufacturer in North America, Europe, Asia, and Australia through its 16 production facilities spread across the globe.

SMG acquires Yash Birla Company

In an effort to expand its presence in the cutting tools business overseas, Samvardhana Motherson Group on Wednesday said it has completed the acquisition of Dagger Frost Tools, a business unit of Yash Birla Group, for about Rs 46 crore.

We have taken over the business units of Dagger Frost Tools Ltd (DFTL) for Rs 46.10 crore and formed a new entity, Motherson Advanced Tooling Solutions (MATS), Vivek Chaand Sehgal, chairman, SMG, said. The acquisition has been carried out by SMG's holding company Samvardhana Motherson Finance. The new entity, MATS, is expected to become a Rs 100-crore venture within the next two years, and the company plans to explore the auto component market in the US, Europe, the Far East and south-east Asia. According to Sehgal, the company is looking to utilise the potential of DFTL's expertise in design and manufacture of brooching and gear cutting tools, especially in the international market.

http://www.financialexpress.com/news/motherson-sumi-clinches-rs-4kcr-german-contract/507643/2

http://www.business-standard.com/india/news/motherson-sumi-upgerman-order/368184/

http://www.thehindubusinessline.com/blnus/02261591.htm

http://www.telegraphindia.com/1090827/jsp/business/story_11414274.jsp

http://timesofindia.indiatimes.com/news/business/india-business/Motherson-Sumi-unit-bags-Rs-3490cr-order/articleshow/4938693.cms

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SAMVARDHANA BAGS BMW, VW ORDERS

The Hindu Business Line

New Delhi: Rearview mirror maker Samvardhana Motherson Reflectec says it has received orders worth 500 million from BMW and Volkswagen in Germany. The orders are to be met over 5-6 years, starting from 2011. SMR is a subsidiary of Motherson Sumi Systems Ltd, which acquired the European company Visiocorp along with Samvardhana Motherson Finance Ltd. SMR claims customers who had put orders on hold are now coming back with orders for forthcoming models too. The will contribute Rs 500 crore this year. Mr V C Sehgal, Chairman of SMS Group, said "This is an important achievement which will further strengthen our position as one of the global market leaders in automotive rearview mirrors."

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751890301.htm

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SUNDARAM CLAYTON FINAL DIVIDEND

The Hindu Business Line

Chennai: Sundaram Clayton Ltd informed stock exchanges that the board of directors has recommended a final dividend of Re 1 per share, for 2008-09. The board earlier paid an interim dividend of Re 1 per share last December. With this the total dividend for the 2008-09 amounts to Rs 2 per share on 1,89,67,584 equity shares of Rs 5 each.

Meanwhile, the company reported a net loss of Rs 2.08 crore on an income of Rs 93.68 crore for the first quarter ended June 30. In the corresponding period in the previous year it reported a net profit of Rs 6.25 crore on an income of Rs 127.41 crore.

http://www.thehindubusinessline.com/2009/08/27/stories/2009082751290200.htm
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ALLIED INDUSTRY Go To Top

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FINANCE & INSURANCE Go To Top

TATA MOTORS TO RAISE RS 1,500 CR THRU FDS

PTI

See this story in: The Hindu Business Line, The Telegraph, Deccan Herald

New Delhi: Within less than a year, the country's largest auto maker, Tata Motors, has come to the public for the second time to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88 per cent annual interest for a three-year deposit.

In a public announcement, the firm on Wednesday said on a minimum fixed deposit of Rs 20,000 for two and three years, it would offer 8 per cent and 8.75 per cent interest respectively under the quarterly income plan.

Under another scheme of cumulative deposit plan, Tata Motors, which met with cold response from investors to its two separate rights issues last year to raise Rs 4,147 crore to partly fund its Jaguar and Land Rover deal, would offer 8.58 per cent interes t on a minimum deposit of Rs 20,000 for two years and 9.88 per cent for three years.

Though the company has not said how much it plans to raise through this exercise, sources close to the development said Tata Motors is likely to raise about Rs 1500 crore from the public. It would be a part of the company's capex plan for the next few years.

As per Companies (Acceptance of Deposits) Rules, 1975, amended by the Companies (Acceptance of Deposits) Rules, 1978, Tata Motors could raise up to Rs 3,030.26 crore from public, while it could have Rs 1,212.10 crore from its shareholders.

In December 2008, it borrowed between Rs 2,000 crore and Rs 2,500 crore from public at an annual interest rate of up to 11 per cent for a period of up to 3 years as it was struggling to finance its $2.3 billion JLR buyout.

http://www.thehindubusinessline.com/blnus/02261907.htm

http://www.telegraphindia.com/1090827/jsp/business/story_11414274.jsp

http://www.deccanherald.com/content/21670/tata-motors-invites-fds-public.html
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OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top

INDIAN OIL LOSING $15 MN A DAY ON FUEL SALE

IANS

See this story in: Hindustan Times, Deccan Herald, The Times of India

New Delhi: State-run petroleum products retailer Indian Oil Corp on Wednesday said it was losing nearly $15 million every day by selling transport and cooking fuels below cost.

"At the current global prices, Indian Oil is suffering a daily loss of Rs 74 crore ($15 million)," IOC chairman Sarthak Behura told reporters in New Delhi on the margins of a global hydrogen technologies convention.

He said the losses on account of under-recoveries, or the difference between the cost and sale price of petroleum fuels , will amount to Rs 2,300 crore by the end of this fiscal.

Behura said the company was losing Rs 2.33 per litre on diesel, Rs 4.60 per litre on petrol, Rs 158 per cylinder on cooking gas and Rs 15.46 per litre on kerosene.

Last month, the government had permitted state-run oil retailers to hike petrol prices by Rs 4 per litre and diesel by Rs 2 per litre, which was widely criticised by opposition parties and customers.

The prices of kerosene and cooking gas were left untouched. Since then, global crude prices have shot up further and are ruling at a 10-month high of nearly $75 per barrel, putting pressure on transport fuel retailers in the country.

But Petroleum Secretary R S Pandey told the convention, hosted by IOC and the Society of Indian Automobile Manufacturers (SIAM), that there was no proposal to increase fuel prices.

"We are not comfortable with the current global prices. But there is no proposal to increase fuel prices," he said.

http://www.hindustantimes.com/business-news/global-economy/Indian-Oil-losing-15-mn-a-day-on-fuel-sale/Article1-447214.aspx

http://www.deccanherald.com/content/21664/ioc-losing-15-m-per.html

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OIL SLIPS TO USD 71.92 A BARREL

Agencies

See this story in: The Indian Express

Singapore: Oil prices fell in Asian trade on Wednesday as traders took profit after an overnight rally saw prices rocketing to 10-month highs, analysts said.

New York's main futures contract, light sweet crude for delivery in October fell 13 cents to USD 71.92 a barrel.

Brent North Sea crude for October delivery shed 41 cents to USD 71.41. Profit-taking was the key factor behind the fall in oil prices, which briefly hit USD 75 yesterday, the highest level since October 2008 before the global recession unfolded.

"The theme of profit-taking was felt in oil markets," analysts from the Commonwealth Bank of Australia said in a report.

However, analysts expect underlying support for crude prices to remain strong after a key report showed US consumer confidence improving in August which should augur well for energy demand. The US is the world's biggest energy user.

The Conference Board, a business research firm, announced Tuesday that US consumer confidence rose more than expected in August after two consecutive months of declines, buoyed by a jump in recovery hopes for the coming months.

Its consumer confidence index climbed to 54.1 in August from an upwardly revised 47.4 in July. The rebound in confidence was stronger than the 47.9 reading that most analysts had expected. The index had hit an eight-month peak of 54.8 in May.

http://www.indianexpress.com/news/oil-slips-to-usd-71.92-a-barrel/507267/
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INTERNATIONAL NEWS Go To Top

TOYOTA TO CUT CAPACITY GLOBALLY TO MATCH SALES: SOURCE

Reuters

See this story in: The Economic Times, The Financial Express

Tokyo: Toyota Motor Corp will cut its global production capacity to match lower sales, a company source with direct knowledge of the matter said on Wednesday, with potential annual cuts of at least 700,000 vehicles identified.

The source said the extent and timing of the output cuts had not yet been set but the Nikkei business daily reported that Toyota planned to reduce its global capacity by 10 percent, or 1 million vehicles, as early as the current financial year to March 2010.

Toyota, the world's biggest carmaker, has begun restoring some production cut in the wake of the global financial crisis, as inventories shrink and government stimulus efforts kick in, but it has yet to announce whether it plans longer-term cuts in factory capacity.

Many car plants around the world are idle or running below capacity as the industry tries to work out how much sales will recover after the economic crisis passes and how U.S. firms General Motors Co and Chrysler Group LLC emerge from their deep woes.

"The production cut is positive for its earnings, but there is room for further capacity cuts in the United States and elsewhere," said Yoshifumi Tabei, an auto analyst at Kazaka Securities.

Toyota has seen a recovery in sales of fuel-efficient cars helped by government measures to promote such vehicles, with its Prius hybrid ranking as Japan's top-selling car in July for the second straight month, but it has lagged behind its rivals in cost-cutting.

It booked an operating loss for the third straight quarter in April-June, while Honda Motor Co and Nissan Motor Co turned profitable during the period thanks to cost reduction measures including pulling out of some motor sports and cutting jobs.

Toyota has decided to halt a production line in Japan for about a year and a half from next spring and is considering halting a line at a UK plant, said the source, who declined to be named because the matter was not public.

Toyota has said it will decide this month whether to pull out of New United Motor Manufacturing Inc (NUMMI), a California joint venture with General Motors.

Those three moves would cut capacity by 700,000 vehicles, based on Toyota factory data, from Toyota's annual output capacity of 10 million vehicles.

"The idling of plants had been a negative factor for Toyota, so the fact they're moving to tackle this should be evaluated favorably," said Yumi Nishimura, deputy general manager of the investment advisory section of Daiwa Securities SMBC.

The Nikkei said Toyota would cut capacity to 9 million cars in a bid to return to an operating profit in fiscal 2010, but the source said decisions had not been taken on such deep cuts.

Toyota forecast this month a slightly shallower annual loss, relying on deeper cost cuts and government-backed sales stimulus around the world, but there remain doubts about a sustainable recovery in demand.

Shares of Toyota rose 1.5 percent, outperforming a 0.9 percent rise in the benchmark Nikkei average.

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/Toyota-to-cut-capacity-globally-to-match-sales-Source/articleshow/4936124.cms

http://www.financialexpress.com/news/toyota-to-reduce-excess-capacity-to-make-profits-as-sales-slow-down/507593/

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TOYOTA TO CLOSE ASSEMBLY LINES AS SALES FALL IN JAPAN

Business Standard

Bloomberg / Tokyo: Toyota Motor Corp, Japans biggest automaker, plans its first long-term closure of a domestic assembly line as car sales in the country fall to the lowest in more than 30 years.

Toyota, which cut domestic production 49 per cent through June, will reduce output by about 220,000 vehicles by shutting down a line at its Takaoka plant from the fiscal first quarter of next year through the second half of calendar year 2011, spokeswoman Ririko Takeuchi said by phone.

Car demand has plummeted due to the global recession, forcing General Motors Corp and Chrysler LLC into bankruptcy. Toyota, the worlds largest carmaker, earlier this month forecast a net loss of 450 billion yen ($4.8 billion) for the year ending in March. Toyota President Akio Toyoda, who took the helm in June, is slashing costs as he tries to avoid a third consecutive year of losses. Toyota is desperate to cut costs, said Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc in Tokyo. The company needs to stop building unpopular and unprofitable cars.

Toyota will shift some vehicle production to affiliates during the closure, the company said. Vitz/Yaris compact cars will be made by Toyota Industries Corps factory in Aichi prefecture, central Japan, while Ractis and ist compacts will be produced at Kanto Auto Works Ltds plant in Iwate prefecture, northern Japan.

About 1,700 workers will be transferred to other Toyota factories, the company said.

The Toyota City-based carmaker gained 1.5 per cent to 4,110 yen at the end of trading in Tokyo. Nissan Motor Co, Japans third-largest automaker, is also forecasting a second straight loss of 170 billion yen this fiscal year. Honda Motor Co, the second-largest, forecasts a 55 billion yen profit, helped by its motorcycle business.

Toyota has global production capacity of about 10 million units, spokeswoman Takeuchi said. Worldwide output may total 6.68 million this fiscal year, down from 9.24 million last year, according to a company forecast.

The carmaker had a domestic market share of about 40 per cent last fiscal year, excluding its Lexus brand. Toyotas sales in Japan fell 23 per cent through July. Hondas domestic sales declined 12 per cent in the same period, and Nissans dropped 22 per cent.

Toyota will cut global capacity by 1 million vehicles this fiscal year, the Nikkei newspaper reported earlier.

As parts of emergency measures to return to profit, Toyota aims to reduce production-related costs by 360 billion yen and fixed costs by 490 billion yen this fiscal year.

Japans exports fell for a 10th straight month in July as demand from all of the nations major markets deteriorated. Shipments tumbled 36.5 per cent from a year earlier, steeper than Junes 35.7 percent drop, the Finance Ministry said in Tokyo.

The economy probably wont recover until at least 2011, and even then were not sure, Fukokus Sakurai said. Toyota may even continue to close the line after that.

Toyota also plans to shut a joint-venture factory in California with General Motors Co, according to people familiar with the plan. GM said in June it would end assembly of Pontiac Vibes at the plant, where Toyota builds Corolla compacts and Tacoma pickup trucks.

http://www.business-standard.com/india/news/toyota-to-close-assembly-lines-as-sales-fall-in-japan/368226/

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TOYOTA RECALLS 95,700 TOYOTA, SCION CARS IN US

Reuters

See this story in: The Economic Times

Detroit: Toyota Motor Corp is recalling about 95,700 Toyota and Scion vehicles sold in the United States because ice could accumulate on their braking systems and make it harder for drivers to slow down.

The recall involves 2009 and 2010 model year Toyota Corolla, Corolla Matrix and 2008 and 2009 Scion xD vehicles, all equipped with 1.8 liter engines, the company said in a statement on Wednesday. If people drive the cars in extremely low temperatures, ice may accumulate at the brake system port and decrease braking power and lengthen vehicle stopping distances, Toyota said.

Since the condition can happen at low temperatures, Toyota's recall applies to vehicle owners in 19 states: Alaska, Colorado, Idaho, Illinois, Iowa, Kansas, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New York, North Dakota, South Dakota, Vermont, Wisconsin and Wyoming.

http://economictimes.indiatimes.com/International-Business/Toyota-recalls-95700-cars-in-US/articleshow/4938981.cms

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CHRYSLER SUES DAIMLER OVER KEY 2010 VEHICLE PARTS

Agencies

See this story in: The Economic Times, The Times of India

New York: Chrysler Group LLC has sued Daimler AG, accusing the German automaker of failing to abide by contracts requiring it to supply crucial parts and putting the production of key 2010 Chrysler vehicles in jeopardy.

The Auburn Hills, Michigan-based company said without the Daimler-supplied steering columns and torque converters it will be unable to produce several 2010 model-year vehicles, including the Chrysler 300 and the Jeep Grand Cherokee SUV.

Chrysler filed the lawsuit in bankruptcy court in New York on Friday and is seeking unspecified damages from Daimler.

Chrysler emerged from bankruptcy protection in June after the bulk of its assets were purchased by Italian automaker Fiat Group SpA. A large portion of Chrysler's liabilities were left behind and are being liquidated under court supervision.

The lawsuit revolves around dispute over payments for diesel engines supplied by Daimler. Chrysler accused Daimler of using the dispute as a basis for refusing to sign deliveries of steering columns and torque converters.

``Chrysler Group believes Daimler's effort to extort Chrysler Group into paying for costs for a diesel engine that Daimler agreed to forego a few months ago is a breach of its obligation to negotiate in good faith,'' the company said.

If deliveries of the parts stops, a Chrysler spokesman said, it would affect production at its assembly plant in Brampton, Ontario (Canada), and its Jefferson North plant in Detroit.

Daimler said Chrysler's lawsuit is ``without merit.'' ``This is not a dispute about Chrysler's rights to existing contracts ... Rather Chrysler has been asking Daimler to change existing agreements and enter into completely new agreements,'' Daimler said in a statement.

Daimler owned Chrysler for several years until it sold its stake to private-equity firm Cerberus Capital Management LP in 2007.

http://economictimes.indiatimes.com/International-Business/Chrysler-sues-Daimler-AG/articleshow/4938977.cms

http://timesofindia.indiatimes.com/news/business/international-business/Chrysler-sues-Daimler-over-key-2010-vehicle-parts/articleshow/4938942.cms

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NISSAN, CHRYSLER DROP PRODUCT-BASED TIE-UP

Reuters

See this story in: The Economic Times

Detroit: Nissan Motor Co Ltd and Chrysler Group LLC said on Wednesday they have abandoned vehicle-supply projects announced last year that would have provided Nissan with a Chrysler-produced pickup truck. Under the plans, Nissan would have provided Chrysler with a small vehicle for global markets starting in 2010 and a compact sedan for the South America market beginning this year.

The projects were announced in January and April 2008, but had been seen by analysts as facing obstacles after Chrysler announced an alliance with Fiat SpA in January to provide the US automaker with small cars.

Chrysler and Nissan said in February they had halted work on their product-based tie-up while both sides considered how to improve the projected financial returns on a deal announced in April 2008. Chrysler filed for bankruptcy in the United States in April and its alliance with Fiat was cemented through that process.

Fiat holds a 20 percent stake in the new Chrysler and controls management of the automaker. Under the agreement, Nissan was scheduled to have supplied Chrysler with an all-new, fuel-efficient small car made in Japan in exchange for a full-size pickup truck made by Chrysler in Mexico.

http://economictimes.indiatimes.com/News/International-Business/Nissan-Chrysler-drop-product-based-tie-up/articleshow/4938983.cms
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ECONOMY & FINANCE Go To Top

RUPEE LOSES 17 PAISE AGAINST DOLLAR

PTI

See this story in: The Times of India

Mumbai: The Indian rupee on Wednesday lost another 17 paise against the greenback, failing to keep in sync with the bullish equity markets amid sustained dollar buying by importers and fresh capital outflows.

At the Interbank Foreign Exchange market, the domestic unit opened lower at 48.85/86 a dollar from its overnight close of 48.75/76 per dollar.

It later moved along with volatile equity markets in a range of 48.75 and 48.9350.

In intra-day trade, firm bourses helped the rupee to log a high of 48.75 at intra-day trade. The benchmark Sensex on Wednesday added another 81.38 points or 0.52%, completing five-day of winning rally.

However, month-end dollar demand from importers, mainly oil refiners, for their monthly import payments continued to weigh on the rupee and it fell back to settle the day at 48.92/93. on Tuesday, it ended down by 14 paise.

Fresh selling by Foreign Institutional Investors (FIIs) on Tuesday also partly pressed the rupee's downfall.

Meanwhile, dollar was almost steady against major world currencies and the global crude oil prices were trading near $72 a barrel in Asian trade on Wednesday.

http://timesofindia.indiatimes.com/news/business/india-business/Rupee-loses-17-paise-against-dollar/articleshow/4937612.cms

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SENSEX EXTENDS GAINS TO 5TH CONSECUTIVE DAY

PTI

See this story in: The Hindu Business Line

Mumbai: Markets settled in positive terrain for the fifth day in succession with Sensex adding another over 80 points on moderate to handsome gains in IT, tech and realty stocks. Market men said major players indulged in covering their pending long positions ahead of settlement in the August derivative segment, helping the key index to post moderate gains.

The 30-share Sensex ended the day higher by 81.38 points, or 0.52 per cent to 15,769.85. After adding a handsome 880 points in past four sessions, the barometer touched the three-week high of 15,831.49 in intra day.

The National Stock Exchange index Nifty rose by 21.50 points, or 0.46 per cent, to 4,680.85. The uptrend was also fuelled by a firming trend in other Asian region on an unexpected surge in consumer confidence in the US, the largest market for their produ cts. The information technology segment index gained the most by rising 3.35 per cent to 4,272.46. Infosys, the second-largest software company, gained 4.07 per cent.

http://www.thehindubusinessline.com/blnus/05261901.htm

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FOOD PRICES PUSH INFLATION TO -.95%

TNN

See this story in: The Times of India, Deccan Herald

New Delhi: A sharp rise in prices of food products, including sugar, milk, fruits and vegetables, due to erratic monsoon, pushed inflation up by 0.58% to -0.95% for the week ended August 15 against -1.53% in the previous week.

The WPI-based inflation is in the negative territory for the 11th week in a row. Experts, however, said negative inflation would not last beyond a couple of weeks as food prices are on the rise. During the week, prices of inland fish shot up as much as 25%, eggs by 10%, masur by 8%, milk by 5% and fruit and vegetables by 3%. The inflation was at 12.82% during the corresponding week a year ago.

Principal economist at Crisil D K Joshi said rise in inflation is due to high food prices which is visible in the market. Food items like milk and sugar have seen a spurt in prices. There could be further pressure on food items because of weak monsoon, he said, adding, inflation is going to remain negative for another 2-3 weeks only.

Meanwhile, inflation based on consumer price index (CPI) for agriculture labourers rose from 11.52% in June to 12.9% in July, while the one based on CPI for rural labourers went up from 11.26% to 12.67% in July last year.

http://timesofindia.indiatimes.com/news/business/india-business/Food-prices-push-inflation-to-95/articleshow/4938705.cms

http://www.deccanchronicle.com/business/inflation-rises-095-pc-high-food-prices-874

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Last Financial closing

Sensex	15,769.85
US$ spot	Rs.48.81
US$	Y.94.1199
US$ 6 months	Rs.49.49
Yen	Rs.0.52
Euro spot	Rs.69.82
LIBOR 6 months	%
Call	%
GOI sec. 10 years	- - - -

Aluminium (per kg)	Rs.
Aluminium Ingot	Rs.
Copper (per kg)	Rs.
Gold (10gm)	Rs.15,075
Lead (per kg)	Rs.
Mild Steel Ingots (Mumbai)	Rs.
Nickel (per kg)	Rs.
Nickel Cathode	Rs.
Silver (1kg)	Rs.23750
Sponge Iron (per tonne)	Rs.14485.00
Steel Flat (per tonne )	Rs.31370.00
Steel Long GVD (per tonne)	Rs.
Steel Long BVN (per tonne)	Rs.23140.00
Tin (per kg)	Rs.
Zinc (per kg)	Rs.
Zinc Ingot	Rs.- - - -

Crude Oil (WTI)	$- - - -
Crude Oil (Brent)	$70.85

Automobile

Scip on BSE	Face Value (Rs)	Last traded Value (Rs)
Apollo Tyres	1	41.70
Asahi Ind	1	54.60
Amara Raja B	2	130.70
Ashok Leyland	1	39
Bajaj Auto	10	1143.85
Bharat Forge	2	221.30
Denso	10	73.05
Eicher Ltd	10	- - - -
Eicher Motor	10	445.85
Escorts	10	72.45
Exide Ind	1	86.10
Force Motors	10	149.70
Gabriel India	1	22.70
Hero Honda	2	1497.35
Hind Motors	10	23
Hi-Tech Gear	10	84.55
Jay. Bh. Maruti	5	44.80
Jamna Auto	10	47.30
JK Tyres & Inds	10	91.50
Kinetic Motors	10	19.50
Kinetic Engg	10	80.50
KOEL	2	110.10
Kirloskar Br:	2	190.10
LML Ltd	10	10.30
L&T	2	1575.25
Lumax Ind	10	135.10
Lumax Tech	10	40.60
M&M	10	813.40
Maruti Suzuki	5	1405
Motherson SS	1	93.80
Minda Inds	10	152.75
MRF	10	4312.20
MICO	10	- - - -
Omax Auto	10	46.90
Perfect Circle	- - - - - -	- - - -
Rico Auto	1	26.15
Sona Koyo St	2	12.20
SKF Bearing	10	- - - -
SRF	10	151.35
Swaraj Mazda	10	212
Tata Motors	10	498.65
TVS Motor	1	50.70

Metals

Scrip on BSE	Face Value(Rs)	Last traded Value (Rs)
Bhushan Steel	10	1080.65
Essar Steel	10	- - - -
Hindalco	1	107.15
Hind Zinc	10	746.40
Ispat Inds	10	22.55
Jindal Iron	10	- - - -
Jindal Stain	2	- - - -
JSW Steel	10	723.45
Jindal Steel	5	3176.15
National Aluminium	10	338.15
SAIL	10	162.60
TISCO	10	460.05
Visa Steel	1	31.55

Indian Auto Industry News

Wednesday, August 26, 2009

Indian Auto Industry Update August 27, 2009

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Wednesday, August 26, 2009

Indian Auto Industry Update August 27, 2009

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