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| INDUSTRY Tata Motors, union ink bonus agreement INTERVIEWS/FEATURES Hyundai Turkey unit to make i20 cars M&M to enter US market in first quarter of 2010 Ford India on track to launch small car Ford India expands Chennai factory capacity Fiat target sales of 50,000 units in 2010-11 Audi eyes third slot in Indias luxury car market Toyota receives 5,000 bookings for its Fortuner Toyota to hike prices of Corolla Altis, Innova Indian figures dip for Toyota, Honda COMMERCIAL VEHICLES Finally, 5 new AC buses5 months too late CONSTRUCTION & AGRI MACHINERY COMPONENTS Govt to consider specialised schemes for auto SMEs We are confident components market will touch $40 billion: ACMA Auto component makers revive investment plans Sona Koyo to set up four manufacturing plants Fiat Purchasing to source $1 bn parts from India Carnation to sell auto spare parts under its own brand RICO targets Rs 1,000 cr turnover this fiscal Shriram Pistons to invest Rs 225 cr to set up plant | ALLIED INDUSTRIES Dunlop India to resume production at Sahaganj FINANCE & INSURANCE Oil prices rally to above USD 69 INTERNATIONAL NEWS US auto inventory falls to 24-year low BMW plans two new models at UK plant Mercedes-Benz launches luxury hybrid model in Japan ECONOMY & FINANCE Sensex down 69 pts in lacklustre trade Inflation rate inches up on costlier food Moody's raises India's growth forecast to 6.4%
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| INDUSTRY Go To Top
New Delhi: Japanese auto maker Suzuki Motor Corporation Chairman Osamu Suzuki, who is on a three-day visit to India, will meet Heavy Industries Minister Vilasrao Deshmukh and apprise him on investment and expansion plans for India.
TATA MOTORS, UNION INK BONUS AGREEMENT The Financial Express (Web & Print Edition)
Jamshedpur: Tata Motors on Thursday signed a bonus agreement here with the recognised Telco Workers Union paving way for payment of bonus for 2008-09 to its permanent employees to the tune of 15.27% of their annual salary. The company also decided to induct around 280 of its temporary workers into its pay roll.
Around 4,000-odd permanent workers deployed at the Tata Motors plant here will now be eligible to receive 15.27% bonus . The auto major had paid a 18.75% bonus to its permanent workers during 2007-08, said TWU general secretary Chandrakant Singh.
The company has reported a consolidated gross revenue of Rs16,953.63 crore for the quarter ended June 30, 2009. Consolidated operating profits stood at Rs 595.93 crore, while cash profit was at Rs 333.48 crore. Increased borrowing to support investments and new product development caused increase in depreciation and interest costs, which offset the operating profit resulting in a consolidated loss after tax (post minority interest and profit in respect of investments in associate companies) of Rs 328.78 crore.
The bonus agreement signed by the two parties breaks the 15.27% figure into two parts. While permanent workers will get 8.33% as "statutory bonus" during 2008-09, the remaining portion (6.94%) would be paid for achievement of various targets set for the current financial year. Singh said the company had been following such a format of declaration of bonus for some years, though the real basis had always been production achieved and profit after tax (PAT) earned. http://www.financialexpress.com/news/tata-motors-union-ink-bonus-agreement/512560/
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| CARS, SUVs, MUVs Go To Top Business Standard (Web Edition)
Kolkata/ Berhampur: Maruti Suzuki India Limited, the passenger car leader in the domestic market has posted 48 per cent growth in its sales in Orissa during the April-August period of 2009-10 compared to the same period of the previous fiscal. Maruti Suzuki has 52 per cent market share in the passenger car segment in Orissa and sold 3,700 cars across all its models in the state during April-August this year as against 2,500 units in the same period of 2008.
The company's high growth in sales in Orissa can be attributed to its focus on the rural market apart from government and corporate sectors, said Rohit Kohli, area manager (Orissa), Maruti Suzuki India Limited.
The car maker has been growing by over 20 per cent in the past two years in the Orissa market. In August this year, Maruti Suzuki's sales in the state surged by 64 per cent compared to its pan-India growth of 29.3 per cent for the same month, Kohli told Business Standard.
The company's growth was mainly driven by Alto and Wagon-R, its two popular models. Moreover, new models like A-Star, Ritz & New Estilo have also received a good response from the customers in Orissa, said Kohli.
While sales of Alto, an A2 segment car grew by 28 per cent during the April-August period of this fiscal, Wagon-R has been clocking a year-on-year growth of 28 per cent. Similarly, in the A2+ segment, Swift recorded a growth of seven per cent in the Orissa market in the April-August period. In the A3 segment, the Siwft Dzire continued to rule with 119 per cent growth in sales.
The SX4 model posted a growth of 22 per cent in the April-August period while the traditional Omni has been posting a year-on-year growth of 25 per cent. http://www.business-standard.com/india/news/maruti-posts-48-growth/369007/
Shobhana Subramanian Business Standard (The Compass)
Mumbai: Driven by demand for Swift and Dzire models, Marutis sales in the home market rose 29 per cent year-on-year in August and were way ahead of expectations. Its possible that a fair share of the demand is emanating from urban markets. Sales from the top ten cities, which fell in 2008-09, had risen some 10 per cent in July and its likely the trend has sustained in August.
With over 40 per cent of Marutis customers located in urban markets, a further revival in consumer sentiment in these areas can only mean more business for Indias biggest car maker. The companys position in the compact car segment is now even stronger with the refreshed Estilo, which followed the launch of the A Star in January and the Ritz in May. This segment, which also includes the Swift, saw sales grow over 39 per cent in August; the petrol version of the Ritz has been popular, which works well for Maruti because it qualifies as a small car and attracts a lower excise duty. The sedans, Dzire and SX4, also fared extremely well, clocking a growth of 44 per cent, albeit on a lower base. Going by the current momentum, the company should grow at least 15 per cent in the home market this year, though the management has indicated a more conservative number of 10 per cent.
The outlook for exports is also bright in August, exports were up 156 per cent year-on-year, with the A Star doing particularly well. In the current year, the company is expected to turn in revenues of close to Rs 26,000 crore over the Rs 20,455 crore reported in 2008-09, an increase of over 25 per cent.
The combination of a better product mix, better operating leverage and lower royalty costs should result in an operating profit margin of around 11 per cent, which means the net profit could grow as much as 60 per cent over the Rs 1,219 crore posted last year. At the current price of Rs 1,507, the stock trades at 21 times estimated 2009-10 earnings. http://www.business-standard.com/india/news/maruti-suzuki-speeding-ahead/368995/
HYUNDAI TURKEY UNIT TO MAKE I20 CARS The Hindu (Web Edition)
Chennai: South Korean car maker Hyundai Motor has decided to make Turkey a production base for serving a part of the needs of the European markets for its i20 cars. The Turkey plant, known as Hyundai Turkey Izmit, will make 5-door version of i20 cars. i20 car production in Turkey would involve an additional investment of $75 million in that plant.
The Turkey unit would roll out i20 cars from its assembly lines sometime in May 2010, it is learnt. The plant would have a capacity to eventually make 80,000 units. Hyundai, however, asserted that the Chennai plant would continue to make the three- and four-door i20 cars for other export markets. Besides, it would continue to serve the domestic needs of i20 cars, it is stated.
New jobs Production of i20 cars, the third in Hyundais i series of vehicles after the i30 and i10, will contribute to the Turkish economy by creating 500 new jobs. The Turkish plant currently produces four-door editions of the Accent and the Matrix MPV (multi-purpose vehicle).
The total manufacturing capacity of the plant will be raised to one lakh units annually with 80,000 devoted to the i20, says a release. http://www.hindu.com/2009/09/04/stories/2009090456341500.htm
M&M TO ENTER US MARKET IN FIRST QUARTER OF 2010 PTI See this story in: Business Standard (Web & Print Edition), The Hindu Business Line (Web Edition), The Indian Express (Web Edition), Yahoo India (Web Edition), mint (Web & Print Edition)
New Delhi: Auto maker Mahindra & Mahindra (M&M) has said it will begin US operations in the first quarter of 2010 with two new variants of SUV Scorpio, besides two vehicles in the Indian market over the next six months.
In the US market, we are going to start off with the Scorpio single cabin and double cabin in the first quarter of next year. In future, we will have newer models coming in, M&M President (Automotive Sector) Pawan Goenka told PTI on the sidelines of the ACMA annual conference here in the capital.
He said the company will initially sell its models in the US market as completely built units shipped out from India.
If we get good volumes, then we will look at local assembly (in US). It depends on the market and how our products are accepted there, Goenka said.
The company had earlier announced that it had made investments worth Rs 300 crore on product development for its US operations.
M&M is also planning to launch two new vehicles in the Indian market within the next six months.
The first one will be a sub-one tonne four-wheeler in the last quarter of this calendar year and the second one will be a medium and heavy truck developed in a joint venture with Navistar, which will be launched in the first quarter of 2010, he said. Asked about reports on the recall of Xylo and Scorpio he said, It is absolutely wrong. There is no recall of Xylo or Scorpio from any of the market. http://www.business-standard.com/india/news/mm-to-enter-us-market-in-first-quarter2010/369046/ http://www.thehindubusinessline.com/blnus/02031203.htm http://www.indianexpress.com/news/m&m-to-enter-us-market-in-q1-of-2010/512063/ http://in.biz.yahoo.com/090903/50/bau4ql.html http://www.livemint.com/2009/09/03130731/MampM-to-enter-US-market-in.html
FORD INDIA ON TRACK TO LAUNCH SMALL CAR IANS See this story in: The Economic Times (Web Edition)
Chennai: Ford India Pvt Ltd's proposed small car will be fitted with 1.2 litre petrol and 1.5 litre diesel engines in order to satisfy the Indian government's definition of a small car, company officials said on Thursday. The proposed small car will have 85 percent local content.
FORD INDIA EXPANDS CHENNAI FACTORY CAPACITY Business Standard (Web & Print Edition) See similar story in: The Financial Express (Web & Print Edition), The Hindu (Web & Print Edition), Asian Age (Delhi Print Edition)
Chennai: Speaking to reporters, Michael Boneham, president and managing director, said around 70 per cent of the proposed $500 million (around Rs 2,000 crore) investment has been utilised for expansion of the capacity of its facility and building of an integrated diesel engine manufacturing facility. It has increased the plant footprint to 353 acres from 250 acres and introduced a 30-acre supplier park to house automotive components and parts. The company has planned to localise around 85 per cent of its components.
The company has also increased automation in the factory by 30 per cent and has installed 92 robots in the facility that was previously in zero-automation mode. The plan is to increase production to 330 units per shift by next year, compared to the present 150 per day. In this way, we can double the installed capacity by 100,000 units per year, he said.
The engine manufacturing facility will start operations next year, added Boneham. On the small car, he said the company would focus on domestic markets before starting to export it. The Chennai plant will also be the first volume car plant of Ford globally to introduce the new paint process called Three-Wet High, and the company plans to launch the new Endeavor with this process. The process increases durability and is scratch-resistant, according to Tom Chackalackal, vice-president, manufacturing. http://www.business-standard.com/india/news/ford-india-expands-chennai-factory-capacity/369043/ http://www.financialexpress.com/news/ford-set-to-turn-chennai-plant-into-volume-hub/512572/ http://www.hindu.com/2009/09/04/stories/2009090456201400.htm
FIAT TARGET SALES OF 50,000 UNITS IN 2010-11 PTI See this story in: The Hindu Business Line (Web Edition), mint (Web Edition)
New Delhi: Fiat India is targeting sales of 50,000 units in the next financial year apart from planning a few variants of both its model - Grande Punto and Linea within the next two years.
"We hope to sell 50,000 units in 2010-11. We are also planning a few variants of the Grande Punto and Linea,'' Fiat India President and CEO, Mr Rajeev Kapoor told PTI on the sidelines of ACMA annual conference.
Sales of the company's small car Grande Punto, launched a couple of months back, is picking up, Kapoor said. "We are currently selling 1,800 units of Grande Punto every month and hope this number will reach 2,000 by Diwali,'' Mr Kapoor said, "More varia nts of Punto and Linea are lined up in the next one to two years.''
He, however, declined to give the specifics of the variants, the company plans to launch. Linea is currently selling around 1,000 units every month. Asked about phasing out its hatchback Palio Stile, the company's bread and butter model once, Kapoor s aid, decision in this regard would be taken after two years. http://www.thehindubusinessline.com/blnus/02031661.htm http://www.livemint.com/2009/09/03152937/Fiat-target-sales-of-50000-un.html
AUDI EYES THIRD SLOT IN INDIAS LUXURY CAR MARKET The Financial Express (Web & Print Edition) See similar story in: The Indian Express (Web Edition), The Telegraph (Web Edition), The Hindu (Web & Print Edition), Deccan Herald (Web Edition), Yahoo India (Web Edition), mint (Web & Print Edition)
New Delhi: German luxury car manufacturer Audi is eyeing higher sales this year than its earlier target of 1,500 units. This would make Audi India the third largest luxury car manufacturer in the country after BMW India and Mercedes Benz India.
"We have already sold 1,128 units this year, against a total of 1,050 units sold in 2008. Going by the current growth rate, we have a chance of registering a growth of 70% vis--vis last year by selling nearly 1,700-1,800 units in 2009, though it is linked to the production capacity at our plant in Germany," said Benoit Tiers, managing director, Audi India, while announcing the launch of a new variant of Q7 in India.
Audi India on Thursday launched an advanced version of its SUV, Q7, priced between Rs 53.4 lakh and Rs 55.2 lakh. It is also offering a non-homologated version of Q7 at euro 42,696.
The company, which currently assembles its luxury sedans, A4 and A6, in India at its Aurangabad plant, is now planning to start assembly of Q5 next year.
As part of our euro 30-million investment in India, we will set up a new assembly line at our Aurangabad plant to assemble the Q5 from 2010, Tiers said, adding that the company is initially looking at rolling out 500 units of Q5 in the first year.
Tiers said the company is also mulling assembling and selling Q7 in India as a completely knocked down unit, but no decision has been taken yet. "In the long term, more products will come to India as completely knocked down and it is only a matter of time and economies of scale that we decide to start assembling Q7 in India," he said, adding that the company is eyeing 450 units of Q7 this year.
The company is also scaling up its dealer network from 12 to 18 and the shortlisted towns include Delhi, Chennai, Ludhiana, Kolkata and a second store in Mumbai. This would be followed by showrooms in Jaipur, Lucknow, Nagpur and Coimbatore in the next phase of expansion. http://www.financialexpress.com/news/audi-eyes-third-slot-in-indias-luxury-car-market/512569/ http://www.livemint.com/2009/09/03233149/Audi-likely-to-exceed-sales-ta.html http://www.telegraphindia.com/1090904/jsp/business/story_11449163.jsp http://www.hindu.com/2009/09/04/stories/2009090456151400.htm http://www.indianexpress.com/news/audi-to-assemble-suvs-in-india-by-march-2010/512388/0 http://www.deccanherald.com/content/23154/audi-assemble-its-sports-utility.html http://in.biz.yahoo.com/090903/50/bau4sw.html http://www.livemint.com/2009/09/03160138/Audi-to-assemble-SUV8217s-i.html
TOYOTA RECEIVES 5,000 BOOKINGS FOR ITS FORTUNER PTI See this story in: The Economic Times (Web Edition), Business Standard (Delhi Print Edition)
Mumbai: Car maker, Toyota Kirloskar Motor said it has received 5,000 bookings pan-India for its Fortuner within ten days of its launch.
"The company expects to sell over 2,500 units of Fortuner by the end this year and trying to ramp-up monthly production from 500 to 600 units to meet high customer demand," Deputy Managing Director (Marketing), Sandeep Singh said.
TOYOTA TO HIKE PRICES OF COROLLA ALTIS, INNOVA PTI See this story in: The Hindu Business Line (Web & Print Edition), Deccan Herald (Web Edition), Rediff India (Web Edition)
Bangalore: Toyota Kirloskar Motor (TKM) is considering a price increase in Corolla Altis and Innova due to rising input costs and fluctuation in exchange rates, the company said in a statement On Thursday.
Meanwhile, TKM said it had received a "record'' 5,000 bookings of the Fortuner in just over a month. TKM is trying to ramp up monthly production figures from 500 to 600 units to meet high customer demand and also plans to sell 2,500 units of the Fortune r in 2009 against the earlier announced target of 2000 units, it said.
"As of now, TKM dealers have been advised to take orders without advance payments, while committing to a tentative date of delivery'', the company said. TKM announced a 35 per cent growth in overall sales in August 2009 over the same month last year. The Corolla Altis has registered a 91 per cent rise in sales for January-August 2009 as against the corresponding period last year. http://www.thehindubusinessline.com/blnus/02031964.htm http://www.deccanherald.com/content/23185/toyota-may-hike-prices-two.html
INDIAN FIGURES DIP FOR TOYOTA, HONDA Arun Giri Business Standard (Web & Print Edition)
Mumbai: Toyota and Honda are two of the best known car brands in the world. India is no exception. Yet, that doesnt necessarily translate into regular sales growth. Toyotas Indian arm, Toyota Kirloskars 2008-09 sales and net profit both declined from 2007-08. Sales volume dipped by over 15 per cent.
The company has over Rs 400 crore of reserves and Rs 1,400 crore of cash and bank balances. The debt was close to Rs 1,100 crore at the end of FY09.
Honda Indias balance sheet and profit and loss account showed this and other problems, too. Hondas sales also declined, by over 10 per cent, in 2008-09. Unlike Toyota, which still managed to post a profit, Honda showed a loss of roughly Rs 200 crore in its P&L, mainly due to lower sales volume and raw material cost pressures.
The directors report of Honda Siel admits as much, to problems with costs, sales and competition. It says, As a consequence of lower demand, rising input costs, especially due to weakening of the Indian rupee, and restricted ability to pass on higher costs to the market, the companys financial results from operations for the year 2008-09 were impacted...Your companys market share in the premium segment dropped from 29 per cent in the last fiscal to 23 per cent, which is mainly attributable to new product launches by other manufacturers (and) enhancement and car assembly operations at its second plant at the Tapukara industrial area in Rajasthan.
But Honda is optimistic about a turnaround in this financial year, 2009-10, pinning its hopes on new launches like the Jazz. http://www.business-standard.com/india/news/indian-figures-dip-for-toyota-honda/369045/
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| COMMERCIAL VEHICLES Go To Top The Hindu Business Line (Web & Print Edition)
Kolkata: Having posted an 8 per cent growth in July after almost a year, truck sales (including multi-axletrailers) increased by 13 per cent to 17,549 units in August compared to the same period last year, according to the Indian Foundation of Transport Research and Training (IFTRT).
Truck sales were down 38.22 per cent, 55.02 per cent and 62.50 per cent during April-June 2009, January-March 2009 and October-December 2008 quarters.
According to IFTRT, for the first time since the crash in October, the heavy multi-axle vehicles segment (25.2-31 tonnes), the industry growth-engine in terms of both value and volume, posted a marginal growth in sales at 0.53 per cent. Sales of medium commercial vehicles (15-16.2 tonne) continue to be lower than last year.
The performance would have been better but for a sharp decline in sales of tipper trucks used by the construction industry in both MCV and HCV category. Compared to August 2008, sales of tipper trucks were down by 17 per cent in the HCV segment and 47 per cent in the MCV segment respectively.
Drop in construction activity has led to a sharp decline in tipper truck sales, Mr S. P. Singh, co-ordinator of IFTRT, told Business Line.
On the brighter side, sales of cargo trucks in both MCV and HCV segments remained on the growth path for the second consecutive month. Sales of MCV cargo trucks used mostly in hilly areas grew nearly 53 per cent from 1,661 units to 2,536 units in August. Sales of the 25.2-31-tonne heavy cargo truck the countrys main cargo mover increased by close to 6 per cent to 5,148 units last month.
According to Mr Singh, the turnaround of the heavy truck segment may benefit Tata Motors the most. The 25.2 Tata Turbo-charged truck has caught the fancy of truck operators due to its higher fuel efficiency of 4-4.5 km a litre. We expect Tata Motors to grow faster than the industry in this segment, Mr Singh said. The company is also a clear leader in the LCV truck segment riding on Ace.
Meanwhile a clampdown on overloading by Rajasthan Government is fuelling sales growth of heavy multi-axle trailer trucks (30-49 tonne). Used in transporting high density cargo such as cement, marble and minerals, sales of these vehicles have increased by 91 per cent to 1,626 units in August.
Interestingly enough, Mr Singh feels that truck sales may post a decline this month due to higher base in September 2008. In an effort to push their quarterly sales, automakers pushed record number of vehicles to dealers in September 2008. While this has boosted their numbers, the dealers were burdened with high inventory and hardly placed orders in October 2008, he said. http://www.thehindubusinessline.com/2009/09/04/stories/2009090450960300.htm
FINALLY, 5 NEW AC BUSES5 MONTHS TOO LATE Atul Mathur Hindustan Times (Web & Print Edition)
New Delhi: When Delhi Transport Corporation (DTC) placed the order for 2500 low-floor buses exactly one year ago, in September last year, it promised to strengthen public transport in Delhi within six months.
DTC's list of promises also included a more comfortable and cooler ride for Delhiites during the 2009 summer. But the city had to do with a small fleet of just 25 air-conditioned buses, which the DTC had bought in July 2008.
The residents of Dwarka and Vasant Kunj, the two most poorly-connected residential colonies of Delhi, are still waiting for new buses to solve their commuting problem.
But the long wait for a new fleet of low-floor buses is finally over. The first batch of ten low floor buses, including five air-conditioned buses, reached Delhi on Thursday morning.
Manufactured by Tata Motors, the buses were despatched from Tata's manufacturing facility in Lucknow, on Wednesday. Senior DTC officials said at least 140 more buses are expected to reach Delhi by the end of this month.
We had not anticipated any delay when the order was placed last year. To ensure that the buses are supplied at the earliest, 35 per cent of the order was transferred to Ashok Leyland despite Tata Motors being the lowest bidder. It got delayed due to reasons beyond our control," a senior DTC official said.
According to officials, the two manufacturing companies took a lot of time in setting up their facilities. The clearance of the prototype also took time. A fire in a low-floor bus, in March this year, made matters worse.
The Delhi government ordered stringent checks on the prototype and changes in the model to ensure that such incidents were not repeated.
A senior DTC official said there would now be a regular supply of buses from the two manufacturing companies. http://www.hindustantimes.com/News/newdelhi/Finally-5-new-AC-buses-5-months-too-late/Article1-450072.aspx
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| 2/3 WHEELERS Go To Top Samar Srivastava mint
New Delhi: Halfway through its turnaround plan, Yamahas Indian subsidiary says its on track to achieve a 10% share of the two-wheeler market by 2012.
The companys market share stands at 2.7% at present. To get to 10%, India Yamaha Motor Pvt. Ltd had planned a three-pronged approach that included focusing on the 125 cc (by engine capacity) segment, launching a gearless scooter and ramping up its exports of motorcycles to South America and Africa.
The premium segment, while doing very well for us is not going to give us numbers alone, says Yukimine Tsuji, managing director of India Yamaha Motor. So far, Yamaha has been known mainly for its offerings in the premium segment.
These products such as the Fazer and the FZ-S have allowed Yamaha to show the fastest growth among all two-wheeler makers in the country this fiscal, albeit on a low base.
The new launches have helped the company move its average monthly sales to about 18,000 units a month from 11,000 units a month last year. In August the company sold 19,508 motorcycles.
Last fiscal Indias two-wheeler market totalled 7.2 million units. Motorcycles made up 80% or 5.8 million of the two-wheelers sold.
Yamaha expects this number to climb to 10 million by 2012 and would have to sell a million units to get to a 10% share of the market.
Its a little ambitious, says Hormazd Sorabjee, editor of Autocar India, referring to the target. But what weve seen is theyve come up with fantastic products which compensate for the lack of marketing muscle of the company.
While Yamaha does not plan any new launches in the 125 cc segment, the company says it could refresh some of its models during the festive season. Tsuji declined to provide specific numbers on how many bikes the company aims to sell in the 125 cc segment.
It also plans to expand its dealerships in smaller towns and cities where buyers are more likely to prefer cheaper bikes. After adding 100 dealers last year, Yamaha will add 150 more in 2009, taking the total to 550 across India.
Exports would also see growth. Yamahas India plants have a combined capacity of 600,000 units annually. The company utilizes only a third of this. Tsuji says exports from India are very competitive when compared with China and so plans to ramp up exports partly to make use of this excess capacity.
At its plants, Yamaha has also rationalized manufacturing processes saving the company an estimated Rs30 crore annually. Manufacturing defects have reduced, resulting in 93% of bikes passing quality tests compared with 82% two years ago.
Last year, the company exported 38,537 bikes. Tsuji aims to take this up to 150,000 by next fiscal. In addition to motorcycles, Yamaha also plans to ship between 8,000 and 10,000 engines every year to Indonesia.
Last year Yamaha has also announced plans to enter the scooter segment. The company now says the gearless scooter would have Yamaha DNA code for sporty, stylish looks and would be targeted at women. The scooter would be built on an existing platform and Tsuji hopes to sell 200,000 units a year within five years of the launch.
Hero Honda Motors Ltds Pleasure and Honda Motorcycle and Scooter India Pvt. Ltds Activa operate in this segment. Profit margins in the scooters business are anywhere between 3% and 5% higher than in the motorcycles business. http://www.livemint.com/2009/09/03191623/Yamaha-upbeat-on-India-looks.html
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| GOVT MULLS SCHEME TO FACILITATE FINANCE FOR AUTO-PART SECTOR PTI See this story in: Business Standard, The Financial Express, The Hindu, Deccan Chronicle, Deccan Herald, The Telegraph, Yahoo India, The Hindu Business Line
New Delhi: The government is working out a scheme that will facilitate finance for the auto component industry, hit by economic slowdown and increasing competition from abroad.
My ministry is examining the feasibility of having a separate scheme which can facilitate financing to the sector, Minister of Heavy Industries and Public Enterprises Vilasrao Deshmukh said at the ACMA annual conference here.
The Indian auto component sector comprises mostly small and medium units. And the foremost challenge for the industry is to raise required resources on their own.
Further, it is facing competition domestically from cheap imports and its exports, which constitute around 20 per cent of the sectors turnover, remain a matter of concern.
This sector is facing stiff competition not only in the domestic market, but also in exports from other low-cost countries, the minister said.
He emphasised the need to develop sustainable competitive advantage for the sector through greater investments in more efficient plant and machinery technologies, skill upgrade of employees and through adoption of the latest efficient manufacturing processes.
In 2008-09, the exports grew by 6 per cent as compared to the Compound Annual Growth Rate (CAGR) of growth of about 25 per cent for the period 2003-07.
The Indian automotive and auto component industry posted a positive growth of 3 per cent and 6 per cent respectively in the last financial year.
He stressed the need to redouble efforts to increase the exports and global outsourcing by making use of various measures to boost exports, announced in the recent Foreign Trade Policy. http://www.financialexpress.com/news/govt-mulls-finance-plan-for-auto-parts-industry/512565/ http://www.hindu.com/2009/09/04/stories/2009090456161400.htm http://www.deccanherald.com/content/23180/centre-finance-small-auto-parts.html http://www.telegraphindia.com/1090904/jsp/business/story_11449500.jsp http://in.biz.yahoo.com/090903/50/bau4vn.html http://www.thehindubusinessline.com/blnus/03031503.htm
GOVT TO CONSIDER SPECIALISED SCHEMES FOR AUTO SMES The Hindu Business Line
New Delhi: The Ministry of Heavy Industries and Public Enterprises is considering the feasibility of specialised schemes for financing of SMEs in the auto-component sector.
Speaking at the Golden Jubilee Inaugural Session of the Automotive Component Manufacturers Association of India (ACMA), the Minister of Heavy Industries and Public Enterprises, Mr Vilasrao Deshmukh, said that SMEs rarely have the means to raise required resources on their own, hence the specialised scheme.
The Minister, while complimenting the domestic industry on doing far better than the global auto industry, urged them to develop sustainable competitive advantages. He also asked manufacturers to use the measures announced in the foreign trade policy to attain objectives of the Automotive Mission Plan 2006-15, which aims at taking total turnover to $145 billion by 2016.
Competition Speaking at the same event, Mr Venu Srinivasan, President, CII, said that while India had proved its expertise in engineering products at low cost through recent launches, import competition would be big challenge in the future.
India already imported more auto components than what it exported. With the Free Trade Agreements, imports would become even easier, he warned. Energy resources would also be a big challenge.
Mr Satyanarayana Dash, Secretary, Ministry of Heavy Industries, also urged the industry to focus on alternate and environment-friendly technologies.
Fuel efficiency Prof Charles Fine, from MITs, Sloan School of Management warned that the small car advantage would not be sustainable and India should instead look at lightweight cars, which would also be more fuel efficient. This was an area that more mature and older markets with huge investments in steel based products could not move into as easily. The ACMA President Mr J.S. Chopra, also questioned the sustainability of the global shift towards the small car, and wondered if it wasnt only a temporary phenomena aided by the various incentive schemes of Governments.
While the worst was over, Mr Chopra says the industry can look to 9 -10 per cent growth at the most but not a high 15 -16 per cent this fiscal.
Honour list The event honoured Dr Brij Mohan Lall Munjal, Chairman, Hero Group, Mr Keshub Mahindra, Chairman, Mahindra & Mahindra Group, Dr V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council and Founder Chairman- Maruti, Mr Rahul Bajaj, Chairman and Managing Director, Bajaj Auto and Mr Ratan Tata, Chairman, Tata Group. However, some of them were not present on the occasion. http://www.thehindubusinessline.com/2009/09/04/stories/2009090451110200.htm
WE ARE CONFIDENT COMPONENTS MARKET WILL TOUCH $40 BILLION: ACMA Yogima Seth The Financial Express
New Delhi: With India attracting major car manufacturers following its reputation as a hub for small cars, the auto components business is yielding better results in the domestic market as compared to overseas.
Jayant Davar, vice-president of the Automotive Component Manufacturers' Association (Acma), feels the revenue from the domestic market will overtake revenues from export by the end of the automotive mission period (2006-16), as against the earlier estimate of equal business from both markets.
As new players venture into India, we are confident of touching the $40-billion revenue mark from the auto component sector. However, as car and two-wheeler sales are expected to double in the next six years, nearly $26-$27 billion is expected to come from the domestic market and the rest $16-$17 billion would come from exports. This is higher than the earlier estimates of $20-billion revenue from both domestic and export markets, Davar said.
According to Davar, car penetration in the country is as low as eight cars per 1,000 people, against 500 cars per 1,000 people in developed countries and nearly 100 cars per 1,000 people in developing countries. It is expected that the total car population in the country would double by 2015 to nearly four million units.
Lately, India has gained the distinction of 'best cost country' with its low cost, but technologically advanced products and cheap labour. This has led to establishment of 46 original equipment manufacturers (OEMs) in the country in the past three decades. Of these, 18-19 are car manufacturers, which is the largest number of OEMs anywhere in the world, he said, adding that these OEMs have committed nearly Rs 70,000 crore in India over the next three years in building capacities.
The Indian auto component sector, which is growing at a compound annual growth rate of 19% since 2006, has generated revenue of $16 billion in 2008-09. Of this, nearly 80%, or $12.8 billion, is from sales to domestic OEMs, while 20% or $3.2 billion has come from exports.
AUTO COMPONENT MAKERS REVIVE INVESTMENT PLANS The Hindu Business Line
New Delhi: Auto component makers have started to reinvest in plants that had been put on hold due to the recession.
While the global markets still look grim, companies are taking courage from the growth figures in passenger cars and two-wheelers in India.
We are going ahead and investing more than Rs 225 crore over two years in a new plant in Pathredi in Rajasthan, very close to the Honda factory. We will be making pistons, rings and engine valves for all auto makers. This is an investment that had been put on hold, said Mr A.K. Tanjeja, Managing Director and CEO, Shriram Pistons and Rings, on the sidelines of the annual meeting of the Automotive Component Manufacturers Association.
Mr Arvind Kapur, Managing Director, Rico Auto Industries, said customers have started reviving projects that had been deferred. We will be spending about Rs 40 crore on equipment this year. Capacity is based on projects. But in aluminium castings, for example, we will be increasing capacity by 25 per cent, said Mr Kapur.
Rico expects a turnover of Rs 1,000 crore, up from Rs 700 crore last year. Lumaxs Rs 60-crore investment plans are still on hold, while it ups capacity utilisation now at 65 per cent.
We closed our financial year with flat growth in top-line last year, and even took a loss. However there was no operating loss, net loss was mainly due to the depreciation that the company incurred, said Mr Deepak Jain, Senior Executive Director, Lumax. The company said its investment in building capacities is helping it grow and also ramp up production when demand increases.
In fact, said Shrirams Mr Taneja, the industry has gone from survival to revival so quickly that it will actually have to invest faster in components for passenger cars and two-wheelers. Commercial vehicle segment remains a concern, though. So do exports.
Americans and Europeans have stopped buying, forcing Abilities India Pistons and Rings, whose export dependence is at 75 per cent, to change focus on India now.
We have just started talking to the Indian market after a gap of six years We had business in the pipeline and confirmed orders last year. We shipped them all through the year. But, yes, we have been facing pressures in the last couple of months, said Mr Sunil Arora, Joint Managing Director, Abilities India Pistons & Rings Ltd.
As a stop-gap measure, the company turned to the after-sales market, but is in talks with original equipment makers and aims to take the share of domestic market to at least 40 per cent.
Shriram Pistons and Rings, whose exports account for a fourth of its production, has seen a decline of 20 per cent in exports in the current year compared to last year. There are no signs that this will be come back this year. And when there is a recovery, it will be a gradual one, said Mr Taneja. http://www.thehindubusinessline.com/2009/09/04/stories/2009090451040200.htm
SONA KOYO TO SET UP FOUR MANUFACTURING PLANTS PTI See this story in: Business Standard, The Hindu Business Line
New Delhi: Auto component manufacturer, Sona Koyo Steering Systems Ltd, has joined hands with four domestic and international companies for producing car parts and will set up four manufacturing units for the purpose.
We have formed four new joint ventures with four different companies. Thus, four new manufacturing plants will be set up in north India, Sona Koyo Steering Systems Ltd Vice-Chairman Sunjay Kapur told reporters on the sidelines of ACMA annual conference here in the capital.
The four firms Sona Koyo has entered into joint ventures with are JTEK, FUJI, Americam Axel, Arjun Stampings. It has already started setting up manufacturing plants under these JVs and has so far invested Rs 300 crore for the facilities, Kapur said.
The company already has four plants in the country. It had a revenue of Rs 730 crore in the last financial year and incurred loss of Rs 30 crore.
However, it is expects to book profit this fiscal. The company will set up a facility in Sanand, Gujarat, where the mother plant for the Rs 1-lakh car, Nano, is coming up, to supply steerings and other components to the Tatas small car early next year. We will follow Tatas to Sanand, Gujarat, early next year, Kapur said.
The company expects to achieve 5-8 per cent sales growth in this fiscal, he added. http://www.business-standard.com/india/news/sona-koyo-to-setfour-manufacturing-plants/369042/ http://www.thehindubusinessline.com/blnus/02031207.htm
FIAT PURCHASING TO SOURCE $1 BN PARTS FROM INDIA Reuters See this story in: The Economic Times, Business Standard, The Hindu Business Line, The Indian Express, Asian Age, Deccan Chronicle, Yahoo India, Rediff India
New Delhi: Fiat Group Purchasing, a part of Fiat, plans to source $1 billion of parts from India in 2010, a senior executive said on Thursday.
"Our target is to source $1 billion in 2010," Franco Cavallotti, vice-president, International of Fiat Group Purchasing, told reporters at an industry conference. That would be about 5 percent of its global sourcing. http://www.business-standard.com/india/news/fiat-to-source-components-worth-1-billionindia/369041/ http://www.thehindubusinessline.com/2009/09/04/stories/2009090451830100.htm http://www.indianexpress.com/news/fiat-to-source-1-bn-parts-from-india/512408/ http://www.deccanchronicle.com/business/fiat-buy-spare-parts-worth-1b-155 http://in.biz.yahoo.com/090903/50/bau4t3.html http://business.rediff.com/report/2009/sep/04/fiat-to-source-components-o-1-billion-from-india.htm
CARNATION TO SELL AUTO SPARE PARTS UNDER ITS OWN BRAND PTI See this story in: The Economic Times
New Delhi: Jagdish Khattar-led Carnation will start selling vehicle spare parts under its own brand by next year, even as the company plans to expand its used car business.
RICO TARGETS RS 1,000 CR TURNOVER THIS FISCAL PTI See this story in: The Hindu Business Line
New Delhi: Diversified auto component maker RICO Auto is looking to achieve Rs 1,000 crore turnover this fiscal on the back of investment in new models and sales growth in both domestic and overseas market.
We are looking at a turnover of Rs 1,000 crore in this fiscal up from Rs 700 crore in the last fiscal. We hope to achieve this on the basis of good performance in both domestic and overseas market,'' RICO Auto Industries Managing Director Arvind Kapur s aid on the sidelines of ACMA annual convention. He said, the company has so far invested Rs 60 crore in this fiscal and plans to invest another Rs 40 crore in the remaining half on the new models. The investments would come from company's internal accr uals and debts, he added.
We are running short of capacity because we didn't axpect demand to take off. Therefore, we will add 25 per cent additional capacity this year,'' Kapur said. The company, which specialises in brake systems and dye-castings is also looking to increase its exports by 30 per cent in 2009-10. http://www.thehindubusinessline.com/blnus/02031404.htm
SHRIRAM PISTONS TO INVEST RS 225 CR TO SET UP PLANT PTI See this story in: The Hindu Business Line
New Delhi: Auto component maker, Shriram Pistons & Rings, is planning to invest Rs 225 crore for setting up a new manufacturing facility at Pathredi, Rajasthan. The new plant will be operational by 2010.
"We are planning to invest Rs 225 crore over the next two years for new plant at Pathredi which will manufacture Pistons and some other auto components,'' Shriram Pistons & Rings Managing Director, Mr A K Taneja told reporters on the sidelines of Annual ACMA conference here.
He said, the investment would come from the company's internal accruals and debt. The company is looking to achieve a turnover of Rs 700 crore during this fiscal, up from Rs 600 crore last year. "Although the domestic demand from two wheeler and four w heeler industries is increasing, the commercial vehicle segment is yet to pick up. However, component making companies have started to reinvest in the business,'' Mr Taneja said. Shriram Pistons & Rings has witnessed a significant decline in its exports this year. "Exports constitute 25 per cent of our total annual sales and we have seen a 20 per cent decline in exports this fiscal.It will take before the exports market picks up again,'' he added. http://www.thehindubusinessline.com/blnus/02031666.htm
LUMAX TO INVEST RS 40 CR ON R&D PTI See this story in: The Hindu Business Line
New Delhi: Auto component manufacturer Lumax Industries on Thursday said it plans to invest Rs 40 crore this fiscal on research and development (R&D) activities. The light and gear shifting systems manufacturer is also eyeing 10 per cent growth this fin ancial year on the back of new launches and volume growth.
We will be investing Rs 40 crore during the remaining period of the fiscal specially for upgrading our R&D. Last year, we incurred a loss of Rs three crore while this year, we are looking at 10 per cent growth from new launches and volume growth,'' Luma x Industries Senior Executive Director Deepak Jain told reporters on the sidelines of ACMA annual conference.
As a result of cost cutting measures and topline growth, the company is working on achieving about 10 per cent margin this year, Jain said. The company had a margin of 7.5 per cent last fiscal. We had frozen investment worth Rs 60 crore last year and that is still on hold. However this year, we are going ahead with investments for our R&D activities,'' Jain said.
The company's clientele include major auto firms including Mahindra & Mahindra and Maruti Suzuki India. Asked about its proposed space in Tata Motors upcoming plant at Sanand, Gujarat where the small car Nano will be built, Jain said, The discussions a re on but any final decision will take at least one year.'' http://www.thehindubusinessline.com/blnus/02031405.htm
AMTEK AUTO OPENS $175 MLN FCCB ISSUE Reuters See this story in: Yahoo India
Mumbai: Amtek Auto Ltd said on Thursday it has opened a foreign currency convertible bond issue to raise $175 million.
Jefferies International Ltd will manage the issue of the securities that are to be listed on the Singapore Stock Exchange, the auto parts maker said in a statement to the stock exchange. http://in.biz.yahoo.com/090903/137/bau4tz.html
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| ALLIED INDUSTRY Go To Top M. Ramesh The Hindu Business Line
Chennai: MRF Ltd intends to invest about Rs 400 crore in expansion of its facilities at Medak, Andhra Pradesh, highly placed sources in the company told Business Line. It was in connection with these plans that the Chairman and Managing Director of MRF, Mr K.M. Mammen, met the late Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, two weeks ago.
In a condolence message, Mr Mammen recalled that he received a warm reception from the Chief Minister. MRFs officials said investments in the expansion have just begun and production from the enhanced capacity would commence from next year. It is not clear as to what the expansion project will take the capacity up to because the facilities will be for producing a variety of products. Sources said the only way to measure capacity in such cases would be in terms of turnover, but they did not want to go into the numbers at this stage.
Industry sources say that MRF, worried over the intermittent labour unrest at its Arakkonam plant, has accelerated its expansion at Medak. http://www.thehindubusinessline.com/2009/09/04/stories/2009090451060200.htm
DUNLOP INDIA TO RESUME PRODUCTION AT SAHAGANJ Business Standard See similar story in: The Hindu Business Line, The Telegraph
Kolkata: Dunlop Indias Sahaganj factory will resume production following an agreement with the West Bengal State Electricity Distribution Company Ltd (WBSEDCL), resolving a long-standing dispute on payment of dues. The company had suspended operations in February this year.
Dunlop India Chairman Pawan Kumar Ruia said: The Sahaganj plant will resume production either just before the Puja or right after the Puja. Resumption of production will take about 15 days from the restoration of power supply. And power restoration may take three to four days.
He added that, at present, the company was evaluating whether to restart production before the Puja and then close again for the Puja holidays, or start right after the Puja holidays and move ahead with uninterrupted production. Ruia was referring to the Durga Puja. We are open to both the possibilities and looking forward to restoration of power, he said.
According to the terms of the agreement, the arrears would be paid over nine years in 108 monthly instalments. The factory had electricity dues worth Rs 13.40 crore which, according to Dunlop, was not the liability of the company. The electricity department issued bills despite the plant being shut. However, the company paid Rs 2.5 crore, but also sought a moratorium of two years to stabilise production of the plant and pay the remaining dues, which had been pending for long.
Earlier, at the companys annual general meeting, Ruia had said the company plans to stabilise production at the Sahaganj factory at 40 tonnes per day initially, which may require 5-6 Mw of power. http://www.business-standard.com/india/news/dunlop-india-to-resume-production-at-sahaganj/369060/ http://www.thehindubusinessline.com/2009/09/04/stories/2009090451100200.htm http://www.telegraphindia.com/1090904/jsp/business/story_11449167.jsp
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top Sushmi Dey The Economic Times
New Delhi: Indian Oil Corp (IOC) plans to introduce in 2010 hydrogen-mixed CNG that will improve energy efficiency of vehicles by 15% and reduce emissions by 30%, a company official said. The countrys largest auto fuel retailer is in talks with the Delhi government for a fuel-dispensing network for the new fuel mix, called Hythane, in the national Capital, Anand Kumar, director for research and development at IOC, told ET. The blended fuel will have a hydrogen content of 17-18% and cost 30% more than CNG in Delhi. IOC is in talks with automakers such as Tata Motors, Ashok Leyland, Mahindra & Mahindra and Eicher Motors for Hythane-compatible vehicles to facilitate launch of the fuel in Delhi during the Commonwealth Games next year, he added. The companys research department has tested the fuel on threewheelers, which could be used to ferry passengers during the Games. With 17-18% hydrogen content, there will be no need for a change in the compressed cylinders that store fuel in CNG-run vehicles, he said. However, existing engines cannot be modified to run on Hythane. Hydrogen-mixed fuel requires new engines that will lead to a long adoption curve. CNG, on the other hand, found many early converters as existing petrol and diesel engines could be modified to run alternately on the gasbased fuel. Hydrogen is a freedom fuel that holds the promise to provide clean, reliable and sustainable energy supply for meeting the growing energy needs of transportation. However, we have to make it cost-competitive and this is where research has to play a role, said IOC chairman Sarthak Behuria. In all new energy resources, hydrogen is considered to have the best prospects of application. Japan is one of the first countries to see potential in hydrogen energy and take up studies on its usage as a fuel. According to estimates, the industrialised world has increased investment in developing hydrogen energy by at least 20.5% every year in the last five years. On its part, IOC has spent over Rs 35 crore on research to ascertain the use of hydrogen as an alternative fuel. The company will spend Rs 200 crore annually to optimise the use of hydrogen blended with other fuels, he said. IOC already has fuel pumps dispensing Hythane in the Capitals Dwarka sub-city and Faridabad, and plans to build another fuel station near Asiad Village in Delhi. While hydrogen is a zero-carbon fuel, it is important to understand the energy balance while using it, said Vivek Chattopadhyay, senior researcher at the Centre for Science and Environment. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
OIL PRICES RALLY TO ABOVE USD 69 See this story in: The Indian Express
New York's main contract, light sweet crude for October delivery jumped USD 1.05 to USD 69.10 a barrel. Brent North Sea crude for October delivery added 74 cents to USD 68.40 a barrel in London trade.
"There could be a little more (price) volatility with" US jobs data due on Friday, said VTB Capital analyst Andrey Kryuchenkov.
"Otherwise, we are set to trade sideways near recent lows in the next few weeks before an expected rebound ahead of the fourth quarter."
The final three months of 2009 are expected to see an increase in demand for heating fuel compared with the third quarter as winter hits the northern hemisphere. Crude futures had fallen sharply from levels above USD 70 on Monday and extended losses on Tuesday before stabilising yesterday as official data showed US crude stocks had fallen by an expected 400,000 barrels last week.
The Department of Energy's weekly report also said that gasoline stockpiles had dropped by three million barrels, far steeper than expected by analysts.
The US is the world's largest energy user and is seen as key to any recovery in oil demand. Crude prices briefly hit USD 75 last week, the highest level in 10 months. http://www.indianexpress.com/news/oil-prices-rally-to-above-usd-69/512457/
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| GM LOOKING FOR BILLION-EURO AID FOR OPEL AFP See this story in: Hindustan Times, mint
Frankfurt: US automaker General Motors believes that it can obtain a billion euros (1.42 billion dollars) in aid from Britain, Poland and Spain to restructure its European unit Opel, a press report said on Thursday.
GM was also prepared to put more than one billion euros of its own money to keep Opel from being sold to Canadian parts maker Magna and Russian partners, the Wall Street Journal quoted a source close to the matter as saying.
Magna is the preferred buyer of German officials who have already granted Opel 1.5 billion euros in credits and are prepared to provide several billion more to protect 25,000 Opel jobs in the country.
That is about half the number of European workers who make cars for Opel and its sister brand Vauxhall in Britain.
GM would rather sell a stake in Opel to the Belgian private-equity firm RHJ International, or keep Opel and have it file for insolvency, the report said.
Berlin opposes a sale to RHJ because it believes that more German jobs would be at risk, so raising funds from other European capitals would strengthen GMs hand in talks with German officials.
GM is worried that a sale of Opel to Magna, backed by the Russian bank Sberbank and automaker GAZ, would fuel competition for GMs own cars in the growing Russian market.
Although most of its factories are in Germany, Opel also has big plants in Belgium, Britain, Poland and Spain. http://www.livemint.com/2009/09/03125655/GM-looking-for-142-bn-aid-fo.html
US AUTO INVENTORY FALLS TO 24-YEAR LOW Bloomberg See this story in: The Hindu Business Line
General Motors Co, Ford Motor Co and Chrysler Group LLC may be able to boost production and cut profit-sapping incentives as unsold vehicles at dealers plunged to the lowest level since at least 1985.
Inventory at the end of August stood at 39 days for GM 35 days for Ford and 28 days for Chrysler, Mr Himanshu Patel, a JP Morgan Securities analyst in New York, wrote in a research not, a day after the first monthly gain in Us auto sales since 2007. A 60-day supply is the industry standard.
BMW PLANS TWO NEW MODELS AT UK PLANT Reuters See this story in: The Economic Times
London: German carmaker BMW revealed plans to build two new Mini models at its plant near Oxford in central England on Thursday, boosting British manufacturing and the embattled motor sector.
MERCEDES-BENZ LAUNCHES LUXURY HYBRID MODEL IN JAPAN PTI See this story in: The Hindu Business Line, The Economic Times
Tokyo: Mercedes-Benz Japan Co., an arm of Daimler AG of Germany, released the S-Class hybrid sedan, becoming the first foreign automaker to roll out an electric-gasoline model in the Japanese market.
The luxury S-Class Hybrid Long'' is priced at 14.05 million yen and has about 30 per cent better fuel efficiency than its previous model, becoming the first imported car to be eligible for the Japanese government's tax breaks for fuel-efficient cars.
With the Japanese unit of Germany's BMW AG also planning to roll out a hybrid model next summer, foreign automakers are jumping into the heated hybrid race currently being run by Toyota Motor Corp's Prius and Honda Motor Co's Insight. The S-Class hybrid , which has been available in Europe since June, is equipped with a 3.5-litre gasoline engine and a compact electric motor that is powered by lithium-ion batteries which are lighter than the nickel metal hydride batteries currently used in most hybrid ca rs. http://www.thehindubusinessline.com/blnus/10031403.htm
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee closed marginally higher, for the second consecutive day on Thursday, tracking the stock market, though there was dollar demand from oil companies during the day, said forex dealers. The rupee opened at 48.83/84 and closed at 48.93, slightly higher from the previous close of 38.96. The rupee appreciated on expectation that the stock market would go up by about 200 points as Asian equities were positive. But continuous dollar buying by oil companies and the Sensex closing marginally down weakened the rupee, said a dealer with a private bank. In the overseas market other global currencies like the euro and pound appreciated against the dollar. http://www.thehindubusinessline.com/2009/09/04/stories/2009090451320600.htm
SENSEX DOWN 69 PTS IN LACKLUSTRE TRADE The Hindu Business Line
Mumbai: The stock markets were lacklustre and ended in the negative zone on Thursday tracking global trend. Equities showed mixed trend on selective buying and selling from investors.
The BSE index closed at 15,398.33 points, down 69.13 points after ranging between 15,598 and 15,356 during the day. On the NSE, the Nifty closed at 4,590.55, up by 17.80 points.
While Oil&Gas, Healthcare, Capital Goods and Power sector stocks pulled down the market, Consumer Durable, Metal, IT and Realty gave support to the falling market. Markets rose initially, spurred by higher Asian peers and as investors looked to enter the market after it dropped 2.85 per cent over the first three days of the week. http://www.thehindubusinessline.com/blnus/05031901.htm
INFLATION RATE INCHES UP ON COSTLIER FOOD The Hindu Business Line
New Delhi: The annual Wholesale Price Index-based inflation declined 0.21 per cent during the week ended August 22, its twelfth successive fall in as many weeks, according to the data released by the Ministry of Commerce and Industry. The year-on-year inflation rate had fallen 0.95 per cent during the preceding week.
Base effect The latest weeks inflation estimate was distorted by the base effect of last year, when inflation had surged 12.76 per cent. Despite the negative headline inflation, however, food articles inflation rose by 14.5 per cent on a year-on-year basis during the latest week.
The official WPI for All Commodities for the latest week rose by 0.8 per cent to 240.7 points from 238.8 points for the previous week. The 52-week average inflation for the week ended August 22 was 3.9 per cent.
Urad, arhar dearer On a disaggregated basis, the Primary Articles Group index rose by 0.7 per cent as the index for Food Articles group rose by 0.9 per cent due to higher inflation in fruits and vegetables (4 per cent), jowar, urad and bajra (3 per cent each), maize and arhar (2 per cent each) and moong and tea (1 per cent each).
However, the prices of barley (3 per cent) and coffee and ragi (1 per cent each) declined. The index for Non-Food Articles group rose by 0.3 per cent due to higher inflation in the case of sunflower (3 per cent), raw silk (2 per cent) and groundnut seed, castor seed and raw rubber (1 per cent each).
Copra, fodder cheaper However, the prices of copra and fodder (1 per cent each) declined. The index for Minerals group rose by 0.5 per cent to 564.4 points from 561.7 points for the previous week due to higher prices of barytes (34 per cent) and iron ore (1 per cent). However, the prices of steatite (7 per cent) and felspar (3 per cent) declined.
The Fuel and Power index rose by 1.5 per cent due to higher inflation in aviation turbine fuel and electricity (5 per cent each) and furnace oil (1 per cent).
The Manufactured Products index rose by 0.5 per cent as the index for Food Products group rose by 3.1 per cent due to higher prices of rice bran oil (8 per cent), sugar (7 per cent), oil cakes (5 per cent), imported edible oil (4 per cent) and butter and ghee (1 per cent each). However, the prices of gingelly oil (3 per cent) declined.
The index for Textiles group declined by 0.3 per cent due to lower prices of texturised yarn and hessian cloth (3 per cent each) and hessian and sacking bags (1 per cent). The index for Rubber and Plastic Products group rose by 0.2 per cent due to higher prices of plastic items (6 per cent), PVC fitting and accessories (3 per cent).
The index for the Chemicals and Chemical Products group declined by 0.7 per cent due to lower prices of ammonium sulphate (15 per cent). http://www.thehindubusinessline.com/2009/09/04/stories/2009090450150700.htm
MOODY'S RAISES INDIA'S GROWTH FORECAST TO 6.4% PTI See this story in: The Hindu Business Line
New Delhi: Rating agency, Moody's, on Thursday revised upwards India's economic growth forecast to 6.4 per cent for the current fiscal on the back of "stronger-than- expected'' first quarter growth rate of the country.
"The stronger-than-expected start of the fiscal year has prompted ... to revise India's annual growth forecast from 6.2 per cent to 6.4 per cent,'' Moody's economy.com, a research arm of Moody's, said in a release.
The country managed a reasonable economic growth of 6.1 per cent during the first quarter of the current fiscal despite the global financial crisis. However, it said that despite a generally positive outlook, downside risks are still looming.
"Farm output is likely to show a noticeable decline in September and December periods, heavily weighing on overall GDP growth,'' it said. The robust momentum in manufacturing during recent months may be unsustainable in the near term, it said. "Policymakers certainly cannot rule out chances of a dip in the September quarter before activity continues with its mild upward trend.'' Moody's also said that India's medium-term prospects are rosy. The annual GDP growth is likely to accelerate to 7.2 per cent in the next fiscal and further accelerate until reaching a pace of about 9 per cent in 2012-2013. http://www.thehindubusinessline.com/blnus/03031864.htm
Last Financial closing
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Thursday, September 3, 2009
Indian Auto Industry Update September 04, 2009
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