| INDIAN AUTOMOBILE INDUSTRY | |
| INDUSTRY Nano fetches premium in used-car market INTERVIEWS/FEATURES CARS, SUVs, MUVs Ford's road to recovery runs through India World's fastest car Ultimate Aero to storm Indian roads COMMERCIAL VEHICLES Piaggio launches one-tonne cargo vehicle in Chennai CONSTRUCTION & AGRI MACHINERY M&M hops on rural ride in 2-wheeler segment BSA Motors to roll out new models COMPONENTS | ALLIED INDUSTRIES OIL, LUBRICANTS & ALTERNATIVE FUELS Nissan adds futuristic sound to make them noisier VW to take stake in Suzuki this year: Report Unpaid bills mount for top Chrysler executive Chrysler chief feels the heat of Detroit fall Goodyear workers approve new 4-year contract ECONOMY & FINANCE
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| INDUSTRY Go To Top See this story in: Business Standard (Delhi Print Edition) (Sept 21)
With services becoming the driver of the Indian economy, advertisements have made an important contribution to some of the dynamic sectors like telecommunications, auto and FMCG, Assocham president Sajjan Jindal said.
Riding on robust growth (50.1%) in the number of wireless subscribers in 2008-09, against the previous year, top companies in the telecom sector who were fervent advertisers have lowered their advertisement and sales promotion budget by 3%, it added. Citing an example in the telecom sector, Assocham said Reliance Communications reduced its ad and sales promotion by 26% in 2008-09, but managed to increase its net sales by 21%.
It said top two-wheeler manufacturers decreased their advertising expenses by 5.87% in 2008-09 over the previous year, whereas the sector grew by 2.5% in terms of net sales. TVS Motors cut its advertising expenditure by 12.02% and registered a growth of 14.02% in net sales, it added. The study, however, contradicted its own conclusion, saying Airtel increased its advertising and sales promotion expenses by nearly 10% to achieve a sales growth of 32.50%.
Also, Tata Telecommunications was found to spend 63% more on ad and sales campaigns in 2008-09 over the previous year, while its net sales increased by 14.2%. Bajaj Auto cut its advertising expenditure by 32.94% and witnessed a decline of 6.60% in net sales during the year. http://www.financialexpress.com/news/Auto-telecom-sales-up-despite-cut-in-ad-outlay-Assocham/519477/
NANO FETCHES PREMIUM IN USED-CAR MARKET Swaraj Baggonkar Business Standard (Web & Print Edition) (Sept 21)
Mumbai: Second hand demand entirely for the top-end LX variant Barely two months after the Tata group chief Ratan Tata handed over the keys of the Nano to its first buyer, the worlds cheapest car has already made its way to the used-car market and is selling at a Rs 25,000 to Rs 35,000 premium, 18 to 20 per cent more than the booking price.
Used car dealers say limited allotments and long waiting periods are the chief reasons for these premium second-hand prices. In addition, customers whose names featured in the first allotment list of 100,000 cars are reportedly also selling their allotments, though at lower premiums.
The premiums for December deliveries, for instance, range from Rs 5,000 to Rs 8,000 (the allotments, however, would be made to the original buyer).
"The buyers are those who either missed out on the first allotment draw or did not bother to book it then. They are people who are quite affluent and own four or five cars, so they wouldn't mind paying that extra buck," said Arif Fazulbhoy, director, Fazulbhoy Motors. All the eight to 10 Nano models sold from Fazulbhoy's outlet in Mumbai were re-sold even before they were brought to the showroom.
Those who are selling are either in need of cash or choose not to wait for the extended period for the delivery of the car, which ranges from three months to over a year, according to information provided by the company to its buyers.
Demand has also been fuelled by the fact that Tata Motors has not yet disclosed when bookings for the Nano will reopen. The company had initially stated that bookings would reopen only after the first batch of Nanos was delivered. Although the company had suggested that first-batch deliveries would be complete by the last quarter of 2010, some allottees say their delivery date is scheduled for the first quarter of 2011.
All the second-hand models were from the top-end LX variant, priced at Rs 1,85,375 (ex-showroom Mumbai). The on-road price of the variant is a little more than Rs 2 lakh. "Buyers of second-hand Nanos are those who have developed a kind of fetish for the car. Its more the snob value attached to the car than the practical use of it. These buyers are from Mumbai, the National Capital Region and Gujarat, with a strong demand for the yellow, high-end variant," added another used car dealer from the city.
According to a Tata Motors disclosure, among the three variants of the car, 50 per cent of the 203,000 bookings were for the LX variant, 30 per cent for the CX variant and only 20 per cent for the standard variant. http://www.business-standard.com/india/news/nano-fetches-premium-in-used-car-market/370750/
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| INTERVIEWS/FEATURES Go To Top This has been on my mind for quite some time now. In parties, in office or anywhere else, cars have this uncanny habit of gently butting in between puffs of smoke and sips of whisky. For instance, the other day, at a friends housewarming party, I met this young couple having a tough time deciding on a new car.
The NVH level of the car is also quite commendable and can be said to be better than that of the Jazz. But then again, the quality of interiors leaves a lot to be desired. For a car that has been designed in Europe, it doesnt feel that way once you touch the rough plastic all around. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/Features/The-Sunday-ET/Consumer-Life/Which-one-to-choose--Honda-Jazz-or-Hyundai-i20-CRDi/articleshow/5032354.cms?curpg=2
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| CARS, SUVs, MUVs Go To Top Swaraj Baggonkar Business Standard (Web & Print Edition) (Sept 21)
Mumbai: Customers now have many reasons to look beyond luxury sedans. On Tuesday, Land Rover will launch Freelander 2, its compact sports utility vehicle (SUV), in India. Expected to be priced at Rs 35 lakh (net of taxes), it will be the cheapest Land Rover in the country.
But Tata Motors (owner of the British marquee brand) may be termed a late entrant in the Great Indian SUV carnival. Last week, the country saw the launch of two SUVs the new version of Ford Endeavour and the Nissan X-Trail Earlier this month, German car maker Audi began selling an upgraded version of the popular Q7SUV, priced between Rs 53 lakh and Rs 1 crore.
The carnival was kicked off by Toyota with its Rs 18.45 lakh Fortuner diesel SUV. The rush for it was so much that the company was forced to ask dealers to stop taking new bookings. Since then, the auto giant has increased production by 50 per cent and is hoping to sell 4,500 SUVs by the end of next year, giving it a 50 per cent share of the mid-market SUV segment.
The launch party is surely going to be a long one. Nissan is already planning to launch its expensive Murano, a mid-size crossover SUV that offers the riding comfort of a car while carrying the macho looks of an SUV. The home-grown players also arent far behind. While Tata Motors is readying for a completely new vehicle based on a new platform, Mahindra and Mahindra (M&M) has committed to a premium SUV by 2010-11.
Pawan Goenka, president (automotive) at M&M, says: We currently have a market share of about 65 per cent in the entry SUV segment and we need to continue to innovate if we have to maintain our lead.
The new SUV will debut in the last quarter of 2011 and will be made at Chakan (near Pune). It will be positioned a notch higher than the flagship Scorpio and is being built on a completely new platform at a cost of Rs 700-800 crore, excluding the cost of the plant, Goenka says.
But is the market big enough to justify such a frenzy? Currently, the combined market for the mid-segment (Rs 15-30 lakh) and premium (Rs 30 lakh and above) SUVs is just about 12,000-13,000 units. Not a huge number, but experts say demand for this class of vehicles has covered quite a distance after Tata Motors launched the countrys first indigenous SUV, the Sierra, way back in 1991.
Analysts say the SUV market holds the potential of growing fast in the long term, with the road network getting better and more and more people driving across cities. The launch of new models and the buzz it creates will put SUVs on the super-fast track, they say.
Experts say the mid-segment market, which has a size of 10,000 units presently, has been growing at about 25 per cent a year (except for last year, when demand collapsed across segments). And, the premium segment (3,000 units), where players such as BMW, Mercedes, Audi, Porsche, Volkswagen and Toyota operate, has recorded an even higher growth.
We have two kinds of customers utility-driven ones who buy an SUV because of necessity (for space) and desire-driven ones who own it for the value attached. In India, thankfully, the second kind of customer is growing fast, said Ashutosh Dixit, GM-sales, SkodaAuto India.
The desire-driven customers now have many reasons to look beyond luxury sedans. Apart from their imposing exterior looks, modern day SUVs provide a host of comforts such as four-zone auto air-conditioning system, 14 speakers and an eight-inch display theatre, cruise control, refrigerator, sun roof, power seats etc. http://www.business-standard.com/india/news/car-firms-put-suv-launches-in-top-gear/370739/
FORD'S ROAD TO RECOVERY RUNS THROUGH INDIA Lijee Philip The Economic Times (Web Edition) (Sept 21)
Mumbai: US auto major Ford is now training its sights on India to offset tough business conditions in other global markets. The lone American automobile company that survived the downturn without a government bailout, Ford Motor is planning to integrate car designs globally and develop compact and mid-sized cars as part of a strategy to improve profitability and productivity. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/Ford-to-showcase-small-car-this-week/articleshow/5035437.cms
WORLD'S FASTEST CAR ULTIMATE AERO TO STORM INDIAN ROADS Chanchal Pal Chauhan (Sept 21)
New Delhi: The Ultimate Aero - the worlds fastest car capable of reaching half the speed of a jetliner cruising at 30,000 ft - is set to debut in India with a price tag of over Rs 6 crore that will make it the costliest car sold in the country. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
Ouseph Chacko The Hindu (Metro Plus)
Audi has recently released the slightly face-lifted Audi Q7 3.0 TDI. Mechanically, the refreshed Q7 is very similar to the outgoing model, which means the 3.0-litre V6 turbo-diesel still puts out 240bhp and 56kgm of torque and sends power to all four wheels via a six-speed automatic transmission.
Whats new in this car is the new brake energy recovery system. Its functioning is based on one principle, when you brake or when you are coasting, the kinetic energy you are carting is converted into electrical energy and temporarily stored in the on-board electrical system battery. When you accelerate hard, the stored charge in the battery supports the cars electrical system, reducing the load on the alternator and marginally improving fuel economy. At least, thats the theory. All Q7s now get this feature. The system works so non-intrusively that if you werent told about it, you wouldnt realise its there.
On the exterior, the Audi has received new headlights and even sports Audis LED daytime running lights. The turn indicators are now LEDs, theres the subtle redesign for the grille, notably the thick chrome vertical highlights, the front and rear bumpers and their under-protectors are marginally altered, the door mouldings are new as are the tail-lights, which are now LEDs.
On the inside, the small upgrades to the well-constructed interior allow it to keep pace with the ever-rising standards in this area. Improvements can be seen in the overall appearance and finish of the instruments and switchgear. Whats more is the new interior mood-lighting and the latest version of the MMI infotainment system which comes with a 10GB internal hard-drive.
We are happy that the designers at Audi havent tweaked around with the qualities we loved about the Q7. The functional interiors, the armchair-like seats and the smooth, refined diesel engine are exactly how we remember them. This car came with the standard 18-inch wheels and we can confirm that these are the ones to go for. The Q7 with the 20-inchers we drove a few months ago had a noticeably imbalanced ride. The handling is good for a car this big and theres adequate grunt from the engine.
However some of the features that could narrow your eyes are the engine and transmission that exhibit a bit of lag and need a moment before they spool up. This means that when you are trying to have a bit of fun behind the wheel you could possibly find yourself mid-corner in a higher gear which can be a downer. By the time the transmission downshifts, the corners long gone. Also, as cool as Q7s panoramic sunroof may be, we dont think it actually makes sense given our hot climate.
Still, these minor flaws do nothing to diminish the overall appeal of the mighty Q7. Its a well-built, comfortable and a practical full-size SUV and this face-lift only serves to highlight these features.
Technical Data Price: Rs 54 lakh (ex-showroom, estimated) Length: 5089mm Width: 1983mm Height: 1697mm http://www.hindu.com/mp/2009/09/21/stories/2009092150250300.htm
The Hindu (Metro Plus)
A car that is expected to take on the likes of the Civic, Corolla and the Laura simply must possess a knock-out factor. A look at the new Chevrolet Cruze, and you will at once feel that this car means business. The Chevrolet Cruze is merely the proverbial silver lining for General Motors and one that has the potential to catapult the company from the sidelines of the industry right into the spotlight.
The styling thats gone into the Cruze is the result of a development programme that saw 221 GM prototypes built and tested in various countries, to European standards. The best part about a car that was designed for Europe in particular means that the India-built cars will boast European quality, safety, refinement and dynamics. The Cruze comes in with a few key advantages theres a powerful diesel engine on offer and an equipment list weve only seen in cars that cost a great deal of money.
Though Chevrolet hasnt announced prices yet, we expect it to be in the Civic/Corolla ballpark, which is a good starting point for a car that offers so much.
The Cruze is unlike any Chevrolet seen in India its aggressive, sharp and taut; not words we would have associated with any Chevrolet in the recent past. This new-generation Chevys angular headlights, gaping split grille and sharp chin aspire to make a style statement. The striking coup roofline with that steeply raked rear windscreen instantly grabs your attention. Keep looking and youll also notice the very BMW-like swage line that runs from the front wheel arches right up to the tail-light. The rear of the Cruze looks good, with its twin LED-filled tail-lamps and the thick chrome bar between them.
Built on the latest Delta 2 platform, the Cruzes monocoque shell is constructed by using high-strength steel for the main load-bearing body parts GM says the structure can withstand 2.5 times its own weight. Safety features include a collapsible pedal box, ABS, two airbags and a fuel tank which is mounted between the rear wheels for protection during a heavy rear impact. To reduce cabin noise and vibration the new Chevy uses an isolated front sub-frame, separated from the body by four rubber mountings.
Twin cockpit theme What allowes this car to comfortably Cruze are MacPherson struts up front and a twist beam axle at the rear unlike most of its rivals who are independently sprung. The car sports specially developed JK Vectra tyres (disc brakes all around) that are designed to improve the secondary ride or comfort over sharp ridges and ruts.
The Cruzes interior has a distinct twin cockpit theme which makes separate spaces for the driver and passenger. The V-shaped design looks original and theres a hint of a driver-focused cabin here. The Cruze boasts a keyless system dubbed PEPS for Passive Entry, Passive Start which requires you to simply keep the key fob in your pocket, press the clutch and push a clumsily located button on the left of the steering wheel to start and stop the car. Pulling the door handles automatically unlocks while a touch sensor on the door handles locks the car. Its easy for the driver to find a suitable driving position with the comfy and supportive manual-adjust drivers seat and the reach and rake adjustable steering wheel. The thick-rimmed steering wheel is nice to grip with toggle-type steering-mounted switches that have a nice tactile feel particularly the large knobs for the air-con controls which have a grippy, rubberised finish and nice chrome highlights. This is also the first Chevy to come with the right-hand-drive configuration for the wiper/headlight stalks which also have a meaty feel.
The rear seats offer decent legroom and good under-thigh support. The coup-like roofline and steeply raked rear screen could mess up the hairdo of a tall passenger.
The four decently-sized door bins, a big glovebox, cup and bottleholders, a lined dash-top box and a central storage cubby in the cabin, add to the cars practical appeal. Where the Cruze really scores is on the equipment front apart from the PEPS system, you get a six-CD changer, aux-in port, a large screen that displays multiple functions and an on-board computer which calculates a range of parameters from average speed to real-time fuel consumption. And then theres the sunroof and alloy wheels and cruise control. At an asking price of Rs. 12- Rs. 15 lakh, the equipment list is definitely one of the Cruzes strong points.
Were sure youd have a smile on your face if your car made it to 100kph in under 10secs. Taking takes just 9.6 secongs to break that barrier, the 148bhp diesel Cruze has the performance to leave all of its rivals, including most of the petrol ones, blushing. The mid-range is strong not failing to mention the petrol-like top-end performance too. In a straight line, this car will cross the 150kph mark in 21.2 seconds and run to 180kph without breaking into a sweat. Pedal to the metal and the speedo needle touches 210kph tops without too much huffing. The fact that not too many petrol saloons, and even fewer diesel saloons can boast of such effortless performance makes the Cruze a very accomplished highway cruiser.
A common-rail system At the heart of the Cruze is a familiar 1991cc common-rail turbo-diesel unit from the Captiva making 148bhp and 33kgm of torque. Its got the same variable geometry turbo, a common-rail system that delivers fuel at 1600-bar to the cylinders, has four valves per cylinder and a single overhead camshaft to open and close them. The big difference between the Captiva and Cruze engines is the ECU calibration and fine tuning of the intake and exhaust lengths.
On the fuel efficiency front, we achieved an impressive 10.2kpl in the city and a more frugal 14.1kpl on the highway. Its 60-litre tank will also prove helpful as you can cross several states before tanking up.
On the highway, the Cruze exhibits phenomenal straight-line stability thanks to its long wheelbase. The steering weights up well and gives you confidence. At lower speeds, the ride is slightly on the stiffer side. The suspension offers a flat and consistent ride with no heaving and pitching.
The easy-to-twirl steering is a boon in town, especially while parking, because the Cruzes 4597mm length (longer than the Civic, Corolla, Jetta and Laura) will show up in the tight confines of town.
Verdict: The Cruze could be the game-changer for GM. Its a car that is truly aspirational and one you want to own rather than need to have. The sharp styling, trendy interiors and excellent performance are going to appeal more to individuals than families. The fact that its the quickest diesel makes it a phenomenal value-for-money. Its long equipment list drives home the point further. Whats yet-to-be-seen and also very crucial is the cars pricing. We expect it to rub shoulders with the Civic. That gives a very good reason for you to wait for its launch this month.
Technical Data Fuel Diesel Installation Front, transverse Type 4-cyls in-line,1991cc, Bore/stroke 83/92mm Compression ratio 17.5:1 Power 148bhp at 4000rpm Torque 33kgm at 2600rpm Power to weight 97.36bhp per tonne Torque to weight 21.71kgm per tonne Specific output 74.33bhp per litre Transmission Front-wheel drive Gearbox 5-speed manual Weight 1520kg Wheels 6.5J x 16(f/r) Tyres 205/60 R16 tubeless, JK Vectra Spare Full size Suspension Front Independent, MacPherson struts, coil spring, tubular stabiliser bar Rear Non-independent, compound crank type, coil spring Steering Type Rack and pinion Brakes Front Ventilated discs Rear Solid discs Anti-lock Yes http://www.hindu.com/mp/2009/09/21/stories/2009092151340300.htm
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| COMMERCIAL VEHICLES Go To Top Shweta Bhanot The Financial Express (Web & Print Edition) See this story in: Yahoo India (Web Edition)
Mumbai: Going green with brakes could be a new mantra in Indias heavily packed cities like Mumbai and Delhi. This is a new frontier that has opened up for urban bodies planning for wholesale revamp of the public transport infrastructure with some of the nearly Rs 60,000 crore ($15 billion) of funds coming their way.
Armed with data that shows trucks in urban areas waste up to 30% of their fuel in braking at least every three minutes, Indias leading truck manufacturers, Tata and Ashok Leyland are planning to build in new technology that will cut down the waste by half.
PM Telang, managing director (India operations), Tata Motors, told FE the company was exploring the new technology. One of these, he said was the hydraulic hybrid regenerative braking. We are evaluating the system for our products. This is a product that has been developed by Eaton Corporation, a diversified power management company, present in the automotive space too.
The pay offs are significant, for the civic bodies in terms of substantial cut back in fuel costs and the brake wear an tear in the stop and start traffic. Typically, a refuse truck in the city wastes 30% of its fuel load every time it halts for collection (at an interval of 1-3 minutes), leading to an overall increase in the cost of ownership of the trucks. It also reduces brake life and productivity.
So how does the new technology work? According to Arun Jaura, vice-president (technology) and head of Eaton Corporations India engineering centre, the system sort of recycles the braking energy to provide a thrust to the truck, when it moves again. Jaura claimed the new system pushed up fuel efficiency by up to 30%, and works best on heavier vehicles as almost 100% braking energy can be conserved.
R Seshasayee, MD of Indias second largest commercial vehicle manufacturer, Ashok Leyland, said that the company is looking into newer technologies including electric and hybrid.
The OEMs look more open to retro-fitting of the system on the vehicles than changing the drive-line. This technology is already running in China, US and South American markets.
But auto experts question the viability of add on technology in the Indian transportation eco-system. VG Ramakrishnan, director, automotive and transportation, Frost & Sullivan, South Asia and Middle East, said, Every technology comes for a cost. But the question is how many will be open to the technology. It depends upon how OEMs convince the fleet owners to pay a one time premium for sustainable benefits.
He has a point. Civic bodies are pushing the packet in new technology especially in transport solutions but most are relying on switching over to compressed natural gas as the fuel of choice. The core issue is that of enhancing productivity, reducing carbon footprint and saving costs. Suppliers, original equipment manufacturers and fleet owners are now looking at transitional alternatives that will gradually reduce dependence on the internal combustion engine http://www.financialexpress.com/news/cvs-to-brake-their-way-into-energy-conservation/519545/2 CVs to brake their way into energy conservation http://in.biz.yahoo.com/090920/50/bau7vn.html
PIAGGIO LAUNCHES ONE-TONNE CARGO VEHICLE IN CHENNAI The Hindu Business Line (Web & Print Edition) (Sept 20)
Chennai: Consolidating its position in the one-tonne cargo segment, Pune-based Piaggio Vehicles Pvt Ltd launched its four-wheeler cargo vehicle, ape truk plus. The ex-showroom price in Chennai is Rs 2.76 lakh.
This is the second offering from Piaggio to compete with Tata Ace. The first ape truk with a payload capacity of 865 kg was launched a couple of years ago and sells for Rs 2.25 lakh, ex-showroom.
Next year, the company will introduce a passenger version of its four-wheeler, small petrol engine autorickshaw (like Bajaj and TVS King) and a couple of variants in three-wheel vehicles.
Mr Rajesh Gupta, Head, Marketing, said the company would launch truk plus nationwide within three months.
With ape truk the company hopes to double its share to 20 per cent in the market for sub-one-tonne cargo vehicles.
The company has an installed capacity to make 24,000 four-wheel cargo vehicles and 1.8 lakh three-wheelers a year. Since launch, the company has sold about 20,000 four-wheeler cargo vehicles.
In 2008, the company witnessed 3 per cent growth in sales to 1.6 lakh units.
Smart Card Earlier, launching the new vehicle, the Tamil Nadu Transport Minister, Mr K.N. Nehru pointed to the need for smaller payload commercial vehicles for the last-mile connectivity and said the Tamil Nadu Government is working on networking transport departments to simplify procedures.
Before end of this calendar, the Government would introduce driving licence and registration certificate for vehicles in Smart Card form, he added. http://www.thehindubusinessline.com/2009/09/20/stories/2009092050720200.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top | |
| 2/3 WHEELERS Go To Top Amit Sharma The Economic Times (Sept 20)
Anil Dua, chief marketing officer of the worlds largest two-wheeler manufacturer- Hero Honda is waiting for the credit crisis to ease. He lists unavailability of credit as the single biggest impediment to growth for the auto sector. In an interview with ET, Dua discusses the challenges facing Hero Honda, including the companys JV with Japanese automaker Honda, which comes up for review in 2014. Excerpts:
Hero Honda is looking at establishing its own finance arm, to enable ease of finance to consumers? What are the companys plans for the year?
Setting up a finance arm has been on our drawing board for a long time. But this is hardly the time to do so, when even established players in the sphere are treading cautiously. We have to get our timing right on our ventures. That said, we will continue with our strategy of launching 9 models this year, giving a variety of options to consumers and thereby giving them reasons to purchase. From introducing fuel injection in 125-cc bikes to having self-start 100cc bikes for the first time, we have been thought leaders in the industry and are looking at all options of product innovation based on customer feedback.
M&M HOPS ON RURAL RIDE IN 2-WHEELER SEGMENT Swaraj Baggonkar Business Standard (Sept 21)
Mumbai: Mahindra & Mahindra, the $6.5-billion conglomerate, is strengthening its rural presence by launching two scooters aimed at the market there. It hopes to capitalise on its existing brand value in these areas.
The company says the scooters are priced lower than competition and deliver more power. It expects to corner market share though these products establish its brand before launching its motorcycle range. "The Mahindra brand is very strong in the rural market due to our tractors....there was a need to further capitalise on this. We are sure our two-wheelers will get the benefit (from this)," said Anand Mahindra, vice-chairman and MD. Hero Honda generates 40 per cent of its sales from rural markets. Two-wheeler penetration levels of less than 10 per cent in rural areas is a huge opportunity, says market research firm Ernst and Young in its recent report on the rural sector. The corresponding figure is 23 per cent in urban areas.
While Honda Motorcycle and Scooter India (HMSI) is the leader in the ungeared scooter segment with a 57 per cent market share, its penetration levels in rural areas are much lower than Hero Honda, say market experts.
Still, Hero Honda has only one product in the scooter segment, while M&M has three products of its own (Duro, Flyte and Rodeo) and three products of Kinetic which it can market (Nova, 4S and Kine).
In addition, HMSI's popular products like Activa and Aviator are priced higher by 5-6 per cent, even while its engine size is 12-18 per cent lower than Mahindra's scooters, says M&M.
To strengthen its reach in the rural and semi-rural market, M&M is looking to tap into its standalone commercial vehicle showroom outlets where it can also display its two-wheelers. A senior executive said owners of commercial vehicle showrooms will be appointed for setting up two-wheeler showrooms too, while having an option to display these at their existing outlets.
Anoop Mathur, president-two wheelers, M&M, said: "The (two-wheeler) market itself is growing at high double-digit rates and we certainly foresee that it will grow at 10-12 per cent per annum over a period of time. Our focus is to expand the two-wheeler market and create a differentiated position." Adding:"We have carried out a massive market research exercise, which has given us the idea of what should be rolled out. We cannot reveal what products those would be but we have a very clear blueprint.
Automatic scooters comprise 20 per cent of the two-wheeler domestic market, with sales of 1.14 million units, a growth of 9 per cent over the earlier financial year. This segment has reported a growth of almost 21 per cent in the April-August period selling 559,00 units this year.
The motorcycle market, meanwhile reported a dismal growth of 1 per cent selling 5.8 million units last year, led by a demand fall for the entry-level bike segment (100cc segment). However, M&M hasn't tried to avoid this segment.
"We would not like close our minds to anything at this point," Mathur said, while referring to a proposed entry into the 100cc space. http://www.business-standard.com/india/news/mm-hopsrural-ride-in-2-wheeler-segment/370740/
BSA MOTORS TO ROLL OUT NEW MODELS The Hindu Business Line (Sept 20)
Ahmedabad: BSA Motors, part of the Rs 15,646-crore Murugappa Group, plans to launch new products with GenNext technologies in three to four months, Mr L. Ramkumar, Managing Director, said here. After unveiling a range of electric scooters in five categories in Gujarat, he told reporters that the company is talking to various technology-providers in the East and the West for this purpose. BSA (formerly Birmingham Small Arms) plans to double production capacity at its e-scooter unit near Chennai to 300 two-wheelers a day in six months. The company is talking to Exide and others for providing battery and service-related solutions to BSA Motors' products. This month, it is going to export its first consignment to Sri Lanka and Nepal. http://www.thehindubusinessline.com/2009/09/20/stories/2009092050750202.htm
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| COMPONENTS Go To Top Murali Gopalan The Hindu Business Line (Sept 20)
Mumbai: German auto component maker Bosch believes working on the Tata Nano has been an invaluable experience which will hold it in good stead as it gears up for the global challenge of meeting the needs of low-cost vehicles in the future.
Strategically, we are still well positioned with our entry into the low-cost vehicle market where the Nano experience will be valuable as we move forward. We want to address this market and the Nano, from our viewpoint, is a showcase project, Dr Bernd Bohr, Chairman, Automotive Group and Member of the Board of Management, Robert Bosch GmbH (Germany), told Business Line.
According to him, the companys other objective was to gain the learning experience of working on the Nano for its engineers both in India and Germany on doing things similarly and more effectively.
Over the years, as engineers work on the same system, things get more and more intricate and complicated with a zero-based approach. We have already been able to transfer some of the Nanos experience to our projects in Europe, he added.
The company supplies fuel injection systems and brake solutions to the Tata peoples car which hit the roads in July.
World over, the latest mantra in the automotive industry is fuel-efficiency and inexpensive cars as recession-hit countries realised that customers were no longer biting the bait when it came to buying traditional fuel guzzlers.
Even before all this occurred, the Nano had caught the fancy of other carmakers, especially Renault, whose CEO Mr Carlos Ghosh went on record to state that the way forward for his company in emerging markets would be a $2,500 car.
Business outlook It is here that the Nano has been an useful lesson for Bosch as it surveys opportunities in the future for low-cost cars which every other manufacturer be it Renault-Nissan, Ford, General Motors, Fiat and Volkwagen-Skoda is working on. As for the business outlook for India, Dr Bohr said, India has definitely picked itself up out of this global slowdown. If we look at our markets for 2009, India and China are the only ones growing. Bosch is still having a difficult time in Europe and North America. Overall, the downturn in sales is about 20 per cent this year which is quite significant.
Despite these difficult times, the company has continued its India investments without any cutbacks. We started off our localised ECU (electronic control unit) production in May as well as ABS (anti-lock braking system) in September, the first supplier in India to do this, he added.
Bosch also believes that the countrys own local market has a lot to offer for its growth. We see India not so much as an export base but as an interesting market where we want to be fully represented. We are seeing solid growth here for the next few years and are creating traditional manufacturing capacity to mainly meet local demand, Dr Bohr said.
The fact remains, though, that India (and China) is a strategic low-cost sourcing destination for Bosch in Asia as is the case with the Eastern European countries, comprising Hungary, Poland and the Czech Republic, for Europe. In the US, Mexico and Brazil fit the bill for Bosch as low-cost sourcing points.
About 15 per cent of our production volumes here in India are for exports to Germany and Korea (for common rail components). Exports are useful from the viewpoint of changing the organisation to reach fully accomplished global quality standards, he said.
Diesel is the answer Bosch also continues to be very optimistic on the outlook for diesel in India. It is looking at efficient engines which will meet the emission norms for smaller and lighter cars.
According to Dr Bohr, diesel would continue to hold its own in the near future, despite potential competition from hybrids and electric vehicles.
The cost-benefit relationship for the electrified powertrain would show that diesel is still the right answer. That may change in the next 20 years as cost of electrification, especially the battery comes down. However, for the next 10 years, for a country like India efficient gasoline and diesel engines will continue to do well, he said. http://www.thehindubusinessline.com/2009/09/20/stories/2009092050780200.htm
FORGING INDUSTRY HIT BY HIGH STEEL PRICES The Hindu
Coimbatore: The forging industry has expressed concern at the recent hike in steel prices announced by most of the major steel manufacturers in the country, according to the Association of Indian Forging Industry.
Association president Vidyashankar Krishnan has said in a release that the forging units were seeing signs of revival in the first quarter of 2009-10 because of the revival in the original equipment manufacturing sector. The present rise in steel prices has resurfaced a threat to the industry, he said. The association had made repeated appeals to keep the domestic prices on a par with the international ex-factory prices.
Mr. Krishnan said in the release that iron ore prices had dropped from $ 140 a tonne to $ 60 and coal prices had declined from $ 400 a tonne to $ 130.
Compared to the international prices, the Indian steel price was almost Rs.5,000 higher for a tonne. Indian steel prices are the biggest hurdle in the path of growth, he said. http://www.hindu.com/2009/09/21/stories/2009092155020500.htm
TOYOTA BUYS STAKE IN TUBE INVESTMENTS
The Times of India See similar story in:The Economic Times (Sept 21)
Chennai: Japans Toyota Group on Monday has bought a token 1.5% stake valued at Rs 19 crore in Tube Investments of India (TII), the flagship company of $3-billion Murugappa Group. Rs 2,900-crore TII makes precision steel tubes and strips, car doorframes, automotive and industrial chains and bicycles.
http://economictimes.indiatimes.com/News-by-Industry/Toyota-buys-stake-in-Tube-Investments/articleshow/5035593.cms
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| ALLIED INDUSTRY Go To Top | |
| FINANCE & INSURANCE Go To Top G. Naga Sridhar The Hindu Business Line (Sept 21)
Hyderabad: If you are one who takes your car insurance lightly, better be careful. Soon, the cops will be able to track you down through hi-tech vehicle insurance status SMS system (VISSS), thanks to the Insurance Regulatory and Development Authoritys initiative.
The system, being planned by the regulator will provide an additional facility to the police officials to verify insurance status of the vehicle.
Currently, the only way of examining is to physically check the certificate of insurance. According to a draft on the proposed VISSS circulated by IRDA to the General Insurance Council, general insurers and transport commissioners, the VISSS would help dealing with hit and run death cases caused by uninsured vehicles.
The insurance claims of these cases are being paid from a Solatium Fund now and the insurers are paying for the losses caused by the uninsured vehicles.
The objective of the VISS is to provide instant and easy availability of insurance status and real time availability of micro figures of motor insurance, says the draft.
In addition, it would also double up as a facility to locate uninsured vehicles and bring them into the insurance net. The Web-based VISS would collect up-to-date data from all general insurance companies at one central hub and disseminate information to all stakeholders instantly. The submission of data by each underwriting office would be monitored on a daily basis and report would be generated.
Anyone wanting to know the insurance status of any vehicle plying in India has to SMS the registration number of the vehicle to a telephone number connected with the portal. After searching the data, the insurance status of the vehicle with period of cover will be sent through SMS.
The proposed system would help in ensuring better compliance and developing the market, say experts. The idea is interesting. Any move directed towards better adherence to regulation and increasing the general insurance penetration is welcome. I am yet to see the draft in its entirety, Dr Amarnath Ananthanarayanan, Chief Executive Officer, Bharti AXA General Insurance Company Ltd, told Business Line.
There is some negligence in renewing vehicle insurance policies. Electronic monitoring is definitely a good move, said a senior official of Bajaj Allianz. http://www.thehindubusinessline.com/2009/09/21/stories/2009092151570100.htm
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top | |
| INTERNATIONAL NEWS Go To Top Agencies See this story in: The Economic Times (Sept 21)
Frankfurt: The Frankfurt auto show buzzed with an amusement park atmosphere as it opened to the public on Saturday amid signs that Europes
NISSAN ADDS FUTURISTIC SOUND TO MAKE THEM NOISIER Bloomberg See this story in: The Hindu Business Line, Business Standard (Sept 20)
Mr Toshiyuki Tabata spent 30 years as a Nissan Motor Co. engineer trying to make gasoline-powered cars quieter. Now hes consulting music composers to make electric cars noisier and safer.
Electric and hybrid cars, with little or no engine noise, are lauded for their silence, yet some groups including advocates for the blind say pedestrians may fail to notice them approaching.
To address those safety concerns, transportation agencies in the U.S. and Japan may mandate artificial sounds for the vehicles.
We fought for so long to get rid of that noisy engine sound, said Tabata, Nissans noise and vibration expert.
With electric cars, we took a completely different approach and listened to composers talk music theory.
Carmakers including Nissan and Toyota Motor Corp., manufacturer of the Prius gasoline-electric hybrid, are researching sound as more silent models come to market. Nissan will start selling its Leaf electric car next year in the U.S., Japan and Europe, while General Motors Co. plans to introduce its Volt plug-in electric car by November 2010. Toyota will introduce a battery-powered vehicle in 2012.
Mr. Tabata was instructed about three years ago to re-create the sound of an engine. Given his years of work eliminating noise to enhance the driving experience, he said he balked at the suggestion of turning back the clock and adding anything evocative of an engine.
VW TO TAKE STAKE IN SUZUKI THIS YEAR: REPORT Reuters See this story in: The Economic Times, The Telegraph (Sept 20)
Frankfurt: Volkswagen, Europe's largest carmaker, is expected to take a stake in Japan's Suzuki Motor by the end of 2009, German industry publication Automobilwoche report, citing an unnamed Suzuki executive. http://www.telegraphindia.com/1090920/jsp/business/story_11518896.jsp VW to take stake in Suzuki this year: Report http://in.biz.yahoo.com/090919/137/bau7sp.html Volkswagen may buy stake in Suzuki http://www.livemint.com/2009/09/19171214/Volkswagen-may-buy-stake-in-Su.html
UNPAID BILLS MOUNT FOR TOP CHRYSLER EXECUTIVE Reuters See this story in: The Economic Times (Sept 20)
Detroit: One of the best-known auto industry executives in the world has fallen on hard times. Jim Press, who briefly ran Toyota Motor Corp's US operations and spent 37 years with the Japanese automaker before joining Chrysler as one of its three top executives in 2007, is facing claims of more than $1.35 million for unpaid federal taxes and a personal loan.
The lawsuit was filed June 30 in Oakland County Circuit Court. "We are simply pursuing our contractual rights to collect on a loan that was made to Mr. Press some time ago for which other collection efforts have been exhausted," Western Federal said in a statement.
CHRYSLER CHIEF FEELS THE HEAT OF DETROIT FALL Agencies See this story in: The Economic Times (Sept 21)
Detroit: One of the best-known auto industry executives in the world has fallen on hard times. Jim Press, who briefly ran Toyota Motors US operations and spent 37 years with the Japanese automaker before joining Chrysler
as one of its three top executives in 2007, is facing claims of more than $1.35 million for unpaid federal taxes and a personal loan. The 62-year-old auto executive may be one of the highest profile victims of Detroits collapse.
GOODYEAR WORKERS APPROVE NEW 4-YEAR CONTRACT AP See this story in: The Financial Express (Sept 20)
Columbus /Ohio: Goodyear Tire & Rubber Co. workers approved a new contract that will prevent the potential closing of a half-dozen plants in the next four years, union leaders said Saturday.
The United Steelworkers said the agreement covers about 10,300 workers. Voting concluded at seven plants late Friday.
The contract requires minimum staffing levels at six of the seven Goodyear plants and prevents the company from shifting production to any facility not represented by the steelworkers union. It also calls for Goodyear, based in Akron, Ohio, to invest $600 million at the plants, keeping them up-to-date.
"This agreement reflects the commitment of Goodyear and the USW to continue to work together to achieve our common goal of world-class competitiveness," said Richard Kramer, Goodyear's chief operating officer.
The company planned to discuss the deal with investors during a Monday conference call. The new contract includes wage and benefit increases, improved pensions for some workers, and continuation of previous cost-of-living provisions for all workers, the union said.
The deal protects factories in Akron, Ohio; Gadsden, Ala.; Buffalo, N.Y.; Topeka, Kan.; Danville, Va.; and Fayetteville, N.C.
A plant in Union City, Tenn., which employs about 1,700 workers, was the only one not protected. A local agreement negotiated in April provided for as many as 600 workers there to receive buyouts, the union said.
The Tennessee factory has been severely hurt by the economic downturn and an influx of cheap tires from China, Steelworkers spokesman Gerald Dickey said. Chinese imports represented almost 17 percent of the U.S. tire market last year.
President Barack Obama has ordered steep, additional U.S. tariffs on Chinese tires for three years, including 35 percent in the first year. The increases come on top of the current 4 percent tariff.
The Steelworkers union hopes the additional tariffs will bring work back to the Tennessee plant, Dickey said. If that happens and the economy turns around, negotiators there could seek the protected status enjoyed by other plants, he said.
Goodyear, the biggest U.S.-based tiremaker and third largest globally, has said the agreement will improve the company's productivity and flexibility.
The company operates more than 60 plants in 25 countries and has nearly 70,000 employees.
Goodyear reported in July that it lost $221 million in the second quarter as upheaval in the U.S. auto industry and the global recession cut sales 25 percent from a year ago. The company launched 19 new products in the second quarter, cut costs by another $200 million and eliminated 1,700 jobs. http://hosted.ap.org/dynamic/stories/U/US_GOODYEAR_STEELWORKERS?SITE=
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| ECONOMY & FINANCE Go To Top The Hindu Business Line (Sept 20)
Bangalore: The Government has decided not to reverse the stimulus package till the US and European economies recovered fully.
The Union Finance Minister, Mr Pranab Mukherjee, told newspersons that the G-20 Finance Ministers, during a recent meeting, decided not to reverse the stimulus package till North America and Europe showed visible signs of recovery. The Finance Minister said that the economy would witness a recovery in the third and fourth quarters of the current fiscal. We shall have to wait for some more time. The GDP (gross domestic product) growth in the first quarter was 6.1 per cent. We will know the growth in the second quarter next month. If there is some improvement, then there will be a recovery in the third and fourth quarters, he said. Mr Mukherjee said to prevent the adverse impact of the rise in prices of essential commodities, the Government is now encouraging import of essential commodities in short supply. Three essential items are in short supply right now sugar, edible oil and pulses. We have put these under OGL, he said.
He said that the Centre was also requesting the State governments to revamp the public distribution system so that at least those below poverty line can be protected by subsidising food articles such as rice, sugar, wheat and kerosene oil which we are providing to the public distribution system.
Explaining the price rise of certain essential commodities, he said that till the last week, the wholesale price index (WPI) was negative, while the consumer price index was moving up. This dichotomy is bound to happen because what we are essentially concerned is price of food articles, he pointed out. http://www.thehindubusinessline.com/2009/09/20/stories/2009092051000300.htm
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Sunday, September 20, 2009
Indian Auto Industry Update September 21, 2009
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