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| INDUSTRY Tata Motors may sell 15% in fin arm Mahindra & Mahindra director sells 8k shares INTERVIEWS/FEATURES COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY Tractor sales growth likely to be dull Tata launches tipper in Kerala market 2/3 WHEELERS Harley tops shopping list of India Inc drivers COMPONENTS Insurance hiccups for auto parts exporters to crisis-hit US cos
| ALLIED INDUSTRIES Jalandhar rubber industry affected by rising price FINANCE & INSURANCE Punjab & Sind Bank cuts interest rate on new home, auto loans OIL, LUBRICANTS & ALTERNATIVE FUELS Oil hovers below USD 69 per barrel INTERNATIONAL NEWS Hyundai sees little recovery before 2015 Opel says restructuring not based on politics Volkswagen to unveil new electric car at IAA BMW, Mazda lead the way as auto emissions fall: survey Renault launches electric car models Bosch to cut 10,000 jobs this year ECONOMY & FINANCE Markets regain winning ways; Sensex up 240 points Inflationary pressures building: RBI
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| INDUSTRY Go To Top Sumit Chaturvedi The Economic Times (Web & Print Edition)
The country's car and bike makers, led by market leaders Maruti Suzuki and Hero Honda, are increasing production and giving final touches to aggressive marketing campaigns as they rev up for the Navratra-to-Diwali festival season. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/Auto-cos-getting-ready-for-festival-ride/articleshow/5016597.cms
The Statesman (Web Edition) See similar story in: Deccan Herald (Web Edition), The Hindu Business Line (Delhi Print Edition), The Pioneer (Delhi Print Edition)
New Delhi: In a move that would give a boost export of automobiles from India, the government has announced additional incentives on overseas shipments of cars and goods carriers to 13 countries, including Australia and Brazil. Cars and other vehicles used for transportation of goods have been included in the new market-linked focus products, under which exporters will get incentives equivalent to two per cent of free-on-board (FOB) value of exports in foreign exchange, the Directorate General of Foreign Trade said. Earlier, under the scheme the exporters were getting 1.25 per cent of FOB value of exports. In the new Foreign Trade Policy, the government had identified 13 countries, including those in Latin America and Africa, in a bid to increase exports, which are on a downslide since October 2008.
Exports of cars and goods transport vehicles were valued at $4.68 billion during April-December 2009. Outward shipments of the products in 2007-08 stood at $4.48 billion. Hyundai Motor India, Maruti Suzuki and Tata Motors are the leading exporters of cars from India. In August 2009, India's overall passenger car exports stood at 40,901 units as compared with 29,741 units last year. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=268666 http://www.deccanherald.com/content/25376/more-sops-spur-auto-exports.html
TATA MOTORS MAY SELL 15% IN FIN ARM Lijee Philip & MV Ramsurya The Economic Times (Web & Print Edition)
Mumbai: Tata Motors is planning to sell about 10-15% equity stake in its subsidiary Tata Motors Finance to raise funds for reducing its debt, according to two persons familiar with the development. Indias largest maker of commercial vehicles said it would sell equity stakes in various subsidiaries as part of a plan to reduce the companys Rs 24,000-crore debt. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
The Telegraph (Web Edition)
Mumbai: Tata Motors has raised Rs 236.5 crore by selling 50 lakh shares it held in Tata Steel to the groups holding company Tata Sons.
The Tata Steel shares were sold at Rs 473 apiece through a block deal. On Tuesday, the Tata Steel stock rose 2.5 per cent to close at Rs 491.25 on the Bombay Stock Exchange. Tata Motors has been on a fund-raising spree over the past few months to meet its working capital requirements and trim its debt.
In effect, the shareholding of the Tata group has not been affected by this transaction. According to data collated from the BSE, after the block deal on Tuesday, Tata Motors holds 54,40,882 shares, or less than 1 per cent in Tata Steel.
Tata Motors had pledged its entire holding of over 1.04 crore shares in Tata Steel last month. The company suffered an after-tax loss of Rs 329 crore and consolidated gross revenue of Rs 16,954 crore in the first quarter of the current fiscal. For the year ended March 31, 2009, the company suffered a loss of Rs 2,505 crore on a total income of Rs 71,738 crore.
Tata Motors was badly hit last year as the economic slowdown dragged down vehicle sales. It was also under pressure to service the debt it raised to finance the $2.3billion acquisition of Jaguar and Land Rover and meet the working capital needs of the two marquee British motoring brands.
The Tata Motors scrip closed at Rs 569.25 on Tuesday, an increase of 1.33 per cent over the previous close.
MAHINDRA & MAHINDRA DIRECTOR SELLS 8K SHARES PTI
Doshi sold these shares on September 7, M&M said in a disclosure to Bombay Stock Exchange(BSE).
Post transaction, Doshi now holds 2.39 lakh shares of the company.Shares of Mahindra & Mahindra has closed at Rs 842.60, up 1.32 per cent on BSE. http://www.business-standard.com/india/news/mahindramahindra-director-sells-8k-shares/73554/on
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| CARS, SUVs, MUVs Go To Top PTI See this story in: Hindustan Times (Web Edition), The Indian Express (Web Edition), The Hindu (Web & Print Edition), The Hindu Business Line (Web Edition), Deccan Chronicle (Web Edition), The Economic Times (Web Edition)
New Delhi: Honda Siel Cars India on Tuesday launched a new variant of its mid-sized sedan, Honda City, which is priced between Rs 8.37 lakh and Rs 10.24 lakh (ex-showroom Delhi), aiming to cash in on the upcoming festival season.
The latest variant, called the V-grade Honda City, comes with new features such as five spoke alloy Wheels, new front fog lamps, chrome door handles, sporty exhaust finisher and front and rear mud guards. It will be available both in manual and automatic transmissions.
With the recently launched Honda Jazz, the refreshed new Honda Civic and now this V-Grade Honda City, we have a whole new line-up for all our customers to choose from, Honda Siel Cars India President and CEO Masahiro Takedagawa said.
The car is powered by a 1.5L four-cylinder petrol engine. The new Honda City has been launched as part of the Great Honda Fest promotion ahead of the festival season, the company said. Since the launch of the new-generation Honda City a year ago, the company has sold nearly 38,000 units. http://www.indianexpress.com/news/honda-launches-new-variant-of-city-sedan/517365/ http://www.hindu.com/2009/09/16/stories/2009091652351700.htm http://www.thehindubusinessline.com/2009/09/16/stories/2009091650580200.htm http://www.deccanchronicle.com/business/honda-launches-new-variant-city-sedan-278 http://economictimes.indiatimes.com/articleshow/5013334.cms
Asian Age (Web & Print Edition) See similar story in: Deccan Chronicle (Web Edition)
Hyderabad: German luxury car manufacturer Audi on Tuesday launched the new Audi Q7, its latest version of Indias most successful luxury SUV, in Hyderabad. The three variants of the car, which will be available in 11 colours, will cost from Rs Rs 53.40 lakh onwards.
The SUV was unveiled by the Audi Hyderabad managing director, Mr Rajiv M. Sanghvi, and the Audi India dealer development head, Mr Rishi Goel.
"Audi India achieved a remarkable growth in the first eight months of 2009 by selling 1,128 cars (a 62 per cent growth). The second half of 2009 continues to record an impressive sales with 171 cars (a 69 per cent growth in August," said Mr Goel.
Mr Rajiv Sanghvi said all the 10 cars (Audi Q7) available in their showroom in Hyderabad have been sold out even before its launch. "In just one-and-a-half year, we have sold 189 vehicles and are confident of crossing the 200 mark by month end," he said. Stating that Audi Hyderabad has captured 27 per cent of the luxury car market in Hyderabad in just one-and-a-half year, Mr Sanghvi said 21 more bookings have already been made for Q7 and enquiries are increasing.
The German luxury car manufacturer currently has dealerships in 12 cities in India and is planning to expand to Jaipur, Lucknow, Nagpur and Coimbatore soon. http://www.asianage.com/presentation/leftnavigation/news/business/audi-rolls-out-luxury-suv.aspx http://www.deccanchronicle.com/business/audi-rolls-out-luxury-suv-472
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| COMMERCIAL VEHICLES Go To Top Danny Goodman Business Standard (Web & Print Edition)
New Delhi: Commercial vehicle (CV) manufacturers are putting their plans to diversify into construction equipment, such as backhoe loaders and excavators, on the fast track. Its a good hedge against risk, explains the head of a leading CV maker. German CV manufacturer Man AG, for instance, will roll out its first construction equipment for the domestic market in the next four months.
We will be rolling out our 6x4 and 8x4 tippers this year. We are scouting for dealerships in the country. We find the infrastructure thrust initiated by the government very interesting, since it creates demand for construction equipment, says Hakan Samuelsson, chairman of Man. The company has a 50:50 joint venture with Firodias Force Motors and the tippers will be made at Pithampur in Madhya Pradesh.
Chennai-based commercial vehicle manufacturer Ashok Leyland, which entered into a 50:50 venture with US company John Deere in 2008, is also gearing up to roll out its first range of commercial vehicles by the last quarter of this year.
The joint venture is very much on track. Our first offering for the domestic market will be backhoe and wheeled loaders and excavators, says R Seshasayee, managing director of Ashok Leyland.
Apart from reducing exposure to the cyclical truck manufacturing business (sale of heavy and medium CVs dipped by 18 per cent in 2008), the promise of rapid growth in the construction equipment business on the back of an increased infrastructure spending by the government in the coming years is acting as the main draw.
A N Amrolia, executive director (construction & allied equipment business) of Ashok Leyland, says the size of the construction equipment segment in India is estimated at around $2.5 billion (Rs 12,250 crore) and is expected to post a compounded annual growth rate of 18-20 per cent in the next two years.
The growth would primarily come from construction activities in the road sector, residential and office complexes, and large infrastructure projects like ports and dams across the country. Industry players say construction equipment financing is also expected to grow at a CAGR (compounded annual growth rate) of 20 per cent from around Rs 10,000 crore now. While some of the big players, such as GE capital and ICICI Bank, have moved out of this segment, their places have been taken by non-banking finance institutions such as L&T Finance and Tata Capital, among others.
The Budget for 2009-10 contains budgetary provisions to the tune of Rs 1,00,000 crore for infrastructure development over the next five years. This spending encompasses the governments infrastructure programmes like JNNURM, Bharat Nirman, highway projects and the development of ports and railways.
Broadly, construction equipment can be divided into three categories. First, you have the backhoe loaders, which contribute around 60 per cent of the 22,000 units of construction equipment sold every year in the domestic market, says Vipin Sondhi, managing director & CEO of JCB India Ltd, which is a 100 per cent subsidiary of its UK-based parent.
JCB has a market share of 75 per cent in the domestic backhoe market. Backhoe loaders are machines commonly seen near garbage dumps and landfill sites that scoop debris found on the ground with their large buckets and place these onto open trucks. Due to their functional versatility, industry executives say loaders sell in large numbers in the domestic market.
The other two categories of construction equipment are wheeled loaders and excavators, which contribute about 20 per cent each to the total segment.
The other segment of construction equipment is the off-road segment, comprising large tipper trucks that are used in mining, quarrying and infrastructure projects. Caterpillar, Komatsu, BEML and Mercedes Benz trucks of the 100-tonne capacity are widely used in these sectors. http://www.business-standard.com/india/news/cv-manufacturers-go-offbeaten-track/370255/
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| CONSTRUCTION & AGRI MACHINERY Go To Top Swaraj Baggonkar & Abhijit Lele Business Standard
Mumbai: Deficient rains in the agrarian interiors and lack of finance availability from lending institutions, despite a mammoth relief package announced by the Centre last year, is slated to hit tractor sales, the industry says.
Public sector banks deny holding back lending, but tractor manufacturers say they have done so. The bulk of financing for tractor purchases comes from these banks.
Anjani Kumar Choudhari, president, farm equipment sector, Mahindra & Mahindra, said, The kind of clampdown on liquidity and credit last year, triggered by the economic meltdown that also led to an increase in interest rates, has not been reversed as far as farm equipment is concerned.
There has been no improvement in banks lending to the sector. The criteria is made so tough by leading banks that it is very difficult to get a loan, he added.
In May last year, Indias biggest bank, State Bank of India (SBI), had put a temporary ban on further credit to the sector after its gross nonperforming assets (NPAs) surged to 17 per cent on the Rs 7,000-crore exposure it had to the segment.
With the Union government wiping out Rs 60,000 crore of debts last year, part of the farm loan waiver programme, tractor buyers and manufacturers expected banks to issue fresh loans, thereby boosting demand. However, strict evaluation norms and high lending rates imposed by banks made access to loans a rigorous affair.
The industry saw domestic volumes of tractor sales decline by five per cent last year, to 302,241 units from 318,328 units sold in the earlier financial year. Manufacturers attribute the fall to high interest rates and more stringent lending norms.
Interest rates were revised to double-digit figures, close to those charged on cars and SUVs, whereas their earlier average was under 9 per cent. Margin money (the gap between finance availed and cost of product), which used to be 10 per cent, was revised to 20 per cent, which is still applied.
Mallika Srinivasan, director of Chennai-based Tractors and Farm Equipment, the second largest manufacturer, said: Two years ago, the banks were very aggressive in the lending programme, but the key point is that we would like to see the interest rate and margin money to come down. Sources said the tractor manufacturers association plan to raise the issue with the Indian Banks Association.
Banks deny a clamp on lending. Offtake has been okay. Banks do not see any drastic fall in the credit offtake in the farm mechanisation segment, a senior SBI official said.
TRACTOR SALES GROWTH LIKELY TO BE DULL PTI See this story in: The Hindu Business Line, The Indian Express Mumbai: India's tractor sales is likely to be dull with only an around 5-7 per cent growth in the current fiscal due to poor monsoons, a leading industry player said.
With lesser rains in the country, tractor sales growth will (only) be around 5-7 per cent by end-this fiscal, Mahindra and Mahindra President (Farm Equipment sector), Mr A Choudhari, said here. Tractor sales in the first four-five months of this fiscal have, however, been good, he said.
Tractor sales in the first five months of this fiscal have been good because there is a lag effect due to last year's good rains, Mr Choudhari said.
Mahindra and Mahindra, which has joint ventures in China for manufacturing tractors, has also witnessed a slowdown in exports from China, he said.
Exports from China are down due to the economic meltdown. However, domestic sales in China have been good due to the subsidies given by the Government there. http://www.thehindubusinessline.com/blnus/03151610.htm
TATA LAUNCHES TIPPER IN KERALA MARKET PTI See this story in: The Hindu Business Line
Kochi: Reinforcing its position in the tipper segment, Tata Motors has launched the Tata SK 407 Tipper in Kerala market. The Tata SK 407 Tipper is a small capacity tipper introduced as an entry level product and forms an important milestone in Tata Motors efforts to service the diverse and growing requirements of the state's tipper segment. The vehicle, which was launched yesterday, comes with a factory built 2.66 cubic-metre capacity, with fuel efficient turbo-charged 4-cylinder engine delivering 75 PS, a release said. It is priced from Rs 5.67 lakh onwards.
The vehicle is suitable for sand movement, quarry application, laterite-stone transportation and construction material movement. It offers warranty of 3 years/3 lakh kms on basic vehicle and 18 months/1.50 lakhs kms warranty on body.
Mr Ravi Pisharody, President, Commercial Vehicle Business Unit of Tata Motors, told reporters the vehicle offers a competitive features-to-price benefit. http://www.thehindubusinessline.com/blnus/02151964.htm
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| 2/3 WHEELERS Go To Top PTI See this story in: The Hindu Business Line, The Hindu, The Financial Express, Mint
New Delhi: The Supreme Court on Tuesday reserved its judgement on the patent case between two-wheeler rivals Bajaj Auto and TVS Motor.
The two companies have been locked in a legal tussle over the usage of twin spark technology. Bajaj Auto had opposed the use of the technology by TVS in one of its products, Flame, a 125 cc bike.
The Pune-based company had claimed that its Chennai-rival was infringing on its patent. The apex court had earlier prevented TVS from selling the Flame motorcycle, although there was no restriction imposed in its production. http://www.thehindubusinessline.com/businessline/blnus/28151592.htm http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=268665
HARLEY TOPS SHOPPING LIST OF INDIA INC DRIVERS Nandini Sen Gupta The Economic Times
They are powerful men deciding the fate of not just the companies they head but also play an important role in building the nations economy.
If Harley-Davidson Motor Companys, manufacturers of the iconic American bike, plans of launching their heavy motorcycles stays on road then some of the top CEOs of Indian companies would rush to get a feel of a Fatboy or a Sportster, two Harleys models.
Mr Burman and Mr Wadia arent the only ones from the corner room execs smitten with these boy toys. The list of CEOs looking to park a Harley in their backyard includes Hari Bhartia, MD, Jubilant Organosys; Dabur groups Mohit Burman; Ford India MD and bike enthusiast Michael Boneham; Vidur Talwar, joint MD of Delhi-based component maker QH Talbros and VC Sehgal, chairman of fellow component major Samvardhana Motherson group.
That has proved to be the Harleys winning point. Unlike buying an expensive car, which most CEOs can, buying an expensive bike would cross the mind of only a bike enthusiast. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Company/Corporate-Trends/Harley-tops-shopping-list-of-India-Inc-drivers/articleshow/5016473.cms?curpg=2
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| COMPONENTS Go To Top Yogima Seth The Financial Express See similar story in: Yahoo India
New Delhi: Sensing higher demand for passenger cars in the country after the two stimulus packages announced in December 2008 and January this year, five auto component manufacturers, out of nearly 600 industry players, have lined up a total capex of nearly Rs 1,000 crore for 2009-10.
Most of these companies are eyeing double-digit growth in the current financial year as against nearly flat sales in 2008-09. Minda Industries managing director NK Minda said, The company is setting up new plants in Vietnam, Pune, Bangalore and Manesar this year at an investment of Rs 200-250 crore, which will help us register 8-10% growth in 2009-10 as against total sales of Rs 1,200 crore last year.
Sona Koyo, leading manufacturer of car steerings in India with a turnover of Rs 730 crore in 2008-09, has invested Rs 300 crore to set up new facilities under its recent joint ventures with JTEK, FUJI, Americam Axel and Arjun Stampings this year. The company, which already has four plants in the country, incurred a loss of Rs 30 crore but expects to register profits this fiscal.
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 3 crore, while this year we are looking at 10% growth from new launches and volume growth, Deepak Jain, senior executive director, Lumax Industries said.
We are looking at a turnover of Rs 1,000 crore in this fiscal up from Rs 700 crore in the last fiscal and we hope to achieve this on the basis of good performance in both domestic and overseas market, Arvind Kapur, managing director, Rico Auto Industries 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, he added.
We are running short of capacity because we didnt accept demand to take off. Therefore, we will add 25% capacity this year, Kapur said. Rico Auto Industries, which specialises in brake systems and dye-castings, is also looking to increase its exports by 30% in 2009-10. http://www.financialexpress.com/news/five-auto-part-makers-line-up-rs-1kcr-capex-this-fiscal/517497/ http://in.biz.yahoo.com/090915/50/bau6z0.html
INSURANCE HICCUPS FOR AUTO PARTS EXPORTERS TO CRISIS-HIT US COS Yahoo India See this story in: The Financial Express
Auto component manufacturers, who want to export their product to US-based factories of General Motors, Chrysler or Ford, will find it difficult to get insurance cover for their consignments from the state-owned Export Credit Guarantee Corporation (ECGC), the fifth largest export insurer globally.
"Auto part makers have been asking us to support exports to the US. We politely told them that they (GM, Chrysler and Ford) are in financial crisis, what is the use of sending exports. We are not keen on supporting such exports," said ECGC chairman cum managing director AV Muralidharan at the sidelines of a meeting organised by Federation of Indian Export Organisations (FIEO).
Muralidharan added ECGC will continue to cover exports to factories of US car majors located in other parts of the world "as they are financially sound". Moreover, auto part manufacturers, who have been sending their products to the US-based plants of the auto-majors, will continue to get insurance support.
Known as Detroit's big three GM, Chrysler and Ford, have been hit hard by the economic crisis. GM and Chrysler had filed for bankruptcy as sales crashed. But subsequently, the two auto majors have exited bankruptcy and are on a path of recovery.
"Overall the recessionary time is behind us and ECGC is back to work as normal, providing insurance coverage to their older clients. However, it is still very cautious in building new accounts," Automotive Component Manufacturers Association (Acma) vice-president Jayant Davar said.
According to Davar, the auto component manufacturers who were exporting to the US went through a rough phase before General Motors filed for bankruptcy.
At that time ECGC had refused to provide cover to new businesses and consequently even banks refused the auto component manufacturers the pre and post shipment credit, which is a source of funding for them. "However, no player had lost any money post GM filed for bankruptcy," he said.
According to Acma, about 22-25% of Indian auto-component exports of about $3.5-4 billion is to the US and half of this is accounted by sales to original equipment manufacturers like GM, Ford and others. The rest of the auto-component exports are bought by tier-I and tier-II suppliers as well as aftermarket sales.
ECGC expect defaults from overseas buyers to go up this year. US-bound consignments account for a fourth of the claims that ECGC gets from Indian exporters. "We expect our premium collections to be around Rs 850 crore this financial year while premium out go has been estimated to be about Rs 550 crore," Muralidharan added. In the five months ending August, ECGC has collected premium worth Rs 350 crore. http://in.biz.yahoo.com/090915/50/bau6z1.html
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| ALLIED INDUSTRY Go To Top
JALANDHAR RUBBER INDUSTRY AFFECTED BY RISING PRICE Vijay C Roy Business Standard
New Delhi/ Chandigarh: The unprecedented hike in natural rubber prices in the recent past, coupled with fall in demand of some rubber-based products, has put the rubber units of Punjab in jeopardy.
Few years back, the state had 400-450 rubber-based units, majority of which were in the small and medium enterprises (SME) sector, with Jalandhar as the main centre and also famous for the hawai chappal industry. As a result, Jalandhar, which had been the hub of the rubber industry for four decades and where more than 400 units were functional (5-6 years ago), has about 200-250 units now.
The rubber industry manufactures mainly tyres, tubes, transmission belts and rubber footwear (hawai chappal and canvas shoes).
According to the industrialists, canvas shoes are fast becoming outdated with the advent of sports shoes and the demand for hawai chappal is also not very rosy owing to introduction of EVA injection molding slippers. According to the industrialists, rubber prices have risen about Rs 40 per kg in the recent past.
As rubber accounts for 33 per cent of the cost of production, the increase in prices results in high finished product costs making the product costlier compared with other states. Sources in the industry said there was an acute shortage of natural rubber in Kerala owing to growing demand, the only state producing rubber in the country, as a result of which there was an unprecedented upswing in its prices.
Speaking to Business Standard, Jalandhar Rubber Goods Manufacturers Association President B B Jyoti said, Our input cost has risen significantly in the recent past compared with industries situated in tax-free zone and close to raw material centre. As a result, unable to bear the brunt of rising rubber price, many of the industrialist having low capital base have closed operations.
Also, earlier, only Jalandhar used to supply finished rubber products to the entire country but now, the rubber industry is present in almost every state, giving tough competition to Jalandhar rubber industries, an industrialist said.
Echoing similar sentiments, one of the manufacturers based in Amritsar said, The transportation cost and incentives given by other states have made the rubber industry of Punjab unviable. The landed cost of products from Punjab after paying central sales tax and freight is higher than that of products manufactured in other states (which are nearer to Kerala).
Further, the escalating rubber prices have made our product cost dearer in export market compared with China.
Another Industrialist, based in Ludhiana said, "This price increase is hitting the SSI sector very hard. Already they have bear the brunt in recent past and further under the present circumstances, they are not in position to fulfill their export obligation." Experts are of the view that the production of natural rubber in the country is hardly sufficient to meet the requirements of domestic rubber units manufacturing finished rubber goods products and even the outlook for the current year is not very rosy. Jyoti said, " The government should lift the import restrictions on rubber and also link rubber price with International prices i.e. if the rubber prices go down they should decrease the prices accordingly and vice-versa. Further, the government should ban future trading of rubber and if it is not feasible it can allow only license holders to trade." http://www.business-standard.com/india/news/jalandhar-rubber-industry-affected-by-rising-price/370201/
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| FINANCE & INSURANCE Go To Top PTI See this story in: The Economic Times
New Delhi: Auto maker Mahindra & Mahindra on Tuesday said it has entered into an agreement with Punjab National Bank for vehicle finance.
Following the tie-up, Punjab National Bank will be a preferred financier for Mahindra vehicles, Mahindra & Mahindra (M&M) said in a statement.
PUNJAB & SIND BANK CUTS INTEREST RATE ON NEW HOME, AUTO LOANS PTI See this story in: The Economic Times, The Statesman
New Delhi: State-run lender Punjab & Sind Bank has announced lower interest rates for home and auto loans ahead of the festival season.
The new interest rate for new home loans of up to Rs 20 lakh is 8.25 per cent for the first 24 months, 9 per cent for the next 36 months and thereafter it would be minus 2.5 per cent of the prime lending rate but subject to a minimum of 10 per cent, the bank said in a statement. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=268663
The Hindu Business Line
New Delhi: Hindustan Motors Ltd announced that it has signed a three-year memorandum of understanding with Punjab National Bank (PNB) to provide financing for its new mini truck HM Shifeng Winner.
Under the MoU, PNB would provide easy and attractive finance schemes for three years to customers purchasing the Winner.
According to Mr Rattan Singh, Chief General Manager, Sales & Marketing (Vehicles), the mini truck is the first Light Commercial Vehicle in the country with a CNG with BSIV version and a powerful four cylinder 1,800 cc engine. http://www.thehindubusinessline.com/2009/09/16/stories/2009091651840600.htm
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top Murali Gopalan, Richa Mishra The Hindu Business Line
Mumbai/New Delhi: With barely six months to go before the new emission norms become mandatory, it increasingly looks as if the April 1, 2010 deadline will not be met across the country.
On this date, 14 cities will graduate from the present Bharat Stage III (BS III) umbrella to BS IV while the rest of India makes the transition from BS II to BS III. In a nutshell, this means lower levels of vehicular emissions comprising hydrocarbons, nitrous gases, sulphur, carbon monoxide and particulate matter.
During the last round of clean air conversion in 2005, 11 cities moved up to BS III (from BS II) while the others followed suit with BS II from BS I. Incidentally, BS is the Indian equivalent of the more commonly understood Euro emission norms used globally.
Oil industry sources told Business Line that there would be absolutely no problems concerning implementation of BS IV norms in 14 cities. We are ready for it and there will be no issues concerning availability of cleaner diesel and petrol to these metros, they said.
Logistical nightmare However, the glitch lies in BS III for the rest of the country. This is turning out to be a logistical nightmare for the oil refiners. It looks as if availability and supplies to Uttar Pradesh, Bihar, West Bengal and the North-East will not be possible from April 1 next year, an executive said. Servicing parts of the South could also prove a challenge, he added.
This is largely because Indian Oil Corporations Barauni refinery will be hard-pressed to meet the needs of the entire UP and Bihar belt while BPCLs Kochi Refineries, likewise, needs time to get additional infrastructure in place to supply clean fuels in the southern region. There is already a shortage of refining capacity in the North-East and to expect supplies to be in place from April 1 would be a tall order, sources said.
There are other problems to be reckoned with. The first lies in insufficient tankage capacity for the BS III fuels. Two, work needs to carried out on pipelines so that they are better suited to transport the new fuels which will be lower on sulphur content. This is not the easiest of tasks and we need more time to carry out this exercise, an oil industry executive said.
The present thinking is that implementation of BS III should ideally be extended to October 1, 2010 but whether that is possible remains to be seen because this is a Supreme Court directive.
Auto sector needs The automobile industry has already indicated that it would require supplies of BS IV fuel by January 2010 to test it out in the vehicles that will comply with this norm three months later. Petroleum Ministry officials said some companies have been given no objection certificates to import the fuel for testing by companies, including Ford, Maruti, Hyundai, and Tata Motors.
The bigger problem will occur with the hiccups in BS III fuel availability especially with carmakers. They will now have to wait to see if there is an extension in the date and then plan their production accordingly to gradually phase out BS II models and increase the BS III numbers. This will not be easy because it will have to involve close coordination with testing agencies like the ARAI (Automotive Research Association of India). Officials in the Petroleum Ministry reiterated that there would be no time lag in implementation of BS IV. We will go by the policy. Upgradation of refineries is already on, sources said.
To ensure smooth distribution and work out the logistics issues, the Ministry has constituted a committee with representatives from oil refiners. The idea is to ensure that there is no lag between production and distribution. Logistics is an issue. Concerns like from where the product will be sourced and where it would be exchanged need to be addressed, an official said. http://www.thehindubusinessline.com/2009/09/16/stories/2009091650550200.htm
OIL HOVERS BELOW USD 69 PER BARREL See this story in: The Indian Express Singapore: Oil prices hovered below USD 69 a barrel on Tuesday in Asia as investors weighed concerns about weak crude demand against optimism of a global economic recovery.
Benchmark crude for October delivery was down 21 cents at USD 68.66 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. On Monday, the contract fell 43 cents to settle at USD 68.86.
Oil has meandered between USD 65 and USD 75 this summer as crude stocks soar and traders eye slumping consumer spending.
US oil inventories are higher now than in May, and analysts expect demand to drop off in the autumn following the summer driving season.
Investors will be looking at supply data from the American Petroleum Institute late on Tuesday and the Energy Information Agency on Wednesday for clues about the consumption trend. Analysts expect inventories to drop 3.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
Crude investors have also been mulling the US dollar, which fell to its lows of the year last week. The dollar rebounded late last week, sparking a USD 4 drop in oil prices. The euro was steady in Asian trading at USD 1.4624 and the dollar held near 91 yen. http://www.indianexpress.com/news/oil-hovers-below-usd-69-per-barrel/517332/
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| INTERNATIONAL NEWS Go To Top Bloomberg See this story in: The Economic Times
Washington: Sales at US retailers surged in August by the most in three years, led by a jump in auto purchases, as consumers took advantage of the governments cash-for-clunkers programme.
HYUNDAI SEES LITTLE RECOVERY BEFORE 2015 Reuters See this story in: mint
Frankfurt: Hyundai Motor Co, South Koreas top automaker, does not expect a significant recovery of European auto markets in the near term.
It wont be until 2015 when the market picks up significantly and well see 2007 levels in Europe again, Allan Rushforth, vice-president of Hyundai Motor Europe told Reuters on Monday on the sidelines of the Frankfurt Motor Show. He said Asian markets are expected to recover more quickly.
Hyundai will however be able to increase its market share as car tax rules have made customers increasingly concerned about topics like climate change, Rushforth said.
Our market share will rise to 2.5% in Europe this year after reaching 1.8% in 2008, he said. It was 2.4% in the first eight months.
To meet the growing European demand Hyundai is considering expanding its manufacturing sites in the Czech Republic and Slovakia, where each currently has an annual production capacity of 200,000 units. Hyundai aims to sell half a million cars in Europe by 2013.
We have the possibility to add 100,000 to our Czech plant, Rushforth said. The European production had partly shielded Hyundai from the effects of the appreciation of the won.
Electronic carsHyundai will start selling its full electric i 10 to fleets in the second half of 2010will play a major role in the companys expansion strategy, Rushforth said. We expect 5% of global sales to be electric cars in 2020. http://www.livemint.com/2009/09/15153910/Hyundai-sees-little-recovery-b.html
OPEL SAYS RESTRUCTURING NOT BASED ON POLITICS Soyoung Kim/ Reuters Yahoo India
Frankfurt: German carmaker Opel needs to cut capacity and workforce quickly to return to profitability, but any decision on restructuring the company would not be driven by political considerations, Opel Chairman Carl-Peter Forster said on Tuesday.
Forster said at the Frankfurt Motor Show that turning around the unprofitable automaker in the next few years would not be "an easy road" and the overall economy would need to pick up to ensure a successful turnaround.
A consortium led by Canada's Magna International plans to cut about 10,500 jobs from Opel's workforce of 50,000 after striking a deal to buy a 55 percent stake in Opel from General Motors Co last week.
Magna has said that all four German plants will stay open under the agreement, while a plant in Antwerp, Belgium, could close.
Britain and Belgium urged the European Commission to ensure the takeover of Opel did not favor German workers because of 4.5 billion euros ($6.6 billion) in promised aid from Germany. The European Commission plans to question Germany over its preference for Magna's bid for Opel over a rival offer by Belgium-based RHJ International. http://in.biz.yahoo.com/090915/137/bau6wf.html
VOLKSWAGEN TO UNVEIL NEW ELECTRIC CAR AT IAA AP See this story in: Hindustan Times, Deccan Herald
Frankfurt: German carmaker Volkswagen AG said it would unveil several new models at the Frankfurt Auto Show, including an electric car called the E-Up.
At a reception before the start of the show last evening, the company said the E-Up compact would likely only go into production in 2013 and approach production levels of that of its other popular compact cars only by 2020.
The company said the front wheel drive cars lithium ion battery will have 18 kilowatt hours energy capacity enabling a driving distance of around 130 kilometres, or about 80 miles, depending on driving style.
One of the basic milestones on this timeline is the mass produced electric car, Chief Executive Martin Winterkorn said in a statement.
He said only in high volumes and on all continents could one truly speak of the beginning of the electric age in automobiles and a perceptible reduction of their environmental impact.
The concept car now being presented in Frankfurt very realistically shows how we envision such a Volkswagen with pure electric drive, technically, visually and with regard to a practical size, Winterkorn said.
The company will also unveil other models that include more of its Blue Motion technology as well as new hybrid technology. http://www.deccanherald.com/content/25288/volkswagen-unveil-electric-car-iaa.html
BMW, MAZDA LEAD THE WAY AS AUTO EMISSIONS FALL: SURVEY AFP See this story in: Hindustan Times Brussels: BMW and Mazda lead the way in cutting auto emissions, well ahead of their rivals in the hunt for cleaner cars as new European Union targets begin to bear green fruit, a report showed on Tuesday.
Taking cars made by 14 major automakers into account, the average CO2 fall per car was put at 3.3 per cent, the European Federation for Transport and Environment said. German automaker BMW achieved the best results in 2008, with CO2 down by an average 10.2 per cent, according to the results of the groups survey.
Japanese maker Mazda cut its car emissions by 8.2 per cent over the same period, the transnational industry group said, stressing that the figures reflect cuts in emissions, which is easier for higher polluters to do than their cleaner rivals.
Nevertheless the 3.3 per cent emissions drop in 2008, measured across 14 major car makers, shows that new EU rules on emissions are having an effect, said federation director Jos Dings.
If the overall drop in average CO2 emissions was purely related to the financial crisis, fuel prices or changing consumer behaviour, we would have expected to see every company reducing much more equally, he said.
But what is actually happening is that car-makers are seeing how far they have to cut and changing their fleets accordingly, he added.
RENAULT LAUNCHES ELECTRIC CAR MODELS Steve McGrath/WSJ See this story in: mint
Frankfurt: French car maker Renault SA on Tuesday revealed four electric concept cars and new alliances that it hopes will put the company at the fore-front of the drive toward this technology.
Launching the concepts at the Frankfurt Motor Show, Chief Executive Carlos Ghosn said he expects electric cars to make up 10% of total global car volumes by 2020.
BOSCH TO CUT 10,000 JOBS THIS YEAR Reuters See this story in: Yahoo India
Frankfurt Robert Bosch expects to cut 10,000 jobs this year and keep 100,000 more staff on short working hours amid an auto industry slump that could last for years, Chief Executive Franz Fehrenbach said.
The world's biggest automotive supplier will post a deep loss this year, with group revenue down around 15 percent to 38 billion euros ($55.61 billion) and vehicle technology revenue down as much as a fifth, he said in remarks prepared for delivery at the Frankfurt Motor Show.
It will employ around 270,000 staff after the cuts. Fehrenbach said he was seeing "the first signs of a recovery" and that group sales revenue was set to rise in the fourth quarter after a long dry patch. It also makes industrial and household goods.
Still, Bosch was unlikely to see a quick rebound in its capacity utilisation rates, he added. "Overall it could take until 2012 until we reach the pre-recession level of 2007 again," he said. http://in.biz.yahoo.com/090915/137/bau6vj.html
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee was range-bound on Tuesday as there was both demand and supply for the dollar. The rupee opened at 48.65 and closed at 48.64/65, slightly higher from the previous close of 48.67. During the day, it traded between 48.54 and 48.69. In the initial part of the day, there was dollar supply as foreign banks were seen selling dollars, probably on behalf of foreign institutional investors, said a forex dealer with a private bank.
The demand for the greenback came towards the end of the trade as the pound dropped sharply in the overseas market. The positive stock market also aided the rupee. In the overseas market the dollar strengthened and will continue to do so, the dealer added. The forward premia increased with the six month closing at 2.69 per cent (2.67 per cent) and the one-year at 2.81 per cent (2.79 per cent). http://www.thehindubusinessline.com/2009/09/16/stories/2009091651940600.htm
MARKETS REGAIN WINNING WAYS; SENSEX UP 240 POINTS PTI See this story in: The Hindu Business Line
Mumbai: The stock markets on Tuesday shot up to a new 15- month high, with the benchmark Sensex adding a hefty over 240 points and the Nifty futures crossing 4,900-level on reports of higher advance tax payments by some corporate.
After snapping a six-day rally yesterday, the bellwether index staged a sharp come-back rally to close higher by 240.26 points at 16,454.45, a level last seen on June 2 last year. Similarly, the wide-based National Stock Exchange index Nifty shot up by 83.50 points to 4,892.10 and almost touched the 4,900-level at 4,899.45 during intra-day. The Nifty Futures for September contract crossed 4,900-point level and closed 4,908.90 in t he derivative segment.
Market men said hectic buying were seen after reports that advance tax payments by some big corporate were higher. Market leader Reliance Industries shot up by Rs 33.20 to Rs 2,180.15. The second heaviest Infosys added Rs 19.50 to Rs 2,270.05.
Leading private lender ICICI Bank rose by Rs 16.75 to Rs 842.30. The three scrips carry nearly 30 per cent weight on Sensex. Among the sectoral indices, realty, metal, bank and auto led the rally and closed with handsome gains. http://www.thehindubusinessline.com/blnus/05151901.htm
INFLATIONARY PRESSURES BUILDING: RBI The Financial Express
New Delhi: India may need to raise interest rates before other countries do so, as inflationary pressures are building up, Reserve Bank of India (RBI) governor D Subbarao said on Tuesday.
The central bank will however, start exiting the monetary expansion only when it is sure that the economic recovery is secure, Subbarao said at a seminar organised by Indian Council for Research in International Economic Relations. The question of exit will fall upon us much earlier than other countries, Subbarao said, while stressing that any exit plan will have to be coordinated with actions of global central banks.
The wholesale price index (WPI) based inflation has already touched 5.2% between April 1 and August-end, even though the year-on-year inflation remains negative, the governor pointed out, ostensibly trying to prepare the market for future unwinding.
The year-on-year WPI inflation stood at -0.12% for the week ended August 29, up from -0.21 in the previous week. The WPI inflation will be 5.2% plus (by March 2010). CPI (consumer price index) inflation, even being in double digits, is going up, he said. The RBI had raised its inflation forecast for 2009-10 to 5% from 4%.
However, Subbarao added, In taking a call, especially on monetary policy on exiting, we will not exit until we are sure that recovery is secure, and soon thereafter, we will start unwiding accommodation. The RBI will study data on inflation, capital flows, industrial of industrial production growth, credit growth and various other indicators to ascertain whether the recovery is secure, he said.
Subbarao also added that the challenge for the government and RBI will be to reverse monetary expansion and drive growth. India is not a demand-constrained economy. It is a supply constrained economy, he said.
The governor also said there is an agreement among the G-20 countries on not only co-coordinating exit strategies but also on talking about such policies. RBI will also need to be watchful in raising the interest rates that could lead to a flood of capital flows into India.
There is a whole lot of liquidity stocking up in the world. If we raise interest rates earlier than others, then we will have capital flows coming in, Subbarao said. We do want capital flows. We do not want a flood of capital flows. We want measured capital flows, he stressed. Foreign institutional investors (FIIs) pumped in $8.87 billion in the Indian stocks so far in 2009, as per the Securities and Exchange Board of India data. They sold more than $13 billion in 2008. In 2007, FIIs were net buyers of $17.4 billion in the equities market. http://www.financialexpress.com/news/inflationary-pressures-building-rbi/517486/2
Last Financial closing
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Tuesday, September 15, 2009
Indian Auto Industry Update September 16, 2009
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