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| INDUSTRY Tatas tune up plan to revive Jaguar, Land Rover Tata to shut 1 JLR plant; rules out retrenchment Two new Reva models will electrify Indian roads next year INTERVIEWS/FEATURES CARS, SUVs, MUVs GM, Reva tie up for electric vehicles
Figo: For Ford the hard drive begins now
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| INDUSTRY Go To Top S Kalyana Ramanathan Business Standard (Web & Print Edition) London: Tata Motors-owned Jaguar Land Rover unveiled what it called a new business plan for the next decade, under which it will invest substantially in a new range of eco-friendly vehicles. The plan, designed to increase global competitiveness, drive growth and sustain profitability, envisages an investment of 800 million (over Rs 6,200 crore) on environmental innovation alone, part-supported by the European Investment Bank. The plan will also see the company shutting one of its plants in the UK, but, it promises, without any job loss. Rather, it says, it is likely to add 800 more jobs by the middle of 2010. A company spokesperson also said the new Range Rover production will start by 2011, the preparation for which will commence by the middle of next year. Apart from the new Range Rover, the company also proposes to develop a new light weight sedan, sports cars and sports utility vehicles and "electrification technology" (to produce hybrid cars). Jaguar Land Rover Chief Executive Officer, David Smith said: "This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands. We are confident that a new more efficient and competitive structure, combined with future investment, will unlock the true potential of this business." The company said it plans to rationalise production between two of its plants in the West Midlands. The plan could result in the moving of production from one plant to another, leaving one of the plants redundant. At the moment, one produces Jaguars and the other makes Land Rovers. However, workers are suspicious. GMB, a key union in the company's 14,500 strong work force, in its initial reaction to news of a possible plant closure said wants details GMB will be opposing everything we have heard so far. We will fight the company on this of that I have no doubt, said Bert Hill, their regional officer. "The car industry has been through an unprecedented recession. New car sales, including those of Jaguar and Land Rover, are down globally by 25-30 percent. This has resulted in manufacturing capacity utilisation of less than 60 percent at Jaguar Land Rover, which combined with the credit crunch, has exposed fundamental weaknesses in the structure of the business," a JLR statement said. Over the past year, production in JLR was reduced by more than 1,00,000 units; spending and costs were cut; jobs reduced by 2,500; pay frozen and bonuses cancelled. "But this was not enough to offset the full magnitude of the downturn and the company swung from profit in 2007 to significant losses over the past 12 months. This was not a sustainable situation. Actions taken have started to reverse the trend, quarter over quarter, and we now have to take the company to the next level of competitiveness," the statement from JLR said. Though no firm decision has been made, the company is also looking at potential local manufacturing in cost-competitive markets like India. http://www.business-standard.com/india/news/jlr-unveils-new-plan-for-revamp-unions-restive/371212/ JLR plans to shut down UK plant, pump in 800 mn The Economic Times (Web & Print Edition) JLR to shut one UK plant; invest 800 m in 10 years The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/blnus/14241806.htm JLR to shut one UK plant The Tribune (Web Edition) http://www.tribuneindia.com/2009/20090925/biz.htm#6 JLR to shut one UK plant The Statesman (Web Edition) http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=269526 Closure shock for JLR plant The Telegraph (Web Edition) http://www.telegraphindia.com/1090925/jsp/business/story_11540446.jsp JLR to invest 800m in 10 yrs http://www.dailypioneer.com/204792/JLR-to-invest-800m-in-10-yrs.html Tata Motors plans to shut down one plant of JLR The Times of India (Web & Print Edition) Tata to shut 1 JLR plant; rules out retrenchment Yahoo India (Web Edition) http://in.biz.yahoo.com/090924/50/bau8oj.html JLR to shut one UK plant; invest 800 mn pounds Rediff India (Web Edition) TATAS TUNE UP PLAN TO REVIVE JAGUAR, LAND ROVER The Hindu Business Line (Web & Print Edition) Mumbai: There is finally light at the end of the tunnel for Jaguar and Land Rover with the owner, Tata Motors, geared for a turnaround plan. This involves shutting down one of the two West Midland plants by 2014, expansion of the product range and cost-cutting initiatives. The company, which bought the two British brands from Ford for $2.5 billion in June last year, has had a rough run since with combined annual sales crashing 32 per cent to 1.67 lakh units. JLR also contributed to Rs 1,777 crore of Tata Motors consolidated net loss of Rs 2,505 crore last fiscal. Consultants KPMG and Roland Berger were eventually roped in for a turnaround strategy. The new business plan is made in the context of the business environment the auto industry faces, said a Tata Motors spokesperson. Over the next few years, the company will successively source all new products from one of the two plants in the West Midlands. The workforce will be gradually transferred to one site, he added. Sourcing from India The spokesperson said this consolidation of production would be decided in the first half of 2010 but only done in the middle of the next decade. On the anvil are lightweight replacement of core sedans coupled with new sports cars, luxury SUVs and additional derivatives and power train variants of core models. The new manufacturing plan does not envisage any compulsory redundancy. In fact, 800 new jobs will be created at Halewood for the production of a new Range Rover model, he added. For instance, the upcoming LRX Concept is the smallest and most fuel efficient among all Range Rover models. The third part of the new business plan is cost streamlining, which includes sourcing of parts from low-cost countries such as India. Cost action involves pension restructuring, lower employment cost for the new hires and focus on business simplification, said a JLR spokesperson from London. Cost cutting This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands. We are confident that a new more efficient and competitive structure, combined with future investment, will unlock the true potential of this business, JLRs CEO, Mr David Smith, said. The company has already responded with aggressive actions over the past year. Production was reduced by more than 1,00,000 units; spending and costs were cut; employment reduced by 2,500 people; and pay frozen and bonuses cancelled. http://www.thehindubusinessline.com/2009/09/25/stories/2009092551900100.htm Tata to consolidate UK JLR auto plants The Indian Express (Web & Print Edition) http://www.indianexpress.com/news/tata-to-consolidate-uk-jlr-auto-plants/521089/ JLR to shut factory in West Midlands, close pension scheme mint (Web & Print Edition) http://www.livemint.com/2009/09/24131056/JLR-to-shut-factory-in-West-Mi.html?h=E Back to wall, Tata Motors pens lean & mean JLR plan Daily News & Analysis (Web Edition) http://www.dnaindia.com/money/report_back-to-wall-tata-motors-pens-lean-and-mean-jlr-plan_1292835 TATA TO SHUT 1 JLR PLANT; RULES OUT RETRENCHMENT The Financial Express (Web & Print Edition) Mumbai: The drive to make Jaguar Land Rover (JLR) leaner and cost-effective has gathered momentum under the new owner of the British iconic brands, Tata Motors. The company on Thursday said it plans to shut down one of the JLR plants in the West Midlands by 2014. JLR has two plants in the West Midlands region, one in Castle Bromwich and the other in Solihull. Currently, the company employs around 5,000 workers in Solihull and 2,000 in Castle Bromwich. JLR has another plant at Liverpool, and employs, in all, 14,500, including some 3,500 engineers at two product development centres in Whitley, Coventry, and Gaydon, Warwickshire. The company said it will operate only one of the West Midlands plants, and will decide which one it will go ahead with by mid-2010. However, it clarified there would be no retrenching of staff, as they will be moved from the plant to be closed down to the one that will remaion operational. Moreover, 800 jobs will be created at its Halewood plant in Liverpool, which now has 1,800 employees. Jaguar models including XF, XJ and XK are produced at Castle Bromwich plant, while at Solihull plant, the company produces Land Rover models including Defender, Discovery 3, Range Rover Sport and Range Rover models. Globally, new car sales of various auto companies, including those of JLR, are down 25-30%. This has resulted in manufacturing capacity utilisation of less than 60% at JLR, which, combined with the credit crunch, has exposed fundamental weaknesses in the structure of its business, JLR said. JLR's loss before tax for the first quarter ended June 30, 2009, stood at 62 million pounds (Rs 496 crore), and pulled down Tata Motors' consolidated performance for the period to a net loss of Rs 328.78 crore. Since acquiring JLR, Tata Motors has taken several steps to pare costs through production and job cuts. Among other things, JLR has slashed production by more than 100,000 units, cut costs and 2,500 jobs and cancelled bonuses. The company says all these are part of a plan to improve efficiency. Thursday's move is also part of the companys overall new business plan designed to increase its global competitiveness significantly. The plan includes decisive actions--such as launching a new and expanded range of products, delivered through streamlined and competitive costs and a new manufacturing strategy--to see through the next 12-18 months as markets recover. A Tata Motors spokesperson said the closure would be gradual. The company would be reviewing the two plants on the lines of cost, quality, efficiency and logistics. The move is expected to help the company save overhead costs on the plant. http://www.financialexpress.com/news/tata-to-shut-1-jlr-plant-rules-out-retrenchment/521191/2 TWO NEW REVA MODELS WILL ELECTRIFY INDIAN ROADS NEXT YEAR The Hindu Business Line (Web & Print Edition) New Delhi: Reva Electric Car Company (RECC) announced on Thursday that the two models showcased recently at the Frankfurt Motor Show, the NXR and the NXG, would be launched in the country starting the first quarter of 2010. According to Mr Chetan Maini, Deputy Chairman and CTO, RECC, the NXR is slated to be launched around the Auto Expo in January, while the NXG would be rolled out in January 2011. We plan to launch one new model every year and are committed to making green cars, said Mr Maini. In Europe, prices for the NXR range between 9,995 and 14,995, while the NXG is priced at 23,000. However, according to company officials, the pricing strategy for India is yet to be finalised. Mr Maini, who is one of the co-founders of RECC, also said the company is building a new plant in Bangalore to manufacture electric vehicles. The company already has a facility in Bangalore with a maximum capacity of 6,000 cars a year. This plant will run on solar energy and within three years will have a maximum capacity of 30,000 units a year. We are making an investment of Rs 30 crore in the new plant. Around 20 per cent of the investment would go towards green initiatives, including energy efficient structural materials and rainwater harvesting facilities, he said. He added that the new plant would be ready by the first quarter of next year and the company would look to export about half of its production overseas. According to Mr Maini, RECC has sold about 3,000 cars worldwide up till now, of which 650 units have been sold during the 2008-09 fiscal. According to estimates, 15 per cent of cars worldwide would be EVs by 2020, he said. http://www.thehindubusinessline.com/2009/09/25/stories/2009092551500200.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTERVIEWS/FEATURES Go To Top New Delhi: Ford unveils the small car that it will make in India from next year; Renault announces fresh Indian plans, adding Nissan as a partner after having already selected Bajaj for a joint venture; Volkswagen in turn will introduce its small car next year. By all accounts, the car industry in India is about to acquire serious scale, as new car plants start dotting the maps of Maharashtra, Tamil Nadu, Haryana, Gujarat and Uttaranchal. An astonishing 40 new car models have been introduced in the market over the past year, half a dozen by Maruti alone. Along the way, India has become the second-largest maker of small cars, overtaking Brazil (Japan is No. 1, of course). Overall, the countrys car industry now ranks seventh in the world, with a 4 per cent share of the 50 million global car market. A decade from now, that share might well be 10 per cent. When global giants start investing in plants with scale, in preparation for entering the market to take on the existing domestic champions (Maruti, Hyundai, Tata), it should be obvious that the action is just beginning. The Society of Indian Automobile Manufacturers says that a staggering Rs 78,650 crore will be invested by car companies in the four-year period between 2007 and 2011, more than has been done in the first six decades after Independence. Todays three market leaders lead the pack with close to Rs 10,000 crore each, followed by Mahindra and a dozen or more others. Among them must now be counted Fiat-Tata, Volkswagen, Renault-Nissan, Honda and Toyota (which is expanding only in India). Component manufacturers, who have failed to keep pace with soaring demand (necessitating imports from Thailand, China and elsewhere), seem to be changing gear too. So the R word is long forgotten, thanks in large part to the series of stimulus measures announced by the government from last Decemberstarting with interest rate deductions and going on to successive tax cuts, better depreciation rates for trucks and substantial car buying by government departments. Other factors that have helped are the pay-out following the implementation of the Pay Commission report, and the fact that state-owned banks stepped up to the plate after private banks began de-emphasising car finance. Domestic car sales will grow 15 per cent this year, despite having started slowly. Exports will grow much faster, with April-August clocking 37 per cent growth over last yearthe cars going mostly to Europe, whose own car production has been falling. Domestically, the market is deepening22 leading towns and cities used to account for more than two-thirds of all car sales; that figure is now down to less than a half. The fresh lease of life being given to the highway programme and the new momentum in the smaller towns mean that the car market has a long way to go. In a parallel development, two-wheelers are doing well too, with production expected to zoom to perhaps 9 million this year, up about 20 per cent from 7.4 million last year. A million out of those will be exported, mostly to Asia and South America. http://www.business-standard.com/india/news/a-small-car-hub/371199/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CARS, SUVs, MUVs Go To Top Chanchal Pal Chauhan The Economic Times (Web & Print Edition) New Delhi: Passenger car leader Maruti Suzuki India has stopped manufacturing its most expensive car SX4, the mid-sized sedan, reinforcing the widely-held belief that the small car leader does not have the expertise to make and market big cars. Maruti will relaunch SX4 within a fortnight with a new 1.6-litre engine which will have a much higher pick-up. It will be more expensive than the current top-end Zxi variant, which comes at Rs 7.5 lakh (ex-showroom Delhi). Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" MARUTI HALTS MID-SIZED SEDAN SX4 PRODUCTION PTI See this story in: The Hindu Business Line (Web & Print Edition) New Delhi: The country's largest car maker, Maruti Suzuki India (MSI), has temporarily stopped production of its mid-sized sedan SX4. According to industry sources, the company has stopped production of the current SX4 model in order to change engine, which would be compliant with the Bharat Stage-IV norms. From April, 2010, 11 cities in India are supposed to be upgrading to the Bharat Stage-IV emission norms and Maruti Suzuki's SX4 is currently compliant with only Bharat Stage-III norms. When contacted, a MSI spokesperson declined to comment, saying we don't comment on specific model production. http://www.thehindubusinessline.com/blnus/02241708.htm MARUTI SUZUKI STOPS PRODUCTION OF SX4 The Times of India (Web & Print Edition) New Delhi: Maruti Suzuki has temporarily stopped the production of SX4, a model that failed to cut much ice in the market despite being priced significantly lower than Honda City, leader of that segment. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" MARUTI SUZUKI STOPS PRODUCTION See this story in: The Statesman (Web Edition) New Delhi: Maruti Suzuki India has temporarily stopped production of its mid-sized sedan SX4. According to industry sources, the company has stopped production of the current SX4 model in order to change engine, which would be compliant with the Bharat Stage-IV norms. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=269531
See this story in: The Indian Express (Web Edition) New Delhi: The country's largest car maker, Maruti Suzuki India (MSI), has temporarily stopped production of its mid-sized sedan SX4. According to industry sources, the company has stopped its production of the current SX4 model in order to change engine, which would be in compliant with the Bharat Stage-IV norms. From April, 2011, 11 cities in India are supposed to be upgrading to the Bharat Stage-IV emission norms and Maruti Suzuki's SX4 is currently in compliant with only Bharat Stage-III norms. When contacted, a MSI spokesperson declined to comment, saying we don't comment on specific model production. http://www.indianexpress.com/news/maruti-halts-production-of-sx4/521024/ PTI See this story in: The Tribune (Web Edition) New Delhi: The country's largest car maker, Maruti Suzuki India (MSI), has temporarily stopped production of its mid-sized sedan SX4. According to industry sources, the company has stopped production of the current SX4 model in order to change engine, which would be compliant with the Bharat Stage-IV norms. From April, 2011, 11 cities in India are supposed to be upgrading to the Bharat Stage-IV emission norms and Maruti Suzuki's SX4 is currently compliant with only Bharat Stage-III norms. When contacted, a MSI spokesperson declined to comment, saying we don't comment on specific model production. http://www.tribuneindia.com/2009/20090925/biz.htm#8 The Financial Express (Delhi Print Edition) The country's largest car maker, Maruti Suzuki India (MSI), has temporarily stopped the production of its mid-sized sedan SX4. According to industry sources, the company stopped its production of the current SX4 model in order to change the engine. GM, REVA TIE UP FOR ELECTRIC VEHICLES Business Standard (Web & Print Edition) New Delhi: General Motors Indian subsidiary signed an agreement with Bangalore-based Reva Electric Car Company (RECC) to jointly develop and produce electric vehicles for the Indian market. They hope to be able to produce one for sale by next year. The two companies said the plan is to make India a hub for environment-friendly vehicles. RECC is already making and selling electric cars for both the domestic and export markets. And, it says other domestic car makers have approached it for a similar agreement. Nothing has been finalised, said Chetan Maini, deputy chairman and chief technology officer of RECC. Maini was speaking on the sidelines of the signing event. The partnership will help GM, India build Chevrolet-badged electric cars for the domestic market. Its entry compact car, Spark, will be the first Chevy model to use the electric drive train of Reva. Officials say even the other small car models like the U-VA and the soon-to-be-launched Beat will benefit from this collaboration. Electric car technology is fast growing in the domestic market, primarily due to government support. By this agreement signed, we hope to get the first mover advantage in the consumers minds, said Karl Slym, president and managing director of GM India. GM sells around 40,000 units of the Spark every year. Company officials say an additional 10-15 per cent of Spark units would be manufactured as electric cars sporting both the older lead acid battery and the new lithium battery technology. Further, we would offer a third version of battery technology which is an advanced derivative of the lithium battery , says Maini. Electric Spark cars will be available in a years time and will be manufactured in GMs Halol and Talegaon facilities. A lead acid battery offers a driving range of around 80 km on a single charge, while the advanced lithium battery pack enables the car to travel over 120 km. The price of the electric Spark was not announced. Generally, electric cars powered by lithium batteries are twice the cost of a petrol model. That is because the lithium battery fitted in the car would have to be imported and costs over Rs 3 lakh. The agreement signed will broadly entail GM paying Reva a royalty fee for each electric car it manufactures. Company officials from both sides said the details were still not final. We are going to work closely with the central and state governments in India to develop infrastructure for electric vehicles charging and providing specific financial benefits to consumers who make the choice to adopt an environment-friendly mode of personal transport, Slym said. http://www.business-standard.com/india/news/gm-reva-tiefor-electric-vehicles/371213/ GM ties up with Reva The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/09/25/stories/2009092551930100.htm The Tribune (Web Edition) http://www.tribuneindia.com/2009/20090925/biz.htm#10 GM, Reva to partner for electric car for India Hindustan Times (Web & Print Edition) GM, Reva join hands to develop electric vehicles The Hindu (Web & Print Edition) http://www.hindu.com/2009/09/25/stories/2009092557461300.htm GM, Reva pact for electric car The Statesman (Web Edition) http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=269529 GM ties up with Reva The Telegraph (Web Edition) http://www.telegraphindia.com/1090925/jsp/business/story_11540436.jsp Electric car gets GM push Deccan Chronicle (Web Edition) http://www.deccanchronicle.com/business/electric-car-gets-gm-push-660 GM partners with Reva to make electric Spark The Times of India (Web & Print Edition) GM inks pact with Reva for electric variant of Spark Yahoo India (Web Edition) http://in.biz.yahoo.com/090924/50/bau8of.html GM in pact with Reva for producing electric vehicles mint (Web & Print Edition) http://www.livemint.com/2009/09/24123831/GM-in-pact-with-Reva-for-produ.html GM expects 50% growth in 2010 The Pioneer (Web & Print Edition) http://www.dailypioneer.com/204787/Snapshots.html GM inks pact with Reva for electric variant of Spark The Financial Express (Web & Print Edition) http://www.financialexpress.com/news/gm-inks-pact-with-reva-for-electric-variant-of-spark/521178/ Electric car gets GM push Asian Age (Delhi Print Edition) GM INDIA, SAIC IN TALKS TO SELL WULING MODELS Bloomberg See this story in: mint (Web & Print Edition) Mumbai/Shanghai: General Motors Co. (GM) is in talks with Chinese partner Saic Motor Corp. to introduce Wuling light commercial vehicles in India, where economic growth is spurring demand for small trucks. Discussions on models and cooperation between the partners havent been completed, Karl Slym, managing director of GMs India unit, said in New Delhi on Thursday. GM is considering the Wuling models for India because it is easier for the company to adapt existing platforms and technologies for faster introduction of vehicles, Slym said. He denied that Saic is buying production facilities from GM in India as previously reported in the Chinese media. http://www.livemint.com/2009/09/24225655/Auto--TVS-to-sell-Flame-after.html FORD INKS $500-MN DEAL WITH TN GOVT Business Standard (Web & Print Edition) Chennai: Ford Motor Company signed an agreement with the Tamil Nadu government for the $500-million expansion programme at its manufacturing facility at Maraimalai Nagar a city suburb. This would help the company expand its presence in India, paving the way for volume production of the new Ford Figo which was unveiled yesterday in New Delhi, according to Ford India. The agreement was signed by Ford India President and Managing Director Michael Boneham and the state governments Principal Secretary (Industries) M F Farooqui, in the presence of state Chief Minister M Karunanidhi and Deputy Chief Minister M K Stalin. This agreement symbolises our belief in the strong role India can play in the future of Ford Motor Company, said Boneham. After the introduction of the India-engineered and Chennai-manufactured all-new Ford Figo, our expanded investment in Tamil Nadu will benefit the region in the form of expanded employment both at the plant and among a growing local supply base, he added. Ford, which established manufacturing facilities in the state in 1996, has already executed the first phase of transformation at its Maraimalai Nagar plant as a part of the $500-million expansion programme. It is now being readied for volume production of the new Ford Figo. The final phase of the plant expansion will add a new engine production facility, with a capacity of 250,000. This will convert the Maraimalai Nagar plant into a regional source for small displacement engines, with production catering to demand from both Indian as well as Fords Asia-Pacific and Africa markets. Construction of the engine plant is well underway, with production expected to come on stream in 2010, said Boneham. The plants annual vehicle production capacity will be doubled to 200,000 units after the expansion, which is also expected to create 1,000 new jobs. The manufacturing facility will have 92 new robots and Indias first application of a new eco-friendly painting process, called Three-Wet High-Solids. The Ford investment in Chennais regional development envisions a high degree of localisation and a broader India supply base boosted by the plants new export status and higher vehicle production expectations. http://www.business-standard.com/india/news/ford-inks-500-mn-dealtn-govt/371214/ Ford to double output, signs engine plant deal Daily News & Analysis (Web Edition) http://www.dnaindia.com/money/report_ford-to-double-output-signs-engine-plant-deal_1292821 Ford to invest Rs 1,500 cr more in Chennai facility The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/09/25/stories/2009092550491700.htm Ford plans to add 1,000 jobs The Hindu (Delhi Print Edition) Ford to start production of a new car in India next year See this story in: Daily News & Analysis (Web Edition) FIGO: FOR FORD THE HARD DRIVE BEGINS NOW The Hindu Business Line (Web & Print Edition) Mumbai: Ford has finally thrown its hat in the small car ring with the Figo, scheduled to debut by the first quarter of 2010. There are already indications that it will be aggressively priced as the company has to build market share in a segment dominated by Maruti, Hyundai and Tata Motors. The Figo will also have two new contenders in the form of Volkswagens Polo and the Chevrolet Beat from General Motors scheduled to debut next year. Local manufacture Ancillary suppliers and dealers associated with Ford believe the car should ideally be priced at around Rs 4 lakh (ex-showroom) if it has to make an impact in the market. There is no reason why the company cannot pull this off especially when the petrol and diesel engines for the Figo will be locally manufactured and shave-off costs substantially. It is this focus on localisation that has resulted in the mid-size Ikon retailing at the price of a B plus segment car (Swift and Palio) in the Rs 4.5 lakh range. It will be interesting to see if the Ikon continues to be relevant once the Figo debuts and observers believe it is only a matter of time before it is gradually phased out. The Ikon did its bit as the flagship model for Ford but really has no pull factor any longer as a brand. Further, it will do precious little to enhance Fords new, youthful mission plan with the Figo, they say. There is little doubt that the company will launch the car at a killer price but the challenge is to be able to sustain it. This is where Fiat blew its chances on redeeming itself with the Palio in 2002. The car had everything going for it but was let down by the levels of after-sales and service, an automobile industry executive said. Ford, therefore, cannot afford something like that especially when it is going all out to build goodwill in a segment that is crucial to its future. Market leader Maruti is still considered the best in after-sales while closest rival, Hyundai has also given top priority to this function. Brand building Ford has a tough act to follow but has time to sit and chalk out a strategy for building brand Figo. Since this is clearly a car targeted at Indias growing young buyers, use of the Internet coupled with smart commercials is critical in the coming months leading to its launch. Even while there is little sense in delving into the past, it is always a mystery why Ford took so long in readying a small car for India when it was amply clear that this segment would continue to dominate the landscape for some years to come. One school of thought is that all the decisions emanated from Detroit and India was seldom in the priority list. How else does one explain just one Ikon and a Fiesta with a Fusion thrown in over the last decade? an auto sector executive asked. There is no question that 2010 will be a critical year for Ford as the Figo gears up to carve a niche for itself in a segment where a host of companies are in the race. The best part is that there is room for everyone so long as the customer feels terrific about the car he is in and the service he gets from dealers. http://www.thehindubusinessline.com/2009/09/25/stories/2009092551540200.htm NISSAN PLANS COMPACT CAR HUB IN CHENNAI Lijee Philip The Economic Times (Web Edition) Mumbai: Japans Nissan Motor plans to make India one of its key manufacturing locations for its compact cars, which include products such as Micra, a senior official said. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Nissan-plans-compact-car-hub-in-Chennai/articleshow/5053427.cms | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL VEHICLES Go To Top PTI Business Standard (Web Edition) Kolkata: Volvo is planning to launch its double decker and vestibule buses in the country in the next three to five years, Volvo Buses India Managing Director Akash Passey said here. "We are planning to introduce our entire range of models we have in our parent company kitty in the next three to five years," he said. Volvo currently offers two models of luxury coaches and city-type buses from its Bangalore facility. "We are also introducing sleeper coaches in Gujarat and Karnataka from next month where demand for such transport is very high," Passey said. The company registered a jump of 50 per cent in its sales over the last year owing to bulk orders by different state transport corporations under the JNNURM project. In 2008, Volvo sold 400 buses of which 250 were city-type and the rest coaches, while this year the company has sold 600 buses most of which are city type. "We plan to hold on to the 600 sales figure, though there will be no JNNURM in 2010," Passey said. He claimed that the company was making rapid progress in the city bus segment with 12 cities in the country now running Volvo buses, which are four-times expensive. But given the operational benefits and longer life, operators are shifting to it. Volvo to launch double decker and vestibule buses The Hindu Business Line (Web Edition) http://www.thehindubusinessline.com/blnus/02241763.htm The Hindu Business Line (Web Edition) Kolkata: The first batch of five Volvo 8400 ultra-low floor air-conditioned buses were flagged off here on Thursday by the West Bengal Transport Minister, Mr Ranjit Kundu. Mr S Chowdhury, Additional Chief Secretary in charge of Transport Department, Mr A Passey, Managing Director, Volvo Buses India Pvt Ltd, and Mr A K Thakur, Managing Director, West Bengal Surface Transport Corporation, were also present. This follows WBSTCs decision to acquire a total of 60 such buses under the Jawaharlal Nehru National Urban Renewal Mission. http://www.thehindubusinessline.com/2009/09/25/stories/2009092550621700.htm PIAGGIO INTRODUCES APE TRUK PLUS The Hindu (Web & Print Edition) Chennai: Piaggio Vehicles, manufacturer of light transportation vehicles, has introduced ape truk plus a state-of-the-art cargo 4-wheeler in the one-tonne category. Piaggio offers a range of three and four wheeled vehicles that are customised to meet the diverse transportation needs of consumers, says a company release. http://www.hindu.com/2009/09/25/stories/2009092556071400.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSTRUCTION & AGRI MACHINERY Go To Top Abhineet Kumar Business Standard Mumbai: Mahindra & Mahindra (M&M), Indias largest tractor maker, is planning to consolidate its stake in Swaraj Engines, as part of a plan to expand the disel engine business. M&M acquired a 33.2 per cent stake in Swaraj Engines and a 14 per cent stake in Swaraj Mazda through its acquisition of Punjab Tractors in 2007. Swaraj Engines, 23 years old, provides diesel engines for Swaraj Tractors. The company was formed in technical collaboration with Kirloskar Oil Engines (KOE), which currently holds a 17.39 per cent stake in the company. M&M is in talks with KOE to buy out this stake. M&M has a bigger plan for the engine business and this acquisition would help the group leverage Swaraj Engines for that, said an investment banker familiar with the development. M&M has already had talks with Kirloskar Oil and the deal is most likely to happen soon. As a policy we do not comment on market speculation, said a M&M spokesperson. A mail sent to KOE did not get any response. On Thursdays stock price of Rs 310 a share, Swaraj Engines market capitalisation is Rs 385 crore and KOEs stake in the company is valued at Rs 67 crore at this price. But an acquisition of the 17.39 per cent stake by M&M would trigger an open offer. Sebis guidelines makes it mandatory to give an open offer to buy an additional 20 per cent stake in case of acquisition of any 15 per cent stake in a company. At the current market price, a 37.39 per cent stake is valued at Rs 144 crore. The sale of stake by KOE would help it focus on its own business, said another banker familiar with the talks. M&M early this year sold its 14 per cent stake in light commercial vehicle maker Swaraj Mazda to Japanese co-promoter Sumitomo for Rs 40 crore. With this acquisition, Sumitomos stake increased to 53.5 per cent from 39.5 per cent earlier. The company sold the stake as it has a plan to develop commercial vehicles in a joint venture with US truck major International Truck & Engine Corporation. http://www.business-standard.com/india/news/mm-may-buy-kirloskar/s-stake-in-swaraj-engines/371223/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top IANS See this story in: The Economic Times, Business Standard, The Financial Express, mint, Yahoo India, The Pioneer, The Hindu Business Line Chennai: Two-wheeler maker TVS Motor, armed with last week's Supreme Court order allowing it to sell its 125-cc "Flame" model with twin spark plugs, will start production as soon as it gets the necessary clearance. http://www.business-standard.com/india/news/tvs-to-go-aheadsalesflame/371226/ http://www.financialexpress.com/news/tvs-set-to-make-twin-spark-plug-flame/521186/ http://www.livemint.com/2009/09/24225655/Auto--TVS-to-sell-Flame-after.html http://in.biz.yahoo.com/090924/50/bau8oh.html http://www.dailypioneer.com/204787/Snapshots.html http://www.thehindubusinessline.com/2009/09/25/stories/2009092551490200.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMPONENTS Go To Top T E Narasimhan Business Standard Chennai: Wabco-TVS (India) Ltd, a provider of air brake actuation systems for commercial vehicles, is planning to tap new markets, including Brazil and Russia, during the current financial year to strengthen its export business. For the year 2008-09, the company registered a turnover of Rs 446 crore. Of this exports accounted for 9-10 per cent, said P Kaniappan, whole-time director of Wabco-TVS, on the sidelines of annual general meeting here on Thursday. It currently supplies its products to its parent company's Wabco customers in China, the US and Europe. Kaniappan did not quantify the growth in export for the current fiscal. We would manufacture country-specific products, he added. The company would cater to the export market through its facility at Mahindra City, near here. It has set a target of Rs 30 crore exports from this unit. Speaking about the domestic market, where the company has a market share of 80 per cent, he said they would use Wabcos competence to manufacture new products for the industry. We are planning to start manufacturing clutch controls, which will be Wabcos competence. At present, it offers complete braking solutions to companies like Tata Motors, Ashok Leyland, Daimler India. During the current fiscal, Wabco-TVS would invest Rs 10 crore. Of the total business during 2008-09, the OEM (original equipment manufacturer) business contributed 80 per cent while the remaining came from aftermarket. This year, the growth will either be flat or minimal, said Kaniappan. http://www.business-standard.com/india/news/wabco-tvs-to-tap-new-export-mkts/371191/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRY Go To Top Business Standard Mumbai: Eight years after the manufacturing plant of Modi Tyres was closed due to financial problems, the company is set to re-enter the market with the same brand it had marketed earlier, of the German Continental AG, through a licensing agreement. Modi Tyres Company, now Delhi-based, will produce a million cross-ply tyres for trucks under the Continental brand over the next year. The German company has thus secured access to the Indian market of 12 million commercial tyres a year, pegged to grow at 7 per cent annually. The agreements are for technical cooperation and a licensing one for Continental brand bias tyres. The Continental tyres will be distributed through the revived Modi sales network, stated a release from Continental. Alok Modi, director, Modi Tyres, said, We have modernised the plant at Uttar Pradesh (at Modipuram, 70 km from Delhi) through an overall fund infusion of Rs 400-500 crore. The tyres of the Continental brand produced there will be sold through 650 dealer outlets across the country. This is a completely new foray for us in the tyre industry. The plant has a monthly capacity of 95,000 tyres and will be regulated according to demand. No fresh capital infusion is required at this stage, he added. Continental AGs collaboration with Modi Tyre began in 1974.The tyres of the German maker were marketed under the name Modi-Continental and quickly gained the position of a benchmark in the Indian market. However, Modi temporarily stopped production of bias tyres in 2001 and only started to reactivate the tyre plant two years earlier. New contacts were formed between Continental and Modi and the previous arrangements revived in the subsequent agreements. Continental also has a technical agreement with JK Tyres for radials. Sources say the German manufacturer is keen on expanding its reach in the Indian market for which it is scouting opportunities with Modi Tyre that also include an equity participation. Further collaboration possibilities (between Continental and Modi Tyres) are currently being looked into, stated a release from Continental. http://www.business-standard.com/india/news/modi-tyres-continental-revive-collaboration-talks/371225/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCE & INSURANCE Go To Top The Financial Express
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top The Hindu Business Line Kolkata: Balmer Lawrie & Co Ltd plans to set up a $5-million (Rs 25 crore) lubricant plant in Indonesia through its joint venture with local partner Pt Imani Wicaksana. The project will have a capacity to manufacture 6,000 tonne of greases and lubricants a year. Balmer Lawrie makes lubricants under the brand Balmerol. Reiterating the company's long pending plan to hive-off the tea marketing division, managing director Mr S.K. Mukherjee said that a deal was expected in this regard within this fiscal. http://www.thehindubusinessline.com/2009/09/25/stories/2009092551520201.htm Balmer Lawrie in Indonesia JV http://www.dnaindia.com/money/report_balmer-lawrie-in-indonesia-jv_1292824 Balmer Lawrie plans unit in Indonesia The Statesman http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=269533 Balmer Lawrie in Indonesia The Telegraph http://www.telegraphindia.com/1090925/jsp/business/story_11540433.jsp OIL FALLS TO NEAR USD 68 PER BARREL See this story in: The Indian Express Singapore: Oil prices dropped to near USD 68 a barrel on Thursday in Asia as an unexpected jump in US crude inventories suggested consumer demand remains in the doldrums. Benchmark crude for November delivery was down 71 cents at USD 68.26 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract tumbled USD 2.79 to settle at USD 68.97 on Wednesday. The USD 70 a barrel level has been a magnet for months, with growing optimism that the global economy is recovering from recession offset by signs that crude demand isn't picking up. Crude supplies grew by 2.8 million barrels and gasoline by 5.4 million barrels last week, according to the Energy Information Administration on Wednesday. Analysts had expected crude levels to decline by nearly that much, according to a survey by Platts, the energy information arm of McGraw-Hills Cos. A weaker US dollar has helped bolster oil prices in recent weeks. Crude is priced in dollars so it becomes cheaper when the dollar falls. The dollar is at a nearly one-year low against the euro, and fell yesterday after the Federal Reserve said it would keep interest rates at a record low near zero. The euro was steady on Thursday in Asian trading at USD 1.4722 while the dollar fell to 91 yen. http://www.indianexpress.com/news/oil-falls-to-near-usd-68-per-barrel/521011/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ECONOMY & FINANCE Go To Top The Hindu Business Line Mumbai: The rupee gained on Thursday tracking the recovery in the domestic equity market and on the back of good dollar inflows. The month-end dollar demand was absorbed by good inflows, said a forex dealer with a public sector bank. The overall trend of the rupee is to gain against the dollar. Although there is month-end demand from oil companies, there are persistent dollar inflows, he said. The rupee opened at 48.18 and closed at 47.96, slightly higher than the pr evious close of 48. Weakening of the dollar against the euro in the overseas market also aided the rupee, the dealer said. However, there was a sell off in the pound after the Bank of England Governor, Mr Mervyn King, said that it is important not to get carried away by signs of growth. In the forward premia market the six-month closed at 2.98 per cent (2.97 per cent) and the one-year was unchanged at 3.17 per cent. http://www.thehindubusinessline.com/2009/09/25/stories/2009092551290600.htm SENSEX MAKES A COME-BACK AS SEPT CONTRACT EXPIRES PTI See this story in: The Hindu Business Line Mumbai: Fag-end buying helped the Bombay Stock Exchange benchmark Sensex recover its early losses and end the day nearly 62 points up as speculators rushed to cover their pending positions. The 30-share Sensex, which had tumbled 224.58 points during the day, bounced back in the last 30-minutes of trade to close higher by 61.93 points at 16,781.43 on the back of a sharp recovery in heavy-weight stocks like Reliance Industries, Housing Develo pment Finance Corp and ICICI Bank. Similarly, the wide-based National Stock Exchange's Nifty recovered by 16.60 points to end at 4,986.55. It briefly recovered the crucial 5,000 points level on late buying. The late buying picked up as speculators indulged in covering their pending positions on the last day of September month contract expiry in the derivatives segment. Expectations of robust corporate quarterly earnings further boosted the uptrend. Also, a mixed Asian trend as Jpan's Nikkei index rose by 1.67 per cent, China's Shanghai by 0.38 per cent, while Hong Kong's Hang Seng index fell by 2.52 per cent and Singa pore Straight Times by 0.69 per cent partly influenced the trading sentiment. http://www.thehindubusinessline.com/blnus/05241901.htm INFLATION RISES TO 0.37 PER CENT ON HIGHER FOOD PRICES PTI See this story in: The Hindu Business Line New Delhi: Inflation further rose to 0.37 per cent for the week ended September 12 from 0.12 per cent in the previous week due to increasing prices of essential food items. The wholesale price-based inflation stood at 12.42 per cent during the corresponding week a year ago. Among items that got costlier during the week include mutton, spices, wheat, maize, sugar, mustard oil and gur. On the annual basis, prices of potatoes were up by 14.87 per cent, onions by about 20 per cent, cereals by 11.39 per cent and milk by 7.35 pe r cent. At the same time, rice got costlier by 14.94 per cent, wheat by 5.12 per cent and pulses by 15 per cent. Although inflation continues to remain below one per cent, the 52-week average inflation for the week ended September 12 was at 3.22 per ce nt. Inflation for the week ended July 18 has been revised upward to (-)0.54 per cent from (-)1.54 per cent estimated provisionally. http://www.thehindubusinessline.com/blnus/01241201.htm Last Financial closing
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Monday, September 28, 2009
Indian Auto Industry Update September, 25, 2009
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