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| INDUSTRY Automakers fume over lack of clarity on emissions deadline India, China & Brazil are future auto hubs INTERVIEWS/FEATURES Magna could steer Opel to low-cost route in India Audi launches Q7 version of SUV in Chennai Audi India targets sales of 1,500 cars this year Indian firm eyes European electric car market COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY BSA Motors seeks road tax waiver from Gujarat government Salim project, assembly line for TVS, off to a start | ALLIED INDUSTRIES FINANCE & INSURANCE INTERNATIONAL NEWS Balance of power shifts with Opel deal: GM Toyota won't raise prices on new 4Runner: Sources Eyeing recovery, Toyota plans $1 bn marketing push Chinese car maker BYD hopes to zoom past Toyota ECONOMY & FINANCE Inflation is back as food product prices surge
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| INDUSTRY Go To Top PTI See this story in: The Economic Times (Web Edition), The Pioneer (Web & Print Edition), Deccan Chronicle (Web Edition), Rediff India (Web Edition)
New Delhi: At least one Indian company will be among the top six carmakers that would dominate the global auto industry by 2020, a study by global consultancy firm Deloitte said.
In India, there would be more focus on low-cost cars, while, at the same time more and more middle class consumers would go for luxury segment four-wheelers. http://www.deccanchronicle.com/business/indian-co-be-top-6-carmakers-world-2020-study-067 http://business.rediff.com/report/2009/sep/17/indian-car-maker-to-be-among-top-6-by-2020.htm http://www.livemint.com/2009/09/17162542/Indian-co-to-be-in-top-6-carma.html
AUTOMAKERS FUME OVER LACK OF CLARITY ON EMISSIONS DEADLINE Murali Gopalan The Hindu Business Line (Web & Print Edition)
Mumbai: The automobile industry believes that the consequences of clean fuel not being available across the country from April 1, 2010 could be nothing short of a catastrophe for cars, trucks and utility-vehicles.
According to a Supreme Court directive, 14 cities will have to graduate to Bharat Stage IV (from the prevailing BS III) emission norms while the rest of the country will correspondingly move upwards to BS III from BS II on that date.
Metros fine Indications are that while there should be no problems meeting the needs of the 14 cities with cleaner diesel and petrol that will comply with BS IV norms, it is going to be a different ballgame for the rest of the country.
To that extent, the oil refiners are keeping their fingers crossed about a possible extension to the deadline, preferably October 1, when BS III-compliant fuel will be freely available. It is this ambiguity that has had the automobile industry terribly worried.
There is not much time between now and April 1, 2010 and we can only hope that we are given sufficient notice in the event of any delay in availability of fuel, auto industry sources told Business Line.
Time needed This is because manufacturers would need time when it comes to readying the right tooling, equipment and parts for the next generation of BS IV vehicles. Needless to add, costs are another critical aspect especially at a time when companies are cutting back on investments. We cannot afford to see good money go down the drain, an auto sector official said.
Multiple fuels What is equally scary is the prospect of all three fuels BS II, BS III and BS IV being retailed simultaneously in the country.
From the viewpoint of automakers, it would be a near impossible task to produce different categories of vehicles in their plants especially when new BS II models will, by legislation, become irrelevant eventually. How can we possibly work in such a ridiculous setting, the official asked.
At present, it increasingly looks as if availability of BS III fuel would be a serious issue from the viewpoint of the April 1, 2010 deadline, which could then result in the present BS II range of vehicles continuing to be produced and sold. This is, of course, conditional to the Supreme Court agreeing to the date being deferred.
Vehicle damage Assuming that this scenario does indeed pan out on these lines, BS IV vehicles driven beyond the 14 cities cannot be fuelled with BS II petrol or diesel. It could cause immense damage to the emissions equipment fitted in these vehicles because there is a world of difference in the sulphur content when it comes to BS II and BS IV, sources said.
On the other hand, there would not be an issue with BS III and BS IV fuels coexisting, as is the present case with BS II and BS III. Here, the difference in quality is not as dire for critical parts in the vehicle to be so badly hit.
Deferring deadline What then is the best bet to avoid such a muddle? Automakers believe that it makes perfect sense to have the April 1, 2010 deadline deferred by six months or even a year if the issue of fuel availability is not sorted out.
It is not the end of the world should the date be deferred to October 2010 or even January 2011. India is still ahead of most countries in this part of the world when it comes to stiff emission norms, sources said.
Of course, convincing the Supreme Court is the biggest challenge. Further, insiders say that it is high time that there is better coordination between the Ministries of Road Transport and of Petroleum and Natural Gas on this important issue.
Nobody really appreciates the gravity of the problem. If the oil industry is not ready, the auto sector is more than willing to wait, sources said. http://www.thehindubusinessline.com/2009/09/18/stories/2009091850520200.htm
INDIA, CHINA & BRAZIL ARE FUTURE AUTO HUBS The Financial Express (Web & Print Edition)
New Delhi: India, China, Mexico, Brazil and eastern European countries will soon emerge as new Detroits in the global automotive industry on the back of low costs of labour and rising customer base, a report by Deloittes Global Manufacturing Industry Group said.
According to the report, A new era: Accelerating towards 2020-an automotive industry transformed, high-cost exporting countries will witness domestic capacity dipping and vehicle production migrating to low-cost centers across India and China and other locations in the regional trade zones of North American Free Trade Agreement and the European Union.
While cost of labour in the emerging markets continues to be a fraction of that in the developed world, there is a growing demand from these countries. To take advantage of the increasing population in emerging markets, original equipment manufacturers (OEMs) will continue to shift more of their production to be closer to their biggest source of new customers, Kumar Kandaswami, senior director, Deloitte, said.
It is estimated that Greater China and South America will represent more than 50% of growth in global light vehicle production, which is pegged at over 70 million units worldwide by 2015.
Consequently, by 2020, fewer cars will be imported from outside a trade zone (e.g. from Korea to the US or from Japan to the European Union). Even the cars with foreign labels will be manufactured regionally, the report said.
India has the lowest cost of labour in the world at $1 per hour followed by China ($2 per hour), Mexico ($3 per hour), eastern Europe ($4 per hour) and Brazil ($5 per hour). According to Deloitte, the consumer trend in India would be guided by factors such as price, fuel economy and life cycle of vehicles. The Indian economy is shifting towards low-cost cars and we could see some big jumps in the so-called Nano segment. While, India will remain a huge entry-level car market, there will also be more demand for luxury segment cars from the middle class, Kandaswami said. http://www.financialexpress.com/news/india-china-&-brazil-are-future-auto-hubs/518377/
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| CARS, SUVs, MUVs Go To Top
New Delhi: The country's largest car maker, Maruti Suzuki India, on Thursday said it has roped in Bollywood actor R Madhavan as the brand face for its popular hatchback WagonR as it aims to increase sale of the car in South India.
The company said it carried out a consumer study before signing the actor and his signing would help increase the brand equity of WagonR nationally and more specifically in the southern parts of India.
We feel that associating with a personality such as Madhavan will certainly reinforce the brand values of WagonR at an all-India level. Additionally, the tie-up is going to give a boost to WagonRs key performance indicators in key southern cities such as Bengalaru, Hyderabad, Chennai, Cochin, Maruti Suzuki Chief General Manager, Mr Shashank Srivastava said.
WagonR is among the most popular models from MSI with average monthly sales of 12,000 units and a cumulative customer base of 7.45 lakhs. Going forward, we feel, the brand shall have an exceptional foothold in the Southern market as well. Given the popularity of Madhavan in the South, the masses will relate to the brand more strongly with a local icon becoming the face of the brand, he a dded. http://www.thehindubusinessline.com/blnus/19171906.htm
MAGNA COULD STEER OPEL TO LOW-COST ROUTE IN INDIA Murali Gopalan The Hindu Business Line (Web & Print Edition)
Mumbai: With Magna International of Canada now in the drivers seat at Opel, there is not likely to be any dramatic impact on the Indian landscape in terms of a slew of models hitting the roads.
What is more likely to happen, though, is that the country could emerge a low-cost sourcing hub for critical components to Opel in Europe.
Transfer to India And if Nissans much publicised move to transfer production of the Micra from the UK to India is anything to go by, there is no reason why an encore cannot be done with some models of Opel, especially from the Belgium plant which is reportedly in some trouble. For most carmakers, especially in Europe and North America, the way forward is to keep costs in check which, in turn, necessitates inexpensive production bases.
Production hub Observers say Magna Steyr, the subsidiary of Magna International and a contract manufacturer for Daimler and BMW among others, would be perfectly placed to steer Opel through its Indian arm which has been here since the 1990s.
This, they add, could even take the form of a global low-cost car which could use India as one of its production hubs, on the lines of what other European automakers such as Fiat, Volkwagen and Skoda have planned using the supplier base here which offers the ideal mix of reliable quality at affordable costs.
However, in the case of Opel, it will take a while before a full-fledged India blueprint is in place. After all, Magna would need some time to settle down in its new role and grapple with the immediate problems of cutting costs and pruning manpower. Sourcing components from low-cost countries is inevitable but even here, East Europe could take precedence over India.
No stranger The Opel brand is no stranger to this country. When its erstwhile owner, General Motors first set up shop here in the mid-1990s, the Opel Astra was its offering to the Indian customer. The car carved a niche for itself in the upper mid-size segment and there was a premium tag attached to it. However, GM could not quite build on this advantage and successive Opel-branded models hardly made an impact.
The American carmaker shifted to the Chevrolet badge by end-2000 and the Opel chapter was soon forgotten as models from Korea made their way into India. With Magna in charge and GM relegated to the second place, it will be interesting to see how quickly it can seize the India advantage for Opel. http://www.thehindubusinessline.com/2009/09/18/stories/2009091851090300.htm
AUDI LAUNCHES Q7 VERSION OF SUV IN CHENNAI The Hindu (Web & Print Edition)
Chennai: Audi India, the wholly-owned subsidiary of Audi AG, will be establishing its first showroom in Chennai early next year. The Bangalore based Jubilant Motors, which is the authorised dealer, will set up this facility along with a service centre. Audi India recently unveiled Audi Q7, the new version of its sports utility vehicle in Chennai. With the launch of Q7 the company hopes to secure a sizable market share in the luxury car segment. http://www.hindu.com/2009/09/18/stories/2009091850851700.htm
AUDI INDIA TARGETS SALES OF 1,500 CARS THIS YEAR IANS See this story in: Deccan Herald (Web Edition)
Chennai: Audi India is targeting sales of 1,500 cars this year, an increase of over 450 from 2008, and hopes to capture 15 percent share in the domestic luxury car market.
"Going by the sales trend, we are confident of exceeding the target. We have sold 1,128 units during the first eight months of this calendar year. Our client profile is an equal mix of first time luxury car buyers as well as those who drive competing brands," Anil Reddi, head of sales, said. http://www.deccanherald.com/content/25735/audi-india-targets-sales-1500.html
INDIAN FIRM EYES EUROPEAN ELECTRIC CAR MARKET AFP See this story in: Hindustan Times (Web Edition), Deccan Herald (Web Edition), Asian Age (Delhi Print Edition)
Frankfurt: Indian car maker Reva unveiled two electric cars at the Frankfurt motor show this week and announced the launch in Europe of one model in early 2010 as the buzz for electric vehicles grows louder.
In its first major presence at the German show, Reva presented the NXR city car that is to be built at a new plant in Bangalore and will retail for less than 10,000 euros (14,700 dollars) for a city driving model.
A two-seater NXG coupe that was shown here as a prototype is due to follow in 2011, the company said yesterday.
Reva co-founder Chetan Maini said electric cars, which were a major feature of the fair, had come of age. "We are for the first time seeing everything come together, the technology and people's concerns about the environment," he said in an interview. "The world cannot afford conventional cars anymore."
A surge in global oil prices last year had helped raise people's consciousness, he added. "Five years ago I don't think people were thinking about electric cars," said Maini, Reva's deputy chairman and chief technical officer.
When consumers mull a purchase now however, "they would at least consider an electric car," Maini added. Reva will launch its Bangalore output with capacity of 300,000 vehicles per year. http://www.deccanherald.com/content/25778/reva-eyes-european-e-car.html
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| COMMERCIAL VEHICLES Go To Top Rajesh Kumar The Pioneer (Web & Print Edition)
New Delhi: Bus majors Ashok Leyland and Tata Motors have derailed the plan of Delhi Government to modernise its public transport fleet ahead of the 2010 Commonwealth Games. The recession-hit Delhi Government is facing an uphill task to manage funds for purchasing of 1000 semi-low floor buses to augment the city bus fleet. http://dailypioneer.com/203350/Bus-majors-derail-DTC-modernisation.html
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| 2/3 WHEELERS Go To Top Shishir Prashant Business Standard
Dehra Dun: Hero Honda has decided to expand its Haridwar manufacturing facility after resolving issues with the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (Sidcul) to retain its hold over the 94 acres of vacant land.
After speaking with state government officials, the company deposited Rs 32.5 crore as land premium to retain its hold over the vacant land for which it was served notices by Sidcul. Barring a minor dispute over 22 acres, most of the concerns have been resolved with Hero Honda, official sources said.
Uttarakhand Principal Secretary (Industries) P C Sharma confirmed that Hero Honda had deposited Rs 32.5 crore to expand its Haridwar unit.
The 94 acres at the Haridwar industrial plant of Hero Honda had become a bone of contention with Sidcul, which had served a series of notices to the company for getting the land premium. Following this, the auto giant had held talks with state government officials to end the stalemate.
Sharma said the company would carry out considerable expansion at its Haridwar unit which would create vast opportunities for employment in the state.
Sidcul, the state governments nodal agency for industrial development, had allotted 265 acres to Hero Honda for setting up a manufacturing facility at Haridwar in 2006.
According to Sidculs latest notice, the group set up its facility on only 119-120 acres and kept around 50 acres for its vendors, the land premium for which has been paid to Sidcul. For the remaining 94 acres of land, Hero Honda paid Rs 32.5 crore against Sidculs earlier estimate of Rs 50 crore.
Hero Honda Motors Ltd and its ancillaries have already invested Rs 1,900 crore in the manufacturing facility. This is in keeping with the commitment made to the state government at the inception of the plant.
The state-of-the-art plant, which went on stream on April 8, 2008, has scaled up rapidly and is already producing more than 4,000 two-wheelers per day. http://www.business-standard.com/india/news/hero-honda-to-expand-haridwar-facility/370497/
BSA MOTORS SEEKS ROAD TAX WAIVER FROM GUJARAT GOVERNMENT Business Standard
Mumbai/ Ahmedabad: In its hope to see electric two-wheeler sales rising in Gujarat, Chennai-based BSA Motors, a business unit of Tube Investments of India (TII), part of the Rs 15,646 crore Murugappa Group, has submitted a memorandum with the state government seeking eight per cent waiver in road tax, reduction in VAT as well as provision of subsidy for the products. Once implemented, BSA Motors hopes to achieve 15 per cent of its total sales target from Gujarat.
"While sales of electric two-wheelers across several states in the country are growing at a rate of 10 per cent, somehow it is decreasing in Gujarat. We have, therefore, submitted a memorandum with the Gujarat government to waive off road tax of eight per cent, apart from reducing VAT and providing some subsidy for the electric two-wheelers category," said KB Srinivasan, vice president, BSA Motors. With the electric two-wheeler industry, which was 1.2 lakh units and worth Rs 400 crore in 2008-09, growing at 10 per cent, TII expects to grow at 15-20 per cent by the end of financial year 2009-10.
SALIM PROJECT, ASSEMBLY LINE FOR TVS, OFF TO A START Indronil Roychowdhury The Financial Express
Uluberia: Mahabharat Motors Manufacturing Co Ltd, a jont venture between Indonesias Salim Group and Universal Success Enterprise Ltd of Singapore, has installed its assembly line in West Bengal to assemble TVS motorcycles.
This is one of the number of projects jointly planned by Salim and Universal. While both companies have plans to jointly pour over Rs 2 lakh crore into the state for projects such as the Petroleum Chemical and Petrochemical Investment Region (PCPIR), Kolkata West International City (KWIC), International Logistics City, a power plant and motorcycles factory, they have invested only Rs 390 crore so far---Rs 290 crore in KWIC and Rs 100 crore in Mahabharat Motors, which will serve as an outsourcing facility for TVS Motors. TG Sridhar, chief operating officer of Mahabharat Motors, said the Rs 100 crore investment is all equity. There is no debt component in it. Originally conceived as a plan to manufacture Arjun Motrocycles, the project will assemble only 100-cc TVS sports motorcycles. Sridhar said trial production will start from October and commercial production from November. The facility wants to assemble 1,000 motorcycles a month initially, which will increase to 5,000 a month to assemble all categories of TVS motorcycles in 12 to 18 months.
After achieving that number, the company will move to make Arjun- branded motorcycles, Sridhar said. However, besides TVs motorcycles, the company will make Arjun TVS King four-stroke 100-cc LPG auto, though the number of units to be made remains undecided.
Sridhar said while the facility in Uluberia will serve a part of TVS east and northeast markets with present demand ranging between 8000 and 10,000 a month, the market for Arjun auto has to be created.
The number of autos to be made will depend on the orders placed by our dealer. At present, Mahabharat has tied up with one dealer in Kolkata, Shah said.
He said there would be 15 TVS-approved vendors supplying equipment and TVS and some of its approved vendors will supply the main components.
The facility at present would create job opportunities for around 100 people, which in another year will give jobs to 200 more people, Sridhar added.
However, after failing to get the Tatas Nano plant and with the ambitious PCPIR mired in uncertainty, industry is almost heaving a sigh of relief that Mahabharats assembly unit has been launched. Although West Bengal chief minister Buddhadeb Bhattacharjee laid the foundation stone of this unit in 2006, the installation of the assembly line on 65 acres on Thursday was a low-key affair. http://www.financialexpress.com/news/salim-project-assembly-line-for-tvs-off-to-a-start/518435/2
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| COMPONENTS Go To Top The Financial Express
Chennai: In an initiative against sale of counterfeit auto parts, which eats into 30-35% of the total sales, Automotive Components manufacturers' Association of India (ACMA) is taking several steps to protect the replacement market. Joint raids with auto component makers and law-enforcing agencies, representations to the government, disciplinary action, an "asli-naqli" campaign, seminars and conferences are some measures the association has been taking for the past six months. It has also set up a consumer affairs committee, which is generating awareness among consumers.
The sale of spurious auto parts amounts to Rs 5,300 crore in the Rs 16,500-crore market. Even the government is losing approximately Rs 4,250 crore due to the spurious sales.
Companies such as Bosch, Lucas, Delphi, NRB Bearings, Elofic and Asahi Glass have also joined hands to conduct joint raids under the umbrella of ACMA. In the past six months, 34 raids have been conducted in northern India. This exercise will be extended throughout the country shortly.
"ACMA is making efforts to create greater awareness to generate support from various government bodies and customers," said Soumitra Bhattacharya, chairman of ACMA Consumer Affairs Committee, which is steering this initiative on behalf of ACMA members. Bhattacharya is also the vice-president of Bosch Ltd, a leading automotive technology supplier in India. http://www.financialexpress.com/news/ACMA-steps-in-to-check-fake-parts/518382/
EL FORGE TO SELL CHENNAI PROPERTY AS PART OF RESTRUCTURE T. Murrali The Hindu Business Line
Chennai: The Chennai-based El Forge Ltd is selling its land at Thuraipakkam for Rs 10 crore as part of its restructuring plan. The company, which made a loss of Rs 18 crore last year on a turnover of Rs 87 crore, will make a substantial profit on the transaction. Company officials do not want to disclose the profit figure, pending conclusion of the transaction. The transaction is likely to be concluded in October and as such, the profits will be reflected in the accounts of the third-quarter.
The plant and machinery at Thuraipakkam have been moved to Appur, where a new facility has come up at an investment of Rs 100 crore.
Mr K. V. Ramachandran, Vice-Chairman and Managing Director, told Business Line that the company is also shifting machinery from its leased facility in Gumidipoondi to Appur. It also has plant in Hosur. Across these plants, the company has an installed capacity is 21,600 tonnes a year.
Utilisation level Capacity utilisation in 2009-10 is only around 35 per cent, but this figure is expected to rise with the company sitting on an order book of Rs 60 crore. Mr Ramachandran said the company was close to getting an order from Tata Motors for whose truck engines it has developed connecting rods. Last year, the company made a loss, hit by the recession and frequent power cuts, which had hampered production. The companys main problem is debt Rs 120 crore on which the annual interest outgo is around Rs 16 crore.
The banks are examining a corporate debt restructure. With business picking up, debt restructure and the infusion of funds from the land sale, business will look up, Mr Ramachandran said. http://www.thehindubusinessline.com/2009/09/18/stories/2009091851080300.htm
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| SACHINS INNINGS WITH MRF ENDS
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| FINANCE & INSURANCE Go To Top See this story in: The Statesman
New Delhi: Punjab National Bank has signed an MoU with Mahindra & Mahindra Ltd for financing their vehicles across India. PNB will offer car loans up to 90 per cent on road cost, for tenures ranging up to seven years at a competitive rate. This facility will be available at all branches of PNB and over 250 dealerships of M&M. http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=268877
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top
The reason: Large gas reserves found in locations like the Krishna-Godavari basin make CNG (compressed natural gas)which is cheaper and more fuel efficient than petrol or diesel the chosen green automobile fuel for the next decade.
Bloomberg See this story in: The Hindu Business Line
Crude oil fluctuated in New York as a decline in US jobless claims and growth in housing starts were offset by a weakening dollar.
Brent at $71.65 Crude oil for October delivery rose 12 cents to $72.63 a barrel at 10:37 a.m. on the New York Mercantile Exchange. Prices climbed as much as 65 cents, or 0.9 per cent, to $73.16, the highest since Aug. 31. Futures are up 63 percent this year.
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| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times, Mint
Seoul: Hyundai Motor Co on Thursday launched a new model of its flagship mid-sized sedan the world's no. 5 automaker hopes will help it grab more of the higher end car market. http://www.livemint.com/2009/09/17161825/Hyundai-revamps-flagship-sedan.html
BALANCE OF POWER SHIFTS WITH OPEL DEAL: GM See this story in: The Indian Express Frankfurt: Magna's planned acquisition of Opel is proof that carmakers have lost the upper hand in the industry by outsourcing development work to suppliers and relying on them for technological know how, a top GM executive said.
"The fact is the balance of power has somewhat shifted," General Motors Vice President Carl-Peter Forster told a dinner Wednesday evening that was organized by the American Chamber of Commerce in Germany on the occasion of the Frankfurt auto show. The head of GM in Europe and the likely candidate to run Opel said carmakers needed to reevaluate their strategy.
"We all had the vision that the OEMs (original equipment manufacturers) should just assemble bits and pieces, do a little bit of marketing, a little bit of design and all the rest would be done by suppliers," he said.
"That was a nice vision. It sounds very lean, but the profit making opportunity is also shifting to the ones that have the technological know how. That is in very many cases now the supplier industry," the GM Europe president told the dinner.
Whereas volume carmakers in good years at best earn an operating margin of 4 to 5 per cent, suppliers that control exclusive technology can make double-digit returns. "As a manufacturer you have to ask yourself is this the way you want to handle your business or should you consider choosing areas you want to move back into. And interestingly enough one of the areas is electrical propulsion," Forster said. Except for its lithium-ion cells, the battery powering the Chevrolet Volt is developed and manufactured by GM, for example.
He believes Magna, which once counted oligarch Oleg Deripaska as a large shareholder, did the deal not so much out of a desire to compete with customers directly but the huge opportunities awaiting its supplier business in Russia.
"You need to manufacture in Russia to be able to serve the market, one of the reasons being the 25 per cent import duty. but you can never profitably produce in Russia unless you have a local supply industry and there is virtually no -or very little- supplier industry," Forster continued.
"I think one of the reasons why Magna is interested because together we can develop it ... Our experience shows that it is by no means easy to really attract suppliers to Russia," he added.
Magna and Russia's state-owned Sberbank would each own 27.5 per cent in Opel, and Deripaska's obsolete carmaker GAZ gets access to GM technology under the deal. http://www.indianexpress.com/news/balance-of-power-shifts-with-opel-deal-gm/518200/0
TOYOTA WON'T RAISE PRICES ON NEW 4RUNNER: SOURCES Reuters See this story in: The Economic Times
Detroit: Toyota Motor Co will not raise prices on the new version of its 4Runner sport- utility vehicle in a bid to shore up sputtering sales of the vehicle, dealers briefed on the plan this week said.
EYEING RECOVERY, TOYOTA PLANS $1 BN MARKETING PUSH Agencies See this story in: The Economic Times
New York: Toyota Motor Corp. will pour $1 billion into a major US marketing campaign in the fourth quarter, as the Japanese automaker bets on a recovery in the ailing auto market here.
CHINESE CAR MAKER BYD HOPES TO ZOOM PAST TOYOTA AP See this story in: The Hindu Business Line
Shanghai: The fast-growing Chinese battery and automaker BYD Co. is thinking big -- really big. It aims to overtake Toyota Motor Co. to become the global auto leader in under two decades, company officials say.
"It's our company's long-term target, to be China's No. 1 automaker by 2015 and to be the world's leading car maker by 2025," Jasmine Huang, a senior marketing representative for BYD, said in a phone interview Thursday.
"So far, our sales come mainly from domestic demand, but we are also thinking of expanding to overseas markets," Huang said, confirming similar comments by another BYD executive, deputy general manager Wang Jianjun, to the state-run newspaper China Daily.
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| ECONOMY & FINANCE Go To Top PTI See this story in: The Hindu Business Line
Mumbai: The rupee on Thursday breached the 48-level to touch a one-month intra trade high before closing higher by 8 paise at 48.15/16 against dollar on heavy capital inflows amid sustained weakness in the US currency overseas.
The domestic unit breached 48 level to touch 47.94 a dollar, more than one-month intra-trade high, in sync with the stock markets. The benchmark Sensex was up by nearly 143 points in morning deals.
However, a sudden sell-off after morning deals in the stocks pulled down the Sensex to settle up by a mere 34 points or 0.20 per cent, which later affected the rupee sentiment. It later touched a low of 48.18 before concluding the day at 48.15/16 a dollar.
Dealers attributed initial surge in the rupee to bullish stock markets amid weak dollar overseas against the basket of currencies. Foreign institutional investors (FIIs) injected over $1.15 billion in equities in eight days since September 7, mainly boo sting the rupee sentiment. The global crude oil prices was hovering near $72.50 a barrel in London. http://www.thehindubusinessline.com/blnus/05forex.htm
PTI See this story in: The Hindu Business Line
Mumbai: Stock market continued its upward move for third consecutive day on Thursday and strong buying was seen in IT and auto stocks, but gains in the benchmark Sensex were limited to 34 points primarily due to a sharp fall in index heavyweight Reliance Industries.
After scaling an intra-day high of 16,820.02 points, the Sensex settled at 16,711.11 points, up 34.07 points from its previous close.
While shares like Infosys and Bharti Airtel recorded smart gains, RIL plunged sharply and limited the overall gains for the index being the highest-weight stock.
The National Stock Exchange index Nifty, which crossed 5,000-points level in the intra-day trade, ended with a gain of 7.15 point at 4,965.55 points.
The rising trend was capped after the market heaviest and trend-setter Reliance Industries dropped by Rs 97.15, or 4.45 per cent, to Rs 2,086.35. The country's largest private sector petro major said it has raised around Rs 3,188 crore through sale of 1. 50 crore equity shares of the company.
The market received support from stocks in sectors such as tech, information technologies, auto and banking segments. Brokers said firm Asian trends and better opening in European stock markets in afternoon supported the trading sentiment. http://www.thehindubusinessline.com/blnus/05171710.htm
INFLATION IS BACK AS FOOD PRODUCT PRICES SURGE The Hindu Business Line
New Delhi: Surging food prices have driven headline inflation out of the negative for the first time in three months. The annual WPI-based inflation rose 0.12 per cent during the week ended September 5, compared with a 0.12 per cent year-on-year decline registered the previous week, data released by the Ministry of Commerce and Industry on Thursday showed.
The rise in the headline inflation reading is despite the 12.42 per cent increase recorded in the corresponding week last year.
During the latest week, the food articles sub-index rose an annual 15.4 per cent, up from the 14.8 per cent the previous week.
According to the data, the official WPI for All Commodities for the latest reported week rose 0.4 per cent to 242.0 points from 241.1 points for the previous week. On a disaggregated basis, the Primary Articles group index rose 1.3 per cent as the index for Food Articles group rose by 2.2 per cent due to higher prices of poultry chicken (16 per cent), fruits and vegetables (8 per cent), pork (5 per cent), condiments and spices (3 per cent), bajra (2 per cent) and rice and moong (1 per cent each).
However, the prices of jowar (2 per cent) and maize and tea (1 per cent each) declined.
Non-food articles The index for Non-Food Articles group declined by 1.1 per cent due to lower prices of logs and timber (19 per cent) and soyabean (5 per cent). However, the prices of raw silk, cotton seed and raw rubber (3 per cent each), copra (2 per cent) and sunflower, castor seed and groundnut seed (1 per cent each) moved up.
Fuel and power The Fuel and Power group index rose marginally due to higher prices of bitumen (9 per cent), furnace oil and light diesel oil (4 per cent each) and aviation turbine fuel (2 per cent). However, the prices of naphtha (7 per cent) declined.
Manufactured products The Manufactured Products group index rose by 0.1 per cent as the index for Food Products group rose by 0.4 per cent due to higher prices of sugar and sooji (rawa) (4 per cent each), khandsari and bran (all kinds) (2 per cent each) and maida, atta and gingelly oil (1 per cent each). However, the prices of oil cakes (4 per cent), coconut oil (3 per cent), rice bran oil and imported edible oil (2 per cent each) and butter (1 per cent) declined.
The index for `Textiles' group rose by 0.3 per cent due to higher prices of polyester staple fibre (5 per cent) and hessian cloth and hessian and sacking bags (2 per cent each).
The index for `Rubber and Plastic Products' group declined 0.1 per cent due to lower prices of plastic containers (6 per cent). The index for 'Chemicals and Chemical Products' group declined marginally due to lower prices of enamels (4 per cent) and caustic soda and thinners (2 per cent each). However, the prices of acid (all kinds) (1 per cent) moved up. The index for `Basic Metals Alloys and Metal Products' group declined by 0.1 per cent due to lower prices of basic pig iron and foundry pig iron (2 per cent each) and steel ingots (1 per cent). However, the prices of lead ingots (4 per cent) and other iron steel and zinc ingots (1 per cent each) moved up.
The index for `Machinery and Machine Tools' group rose by 0.1 per cent due to higher prices of material handling equipment (6 per cent) and electrical relays (3 per cent). For the week ended July 11, the final WPI for `All Commodities' stood at 238 points as compared to 236.7 points and annual rate of inflation based on final index, calculated on point to point basis, stood at -0.63 per cent as compared to -1.17 per cent points reported earlier. http://www.thehindubusinessline.com/2009/09/18/stories/2009091851171500.htm
Last Financial closing
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Sunday, September 20, 2009
Indian Auto Industry Update September 18, 2009
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