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| INDUSTRY Auto firms tank up for festive season Tata Motors rises to 1-year high on BSE; gains 11 pc INTERVIEWS/FEATURES Maruti to expand Manesar factory capacity by 40% in two years Made in India, shipped to China, Thailand Cheaper labour helps India overtake China in export of small cars Toyota, Ford in India slugfest COMMERCIAL VEHICLES Mercedes to raise CVs share in Indian portfolio Leyland, Nissan may use existing plants for LCVs CONSTRUCTION & AGRI MACHINERY COMPONENTS JBM scouts for auto component makers in Europe | ALLIED INDUSTRIES FINANCE & INSURANCE IndusInd Bank's CFD expects robust growth in vehicle finance biz Magna Fincorp to finance Leyland vehicles M & M enters tie-up with Bank of Rajasthan OIL, LUBRICANTS & ALTERNATIVE FUELS Oil clings near $68 ahead of OPEC meet INTERNATIONAL NEWS Sensex closes above 16K mark for first time this year Indias growth to dip in next two quarters: FM
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| INDUSTRY Go To Top Bloomberg See this story in: Business Standard (Web & Print Edition), The Economic Times (Web Edition), The Times of India (Web & Print Edition)
Mumbai/New Delhi: Suzuki Motor Cor, Hyundai Motor Co, and Nissan Motor Co are making India a hub for overseas sales of mini cars, as incentives lift demand for smaller, fuel-efficient autos. Helped by cheaper labor and a surging local market, India this year overtook China in auto exports and is challenging Thailand and South Korea as an alternative production center in Asia.
There is a worldwide shift toward fuel-efficient, compact cars, said Jayesh Shroff, who helps manage about $7 billion of assets, including carmaker shares at SBI Asset Management Co in Mumbai. This offers a huge potential for India and it can emerge as a leader in the small car segment.
Maruti Suzuki India Ltds exports more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March, 86 per cent more than last year, said Chairman R C Bhargava.
The automaker rose 0.5 per cent to a record Rs 1,554.6 at the close of trading in Mumbai. Suzuki rose 1.9 per cent to 2,160 in Tokyo, while Hyundai rose 4.7 per cent to Won 112,500 in Seoul trading.
Maruti Suzuki sold a monthly record 14,847 vehicles overseas in August. Indias exports of minicars and hatchbacks gained 44 per cent between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vehicles and trucks, rose 18 per cent to 229,809. Cars are exported to over 100 countries, and dont include the US or Japan.
In contrast, Chinas exports slumped 60 per cent to 164,800 between January and July, according to government data. Vehicles produced in Thailand for export declined 43 per cent to 263,768, according to the Thai Automotive Club.
South Korean exports dropped 31 percent to 1.12 million units, according to the Korea Automobile Manufacturers Association. Japan, the worlds largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were mini cars and 439,849 were compacts.
Besides the attraction of serving a market where three of four cars bought are compacts, automakers will favour India to set up an export base as China requires companies to form local joint ventures and India doesnt, said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia Ltd. http://www.business-standard.com/india/news/indian-auto-exports-beat-china/s/369444/ http://timesofindia.indiatimes.com/news/business/india-business/India-speeds-past-China-in-auto-exports/articleshow/4984389.cms
AUTO FIRMS TANK UP FOR FESTIVE SEASON Sindhu Bhattacharya Daily News & Analysis (Web Edition)
New Delhi: The shraddh period has just begun across north India -- a fortnight when footfalls, enquiries and actual purchases fall drastically across automobile dealerships.
Already, manufacturers as well as dealers are hoping that the 'auspicious' navratras which follow shraddh from the 19th of this month should bring back buyers in droves. But will they? Carmakers aver that the sentiment is much more positive this year compared with last Diwali and also, last year's low base would help most companies log healthy growth numbers. Even two-wheeler makers, which have been complaining of continued lack of vehicle financing, vouch for improved sales this Diwali.
But industry experts point out that there are almost no new launches slated to coincide with the festivities this year, barring minor upgrades, at least for passenger cars. Almost all the small car entrants -- Toyota, Ford and Honda --will launch their vehicles only next year.
In the two-wheeler space, neither Hero Honda nor Bajaj Auto is expected to come out with a major launch in the next few weeks and even the entry of Honda Motorcycle & Scooter India (HMSI) into the 100cc space is slated for the next year.
So, any palpable excitement this festival season has to be around the Maruti Ritz, Fiat Grande Punto and Honda Jazz for passenger cars -- brands which are relatively new but have already been selling in the market well before the festival season begins. The only new thing this year would be the hefty discounts which most vehicle makers offer around festivals.
Maruti Suzuki India, which sells every second car in the country, is giving away as much as Rs 30,000 on WagonR petrol. Honda Siel Cars India, which usually avoids discounting, has just announced a promotion scheme called 'Win a Car' in which one lucky Honda customer will win a Honda car every week between September 7 and October 31. Other carmakers are sure to announce their discounts in the coming days. Maruti chairman R C Bhargava is certain on the company continuing to log double-digit growth during the festive months and Hero Honda's Senior VP (sales & marketing) Anil Dua is confident of his company selling "over 6 lakh vehicles".
And Jnaneshwar Sen, the VP marketing at Honda Siel is equally upbeat since last year, flagship 'City' was not available and the newly launched 'Jazz' should add to overall sales this Diwali. "We have already begun operating in two shifts to meet anticipated increase in demand this month and the next".
Then, dealerships have already begun stocking up in anticipation of a sales surge. The secretary general of Federation of Indian Automobile Dealers, Gulshan Ahuja, says that July and August have been quite positive for dealers and the festival season should bring cheer. He also points to lower inventory carrying costs this year, which should additionally helps dealers.
Last year around this time, inventory carrying costs were almost 1.5% a month so that the dealer was wiping out almost his entire vehicle margin if the inventory was close to 60 days. But now, these costs have come down to 1.25% a month and vehicle makers are also a bit cautious in pushing vehicles to dealerships so that overall inventory levels should be more comfortable this year.
TATA MOTORS RISES TO 1-YEAR HIGH ON BSE; GAINS 11 PC The Economic Times (Web Edition) See similar story in: The Indian Express (Delhi Print Edition)
Mumbai: Shares of Tata Motors on Monday surged over 11 per cent to hit a 52-week high level on the Bombay Stock Exchange, as optimism of revival in automobile demand spread in the broader market following growth in overall sales figures.
Tata Motors closed at Rs 565.75, up 11.32 per cent over the previous close, becoming the biggest gainer among the 30-bluechip companies.
"Investors are convinced that the domestic operations of the company are going on well and the future outlook seems not as weak as it looked earlier. Overall, market feels that there is not much drag on the company's balance sheet," Bonanza Portfolio Assistant Vice-President Avinash Gupta said.
On the National Stock Exchange, Tata Motors soared 11.35 per cent to close at Rs 566. In the intra-day trade the scrip had jumped 13.45 pet cent to its 52-week high of Rs 576.65.
"The automobile industry is reporting consistent growth in sales figure and Tata Motors being a dominant player is seeing investor confidence back in its demand for shares," Gupta said.
The sales of the domestic auto companies have been on an upswing since February.
Backed by positive movement in the global peers, the BSE barometer Sensex gained 2.09 per cent to close above the 16,000 level for the first time this year. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/stocks-in-news-home/Tata-Motors-rises-to-1-year-high-on-BSE-gains-11-pc/articleshow/4983002.cms
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| INTERVIEWS/FEATURES Go To Top The fight between the Hyundai Santro and Maruti WagonR has been a silent one. This is not a rivalry you will see playing out on your television screens with the brands taking potshots at each other via 60-second commercials. That is something the cola majors enjoy doing.
Even Nestle and Cadbury have locked horns in recent times with the former spoofing the latters Paheli Tarikh ad, which hit the small screen in June-July this year. Santro and WagonR have been different in that sense. Their battle has been fought on the streets, literally.
No war of words here. It is plain sales numbers that count. And from the looks of it, WagonR is leading the race for domination of the tall-boy market, though the concept was introduced in India by HMIL with the Santro.
According to data provided by consultancy firm Frost & Sullivan, the WagonR is ahead of the Santro in terms of cumulative sales for the period stretching from January to July 2009. The figure stood at 89,099 units for the WagonR and 45,369 units for the Santro. In other words, the WagonR led the Santro by a hefty 96.4% in sales for that period. This margin, in fact, is not lost on its rival. Arvind Saxena, senior vice-president, marketing and sales, Hyundai Motor India Ltd (HMIL) admits there has been a drop in the sales of the Santro over the last few months. There is a decrease, he says. This is one of the reasons why HMIL unveiled a spruced up version of the Santro last week. The new Santro has added many features to considerably raise the bar for cars in this segment.
HMIL would know what a product revision could do to sales. Archrival Maruti was able to gain an edge over it in the tall-boy market following a few changes it made in the WagonR in July 2007. Basically some changes in terms of design, look and feel were made, says Mayank Pareek, executive officer, marketing and sales, Maruti Suzuki India (MSI). The multi-fuel variant, which allows users to switch from petrol to LPG, was also launched at the same time, he adds.
This was the turning point for the WagonR. The vehicle has been on an upward climb since then. Data provided by brokerage firm IDFC-SSKI proves this. It shows that sales of WagonR did start climbing from October 2007 following refurbishment of the vehicle in July that year (check chart for details). The fight was so fierce that it took the WagonR three months to widen the gap between it and its rival, the Santro.
The sales margin went up by over 1,500 units that month (12,314 units for the WagonR versus 10,655 units for the Santro). Before that, the margin was thin, below 1,000 units, to be precise, implying that the field was wide open for any of the two brands to dominate. Santro led the sales chart in July and September that year (10,827 and 12,990 units to WagonRs 10,029 and 12,573 units), while WagonR was the leader in August (11,748 units to Santros 11,699 units). Prior to the rejig, the WagonRs sales were lower than that of the Santro. There was need to give the product a push. The changes we introduced allowed us to do that, says Pareek. The result is there for everybody to see.
Ironically, the fight between the Santro and the WagonR has been decade-long with the former dominating the tall-boy market for better part of the period. Despite being one of the worlds first tall-boy designsalong with models from Daihatsu and Daewoothe WagonR (created as per the Kei-Jidosha or small car specifications of the Japanese market) was not first-to-market in India. A less avantgarde version of the Hyundai Atos (Santro in India) was the first tall-boy design to hit the Indian roads.
It preempted the WagonR by a good two years. Indeed, HMIL was quick to gauge the need for a compact car that had a high roof, which could be taken to work as well as for family outings/get-togethers comfortably seating four to five people. The Santro fit the bill perfectly, says an auto analyst based in Mumbai. Not one to sit still though, Maruti launched the WagonR in India in 1999 (the Santro was launched in September 1998). But it has taken the auto major some time to crack open the tall-boy market. It hasnt been easy for Maruti, says VG Ramakrishnan, director, automotive and transportation, Frost & Sullivan.
But it is leading now. This war in a sense is reflective of the larger battle on between Maruti and Hyundai for the domination of the A2 segmentthe largest passenger car market in the country. According to data provided by the Society of Indian Automobile Manufacturers (SIAM), the market share of Hyundai and Maruti in the A2 segment, based on sales numbers for the April-July 2009 period, is 58.04% and 24.38% respectively. Maruti has six models at the moment to Hyundais four. Of the six that Maruti has, three are what could fit the tall- boy order (WagonR, Estilo and Ritz), besides the Alto, Swift and A-Star. HMIL has two tall cars, the Santro and the i10, while the Getz and the i20 are regular compact cars. Hyundai, for the record, is planning to phase out the Getz, introduced in 2004, by 2011. The i20, in contrast, has been a newer entrant to the Hyundai stable, launched in December last year.
The i10 (launched in October 2007) in particular has been the strong one for Hyundai in its A2 portfolio. Though a slow starter, the vehicle has been clocking good sales since January 2008. The January to June 2009 period has been particularly good for the i10, with the vehicle registering a sales growth of 11.09% over the same period in 2008. The Santro, on the other hand, has seen sales come down by 14.67% in the same time.
From the looks of it, the i10 has been eating into the sales of the Santro. At the moment, the i10 is doing something around 10,000-11,000 units in sales to Santros 5,000-6,000 units (see chart). Says Ramnath S, director, research, IDFC-SSKI, The i10 is a newer product in comparison to the Santro. The migration is inevitable. This, despite the fact, that the Santro is available at a slightly lower price point. It begins from Rs 2.6 lakh (non-AC version) going up to Rs 3.8 lakh. The i10 begins from Rs 3.3 lakh going over Rs 5 lakh.
Speculation is rife that the Santros price range may go up following the launch of the revised version, but there is no confirmation from the company on this. Saxena of HMIL says, Look at it this way. We have two brands as opposed to one in the segment. The sales numbers are higher that way. We stand to gain as a result of this.
Saxenas statement is indicative of the multi-product strategy of the company especially when it comes to the A2 segment. MSI also has a similar model. We believe in a multi-product approach, admits Pareek. Dependence on one product is not such a great idea in our view. This explains why the moment the Estilo, the second tall-boy in the MSI stable, started losing steam in terms of sales, the company promptly choose to relaunch the vehicle in August this year. On an average, the Estilo has been doing about 3,000-4,000 units per month.
But the January-July 2009 period has not been good for it. But thats true for most other passenger cars. Sales came down by 36.61% for the seven-month period as opposed to the corresponding period last year.
The company is hoping that the relaunched vehicle can do what the WagonR did when changes were made to it in July 2007. Lets see how it does, says Pareek.
Besides HMIL and MSI, none of the other players has an entire line-up of compact cars vying for consumer attention. Of course, Fiat India is working hard at it. It has slowly but steadily increased its offerings in the A2 segment adding the Grande Punto, which was launched in June this year, to the Palio and the Fiat 500, that comes to India as a completely built unit. General Motors has two cars, the Spark and the Aveo U-VA, while Ford Motors, Skoda Auto and Tata Motors have one product each, the Fusion, Fabia and Indica respectively. Of course, the market share of these companies is nowhere next to HMIL, let alone Maruti, the largest car maker in the country and leader in the A2 segment. HMIL, for the record, is the second-largest car maker in India. It is in second position in the A2 segment as well. As the battle rages on between the two arch rivals, it is advantage Maruti for now. http://www.financialexpress.com/printer/news/514147/
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| CAR MAKERS REVISE TARGETS AFTER SURPRISE GROWTH Danny Goodman Business Standard (Web & Print Edition)
New Delhi: Passenger vehicle manufacturers are hopeful of achieving a double-digit sales growth for the current financial year. Earlier, the sales outlook for cars and utility vehicles was pegged at 5-6 per cent for 2009-10 by the Society of Indian Automobile Manufacturers (Siam).
One reason for the upward revision in the forecast comes from the surprise growth of 9.45 per cent notched by the industry since the beginning of this year.
The surge in growth for this year comes primarily from the low base posted by the industry last year. For the whole industry, I expect growth to be in the high single-digits, said Pawan Goenka, president of Siam and president of Mahindra & Mahindra (M&M). Last year, the industry grew 0.13 per cent.
Maruti Suzuki, which sold 733,000 units of cars last year, is hopeful of clocking more than 800,000 units this year. We should reach 800,000 unit sales this fiscal and that is our target. We hope to grow by 10 per cent, said Shinzo Nakanishi, CEO & managing director. Last year, the company grew by less than 2 per cent. Domestic sales for July and August have been well over 25 per cent.
Hyundai Motor India (HMIL), the largest exporter of cars, is hopeful of clocking double-digit growth in the domestic market for the current year. Between April and July this year, the companys domestic sales grew 11 per cent. We feel the market will get better during the coming festival season. That will help us clock better volumes. We will post double-digit growth this year, said Arvind Saxena, senior vice president (marketing & sales) of Hyundai.
M&M, which saw 2.5 per cent growth last year, also expects a double-digit growth for the current year. The new found confidence comes on the back of good demand for its utility vehicle, Xylo, launched this year. We expect to have double-digit growth in our passenger vehicle segment this year, said Rajesh Jejurikar, chief of operations (automotive sector) of M& M.
Even manufacturers of premium cars like Honda Siel, which posted negative growth of 17 per cent last year, are hopeful of turning around this year with double-digit growth. We are expecting our sales (growth) to be in double-digits for the current financial year, said Jnaneswar Sen, senior general manager (marketing) of Honda Siel. April to July car sales for the company this year grew 7.4 per cent.
Fiat India, which launched its fourth compact car, the Palio, in the domestic market this year, is hopeful of maintaining its current monthly volumes till next year. Currently, we sell around 2,500 cars, comprising both the Linea and the Punto, in the domestic market. We expect the monthly numbers to grow to 3,000 units soon, said Rajeev Kapoor, CEO.
Analysts say the expected growth of around 10 per cent for this year comes from five reasons. The industry will continue to grow on the back of new models, which is expected to come from Tata Motors (new Indigo), GM (the Beat concept compact car), and Fords new small car next year, said a Mumbai-based analyst. Marutis new models like the A-Star and Ritz have generated good sales volumes. Two, the three stimulus packages announced by the government beginning last December have pulled consumers to showrooms. Three, the attractive car loans at 8 per cent offered by public sector banks like SBI and four, the growth in rural markets.
What we have found out is that the rural economy has been untouched by the continuing credit crisis which plagued the urban markets the whole of last year, said Shashank Srivastva, chief general manager (marketing) of Maruti Suzuki. Rural markets contribute around 12 per cent to the companys total sales.
The other reason for the expected double-digit growth are sales from export markets. Despite key markets in Europe nearing the limits of the vehicle-scrapping incentives, we expect to maintain the volumes for the coming months, said Saxena. Last year, Hyundai exported 253,345 cars from India. http://www.business-standard.com/india/news/car-makers-revise-targets-after-surprise-growth/369443/
MARUTI TO EXPAND MANESAR FACTORY CAPACITY BY 40% IN TWO YEARS
New Delhi: Maruti Suzuki plans to expand its passenger vehicle production capacity at Manesar, near here, by around 2,00,000 units over the next two years, said R C Bhargava, chairman. Currently, the plant at Manesar, the companys second, which produces the companys new models like the Swift, A-Star and the Ritz, has a capacity of around 3,00,000 units.
Last month, the new facility touched 5,00,000 units on a double-shift. A company official said the cost of setting up a 1,00,000 vehicle capacity increase would be around Rs 1,500 crore. The expansion decision is likely to be taken next month, at a board meeting.
The idea of expanding the Manesar facility comes after the companys decision to stop production of cars at Plant-1, at its Gurgaon factory. Plant-1 has an annual capacity of around 1,60,000 vehicle units. There are three plants located inside its giant Gurgaon facility, that produce older Maruti models like the Maruti 800, Wagon R, Omni, and the Versa, and one engine manufacturing facility that churns out the K-series engine. Total vehicle production capacity at Gurgaon is 7,00,000 units yearly.
Since this is the oldest manufacturing facility and all production equipments are almost fully depreciated, we would be stopping the production of cars at Plant-1 in Gurgaon in a gradual manner. We will not be shifting equipments to Manesar. The space will be used for engine assembling, machining and other works, says Bhargava. Plant-1 is about 40 years old.
Maruti Suzuki currently has a yearly production capacity of a million cars. This is to now gradually reach 1.2 million cars.
MADE IN INDIA, SHIPPED TO CHINA, THAILAND Murali Gopalan The Hindu Business Line (Web & Print Edition)
Mumbai: Japanese automaker Nissan has kicked off its India sourcing programme by shipping out key components from its Chennai facility to China and Thailand.
Trial production of parts has begun for the global platform cars scheduled to debut in China and Thailand next year. The tests have been very successful so far, Mr Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India, told Business Line.
It is from the same platform that India will see the rollout of a hatchback, the revamped Micra whose production will be shifted from the UK, in mid-2010. This will coincide with the launch of cars from the same platform in China and Thailand.
Global platform The common global platform strategy is part of Nissans endeavour to produce a host of cars, be it hatchbacks or sedans, across five countries. Thus far, India, China and Thailand have been identified as key manufacturing locations. We still have not taken a decision on the other two countries, Mr Tokuyama said.
Experts, however, believe that there is a good chance of Russia and Brazil qualifying, keeping in line the positive outlook for BRIC (Brazil, Russia, India and China) economies in the coming years.
For instance, Toyota and Honda have, like Nissan, drawn similar big plans for a global platform in the BRIC nations with India tipped to be the launch pad when their cars debut in two to three years.
From Nissans point of view, India is a favoured destination for sourcing given the high quality of the vendor base coupled with an effective costing structure.
There are 94 suppliers associated with the Nissan project and more could join the list as the levels of localisation grow in the coming years.
The Japanese automaker has targeted production of one million cars across these five countries, though no specific timeframe has been finalised yet. India is an important part of the overall strategy and this can be borne by the fact that it has seen the single largest investment from Nissan in 2009, of the overall $3.5 billion earmarked by the company globally, Mr Tokuyama said.
We are very proud of our manufacturing plant in Chennai and do believe that India has lots to offer in terms of its quality and efficient manpower. From Nissans perspective, it is a win-win business model, he added.
Vehicle strategy The vehicle strategy for the country will involve a mix of direct imports and locally produced cars. Following the launch of the new-look Micra in mid-2010, a sedan will follow a year later to be succeeded by yet another model.
Nissan has also planned a second car platform for India though work is largely at an exploratory stage right now. We are carrying out preliminary market research and there is still some way to go. For the moment, we are completely focused on the Micra and building our market share, Mr Tokuyama said.
While sourcing of parts will be a key part of its strategy, Nissan will also export fully built-up cars from India. These could well head out to Europe (where fuel-efficient cars are now sought after), West Asia and even South Africa which is gradually emerging a favourite for Indian automakers.
However, Mr Tokuyama declined to get into the specifics and confined himself to the fact that numbers would go up from 110,000 units to 180,000 units within two-three years of production ramping up in Chennai.
Nissans global ally, Renault had also planned a separate production line in the plant but froze investments following the global slowdown. The French automaker is now likely to use the Nissan platform and produce its own models though no decision has been taken on the matter. http://www.thehindubusinessline.com/2009/09/08/stories/2009090851370200.htm
CHEAPER LABOUR HELPS INDIA OVERTAKE CHINA IN EXPORT OF SMALL CARS Vipin V. Nair / Bloomberg See this story in: mint (Web & Print Edition)
Mumbai: India, whose auto market is 19% of Chinas, has the edge in exports. Suzuki Motor Corp., Hyundai Motor Co. and Nissan Motor Co. are making India a hub for overseas sales of minicars as incentives raise demand for smaller, fuel-efficient autos. Helped by cheaper labour and a surging local market, India this year overtook China in auto exports and is challenging Thailand and South Korea as an alternative production centre in Asia.
There is a worldwide shift toward fuel-efficient, compact cars, said Jayesh Shroff, who helps manage around $7 billion (around Rs34,000 crore) of assets, including car maker shares at SBI Asset Management Co. Ltd in Mumbai. This offers a huge potential for India and it can emerge as a leader in the small car segment.
Maruti Suzuki India Ltds exports more than doubled to 79,860 this year. It aims to ship 130,000 vehicles in the year to March, 86% more than last year, said chairman R.C. Bhargava.
Indias exports of minicars and hatchbacks gained 44% between January and July to 201,138, according to the Society of Indian Automobile Manufacturers. Total exports, including vans, sport-utility vehicles and trucks, rose 18% to 229,809. Cars are exported to at least 100 countries, and dont include the US or Japan.
In contrast, Chinas exports slumped 60% to 164,800 between January and July, according to government data. Vehicles produced in Thailand for export declined 43% to 263,768, according to the Thai Automotive Club.
South Korean exports dropped 31% to 1.12 million units, according to the Korea Automobile Manufacturers Association. Japan, the worlds largest automobile producer and exporter, shipped 1.77 million cars, trucks and buses. Of those, 135 were minicars and 439,849 were compacts.
Besides the attraction of serving a market where three of four cars bought are compacts, automakers will favour India to set up an export base as China requires companies to form local joint ventures and India doesnt, said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia Ltd. It makes companies more comfortable to have an export strategy when they have full control. They dont have to give up some parts of the profits to their partner.
Small cars will account for 95% of the 690,000 passenger vehicles India will export in 2015, according to Tim Armstrong, Paris-based director of IHS Global Insight Inc. In 2016, India may share the top slot with Japan as the worlds biggest small car producer, building as many as three million units. All of Indias expertise has been the small car, Armstrong said. So obviously its a natural place to turn to to set up export units.
Toyota Motor Corp. and General Motors Co. are also expanding Indian units and plan to export compact vehicles.
Hyundai, South Koreas biggest car maker, plans to export 300,000 cars from India this year, more than its sales in the local market, a first since setting up a plant a decade back.
Nissan, Japans third biggest car maker, will set up its first factory in India by May and use it to export entry-level cars to Europe. Spending on the plant is the most out of its global investments this year, said executive vice-president Colin Dodge. Production in India will help Nissan save at least 5% of costs, Dodge said. Its enormous money for us.
The cost of labour in India is around one-tenth of that in the US and Europe, and raw material costs in the nation are lower by 11%, according to Puneet Gupta, an analyst at CSM Worldwide Inc., an industry consultant. Developing a car from the design stage in India may take $225 million to $250 million, while in Europe it may be $400 million.
The single biggest opportunity in the auto industry for India is the small car, said Vikas Sehgal, a Chicago-based partner at Booz and Co., an industry consultant. If India loses in the small car market, it has nothing. http://www.livemint.com/2009/09/07214652/Cheaper-labour-helps-India-ove.html?h=B
TOYOTA, FORD IN INDIA SLUGFEST Hindustan Times (Web & Print Edition)
New Delhi: A classic global war between two of the biggest auto giants has found a new battlefield in India. In less than a month of its launch, Toyotas Fortuner is giving headaches all around, for a variety of reasons. For the worlds number one carmaker, its a problem of how to meet demand and keep the waiting list down. For Ford, whose Endeavour has so proudly retained the Indias number one SUV tag for over two years, it is a question of how to stand up to the new-found competition that is sweeping everything before it.
Toyota has increased production for the Fortuner to 2,500 units this year from the 2,000 it had planned at launch. But it already has 5,038 bookings, and has been forced to ask its dealers to suspend bookings.
We are trying our best to increase capacity further and may be able to produce 3,000 vehicles by the end of this year," said Sandeep Singh, deputy managing director, Toyota Kirloskar Motor. The waiting list is now over 6 months and for a car of this price it is unreasonable. So we have stopped bookings at the moment, but have asked the dealers to note enquiries and contact them when existing bookings are met.
So far Toyota has despatched 550 vehicles from its Bidadi plant near Bangalore. In contrast, the market leader Ford Endeavour, with a 30 per cent share, sells around 250 units per month.
Ford however, is not idling the Endeavour, and will be launching a new version with automatic transmission which is missing in the Fortuner this week. It is also looking at launching another SUV next year.
Fortuner is good for the industry as it expands the market for SUVs, said Timothy Tucker, Vice President Sales, Ford India.
The new Endeavour will answer some of the demands of the market as well. We are also looking at all possible option including another SUV as we understand that with this potential the segment maybe too big for just one product.
The mid range SUV segment itself has been languishing this year so far with an estimated decline of around 15-20 per cent in the April-July period. Honda CR-V, Chevrolet Captiva and Mitsubishi Pajero and Outlander are some of the other vehicles in the segment. http://www.hindustantimes.com/News/auto/Toyota-Ford-in-India-slugfest/Article1-451295.aspx
The Financial Express (Delhi Print Edition)
General Motors India has won the Prestigious national safety award in the Motor Vehicles category. Its Halol plant has been selected for the award for its best safety systems in the industry. The annual honour is presented by the Directorate General of the Factory Advice Service & Labour Institute (DGFASLI), the countrys premier institution for safety under the aegis of Ministry of Labour & Employment, Government of India.
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| COMMERCIAL VEHICLES Go To Top Business Standard (Web & Print Edition)
Kolkata: Mercedes-Benz is planning to launch over-dimensional-cargo (ODC) vehicles and long-haulage trucks that can carry up to 240 tonnes in India soon.
The company is also bullish on supplying commercial vehicles like trucks to mining and irrigation projects in the country. Currently, this segment contributes close to 15 per cent of the companys total turnover in India. Said Wilfried Aulbur, managing director and CEO of Mercedes-Benz India: We are looking at niche segments in India. With luxury car sales plummeting, we are focusing on the commercial vehicles segment very strongly.
To this effect, Mercedes-Benz will be supplying 250 Actros trucks to Soumya Mining, at a cost of Rs 144 crore. Soumya Mining, which operates a Rs 200-crore business, has Coal India as its largest client. Currently, Soumya operates in Chhattisgarh, Jharkhand, Madhya Pradesh, Meghalaya, Rajasthan, Uttar Pradesh, Assam, Nagaland, Orissa and Maharashtra.
Actros trucks now operate across 25 mines in seven states. Around 25 per cent of these trucks are assembled and localised in India. We are in the process of preparing a proposal for the Ministry of Defence in India to supply some of our vehicles, like G-Wagon and Unimog. Some of our defence sector vehicles were used by the Canadian army to fight the Taliban, said Aulbur. So far in 2009, the company has sold 127 trucks in India.
The company is also targeting the irrigation segment in Andhra Pradesh and is in talks with contractors for selling its trucks for the purpose.
The company has sold 25 buses to private fleet owners, as well as to the state governments, for inter-city transportation.
MERCEDES TO RAISE CVS SHARE IN INDIAN PORTFOLIO
The Times of India (Web & Print Edition), (Web Edition)The Financial Express (Web Edition)
Kolkata: Mercedes-Benz India portfolio will undergo a rejig over the next five years with commercial vehicles gaining a substantially larger chunk of the overall revenue pie. At present, trucks and buses comprise only 15% of its business. Internationally, commercial vehicles make for 40% of parent company Mercedes-Benz business Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://in.biz.yahoo.com/090907/50/bau5fc.html http://www.financialexpress.com/news/100-merc-trucks-for-saumya-mining/514185/
LEYLAND, NISSAN MAY USE EXISTING PLANTS FOR LCVS Manu P. Toms The Hindu Business Line (Web & Print Edition)
Mumbai: Ashok Leyland and Nissan, which are still working out the finer details of their joint venture to manufacture light commercial vehicles and power trains as well as to develop technology, are looking at optimising investments and using available facilities in the first phase.
The companies have still not decided if they should go in for common products with different badges or independent products.
One option could be Leyland manufacturing Nissan light commercial vehicles and selling them under its brand. These may not be launched by Nissan in India. Another may involve launching common products with different badges (Nissan and Ashok Leyland), Mr Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India, told Business Line.
While the companies had redrafted their strategies following the global slowdown, indications are that the joint venture will go on stream by 2011-12. To optimise investments, we are looking at options including the use of available facilities. The product development activity is continuing without any interruption which shows our commitment to the project, he said.
Should this happen, Ashok Leyland could use its Hosur plant while Nissan will look at its Oragadam facility near Chennai which is home to its range of cars scheduled to debut next year. The project has been delayed for six months. Our teams are now working aggressively and we are pleased with the pace of progress. We are confident of bringing out a successful LCV in 2011-12, Mr Tokuyama said. http://www.thehindubusinessline.com/2009/09/08/stories/2009090851380200.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top Nandini Sen Gupta The Economic Times
Mahindra and Mahindra (M&M) will end this fiscal year as the worlds number one tractor company by volumes, a company official said. If we take the volumes of one legal company not all subsidiaries or international operations we might well be number one this year, said Anjanikumar Choudhari, president of the farm equipment division at the automobiles-to-finance-to-IT conglomerate. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| Anand Sankar Business Standard (The strategist)
Prakash knows that he is a newcomer to the extremely competitive world of motorcycles and the challenge of making Harley a household name and an everyday sight in India is tough. Still, he is on the lookout for the right commercial real estate in Gurgaon to set up his office. He wants a space which can house an office, showcase his motorcycles and associated merchandise (not retail them though), hold events and be near the highway so that enthusiasts can test the motorcycles. He says the Harley experience will begin right at his office. Excerpts from an interview with Anand Sankar:
How did the Harley for Indian mango trade deal happen in 2007?
Why did it take two years for Harley to get here?
The motorcycles are effectively going to cost twice as much as in the US, thanks to the high tariff.
How do you plan to bring in the bikes and what models?
We are bringing the full range of Harley families (seven) to India. We will not bring all the 43 models, but there will be at least one from each family, if not two. We are targeting 12 to 15 unique models. We want to hear from riders here what they want to see in 2010.
What will be your consumer finance strategy? With respect to financing, I am looking at the portfolio and saying what can I do on our pricing ladder to maybe make some of our bikes a little more affordable and have more appeal? My job is to make sure that most people access the brand. We want to provide the best consumer finance options. I am looking at every possible approach and modelling across our portfolio.
Wont buyers gain confidence if you start manufacturing here? That is the longest-term scenario, requiring the biggest investment. We have to prove that everything is as we say it is in India it is growing, it is rich and it is healthy. Now, we are going to bring the world-class Harley experience to India. What that has meant for us is extremely close attention to the riders needs. It could be getting a part or an accessory shipped from a dealer in the US or Europe overnight. They should be able to rely on Harley to be there for them for all their riding needs. We are going to take the entire industrys service expectation up a notch. We are not going to dumb down the service offering because it is not the standard here.
What is the retail and service model going to look like? The model is going to have independent dealers who will be responsible in their territory for sales and after-sale service. We are definitely going to provide training. As far as service is concerned, we are considering different models. How do you deliver service outside the city? In the US, we have 600 dealers, so we have enough density. We need to develop something here to make sure we serve the rider wherever he rides. To do that we are learning the lessons that other manufacturers have learned having gone through dealers first and not having service later. I have learned from that to make sure we are not in that position.
Harley Davidsons revenue from apparel and accessories has been growing steadily globally. Is there a separate plan for it in India?
How will the advertising plan roll out? I want all enthusiasts to look and feel for themselves what it is to ride a Harley. We already have an incredible amount of people registering on our website to be informed about events and rides. We want to reach out to as many and as quickly as we can. So, I believe at the front end there is not a lot of value in advertising in the traditional sense. http://www.business-standard.com/india/news/the-hog-is-here/369335/
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| COMPONENTS Go To Top Daily News & Analysis
New Delhi: Amtek Auto, the forgings and castings firm, is likely to benefit from improved sales growth in domestic as well as international automotive businesses this year. The company is also expected to derive significant operational efficiencies after it completes the long overdue amalgamation of five group companies within itself.
Amtek India, Ahmednagar Forgings, Amtek Ring Gears, Amtek Crankshafts and Amtek Castings are to be amalgamated with Amtek Auto and this process has already been approved by the shareholders of Amtek Auto in April this year. It is now pending legal approvals.
Analysts from Anand Rathi Research, Amit Kasat and Rohan Korde, said in their research report on Monday that they expect the company to benefit from the relatively strong growth in automobile demand at home and the nascent recovery globally.
"Its amalgamation with five group companies would lead to integrated operations and greater efficiencies...We expect this to lead to better integration of operations, clearer efficiencies in sourcing and negotiations, and greater transparency in operations." Amtek reported sales of Rs 3,524.9 crore for the 12 months ended March 2009, a decline of almost 28% over the previous fiscal. Its revenue was hit by a slump in domestic auto volumes and continuing sluggishness in the US and UK markets during the first half of FY09. But this situation should improve considerably now.
Kasat and Korde point out that the global auto components market is showing quarter on quarter improvement and since exports account for 22% of Amtek Auto's standalone revenue, the company would "strongly benefit from this demand improvement, given its wide geographical reach. We expect a robust 50% CAGR (ex-merger impact) in its (consolidated) profit from FY09 to FY12."
An overwhelming 71% of the company's revenues come from supplies to passenger car makers, followed by 10% from commercial vehicles and another 8% from two-and three-wheelers.
"Post consolidation, Amtek would emerge as one of India's largest auto component manufacturers. The amalgamation with its group companies would result in smoother integrated operations, greater efficiencies in sourcing and negotiation, and more transparency in operations," Kasat and Korde said. http://www.dnaindia.com/money/report_amtek-auto-to-merge-five-group-cos_1288347
JBM SCOUTS FOR AUTO COMPONENT MAKERS IN EUROPE Meera Mohanty The Hindu Business Line
New Delhi: Auto component maker JBM Group is in talks to acquire a European component maker. JBM hopes to use the acquisition to extend the relationship it has with European car manufacturers in India to Europe too when the market revives there.
Mr Nishant Arya, Executive Director, JBM Group, however, believes that while focussing on its core competence helped it grow fast, it could have diversified.
We are now looking at new markets. We have relationships with European customers in India. We can always extend those relationships to the European market, he says. He sees the European market recovering in a year or two. Already countries like France and Germany have started showing signs of growth again, he points out.
Having bought out the ThyssenKrupps stake from the joint venture in the Ford suppliers park near Chennai, it hopes to grow business there. Lot of new customers are coming up in that region like Renault-Nissan, Mercedes (for trucks) and we are in discussion with them, says Arya. Hyundai has its plant near Chennai.
JBM is also in talks with international partners to foray into metal components for the aviation sector. Aviation is a sunrise sector and it is where the automotive sector was 20 years back. But it will grow much faster than auto did, since its a global market and everyone wants to reduce their cost and are looking at India, says Mr Arya.
An alliance partner who can bring in technological expertise for the higher precision components required in aviation is being sought.
The Boeings and the Airbuses are increasingly looking at India for R&D and components. Indian and China, points out Mr Arya, are now also big customers. Before the end of the financial year it also hopes to close its alliance for buses which it will manufacture. http://www.thehindubusinessline.com/2009/09/08/stories/2009090851390200.htm
BHARAT FORGE SEEKS SHAREHOLDERS' NOD TO RAISE $150 M PTI See this story in: The Hindu Business Line
Mumbai: Auto component maker Bharat Forge on Monday said it will seek shareholders' approval to raise $150 million (nearly Rs 720 crore) by issue of warrants or bonds. The shareholders would meet on October 1, to consider raising funds of $150 million b y issue of warrants or bonds, with or without an option to raise an additional amount if the subscription is fully subscribed.
The company would issue warrants or bonds to potential buyers, the filing added. Shares of Bharat Forge closed at Rs 225.80 on the BSE, up 2.98 per cent from the previous close. http://www.thehindubusinessline.com/blnus/02071703.htm
DCM ENG IN TALKS WITH GLOBAL OEMS TO SUPPLY NEW CASTINGS PTI See this story in: The Hindu Business Line
New Delhi: Auto component maker DCM Engineering on Monday said it is in talks with global commercial vehicle makers for supply of its latest castings, manufactured using graphite iron.
The company had partnered with Swedish firm SinterCast to produce compacted graphite iron (CGI) castings and claims that the new product has about 75 per cent higher tensile strength and more than double the fatigue strength of conventional grey cast iro n and aluminium.
DCM is in dialogue with foreign original equipment manufacturers (OEMs) for the export of high quality CGI castings, the company said. DCM Engineering Managing Director Mr J K Menon, however, declined to name the global vehicle makers with which the co mpany is in talks, citing confidentiality.
He said besides global players, DCM has also started trials for the new product with some of the Indian commercial vehicle makers without naming them.
Right now the product is being tested for commercial applications and it will take two to three years for us to go into full scale production, Mr Menon said.
SinterCast President and CEO Mr Steve Dawson said the Swedish firm would partner with DCM to support the CGI development needs of India, one of the world's largest and fastest growing automotive markets. http://www.thehindubusinessline.com/blnus/02071621.htm
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| TYRE COS MAY HIKE PRICES BY 15% Chanchal Pal Chauhan The Economic Times
New Delhi: Indian tyremakers are looking at increase prices by 10-15% as raw materials like natural rubber and crude oil derivates have become costlier in recent months. Natural rubber has reached Rs 107/kg from Rs 75/kg in March forcing tyremakers to increase prices by up to Rs 2,000 per tyre. But the change in tyre prices will not impact the ex-showroom prices of cars, trucks or buses but will force customers to pay more to replace their tyres. Tyre companies Ceat, Apollo tyres, Falcon and MRF Tyres plans to increase prices by up to 15% in the next few days. The upswing in raw material prices has forced us to revise prices in the domestic market, P K Ruia, chairman of the Ruia Group, which owns Falcon tyres, said. The group will also re-start production of commercial vehicle tyres under the Dunlop brand which will be priced higher. We are looking at a 10-15% increase in the next few days to adjust with the changed commodity prices. Ceat is looking at a price hike of 3-5% in the festive season while the Delhi-based Apollo Tyres is looking at a new price range but refused to specify the quantum of hike. Apollo Tyres vice-chairman Neeraj Kanwar said, Natural rubbsser prices have been steadily rising. Rubber prices in the domestic market is Rs 109/kg and in the international market Rs 93/kg. So far, we have absorbed higher costs. We will decided on a price hike gradually. Meanwhile, tyre makers apex body, Automotive Tyre Manufacturers Association (ATMA) has asked the government to allow duty free import of 100,000 metric tonnes (MT) of natural rubber in the current fiscal to tide over its shortage in the domestic market. As per ATMA, there has been 5-25% drop in rubber production in Thailand, Indonesia and Malaysia due to replanting and there are no clear estimates on how much rubber India will produce this fiscal. ATMA said Indian tyre makers increased rubber consumption to 2,14,500 MT in the April-June period while India produced only 1,59,520 MT in the same period leaving a gap of 54,980 MT for the industry which had to imported. ATMA director general Rajeev Budhiraja said, Besides natural rubber other raw material like carbon black, chemicals and textile have also witnessed a significant jump this year which are also expected to impact prices in next few days. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| FINANCE & INSURANCE Go To Top Business Standard
Mumbai: Credit demand from consumers seemed to be back on track, especially in sectors such as auto and home loans though banks had cut down unsecured loan exposures, said KV Kamath, chairman of ICICI Bank.
So far as mortgages are concerned, I think they are back from where they were a year ago. The tension between buyer, builder, and the lender is now more or less off. Auto sector financing is also back, Kamath said at the sidelines of a banking seminar.
The chairman of the countrys largest private sector bank felt 80 per cent of the consumer loans were back, the remaining 20 per cent mostly unsecured loans had taken a back seat. Unsecured consumer credit is certainly hit. Banks are not lending unsecured loans, he said. We at ICICI Bank have significantly slowed down unsecured loans since one year. We only give unsecured loans to few existing clients, which have deposits and a good track record with us, he said while adding that ICICI Bank took the lead in slowing down unsecured loans.
Though home loans have picked up, commercial real estate loan demand is still slack due to excess capacity creation. The growth of retail credit demand was not reflected in the overall credit growth numbers as a slowdown in working capital demand dragged down the overall numbers, felt Kamath.
Its not reflected in the numbers because lack of working capital. This loan is distorting the numbers. If we keep the working capital loan aside, lending rate will be healthy by the end of the year, he said while adding that credit growth for 2009-10 was likely to be 29 per cent except the working capital loan. Credit growth during April 1 to August 14 was only 1 per cent compared with 3.3 per cent a year ago.
Also, the projects, which were in a conception stage a few months back, were being implemented now, he said. Kamath saw interest rates remaining stable going ahead. To me, I do not fear interest rates to go up immediately. What the Reserve Bank of India will do if inflation rears up, we think we have to wait for one month for the monetary policy. It may react based on the what is the type of inflation and whether monetary policy action will help or not, he said. http://www.business-standard.com/india/news/auto-home-loans-see-revival-kamath/369371/
INDUSIND BANK'S CFD EXPECTS ROBUST GROWTH IN VEHICLE FINANCE BIZ V Balasubramanian The Economic Times
Chennai: IndusInd Bank (IBL) expects to achieve a robust growth in its vehicle finance business this year against the marginal decline it reported in 2008-09 in the wake of the impact on Indian economy caused by the global financial melt down. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
MAGNA FINCORP TO FINANCE LEYLAND VEHICLES The Hindu Chennai: Ashok Leyland signed a memorandum of understanding with Magma Fincorp (MFL) to provide financing to end-customers of commercial vehicles. According to a release, the MoU, which was signed here by Rajive Saharia, Executive Director, Marketing, Ashok Leyland, and Ravi Todi, Joint Managing Director, MFL, will enhance sales in the eastern and northern markets. http://www.hindu.com/2009/09/08/stories/2009090855191300.htm
M&M ENTERS TIE-UP WITH BANK OF RAJASTHAN PTI See this story in: The Hindu Business Line
Bangalore: Mahindra and Mahindra Ltd (M&M) has signed a Memorandum of Understanding (MoU) with Bank of Rajasthan for vehicle finance.
The bank would now be a preferred financier for Mahindra vehicles, encompassing both commercial and passenger vehicles.
Auto loan financing would be available at 10.50 per cent for salaried employees and professionals and 11 per cent for others. The loan's extent would be up to 90 per cent of the vehicle's ex-showroom price with a five-year tenure. http://www.thehindubusinessline.com/blnus/02071801.htm
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top The Financial Express
As per the Gazette notification, PNGRB has asked entities to pay Rs 2 crore for turnover of up to Rs 20,000 crore under the head other charges. For turnover of up to Rs 50,000 crore it has levied Rs 2 crore plus 0.008% of revenues in excess of Rs 20,000 crore. For turnover up to Rs 1,00,000 crore it will charge Rs 4.4 crore plus 0.005% of revenues more than Rs 50,000 crore. Besides this, 0.2% of capital expenditure during construction period will be payable by entities, it said.
PNGRBs decision is applied to GAIL and Reliance Industries, which earn from selling CNG to automobiles and piped natural gas to households and industries. However, it has evoked an angry reactions from GAIL India, which has expanded its CNG business from 1 company (Mahanagar Gas Ltd) in India to 8 in India and 4 abroad, proposes to approach the Appellate Authority challenging the PNGRBs move. GAIl India sources told FE, PNGRBs move will scuttle the CNG and PNG projects. How can PNGRB impose tax on the entire turnover of the company when retailing CNG, PNG is one of the segments.
RIL sources said, We will study PNGRBs ruling and if the tax will be on the entire turnover of RIL then we will protest against any such move. Similarly, Petroleum Federation of India, a body of oil and gas companies, has also strongly opposed the levy of turnover tax.
Petrofed official, who does not want to be quoted, said, There is no question of imposition of turnover tax on integrated oil companies which are involved in exploration and production, marketing, retailing and other activities. At best, the board can consider charging a portion of turnover of retailing CNG, PNG but certainly not on a tax on the entire turnover. Petrofed had already sent out its representation to the board.
Petrofed official said other charges are similar to levy of turnover tax or sharing of revenue which are not provided for under the PNGRB Act. A new tax can only be levied by the Finance Ministry and also PNGRB does not have powers to withdraw even a single penny collected in such charges, the official added.
Mumbai based analyst opined the PNGRBs move will bring CNG and PNG activities to a standstill. So far 19 cities are being covered. Ironically, since October 2007 not a single city has been added. The levy of turnover tax will further hamper the plans in the pipelines.
In a presentation to PNGRB, it said the Board can levy other charges only against specific service rendered or goods supplied. Besides the new tax, PNGRB has notified fee payable by companies for registration, authorisation and filing complaints.
Drawing parallel with the Central Electricity Regulatory Commission, Petrofed said the Electricity Act provides for reasonable fee structure for various activities (and) no charge as other charges have been levied by the CERC.
There being similarity in functions related to energy sector, PNGRB is requested to withdraw provisions related to other charges, it added.
Charges means demand (an amount) as a price for a service rendered or goods supplied. Thus other charges provision do not conform to the meaning of charge when related to money as no services are being rendered, Petrofed said. http://www.financialexpress.com/news/cng-natural-gas-retailing-firms-will-now-have-to-pay-turnover-tax/514108/2
OIL CLINGS NEAR $68 AHEAD OF OPEC MEET See this story in: The Indian Express Singapore: Oil prices clung near USD 68 a barrel for a fourth day in Asia as investors looked to this week's OPEC meeting for a possible change in the cartel's production. Benchmark crude for October delivery was up 12 cents at USD 68.14 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract Friday rose 6 cents to settle at USD 68.02.
Trading volume was light in Asia ahead of the Labour Day holiday in the US. Traders are eyeing Wednesday's meeting of the Organization of Petroleum Exporting Countries in Vienna. OPEC President Jose Botelho de Vasconcelos, who is also Angola's oil minister, said last week that the 12-member group will likely keep output quotas unchanged.
Crude prices have swung wildly in the past year, reaching USD 147 a barrel in July 2008 before plunging to USD 32 a barrel in February. Saudi Arabia, OPEC's biggest producer, has said USD 75 is a fair price for consumers and producers.
In other Nymex trading, gasoline for October delivery was steady at USD 1.77 a gallon, and heating oil held at USD 1.72 a gallon. Natural gas fell 6.4 cents to USD 2.66 per 1,000 cubic feet. In London, Brent crude was up 33 cents at USD 67.15. http://www.indianexpress.com/news/oil-clings-near-68-ahead-of-opec-meet/513979/
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee appreciated against the dollar tracking the gains made by the domestic equity markets. But consistent dollar demand from oil companies put a cap on the gains, said forex dealers. The rupee opened higher at 48.75 and closed at 48.64, about 24 paise higher from the previous close of 48.89. Also, due to a holiday in the US, the dollar inflow was less, the dealer said. In the overseas market, other currencies consolidated the gains they made against the dollar. ̶ 0;Due to the US holiday liquidity was thin, the dealer said. In the forwards market, the six-month closed at 2.5 per cent (2.45 per cent) and the one year at 2.43 per cent (2.4 per cent). http://www.thehindubusinessline.com/2009/09/08/stories/2009090851830600.htm
SENSEX CLOSES ABOVE 16K MARK FOR FIRST TIME THIS YEAR PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange benchmark Sensex on Monday closed over the 16,000-point level for the first time this year as buying in realty, metal and banking segments powered over 320-point rally on strong global cues.
The Sensex rose by 327.20 points to close at 15-month high of 16,016.32 points, a level never seen after June 2, 2008. The wide-based National Stock Exchange index Nifty soared by 102.50 points to 4,782.90 points. The rally was backed by steep rise in stocks of realty, metal and banking segments on reports that shortage of monsoon rainfall might ease, improving the outlook of farm production and boosting buying in rural parts of the country. The fag-end surge was mostly attributed to higher opening in European stock markets this afternoon.
Among the Sensex shares, 28 scrips closed with gains while ITC Ltd and Mahindra and Mahindra ended with losses. Infosys Technologies, Reliance Industries, ICICI Bank, RCom, DLF Ltd, Tata Motors and Tata Steel were the major gainers and helped Sensex ris e above 16,000 points level. http://www.thehindubusinessline.com/blnus/05071901.htm
INDIAS GROWTH TO DIP IN NEXT TWO QUARTERS: FM The Times of India See similar story in: Business Standard
New Delhi: Finance minister Pranab Mukherjee on Monday said India's growth will slow down in the next two quarters and the revival can only take place towards the end of the last quarter of this fiscal due to less than expected food grain production. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://www.business-standard.com/india/news/fm-sticks-to-6-plus-growth-for-09-10/369438/
Last Financial closing
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Wednesday, September 9, 2009
Indian Auto Industry Update September 08, 2009
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Excellent Post. Thanks for sharing your valuable content.
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