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| INDUSTRY Car sales cross 1-m mark on soft rates, new launches
INTERVIEWS/FEATURES CARS, SUVs, MUVs Honda Siel sees first loss in 5 yrs COMMERCIAL VEHICLES Heavy commercial vehicle sales see first upturn in 14 months Mercedes-Benz all set to launch Indianised range of small trucks Merc sees slight fall in tipper segment CONSTRUCTION & AGRI MACHINERY Hero Honda to sponsor ICC trophy COMPONENTS | ALLIED INDUSTRIES Madras HC directs striking MRF union to prove majority Bridgestone plans expansion Allianz keen on raising stake in Bajaj JV to 49% Ashok Leyland pact with Magma Fin OIL, LUBRICANTS & ALTERNATIVE FUELS Oil near $70 as rising stocks boost confidence INTERNATIONAL NEWS GM board begins two-day meeting Toyota to hire 800 contract workers as sales recover ECONOMY & FINANCE Sensex continues to rise, Nifty crosses 4,800 Stimulus packages to continue: FM
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| INDUSTRY Go To Top
New Delhi: The upward trend in vehicle sales continued in August. Total passenger vehicle sales grew by 22.4 per cent at 1,52,100 units. In August, the total number of all vehicles sold was up 24.33 per cent.
According to the Society of Indian Automobile Manufacturers (SIAM), which released sales figures for August, the forecast for the industry could be revised upwards on the basis of the current sales trend. SIAM is revising its 3-5 per cent growth forecast. August is a continuation of last months figures. Now, we feel growth will be in high single digits of 8-9 per cent, said Mr Sugato Sen, Senior Director, SIAM.
Indias largest carmaker, Maruti sold 69,961 vehicles out of the million vehicles sold overall in August, a 29 per cent growth year on year.
Passenger cars Marutis exports, benefiting from the scrappage incentives in Europe, more than doubled to 14,672 last month, up from the 5,669 exported last year.
Hyundai Motor India reported a 12.9 per cent growth at 24,401 units up from 21,607 sold last August. Its exports were up to 25,120 from 23,100 last August. The third largest carmaker, Tata Motors saw a 20.7 per cent growth in passenger cars to 14,755 units, up from 12,216 sold in August.
Total sales of domestic of passenger cars were up 25.58 per cent, with 120,669 sold last month. Car exports surged 37.5 per cent to 40,901 units.
Mahindra and Mahindra saw a 48.61 per cent growth in utility vehicle with sales of its Scorpios and Boleros amongst others up from 7,700 in August 2008 to 11,443. As a category utility vehicles grew 6.9 per cent .
Commercial vehicles, showed a growth this August Domestic sales were up 18.47 per cent at 40,624. Medium and heavy commercial vehicles category grew 3.9 per cent, not seen since June 2008, says SIAMs Mr Sen.
Two-wheeler sales were up 25 per cent to 7,76,777 units in August 2009. Sales of motorcycles were up 25.9 per cent, with 6,11,173 units sold in August up from 4,85,270 same month, last year. Hero Honda Motors sold 3,89,814 motorcycles, an increase of 36.9 per cent. Bajaj reported a 4 per cent growth in motorcycles and a drop of 58.6 per cent in scooters and scooterettes of only 454 this August. Honda Motorcycles and Scooters sales were up 9.6 per cent at 58,255 scooters. TVS Motors sold 27,676 scooters this month, up 20.3 per cent last year.
CAR SALES CROSS 1-M MARK ON SOFT RATES, NEW LAUNCHES The Economic Times (Web & Print Edition)
New Delhi: A slew of new car launches, easing loan rates and an early pick-up in festive season demand helped the Indian auto industry continue its robust sales growth in August, crossing the 1 million mark for the first time in the current fiscal. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
CAR SALES CONTINUE TO GROW FOR SEVENTH MONTH IN AUG
New Delhi: The domestic auto industry posted a robust 24 per cent jump in August sales, fuelling hopes of an even better performance in the coming festival season. According to the Society of Indian Automobile Manufacturers (Siam), the industry sold 1,008,702 units in August, as against 811,341 units in the same month last year.
Passenger car sales continued to grow for the seventh straight month for August, up 25.59 per cent, while sales for motorcycles soared by 25.94 per cent for the same month, Siam said. In terms of units sold, domestic passenger car sales rose to 120,669 from 96,082 units in the same month last year, while bikes increased to 611,173 units against 485,270 units in the corresponding month a year ago.
During the last few months, sales were consistently growing. Of course, last month it was fuelled by some stock build-up at the dealer level for the anticipated festive demand, Siam Senior Director Sugato Sen told reporters here.
The low-base effect during the same period last year also had a positive impact on sales, he added. Asked about the expected demand in the festive season, Sen said: The government has announced that the last instalment of the pay commission (revision) will be released. This will help people to fund their purchases... Also, lot of activities in the infrastructure sector are going on... The growth trend is expected to continue.
In the passenger-car segment during August, sales of the market leader Maruti Suzuki India increased by 34.64 per cent to 63,028 units from 46,811 units in the year-ago period.
The countrys second largest car maker, Hyundai Motor India, registered a jump of 12.93 per cent at 24,401 units against 21,607 units a year ago. Tata Motors sales went up at 14,755 units from 12,216 units in August last year, a jump of 21.02 per cent, Siam said.
In the motorcycle segment, market leader Hero Honda registered a 36.90 per cent surge in its sales at 389,814 units in August, compared with 284,752 units in the year-ago month. Rival Bajaj Autos sales jumped by 4.07 per cent at 121,644 units against 116,887 units in the same month last year, Siam said.
Chennai-based TVS Motor also registered a growth of 12.24 per cent at 40,509 units against 36,092 units. Honda Motorcycle & Scooter India (HMSI) saw its bike sales rising by 15.14 per cent at 32,033 units compared with 27,820 units in the year-ago period, it added.
Siam said total two-wheeler sales in August surged by 25.11 per cent to 776,777 units from 620,883 units in the same period last year. In the scooter segment, the total sales increased by 23.07 per cent at 1,18,694 units against 96,441 units a year ago, Siam said.
HMSI had a growth of 9.69 per cent at 58,255 units as against 53,108 units in the same month last year. TVS Motors scooter sales increased by 20.32 per cent at 27,676 units, compared with 23,002 units last year.
According to Siam figures, Hero Hondas scooter sales were up 53.60 per cent at 18,511 units against 12,052 units last year. Three-wheeler sales during August were up by 22.78 per cent at 39,201 units, compared with 31,929 units in the same month last year.
AUTOMOBILE SALES UP 24% IN AUG
New Delhi: The domestic auto industry posted a robust over 24 per cent jump in August sales, fuelling hopes of an even better performance in the coming festival season. According to the Society of Indian Automobile Manufacturers (SIAM), the industry sold 10,08,702 units in August against 8,11,341 units in the same month last year. Passenger car sales continued to grow for the seventh straight month for August, up 25.59 per cent while sales for motorcycles soared 25.94 per cent for the same month.
In terms of units sold, domestic passenger car sales rose to 1,20,669 units from 96,082 units in the same month last year, while bikes increased to 6,11,173 units against 4,85,270 units in the corresponding month a year ago.
During the last few months, sales were consistently growing. Of course, in last month it was fuelled by some stock build-up at the dealer level for the anticipated festive demand,'' SIAM Senior Director Sugato Sen told reporters here. The low-base effe ct during the same period last year also had a positive impact on sales, he added.
Asked about the expected demand in the festive season, Mr Sen said: Government has announced that the last instalment of the pay commission (revision) will be released, this will help people to fund their purchases... Also lot of activities in the infra structure sector are going on... The growth trend is expected to continue.''
VEHICLE SALES CONTINUE TO GROW, POINT TO SLOW BUT SURE RECOVERY
New Delhi: In another sign that the worst may be over for the Indian economy, sales of large trucks rose in August compared with a year ago. Makers of car and two-wheelers continued to post hefty increases in sales.
Termed medium and heavy commercial vehicles, sales of these trucks are a key indicator of economic activity.
Truck makers sold 17,345 units in August, up 4% from a year ago, according to data from the Society of Indian Automobile Manufacturers, or Siam. Light commercial vehicle sales increased 9.1% to 20,534 units.
To be sure, truck sales are still below the highs seen in 2007 and the increase in numbers is partly due to the base effect when growth in a given year looks high due to muted growth the year earlier. An average of about 23,000 trucks were sold every month in fiscal 2007.
We expect commercial vehicle sales to recover completely in the next two to three years but the recovery will be slow and steady, said Deepesh Rathore, lead analyst, automotive forecasting at IHS Global Insight. He pointed to infrastructure investments driving growth in the next few months.
A lot of road tenders are being opened, resulting in operators expanding their fleets, according to Rathore. Easier availability of loans also contributed to the increase in sales, as did the festive season which starts later this month. Companies usually increase despatches before the festive season in anticipation of sales. Siam reports despatches to dealers and not retail sales.
Passenger car sales, which have risen sharply in the last few months, rose by a quarter to 120,669 units. Car sales began falling in July 2008 and continued to fall till December, September being the only exception on account of despatches for the festive season.
In addition to the festive season, new model launches have been the key to rising sales in this segment. In the last few months, car makers have rushed to launch new models as well as facelifts of old ones. On Tuesday,Honda Siel Cars India Ltd launched a new version of the Civic.
Boosted by demand for the Xylo, Mahindra and Mahindra Ltd reported the heftiest increase in domestic sales among car makers. Its sales were up 48% to 11,443 units.
Maruti Suzuki India Ltd, the countrys largest car maker, posted a 30% increase in cars sold, to 69,961 units.
Meanwhile, two-wheeler sales rose by 25.1% to 776,777 units. Hero Honda Motors Ltd reported its highest ever monthly despatch level. It shipped 408,325 units to dealers last month, up 37% from the year earlier. The countrys second largest bike company also returned to the growth path with 137,908 units sold.
JAPANESE AUTO MAJORS SEEK TAX BENEFITS FOR FUEL EFFICIENCY, SAFETY Chanchal Pal Chauhan & Nirbhay Kumar The Economic Times (Web & Print Edition)
New Delhi: Japanese car makers Toyota and Honda Motors have asked the Indian government to change the criteria of classifying a car as 'small' which attracts lower taxes in the country. The two automakers have said fuel efficiency, emission norms and passenger safety should be used to classify a car as small to avail of lower excise benefits rather than the length of the vehicle.
Under the government policy, a small car with 4-metre length along with 1,200-cc petrol or 1,500-cc diesel engine attracts a lower 8% excise duty against 20% duty and Rs 15,000 additional levy in case of all other cars made in India. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Japanese-auto-majors-seek-tax-benefits-for-fuel-efficiency-safety/articleshow/4987977.cms
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| INTERVIEWS/FEATURES Go To Top Gas-guzzling monster roadsters no longer have right-of-way. All over an increasingly ecologically conscious planet, people are turning to compact cars for their virtues of fuel efficiency and environment- and pocket-friendliness. According to industry reports, India's auto sector seems the biggest gainer of this small-is-beautiful change in consumer tastes. India's total auto exports were up 18 per cent between January and July while China's dropped 60 per cent, causing India to surpass China. South Korea and Thailand also saw a slump. India's show is no small feat. For one thing, export-driven China is a manufacturing juggernaut, making everything from toys to trucks. Two, India's auto industry is a growth-driver. For its exports to shine even during a slowdown spreads cheer to the economy as a whole. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://timesofindia.indiatimes.com/opinion/edit-page/Comment-Car-Gazing/articleshow/4987182.cms
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| The Economic Times (Web Edition) See similar story in: The Hindu (Web & Print Edition), The Telegraph (Web Edition)
New Delhi: Honda Siel Cars India (HSCI) Ltd on Tuesday launched the new Honda Civic. The new Civic has a curved 5 Point Metallic Front Grille and restyled front bumper which the company believes gives the car a sportier look. Also new are the stylized Dark Smokey Headlights & Crystalline Octagonal Tail Lights. The audio system of the new Civic comes equipped with a USB port together with the CD player. An intelligent fuel economy indicator has been introduced in the new Honda Civic to enable the customer to achieve the good fuel efficiency. http://economictimes.indiatimes.com/Honda-Siel-launches-new-Civic/articleshow/4986116.cms http://www.hindu.com/2009/09/09/stories/2009090960921600.htm http://www.telegraphindia.com/1090909/jsp/business/story_11469777.jsp
Nandini Sen Gupta The Economic Times (Delhi Print Edition)
Japanese auto major Honda, the only global automobile company to survive the downturn with a small growth, says it owes its sales growth to the top-gear performance of Indian joint venture Hero Honda. Honda Siel Cars India president and CEO Masahiro Takedagawa told ETNOW that Hero Hondas performance has helped Honda buck the global skid riding on the demand for small, commuter motorcycles. Its truesince September last year, the entire global industry has been impacted a lot and Honda is no exception, Mr Takedagawa said. We were damaged in the US, Europe and Japan. The Chinese, Asian and Latin American markets were so-so. Its the commuters motorcycle business in Asia, particularly India, that has supported our business both in terms of profitability and growth. Thats the main reason why Honda is showing a small but still positive growth, he added. Honda Motor Corp in the first quarter ended June 09 of the current financial year clocked a $77.64 million net income, among the only two auto companies worldwide to do so. Fellow Japanese auto major Suzuki also drove home a positive profit growth in the same quarter at nearly $22 million. Like Honda, Suzuki Motor Corps growth and profitability tally is thanks to its top-gear run in India with Maruti Suzuki. Unsurprisingly, Honda sees no reason to disturb the applecart in the motorcycle market in India, now or after 2014 when the technical agreement with Hero group come up for renewal. Since last year, Hero Honda has been showing lifetime records every month, Mr Takedagawa said. Our business is showing good growth, profitability and giving good dividends. As a result the share price of Hero Honda is at record high. So logically there is no reason for us to split, Mr Takedagawa said categorically. Like Honda, Suzuki too has already gone on record to admit the importance of its Indian arm in the global pecking order. In an earlier chat with ET NOW, Maruti MD Shinzo Nakanishi said: Maruti is definitely becoming more and more important in the Suzuki stable given that its net sales had risen 14% during the last fiscal, a period that saw Suzukis net sales fall 14% to 3.05 trillion. Hero Hondas performance all through the downturn not only bucked the industry trend but also set records. It hit a million units for the first time in the first quarter of this fiscal. It managed to keep its operating margins up, using its tax-free manufacturing facility in Haridwar (Uttarkhand) and the relief in raw material prices to improve its profitability substantially. Its sales growth, which beat the industry average at FY09s 12% clip, doubled to 25% in the first quarter of this fiscal. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
HONDA SIEL SEES FIRST LOSS IN 5 YRS
New Delhi: Japanese carmaker Honda Motor Corporation maybe one of the better performing automobile companies in terms of profitability world-wide, but its Indian subsidiary Honda Siel Cars India (HSCI) suffered its first year of loss in over five years in 2008-09.
The exchange rate fluctuations last year impacted our profitability badly and our car business did not make any profits in 2008-09, said Masahiro Takdagawa, president and CEO, HSCL. Between 2003-07, our car business was profitable enough for us to fund our expansion plans in our second car plant on our own. Last year however, the rupee appreciation coupled with low demand impacted our bottom lines.
Swaraj Baggonkar Business Standard (Web & Print Edition) See similar story in: The Hindu Business Line (Web Edition), Yahoo India (Web Edition), mint (Web Edition), Asian Age (Web & Print Edition), Deccan Chronicle (Web Edition)
Mumbai: When demand and production for BMW cars went through the roof a little over two years ago, its compatriot Daimler (owner of Mercedes) looked unperturbed. Gradually, BMW scaled up its production to nearly 3,000 units from 1,700 units per year in less than two years, dethroning Mercedes-Benz as the top luxury car manufacturer in India.
Now, Mercedes is busy clearing the decks for the launch of the all-new E-class the model which has outperformed all its other models in India before it was overtaken by the new C-class launched last year.
The new E-class, which Mercedes is heavily banking upon to take up the battle with BMW, will be seen in showrooms on September 23, even as company executives decline to reveal its pricing details. The current E-class is sold in the range of Rs 38-43.5 lakh, the production of which has been stopped by the company.
The new car, as the company explains, will be the most advanced E-class ever built, complete with features like the improved suspension system whose shock absorbers automatically adjust to the driving situation, even as it delivers 23 per cent more fuel efficiency than the outgoing model.
In addition, the adaptive main beam assist (optional) uses a camera on the windscreen to recognise oncoming traffic and vehicles moving ahead and controls the headlamps so that their glare doesnt impede other vehicles.
Further, the E-class also packs in a lane safety package, including a blind spot assist feature and lane departure warning systems that causes the steering wheel to vibrate gently if it detects the car is leaving its lane.
The new features on the E-class have helped it become successful in almost all major markets across the globe. This model will bring healthy volumes to us (in India) and help us achieve the numero uno position once again, a senior executive of Mercedes-Benz said.
The new E-class will compete against the 5-series of BMW in terms of power, performance, styling and price, as is the case in most developed markets internationally. Tough competition saw sales of Mercedes slide by 28 per cent to 1,606 units (as against 2,057 units) during the January-July period, while BMW sales stood at 2,008 units a growth of 14 per cent over the 1,763 units reported in the same period last year, according to data available with industry body Siam.
This is for the first time ever that Mercedes has been pipped from the top slot in India ever since it began local manufacturing operations.
Meanwhile, after launching a barrage of models in the local market recently, BMW is working towards nearly doubling its dealership outlets in the country by the end of next year.
We launched the 3-series, the 7-series, the X3 diesel and the X6 this year. We will be launching the Z4 (convertible) next month. We are currently present in 12 cities and will add 10 more by the end of 2010, a spokesperson said.
We arent looking at the discount model to sell our cars, but we offer other minor finance-related packages like insurance covering even the cars tyres, which no other insurance companies offers. Furthermore, we will be launching the BMW India financial services by the middle of next year, which will be a non-banking finance company and a 100 per cent subsidiary of BMW, the spokesperson added. http://www.business-standard.com/india/news/merc-readies-new-e-class/369545/ http://www.thehindubusinessline.com/blnus/02081605.htm http://in.biz.yahoo.com/090908/50/bau5lp.html http://www.livemint.com/2009/09/08154241/MercedesBenz-to-launch-new-va.html http://www.asianage.com/presentation/leftnavigation/news/business/mercedes-phases-out-e-class.aspx http://www.deccanchronicle.com/business/mercedes-phases-out-e-class-927
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| COMMERCIAL VEHICLES Go To Top PTI See this story in: Business Standard (Web & Print Edition), The Hindu Business Line (Web Edition)
New Delhi: The government referred to CCEA a proposal of German commercial vehicle maker Daimler to buy out its erstwhile partner Hero Group's entire 40 per cent stake in a joint venture to produce trucks in India.
According to an official release, Daimler's proposal to increase its stake to 100 per cent has been recommended to Cabinet Committee on Economic Affairs (CCEA) for consideration as the initial approval was granted by the CCEA.
Earlier this year, diversified business house Hero Group had pulled out of its joint venture with Daimler to produce trucks in India due to the economic slowdown. Meanwhile sources said Daimler has already increased its stake to 100 per cent by acquiring the 40 per cent holding of Hero Group in April and it has now sought post-facto approval for raising the foreign equity participation.
The stake raising exercise would result in a foreign direct investment inflow of Rs 78.48 crore, they added. "After Daimler acquired Hero's stake, the JV has been rechristened as Daimler India Commercial Vehicles from the earlier Daimler Hero Commercial Vehicles," a source said.
Last year the two companies agreed to form a JV in which the German firm was to have a 60 per cent stake and the Hero Group the rest. The partners had announced an investment of Rs 4,400 crore for the purpose, including setting up a manufacturing plant in Chennai. http://www.thehindubusinessline.com/2009/09/09/stories/2009090951811500.htm
HEAVY COMMERCIAL VEHICLE SALES SEE FIRST UPTURN IN 14 MONTHS Business Standard (Web & Print Edition) See similar story in: Rediff India (Web Edition)
New Delhi: Green shoots of revival emerged after August sales figures for medium and heavy commercial goods carriers (M&HCV) showed their first positive growth since June 2008. The growth, however, is still a small 0.9 per cent (just 6,210 vehicles) over last August and is mainly driven by higher government spending.
This is the first month for the year in which sales of large commercial vehicles have been in positive territory. The primary reason being government spending on infrastructure, which has a direct correlation with sales of large trucks, said Sugato Sen, senior director of Society of Indian Automobile Manufacturers which released the auto sales figures.
Overall auto sales continued its uptrend, growing 24.33 per cent over August last year the highest for the current financial year. According to the data, 1,008,702 units were sold last month. In July, vehicle sales grew 20.76 per cent.
The positive growth in the M&HCV last month was made possible by truck manufacturers like Tata Motors and Eicher Motors seeing a pick-up in demand for large trucks since June this year. Ashok Leyland posted its first positive sales growth in August, albeit by less than a per cent.
The sales growth in the M&HCV segment does not surprise us. Sustained GDP growth over the last few months, timely payment of vehicle EMIs by large truckers making them eligible for new vehicle financing, elements of the governments stimulus package like the 50 per cent depreciation rates on new truck purchases this year and the low base effect of last year have all contributed to positive sales in this segment last month, said S Ramnath, vice- president (research) of IDFC SSKI Securities.
Ramnath expects sales of large trucks to continue to grow in October through December, since sales of M&HCVs dipped over 50 per cent in the same period last year.
There will also be additional sales rush by truck operators at the beginning of next year to complete their purchases of new trucks before the new Euro-4 emission norms come into effect in April 2010. This will also contribute to additional sales, says R Seshasayee, managing director of Ashok Leyland.
However, sales of buses dipped by 7 per cent, following a trend of the past few months. Industry executives said the governments procurement of around 15,000 buses under an urban renewal scheme has not been sufficient to revive this segment.
Out of the order for 10,000 buses placed by the different state transport corporations, only around 250 buses have been delivered so far. There is confusion in the order execution, since most of these buses have specifications like low floor facility which cannot be executed readily in our assembly lines. Besides payments have not been received for the buses delivered so far, says an industry executive.
The overall commercial vehicle market grew 18.48 per cent over August last year, driven mainly by a 30 per cent growth in light commercial vehicles. http://business.rediff.com/report/2009/sep/09/heavy-commercial-vehicle-sales-witness-upturn.htm
MERCEDES-BENZ ALL SET TO LAUNCH INDIANISED RANGE OF SMALL TRUCKS Business Standard (Web & Print Edition) See similar story in: Daily News & Analysis (Web Edition), Hindustan Times (Delhi Print Edition)
Mercedes-Benz India managing director and CEO, Wilfried Aulbur, said this after the launch of the Actros 4841K range of new trucks being manufactured at the company facility at Chakan, near here. The company has already received an order of 100 trucks from Saumya Mining and this would increase to up to 250 trucks over the next three years.
Speaking to reporters, Aulbur stated, The commercial vehicles market in India is growing at a good speed. Despite an economic slowdown, we expect to sell around 240 Actros trucks this year and hence maintain last years sales figures.
The new range would be available at a price tag of Rs 65 lakh and above in India. The German companys other Indian arm, DICV, would continue with its business plans in Chennai, despite its joint venture partner, Hero Motors, withdrawing from the project. The Chennai unit would enter the mass market product range in the truck segment as per schedule. As of now, there are no plans to bring in existing international truck brands to Indian market. The products planned from Chennai would be highly Indianised, with heavy localisation share, Aulbur added. http://www.dnaindia.com/money/report_mercedes-benz-to-enter-lcvs-by-2012_1288619
MERC SEES SLIGHT FALL IN TIPPER SEGMENT Manu P. Toms The Hindu Business Line (Web & Print Edition) See similar story in: The Tribune (Web Edition)
Chakan (Pune): The premium tipper segment of the Indian commercial vehicle market is expecting a marginal decline in sales this year. This is the result of a slowdown in industrial activity, drop investments and tight liquidity situation in earlier part of the year. In the upper end of the commercial vehicle sector with trucks priced above Rs 60 lakh, around 1,000 units were sold last calendar.
The segment itself has shrunk. In the beginning of the year, there was little bit uncertainty but things are looking better now, said Dr Wilfried Aulbur, Managing Director, Mercedes-Benz India. He was speaking on the sidelines of the launch of the new Actros 4841 truck at the Chakan plant near Pune on Tuesday.
Swedish truck makers Volvo and Scania are also retailing vehicles in this segment. Mercedes, which sold 240 Actros trucks in 2008, has sold 127 so far this year. We hope to close 2009 pretty much at the same level as last year, said Dr Aulbur.
The optimism stems from a recent spate of orders. The company bagged one for 100 Actros trucks from Kolkata-based Saumya Mining; 50 units will be delivered this calendar. It has also bagged orders for six water bowsers from the Mumbai Fire Brigade. Mercedes is focusing on special application trucks, mainly over-dimensional cargos , and plans to bring pullers used to transport special consignments weighing 250 tonnes such as turbines. The company is also aiming to sell its troop carrier G-Wagen to the Indian Defence sector.
Dr Aulbur is hopeful that Actros sales will pick up in 2010. The latest edition of the Actros 4841, which will be in line with the new emission norms, will be priced upwards of Rs 60 lakh. http://www.thehindubusinessline.com/2009/09/09/stories/2009090950620200.htm http://www.tribuneindia.com/2009/20090909/biz.htm#10
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| CONSTRUCTION & AGRI MACHINERY Go To Top | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2/3 WHEELERS Go To Top Shobhana Subramanian Business Standard (The Compass)
Mumbai: Given its strong brands and distribution network, it's not surprising that Hero Honda continues to turn in good performances. However, analysts believe that at least 60,000-70,000 vehicles of the total of of 4.15 lakh two-wheelers despatched in August, would be stocks in the pipeline for the festive season beginning at the end of September. Nevertheless, sales at the retail end should have been higher than the 3.4 lakh posted in July.
While the less-than-normal monsoon hasn't impacted Hero Honda's business as yet, it's possible sales could slow down if the winter rain doesn't arrive on time or isn't sufficient. The company has benefited from high rural incomes -- a fairly high proportion of Hero Honda's sales of close to 60 per cent is derived from rural markets. But a weak winter monsoon could result in sales tapering off somewhat, though the wedding season should partly compensate for that.
Also, while Hero Honda currently commands a market share of 59 per cent for motorcycles and has a firm grip on the 100cc entry segment, Bajaj Auto, which recently re-entered the space, has done well to sell 48,000 vehicles in the very first month. Nevertheless, Hero Honda plans to go ahead with launches of upgrades of some of its models in the next six months and with the economy on the mend, volumes in the current year should go up by about 10-12 per cent; they were up 12 per cent on a smaller base last year.
Given its pricing power, revenues, analysts estimate, could increase by at least 17-18 per cent over the Rs 12,319 crore posted last year. In the June 2009 quarter, revenues increased 34 per cent year-on-year to Rs 3,811 crore. Lower raw material costs should help operating profit margins sustain at levels of 16.5 per cent. At the current price of Rs 1,668, the stock trades at 18 times estimated 2009-10 earnings which is not cheap. http://www.business-standard.com/india/news/hero-honda-all-inprice/369512/
HERO HONDA TO SPONSOR ICC TROPHY PTI See this story in: Business Standard
Two-wheeler manufacturers Hero Honda are the latest addition to the list of sponsors for the ICC Champions Trophy 2009, scheduled to be held from September 22 to October 5 in South Africa.
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| COMPONENTS Go To Top The Financial Express
Chennai: Auto component manufacturers have emerged from the demand slump leaner and tougher, having streamlined costs, improved productivity, made judicious investments and acquisitions apart from conserving cash. Now back on the growth path, it is estimated that the sector is to report 33.7% earnings compounded annual growth rate (CAGR) over FY09-12.
Driven by strong domestic demand, export recovery and cost-efficiency gains, it is expected that companies such as Bharat Forge, Apollo Tyres, Motherson Sumi and Amtek Auto to post sound domestic growth. The auto sector as such is likely to report a 12% volume CAGR over FY09-12, said a research done by Anand Rathi Financial Services Ltd.
Boosted by a strong growth in two-wheelers and cars, India is already one of the worlds largest two-wheeler markets and an established small-car global manufacturing hub. It is expected that the nascent recovery in export demand to gather steam as the US and European Union auto demand will recover in FY11 after hitting bottom in calendar year 2008 and 2009. The last few months recovery should drive exports and improve overseas subsidiaries growth, the research pointed out.
Auto component companies have emerged leaner and more efficient from the downturn in the second half FY09. They have conserved cash, reduced costs, improved productivity and in many cases, made judicious investments and acquisitions. It is evident from the fact that companies such as Bharat Forge, Apollo Tyres, Amtek auto and MSS have shown strong business model; improved operating performance, incorporating synergies of merger and size and diversified into other areas to offset downturn, the research pointed out.
To prove it further, the auto sectors cumulative production growth between April and August this fiscal will see a sharp rise in demand for the components in the months to come. A 11.5% production growth of the overall auto sector, particularly the 13.5%, 12%, 22% and 18% growth of passenger cars, passenger vehicles, light commercial vehicles and two-wheelers, respectively will definitely spur the demand for components, the research pointed out. In addition to the above, a strong revival on the exports front would also fuel further demand for the components.
HONDA SIEL TO EXPORT ENGINE PARTS TO JAPAN Business Standard See similar story in: The Economic Times, The Hindu Business Line, Daily News & Analysis , The Statesman, The Pioneer, Asian Age, Yahoo India, mint, The Financial Express
New Delhi: Luxury car maker Honda Siel said that it will commence exports of engine components like the crank shaft and connecting rod manufactured at its Rajasthan plant to its parent, Honda, in Japan, beginning from October this year.
The short-term export order arises from capacity constraints faced at Hondas manufacturing facilities. Honda Siel President and CEO Masahiro Takedagawa said Japan has been witnessing a surge in demand for small cars arising from the Japanese governments stimulus package for car manufacturers.
It is a testimony to our manufacturing quality here in India that we bagged the export order, he said. Honda Siel hopes to export about 60,000 engine units for the period extending up to April 2010. The company also said it will launch the automatic version of its newly launched Jazz soon.
Meanwhile, the sixth-largest car manufacturer also launched the new upgraded Honda Civic. The 8th generation Honda Civic, which falls under the executive segment under SIAMs classification, incorporates advanced features like a USB port incorporated with the CD player and a sporty design. The new Civic is available in three variants and is priced between Rs 11.80 lakh and Rs 14.13 lakh (ex-showroom, Delhi).
Speaking about Hondas second small car, which will be launched in 2011, Takedagawa said it will have increased localisation of up to 80 per cent to make it competitively priced. The premium compact car Honda Jazz, and the new City, have a localisation content of 75 per cent. http://www.business-standard.com/india/news/honda-siel-to-export-engine-parts-to-japan/369549/ http://www.thehindubusinessline.com/2009/09/09/stories/2009090950590200.htm http://www.dnaindia.com/money/report_honda-siel-to-export-engine-parts_1288620 http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=267924 http://www.dailypioneer.com/201209/Honda-to-export-auto-parts-to-Japan.html http://www.asianage.com/presentation/leftnavigation/news/business/honda-to-export-components.aspx http://in.biz.yahoo.com/090908/50/bau5ns.html http://www.livemint.com/2009/09/07201821/Nature-in-abstract.html?h=A3 http://www.financialexpress.com/news/honda-siel-to-export-parts-to-parent-co/514628/
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| ALLIED INDUSTRY Go To Top Suresh P. Iyengar The Hindu Business Line
Mumbai: Even while India is emerging a key hub for passenger car exports, tyres have not quite managed to keep pace.
Automotive tyre exports fell 22 per cent in July to 446,418 units against 571,479 units registered in the same period last year. In fact, there has been a steady drop in exports the last few months. In the first quarter of 2009-10, exports were down 22 per cent to 1,558,393 units (2,042,428 units), according to the Automotive Tyre Manufacturers Association (ATMA).
Dr Raghupati Singhania, Chairman, ATMA, said the decline was due to intense competition from China in the overseas markets in recent years. Besides, the ongoing global slowdown in the automobile sector has impacted exports, he added.
Exports of passenger car tyres fell 29 per cent to 74,257 units (105,233), while those of light commercial vehicle tyres (LCVs) were down 28 per cent to 120,046 units (166,810). Truck and bus tyre exports were up, albeit marginally, to 197,137 units (191,594) while jeep tyre shipments rose 12 per cent to 686 units (610).
Overall tyre production in July was up 6 per cent at 7,768,632 units (7,343,858). Truck and bus tyre output rose 6 per cent to 1,290,274 units, while LCV tyre production was up 3 per cent at 508,979 units. Passenger car and jeep tyre production were down 3 per cent and 13 per cent at 1,480,605 units and 108,886 units respectively.
The sharp drop in exports has put manufacturers in a quandary as foreign sales account for about 15 per cent of the Rs 22,500-crore turnover of the Indian tyre industry. The aggressive strategies adopted by Chinese and Korean tyre companies have taken a heavy toll on Indian products, said an analyst.
The special incentives announced by the Government in the Foreign Trade Policy for 2009-14 are likely to open up new markets for tyre manufacturers.
The policy has increased incentives available under the Focus Markets Scheme and also added 26 new countries in the Latin America and Asia-Oceania region. At present, the scheme covers 83 countries in Africa, Central America, CIS (Commonwealth of Independent States) and Eastern Europe.
Inclusion of tyres and tubes in the Market-Linked Focus Product scheme under the new FTP opens up new markets for export in 13 countries, said Mr Singhania.
It will provide the much-need fillip to tyre exports from India. Some countries such as Egypt, Brazil, Nigeria, South Africa, and Australia have good prospects for accelerated growth in tyre exports from India whereas other countries can also be tapped for strengthening the base of Indian tyre exports, he added http://www.thehindubusinessline.com/2009/09/09/stories/2009090950610200.htm
MADRAS HC DIRECTS STRIKING MRF UNION TO PROVE MAJORITY The Economic Times See similar story in: Business Standard
Chennai: In an effort to end the impasse on the labour front at tyre-major, MRFs factories in Tamil Nadu and Puduchery, the Madras High Court on Tuesday directed the striking union to prove its strength before the Commissioner of Labour within two weeks. http://www.business-standard.com/india/news/hc-directs-mrf/s-labour-union-verification/369537/
BRIDGESTONE PLANS EXPANSION
Chandigarh: Tyre and rubber manufacturer Bridgestone plans to increase its number of branded showrooms to 200 from the current 146 by 2011. This was announced by H. Tanigawa, managing director, Bridgestone India, at the inauguration of the exclusive Select Super showroom at Haryana Care Center, Faridabad. The Bridgestone Select stores boasts of an exclusive Bridgestone retail Identity and Sales in line with the global retail philosophy adopted by Bridgestone successfully across the world. http://www.tribuneindia.com/2009/20090909/biz.htm
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| FINANCE & INSURANCE Go To Top PTI See this story in: The Economic Times
Mumbai: India's second largest lender ICICI Bank has seen growth in its home and auto loan segments return in the second quarter of this fiscal on the back of improved sentiments in the credit market.
ALLIANZ KEEN ON RAISING STAKE IN BAJAJ JV TO 49% Vivek Law mint
Mumbai: Auto maker Bajaj Auto Ltd may not be too happy about its shareholder agreement with Allianz AG, but that has not stopped the German partner from wanting to increase its stake in their life insurance joint venture. Allianz says it brought in the capital and is now waiting to increase its stake to 49%. Edited excerpts from an interview with Kamesh Goyal, country head of Allianz and managing director and chief executive officer of Bajaj Allianz Life Insurance Co. Ltd.
Once the limit for foreign investment in (insurance) joint ventures is increased to 49%, would Allianz be increasing it to 49%? Youve had some differences with your Indian partners.
No, I think there is a shareholders agreement between the two partners, which Bajaj Auto, when it demerged into three companies, openly declared...
The stock tanked because it was perceived to be in your favour, as Allianz?
I would say when we entered into this agreement, it was clear that the capital was brought in by Allianz, and both shareholders entered into an agreement with certain calls and options, which were priced at that time. I think any calls and options, if you look at on a pricing perspective, in hindsight you can always say that it was priced in favour of someone. But when you are entering into a contract, I think you are entering into a contract because both parties felt that it is fair. From Allianzs side, we feel very strongly that with the kind of commitment which we have made and support which we have given, its only fair that we are able to increase our stake to 49%, according to our shareholders agreement.
But is there now common ground between the two partners on this particular stand?
Everything on this depends on the agreement that we have. So I think there is no view of one shareholder or another shareholder. The view is, what is there in the shareholders agreement. There is something called litigation in this country.
No, I dont foresee that... One of the biggest reasons for success of our two companies has been an exceptional understanding... I have been in this company for the last eight-nine years; I cant think of any incident where either of the shareholders tried to go against the spirit.
One would argue that you perhaps were the only sensible insurer to have taken a call at that time which was different from others, because everybody else went on market value.
I think if you look at it, a lot of people at that time felt that what Allianz was doing was stupid, because they were bringing in all the capital. So I think its just a matter of perception, and by the grace of God and hard work of all the employees, I think (both) the companies have done well. http://www.livemint.com/2009/09/08234703/Allianz-keen-on-raising-stake.html
ASHOK LEYLAND PACT WITH MAGMA FIN The Hindu Business Line See similar story in: mint
Chennai: Ashok Leyland signed a memorandum of understanding with Magma Fincorp Ltd (MFL) on Monday to provide financing to end-customers of commercial vehicles. The agreement, signed by Mr Rajive Saharia, Executive Director Marketing, Ashok Leyland, and Mr Ravi Todi, Joint Managing Director, MFL, will pave the way for enhancing sales by improving financing coverage, especially in the eastern and northern markets. A press release from the company said, MFL would bring to the table its distribution and service network of 150 offices across the country focusing primarily on semi-urban and rural areas. Mr Ravi Todi said that the association with Ashok Leyland will help MFL to broad base commercial vehicle assets financed by the company and, provide us a wider pan-India presence. http://www.thehindubusinessline.com/2009/09/09/stories/2009090951510300.htm http://www.livemint.com/2009/09/08195443/Ashok-Leyland-signs-MoU-with-M.html
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: Business Standard
New Delhi: In an attempt to stop states from levying local sales tax on inter-state transactions, the Centre has told Rajasthan that only Central Sales Tax (CST) can be levied on crude oil sold from Cairn Indias fields in the state to refiners elsewhere.
Rajasthan wants to charge 3 per cent state sales tax or VAT on 8.75 million tonnes a year of peak output from Cairns Barmer district fields on oil being consumed or processed at refineries outside the state.
Petroleum Secretary R S Pandey last month wrote to Rajasthan Chief Secretary Kushal Singh saying: State sales tax/VAT would accrue to Rajasthan government in case the sale of crude oil is made for further processing within Rajasthan.
State refiners Indian Oil, Mangalore Refinery and Hindustan Petroleum have been nominated to buy crude from Cairn but none of them has refineries in Rajasthan and will necessarily have to transport the oil to their units outside the state for processing.
(One per cent) Central Sales Tax would accrue to Rajasthan government if the sale is made in Rajasthan and crude oil has to be necessarily carried outside for refining,
Pandey wrote. CST is, however, due to be abolished by March 31, 2010. The move by Rajasthan may set a precedent wherein mineral producing states like Jharkhand may insist on payment of local sales tax even if resources such as coal are sold and consumed outside the state.
Pandey cited the opinion of the Department of Revenue in the Union Ministry of Finance to make a point to the state government. The finance ministry, he said, clearly stated that ...in case the crude oil is sold within Rajasthan state, say to a refinery set up within its territory, Rajasthan Sales Tax/VAT as applicable on crude oil under the relevant State Act would be leviable.
In case the sale of crude oil takes place in Rajasthan state, but the crude oil has to be necessarily carried outside the state of Rajasthan for refining, the sale transaction will be deemed as having taken place in course of inter-state trade and would be subject to levy of CST, the finance ministrys opinion said.
You may like to make use of the above cited views of (Union) Ministry of Finance in deciding on the applicability of tax on crude oil produced in Barmer field, Pandey wrote to Kushal Singh on August 18.
Cairn began crude oil production from its Rajasthan fields on August 29. The government has nominated Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Mangalore Refinery and Petrochemicals (MRPL) for purchasing crude oil from Cairn Indias Rajasthan fields.
IOC and MRPL have been allocated 0.20 million tonnes each in the remainder of the financial year 2009-10, while HPCLs offtake would be 0.30 million tonnes. IOC will process the crude at its Koyali refinery in Gujarat and Panipat unit in Haryana, while MRPL will ship the oil to Mangalore in Karnataka. HPCL will take the oil to either its Mumbai or Vizag refinery.
Cairn is laying a pipeline to transport the crude from Barmer in Rajasthan to the Gujarat coast from where MRPL and HPCL will move the oil in ships. The pipeline will connect to IOCs existing networks for taking it to Koyali and Panipat.
In 2010-11, IOC would buy 1.5 million tonnes of the crude oil, while MRPL would double its offtake to 0.40 million tonnes. HPCL would take 0.50 million tonnes. Cairns production will almost match with offtake this year, but in 2010-11 it will produce 125,000 barrels per day (over 6 million tonnes a year) while the offtake will be 48,000 bpd.
OIL NEAR $70 AS RISING STOCKS BOOST CONFIDENCE
See this story in: The Times of India
Oil prices rose to near $70 a barrel Tuesday, buoyed by rising stock markets and investor interest in commodities as the US dollar lost ground against other currencies. http://timesofindia.indiatimes.com/news/business/international-business/Oil-near-70-as-rising-stocks-boost-confidence-/articleshow/4986757.cms
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| INTERNATIONAL NEWS Go To Top Agencies See this story in: The Economic Times, mint
Frankfurt: Sales of high-end Audi and BMW cars slipped in August but by less than during the depths of the global economic crisis, figures released on Tuesday by the German auto manufacturers showed. http://www.livemint.com/2009/09/08144226/BMW-August-sales-down-10-dec.html
GM BOARD BEGINS TWO-DAY MEETING Agencies See this story in: The Economic Times, Yahoo India
Frankfurt: General Motors Co's board begins a two-day meeting in Detroit on Tuesday with labor organizations pressing for a decision on the fate of its European unit Opel , where thousands of German jobs are on the line. http://in.biz.yahoo.com/090908/137/bau5n1.html
TOYOTA TO HIRE 800 CONTRACT WORKERS AS SALES RECOVER Agencies See this story in: The Economic Times
Tokyo: Toyota is hiring 800 contract workers in Japan in its first such job increase in more than a year amid signs of a global recovery led by brisk sales of its Prius hybrid, the world's No 1 automaker said on Tuesday.
Kyodo See this story in: The Hindu Business Line
Tokyo: Honda Motor Company has introduced its new automatic transmission technology that it plans to install in Cub-style scooters to be rolled out in Thailand, Vietnam and Indonesia next year, which will mark the global debut of its first fully automatic Honda Cub series. It also unveiled the worlds first dual clutch transmission for use in motorcycles and said the new system will be deployed in large-displacement sport bikes to be launched next year.
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| ECONOMY & FINANCE Go To Top
See this story in: The Times of India
Mumbai: The rupee on Tuesday gained 18 paise against the US currency to close at a four-week high of 48.47/48 as firming equity markets and weak dollar overseas powered the domestic currency to extend its rising streak for the fifth straight session.
PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange benchmark Sensex jumped over 100 points on Tuesday to close at 16,123.67, which is 100 per cent gain from its lowest level this year. Extending the gains for the third day in a row, the 30- share Sensex advanced by 107.3 5 points to close at 16,123.67. Following the global financial turmoil, the markets had plunged to 8,047.17 points on March 6.
Investor sentiment got a further boost from positive trends across Asia. Besides, expectations of strong quarterly earnings and signs of stability in global economy bolstered their confidence. In similar fashion, the wide-based National Stock Excha nge index Nifty crossed the crucial 4,800-point level to close higher by 22.35 points at 4,805.25.
Buying was more or less confined to fundamentally strong stocks. As many as 15 shares in the 30-BSE index closed with significant gains, while the other 15 closed lower. Hindalco, Sterlite were the two big gainers at 6.05 per cent and 4.78 per cent respe ctively. Market leader Reliance was up by 3.73 per cent. IT major Infosys Technologies ended up as a loser at 1.05 per cent.
Foreign institutional investors were believed to be heavy buyers for the second consecutive day. They bought shares worth Rs 1,060.62 crore on September 7. The metal segment index gained the most by rising 2.51 per cent to 13,315.37 points as copper prod ucer Sterlite Industries climbed to its highest in 14 months following a gain in the metals price.
Tata Steel, the biggest producer of the alloy, rose by 3.24 per cent to Rs 456.15. Hindalco Industries, the major aluminum producer, rose 6.05 per cent to Rs 114.85. The oil and gas index was second best performer adding 2.01 per cent to 10,129.87 point s as the market heaviest and trend setter Reliance Industries rose by Rs 74.55 to Rs 2,075.15.
The Capital goods index rose by 0.64 per cent to 13,294.60 points, the bank index by 0.46 per cent to 8,643.90 and consumer durable index by 0.34 per cent to 3,389.89 points. However, a fag-end profit selling pulled down shares in FMCG, auto, realty, IT, tech, healthcare and power segments. With the last minute selling pressure gaining ground, mid-cap index fell by 0.42 per cent to 5,942.77 points and the small-cap index by 0.15 per cent to 7,178.95 points. http://www.thehindubusinessline.com/blnus/05081901.htm
STIMULUS PACKAGES TO CONTINUE: FM Business Standard
New Delhi: Finance Minister Pranab Mukherjee said the government had no exit strategy for incentives announced as part of the stimulus packages, even as there has been a 28 per cent fall in indirect tax collections till July.
At the G-20 meeting, we had already said that the world economy is not yet out of the woods and that stimulus packages will continue for some time to help the economy recover, said Mukherjee after a meeting with chief commissioners of Customs, central excise and service tax.
He further said the government was ready to take improved measures to combat drought, which has affected 272 districts in the country.
These measures have significant financial implications. The fiscal deficit is presently on the higher side and the government is determined to revert to the path of fiscal consolidation at the earliest, he added.
Mukherjee said though there was a 28 per cent decline in annual indirect tax collections till July, the situation is expected to improve in the fourth quarter of the current financial year. The government has set a target of Rs 2.7 lakh crore for indirect tax collections during the current year. He said this was the effect of pre- and post-Budget fiscal incentives and slow international trade. This trend reflects the overall slowdown of the economy and the effect of stimulus measures through reduction of central excise duty rate. Despite such limitations, the Central Board of Excise and Customs (CBEC) will adopt innovative ways of meeting the revenue shortfall, Mukherjee said in his speech to CBEC officials.
The finance minister also discussed the introduction of the proposed dual Goods and Services Tax (GST) by April 1, 2010. Mukherjee said he would discuss the progress in introducing the tax with state finance ministers at a meeting on September 16. The minister also said that while there was a gradual thaw in the winter of economic crisis and the early green shoots of economic recovery, the situation was still far from normal. Indias exports to major traditional markets in the developed economies has contracted in the last 10 months.
To combat the downturn in the economy, the government had announced a slew of measures, including reduction in indirect taxes, to put more money into the hands of consumers, Mukherjee said. In this years Budget, in tune with the governments commitment towards inclusive growth, there have been larger financial outlays in social sectors like health, education and for improvement of rural and urban infrastructure. The deficient monsoon has raised a spectre of drought in large parts of India, said the finance minister.
Mukherjee said while central excise continued to be the bulwark of indirect tax collection, service tax is the new sunrise area for widening the tax base and improving revenue collection. The role of Customs as revenue generator has diminished, but its role in facilitation of international trade continues to grow. http://www.business-standard.com/india/news/stimulus-packages-to-continue-fm/369553/
Last Financial closing
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| PLEASE NOTE text matter of each news item.
NURC News Update -- AUTOMOBILES
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Wednesday, September 9, 2009
Indian Auto Industry Update September 09, 2009
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