Indian Auto Industry News: Indian Auto Industry Update October 05, 2009

New Delhi: Gettinga driving licence after paying a broker a sum of around Rs 2000, may not be possible for much longer. The first meeting of the expert committee, that has been set up by minister of road transport and highways Kamal Nath to review the Motor Vehicle Act of 1988, is scheduled for October 7. The issues expected to be discussed include streamlining of the process of issuing licences, improving the methodology of training in driving schools and addressing the issue of taxation of motor vehicles by different states.

According to a senior official of the ministry, the committee will be seriously scrutinising the process of issuing driving licenses. The existing process is a farce. While there are steps that need to be followed, in most cases, licenses are obtained by individuals without undergoing adequate training and simply by paying a fee to a broker, the official said.

Another matter of deliberation is that most of the training schools in the country which impart driving lessons dont have the adequate facilities or features. In addition to providing training to the instructors at these schools, the official noted that there are multiple areas where features can be improved such as using simulators for training, and creating different tracks catering to different types of terrain. The committee will also be reviewing the annual taxes which are levied on motor vehicles under different heads including road taxes, motor vehicle taxes and the fee for the national permit, in the case of trucks. The official did not discount the possibility of developing a uniform mode of taxation across the states.

The committee which is headed by former transport secretary S Sundar and includes members such as transport expert and professor at IIT-Delhi, Dinesh Mohan, DG (SIAM) Dilip Chenoy, MD of IL&FS Infrastructure Development Corporation OP Agarwal and joint secretary of the ministry of road transport SK Dash among others had been appointed by the minister Kamal Nath in order to review the Motor Vehicles Act in a more holistic and comprehensive manner than in the past. The committee had also been asked to study similar Acts in other Asian countries such as China and Japan.

In fact, the entire process of overhauling the motor vehicle Act was started in 2001 and came to a conclusion in 2007, after which the bill was introduced in Parliament. The major areas of change were expected to be in the area of penalties imposed for traffic violations, the increase of compensation to accident victims and delegating greater power to the state government in case of the Motor Vehicle Act which is on the concurrent list. The final recommendations of the Parliamentary Standing Committee which reviewed the Act were given in April 2008, almost all of which were agreed to by the ministry of road transport and the Act was then circulated to the various ministries, after which it was brought before the previous minister of road transport, TR Baalu. Mr Baalu then reportedly asked for the Bill to be put up to his successor.

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TWO BUSINESS PARKS TO BEGIN OPERATIONS THIS YEAR

K. V. Kurmanath

The Hindu Business Line (Web Edition)

(Oct 05)

Hyderabad: After nearly five years of planning and persuasion, at least two major business parks, one for automobile industry and another for food sector, which are being promoted by Confederation of Women Entrepreneurs (COWE) will see the light of the day this financial year.

Of the proposed 23 units at the Automotive Park proposed at Toopran mandal in Medak district, at least three units would come up by March 2010, Ms P. Soudhamini, Vice-President of COWE and Chairman of Land Committee of the park, told Business Line.

A vendor for Mahindras, a franchisee for Hindujas and a bus-body building unit would set up units this financial year, she said.

Ms Soudhamini, who owns a painting system unit for MRF, said she might shift her unit to the park.

Food cluster

The Andhra Pradesh Government had allotted 50 acres to COWE in Medak district to develop a Food Park. I am going to Delhi this week to submit a detailed proposal with SIDBI to set up button mushroom and dairy clusters at the park, Ms Suman Kumar, Past- President of COWE, said. Besides these clusters, the facility would have common facilities to support stand-alone ventures by women in the park.

These units would conform to HACCP (Hazard Analysis Critical Control Points), USFDA (United States Food and Drug Administration) and other international food standards, giving women entrepreneurs access to global markets.

The women entrepreneurs need to invest only Rs 5 lakh. They would get subsidies and loans from the Government and banks to set up ventures, she said.

COWE proposed to use its tie-ups with business chambers in Sri Lanka, Germany and Nigeria to find new markets for the products manufactured in these parks.

We will help them get consultants and mentors to put their project ideas into a reality, Ms Kumar said.

http://www.thehindubusinessline.com/2009/10/05/stories/2009100551341300.htm

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IGARASHI TO FOCUS ON ASIA NOW

The Hindu Business Line (Web & Print Edition)

(Oct 05)

Chennai: In a strategic shift, the Chennai-based Igarashi Motors India Ltd now wants to focus on Asian markets to climb out of recession. Currently, close to 90 per cent of its Rs 258 crore sales comes from the US and Europe. In two years, the company expects Asia to contribute at least a third of the turnover. In 2008-09, the company reported a net loss of Rs 60 crore, compared with a net profit of Rs 96 crore in the previous year. It has accumulated losses of Rs 78 crore in its b ooks. Speaking to Business Line on the sidelines of Igarashis Annual General Meeting, the companys Managing Director, Mr P. Mukund, said that so far business from its joint venture partner, Bosch, was nil. (Bosch became a partner early last year by picking up a 10 per cent stake in the company.) However, Igarashi has now developed several products and hopes to get some orders from the partner company, which will be for both its domestic and overseas operations.

http://www.thehindubusinessline.com/2009/10/05/stories/2009100550690200.htm

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INTERVIEWS/FEATURES Go To Top

CHEVROLET CRUZ: DRIVING ON HOPE
Hari Govind Nair
The Times of India (Web Edition)
(Oct 04)

For the first time we are actually excited about a General Motors' launch. For the first time we are actually looking forward to putting in a good word for a car from the GM garage, one that looks and drives like a dream. But then, that's the worry with a Chevy! We hate having our dreams crushed. Just like the beautiful looking SRV, is the Cruze another of those irresistible ramp models bound for a disastrous crash the moment it rolls out into the real world? The only way to find out is by taking a closer look.

First Look
The Cruze comes with an aggressive and sharp design sense, the kind that you may not have spotted before in the company stable - that is, unless you want to consider the crazy offerings in the movie Transformers. If you look closely, the Cruze does seem to have taken some of its design cues from the movie. Your eyes meet a wide spit grille nestled between a pair of menacing-looking angular headlights that remind you so much of a wicked, no-nonsense Decepticon.

Once you get used to its aggression and the sheer devil-may-care attitude, you notice a prominent, BMW-like line running all the way from the front wheel to the, angular-yet-curvey , LED encrusted tail-lights . But the best design feature has to be the aerodynamic roofline that rips apart the wind to let you do the zip 'n' zoom thing with ease. Now this surely seems like a rogue Decepticon!

Inside View
We step in gingerly expecting to be greeted by jarring plastic fitments and archaic interiors, but the finesse and detailing of the instrument panel and the dash take us by surprise. Not that the design - the way the dials, knobs and pods are laid out - is cutting-edge but, compared to its competitors, the Cruze is way ahead in terms of both quality and styling.

Overall, the entire driver's zone has a nice, snug feel to it and, at night, with the ambient blue LEDs at work, it seems as if you've stepped into the cockpit of a jet.

On The Move
And now, at last, we come to the best bit. How does this machine move? It's not exactly a slingshot motion but, say, you forget the first two seconds, we can bet that you'll never be able to forget the next two. After an initial lag, this car goes into a frenzy with a surge of power never seen before in a car from this segment. Of course, the fact that the Cruze shares its two-litre engine with its sister SUV, the Captiva, helps.

Now, we have to put a halt to this dream drive and let you in on its one problem... Picking up the pace after hitting the brakes takes a whole two seconds that seem much longer than they actually are. Seems like GM concentrated on kicking in unlimited power supply while cruising but forgot to give that spark to sustain the initial burst.

And let's not forget its stubby gearstick . Extremely quick and responsive, you can actually flick away, back and forth, with just a pat.

Couch Comfort
The seats are quite snug and comfy, but the problem lies in the headroom due to the low and sporty build of the car. Another worrying bit is the space for the rear-seat passengers - quite cramped by any standard.

One extremely cool feature is the Passive Entry Passive Start (PEPS) system. With loads of on-board sensors , it can detect your key when in proximity to the car and automatically lock and unlock itself. And there's also a start/stop button to go alongside so that you don't have to grope for the keyhole in the dark. Now, this surely is a first for a car in this segment.

Verdict
Finally, we reach the most crucial section in our analysis - the number game. How quick is the Cruze doing the 0 to 100 kph sprint? 9.5 seconds. Not bad. What about the top speed? The speedo shows a max of 220 kph, and we managed to close in on 210 kph. Not bad at all. And what about the average? A neat 10.6 kpl in city conditions. Now that surely is good. No, scratch that out. It's class-leading .

In nine days, we'll see the launch of this vehicle. In nine days, GM will make a big inroad into the entry-level luxury segment with this featurepacked car. All they've got to do is. price it right.

(The top speed, 0-100 kph timing and mileage have been estimated on the basis of a short drive)

Fast Facts
Chevrolet, the brand that GM India sells its cars under, is also General Motors' most popular and best-selling brand worldwide. It was established by Swiss immigrant Louis Chevrolet along with GM's founder, William C Durant. A racing car driver and hardcore motorhead himself, Chevrolet designed and built his first six-cylinder engine in his own workshop in Detroit. He also competed in the Indianapolis 500 four times, with a best finish of 7th back in 1919. From being a properly American car-maker known for its muscle cars and trucks, Chevrolet in today's times has grown more Korean than American. Most of this can be attributed to the 2001 takeover of Daewoo by General Motors. In fact, almost all the cars being sold in India under the Chevy marquee are actually Korean vehicles with swapped badges. The Chevy Spark is based on the Daewoo Matiz, the Aveo on the Daewoo Kalos and the Optra was once sold internationally as the Daewoo Lacetti. During World War II, General Motors, like most automakers, converted a large portion of its assembly lines to cater to war production. What makes their conversion special is that it supplied vehicles to both the American and German armies - through Chevrolet and other American brands for the Allies, and through its German brand Opel to the Nazis. After the war, GM demanded compensation for war-time damages from the US government through Opel. Now that's some cheek! In 1996, the GM EV1 was one of the first completely electric vehicles that was developed and aimed for public consumption. This was the first time the auto industry was turning towards electric vehicles after many decades. The vehicle was manufactured and about a thousand EV1 zero-emission cars were leased out to people. Unfortunately, GM shelved the programme in 2003, just before the real rise of electric vehicles. Had it been persistent, who knows, this could have been the car to turn GM's fortunes around.

http://timesofindia.indiatimes.com/news/business/india-business/Chevrolet-Cruz-Driving-on-hope-/articleshow/5084054.cms

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CARS, SUVs, MUVs Go To Top

CHOICE FOR SUVS SET TO DOUBLE SOON

Chanchal Pal Chauhan
The Economic Times (Delhi Print Edition)

(Oct 05)

New Delhi: Customers looking to pick up a new sports utility vehicle (SUV) will find themselves spoilt for choice in the coming months as carmakers line up almost a dozen launches.

The new challengers, such as Hyundai Santa Fe, Volkswagen Tiguan, Skoda Yeti, Audi Q3, BMW X1, Nissan Murano and Suzuki Grand Vitara diesel, will double the number of SUV models available in the domestic market. Among the homegrown automakers, Tata Motors is readying a new vehicle and Mahindra & Mahindra will debut its second-generation Scorpio next year.

A big chunk of these carmakers are rushing to launch their products ahead of schedule after the Toyota Fortuner, launched on August 24, got an overwhelming response from customers. The Rs 18.45-lakh (ex-showroom Delhi) SUV notched up 5,500 bookings in the first week of launch, which is roughly half the size of the domestic premium SUV market.

The demand was always there but Fortuner was the right SUV the Indian customer had been waiting for and it became the segment leader right from its launch, said Sandeep Singh, deputy managing director for marketing at Toyota Kirloskar Motors.

The premium SUVs, priced in the Rs 15-60 lakh price band, command a market of 12,000-14,000 units annually. Some prominent models in this segment are Suzuki Grand Vitara, Mitsubishi Pajero, Outlander and Montero, Audi Q5, Mercedes-Benz M-Class, BMW X3, X5 and X6, Toyota Land Cruiser and Prado and Porsche Cayenne. Nissan X-Trail, Audi Q7 and Land Rover Freelander 2 were launched last month.

As the economy takes a turn for the better, the customer is putting greater emphasis on utility and class. Also, the average age of an Indian shopping for a car has come down to 33 years from 38 years in a decade, with the accent now on sporty SUVs.

With the demand for SUVs growing at 18-20% for a few years now, existing players are looking at adding more models to their lineups. Ford India, whose Endeavour was the market leader till it was displaced by Toyota Fortuner, plans to bring in a second SUV to India.

Endeavour has maintained its leadership in the SUV market and a second vehicle will help us consolidate our position. Feasibility studies are being carried out to assess the market potential, said a senior executive at Ford India.

Other companies too are putting their strategies together. Skoda will launch Yeti later this year and will assemble the vehicle at its Maharashtra plant to benefit from lower taxes and carry a competitive price tag.

However, the launch of Hyundais globallysuccessful Santa Fe will be delayed due to high import duty. We are assessing the market, whether there are customers for such a vehicle that is rich in features and bring class to the SUV segment, said Arvind Saxena, senior vice-president for marketing and sales at Hyundai Motor India.

The domestic car market, including SUVs, saw its highest monthly sales in September 2009 with 1.65 lakh vehicles driven out of showrooms.

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MERCEDES-BENZ OPTIMISTIC ABOUT INDIAN MARKET

The Economic Times (Web Edition)

(Oct 04)

Jalandhar: Luxury car maker Mercedes-Benz is hopeful of achieving good sales growth in India in the coming months despite stiff competition from rivals like BMW and Audi.

"Last year we led India's luxury car segment with a 46 percent market share. This year Mercedes is somewhat behind BMW, but we are hopeful of gaining momentum in the coming days," Wilfried Aulbur, managing director and chief executive of Mercedes-Benz India, told reporters here Saturday.

In 2008, the company sold 3,625 cars in India, 46 percent up from the 2,491 vehicles it sold the year before.

"Now we are facing stiff competition from various luxury cars like Jaguar, Audi and BMW," Aulbur said on the sidelines of the launch of the new Mercedes E-Class here.

Mercedes also opened its third dealership in the region here Saturday. The other two are in Chandigarh and in Ludhiana.

Aulbur said Mercedes had achieved "phenomenal growth" in the last few years.

"Mercedes has registered an organic growth in the last eight years and I must say that in the last two-three years, the response was really whopping," Aulbur pointed out.

From 2005 to 2008, Mercedes' sales in India have almost doubled, he added.

According to Aulbur, Punjab is a "very vibrant" place, where many rich people stay. "Seeing their response and increasing demand, we have come up with our third dealership in the region."

According to official figures, Mercedes sales in Punjab rose 48 percent to 300 in 2008 from 202 cars in 2007.

In 2009, the company has sold over 600 cars in the state till September.

"We spend a substantial sum on our R&D. After Germany, we have our largest R&D centre in Bangalore," Aulbur said.

"We are focusing all our attention on our manufacturing unit in Pune that is fulfilling our countrywide demand. Recently we had invested Rs.250 crore in this plant."

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Mercedes-Benz-optimistic-about-Indian-market/articleshow/5084589.cms

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MERC E-CLASS EYES TOP SLOT IN KOLKATA AGAIN

Business Standard (Web Edition)

(Oct 05)

Kolkata: Mercedes Benzs latest offering in India, the new E-class sedan, could well reclaim the top spot within the Germany luxury car makers stable in eastern India. Since 2007, the automobile giant's lower-priced C-class model has dominated the Kolkata market by selling substantially more, especially during 2008.

While in 2007, C-class and E-class sales were 21 units and 28 units respectively, the following year, E-class sales in the East remained stable at 26 units even as 44 C-class vehicles were sold.

However, with the launch of the new E-class in Kolkata, Interkrafts the sole dealer of Mercedes Benz passenger vehicles in the region was bullish about the prospects of the firm's globally highest selling business sedan.

Although there is a Rs 20 lakh price difference between these vehicles, the customers of each class are distinct with minimal overlap. "The competition between the models is expected to be neck and neck and the new E-class could be back on the top, Interkrafts CEO Hiteshwar Singh said.

So far, in 2009, the C-class is continuing to dominate with 39 units compared to 14 E-class vehicles. Singh indicated that sales of the E-class would benefit from existing Mercedes Benz owners looking to upgrade their vehicles. Of the 45 enquiries that we have got so far, almost 50 per cent of them are from existing owners of E-class vehicles. Considering there are about 200 E-class vehicles in the region, upgrades could add to our overall sales, he explained.

However, with other German car makers upping the ante, Mercedes Benz could come under fire. But Singh felt that the luxury automobile market in the region would be able to absorb more players without affecting the sales of individual car makers. The market here has trebled over the last three years and is still expanding. Considering we haven't even tapped 50 per cent of the market so far and this being the largest territory geographically, for Mercedes Benz, we should be able to grow comfortably, Singh said.

http://www.business-standard.com/india/news/merc-e-class-eyes-top-slot-in-city-again/372188/

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MERC TOPS SAFETY RATINGS

The Hindu (Metro Plus)
(Oct 05)

The Mercedes M-class has won the top crash safety rating with five stars from the respected Euro NCAP testing agency. The M-class is equipped with six airbags, belt tighteners, belt force limiters and crash-responsive NECK-PRO headrests, as well as the PRE-SAFE passenger safety system which helped it to achieve a top rating.

Mercedes PRE-SAFE passenger protection system uses the drivers braking and steering behaviour to recognise critical situations and can then deploy preventive safety measures before an accident occurs.

It activates the reversible belt tighteners, closes the side windows and optional sliding-tilting sunroof and alters the front passengers seating position.

During tests, analysing the effect of PRE-SAFE in the M-class, there was a 40 per cent reduction in forces to the neck and head of passengers, with the reversible belt tighteners (which use electric motors) playing a key role.

If an accident is prevented the belts loosen; however if an accident does occur, the M-class safeguards passengers with its airbags, pyrotechnic belt tighteners (for the front and outer rear seats) and belt force limiters (for the front and outer rear seats) that protect occupants, in combination with the robust passenger cell.

Euro NCAP is the European New Car Assessment Programme. Its tests (front impact with 40 per cent offset, side barrier and pillar impact) cover common types of car accidents.

http://www.hindu.com/mp/2009/10/05/stories/2009100550700300.htm

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M&M DUMPS AFRICA PLAN

Garima Singh Neogy

The Telegraph (Web Edition)

(Oct 04)

New Delhi: Utility vehicle major Mahindra & Mahindra has indefinitely shelved plans to assemble vehicle units in South Africa.

The company was scheduled to start assembling units, imported from India, in 2010. Weak sales and adverse economic conditions are the reasons why the company had to stall the project.

We have put on hold our plans for assembly operations in South Africa. We need a critical mass of volume to begin assembly but contrary to that, our sales have dropped considerably, Pravin N. Shah, executive vice-president (overseas operations) of Mahindra & Mahindra told The Telegraph. Also, the economy in South Africa continues to show a downward trend. So, we decided to abstain from doing anything now, Shah added.

In June this year, the company had announced that it would ship vehicles as knocked-down units and assemble them at the existing plant of a South African firm.

At present, M&M operates in South Africa through its wholly owned subsidiary Mahindra S.A. The company sells the Bolero, the Scorpio and the Xylo in South Africa.

With over 30 dealerships across South Africa, Mahindra is trying to gain a strong foothold in the market.

Since its operations in 2004, Mahindra S.A has achieved a significant growth selling more than 11,000 units.

Shah said sales dropped from 4,000 units to 1,600 units per annum last year because of weak economic conditions.

Company sources said local assembly in South Africa will have cost benefits for Mahindra. A better access to the US is also an attraction.

South Africa is the cheapest shipping destination from India. It costs $700 to ship a vehicle from India to South Africa. Each container carrying three vehicles sports a price tag of around $1,000.

http://www.telegraphindia.com/1091004/jsp/business/story_11572249.jsp

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PEUGEOT YET TO FIRM UP INDIA BUSINESS PLAN

Murali Gopalan

The Hindu Business Line (Web & Print Edition)

(Oct 05)

Mumbai: PSA Peugeot Citroen is likely to take a decision on entering India during the next three to six months, according to industry sources.

The French automaker, which had shut down operations in the country 12 years ago, is apparently of the view that it needs to work further on consolidating some of its global operations before taking a call on India.

The decision to invest (in India) is a given, though it could take a little while longer. The PSA group is determined to make things work this time, quite unlike the previous occasion when it made an abrupt exit, said a source.

This thinking goes in line with what its CEO, Mr Philippe Varin, said at a shareholder meeting some months ago that the PSA group would now have to think more global, especially in emerging markets such as Brazil, Russia, India and China, better known as the BRIC economies.

Peugeot and Citroen continue to do well in Europe but the recent downturn has been a warning to car makers that they will have to revise global strategies. The success of the scrappage incentive programme in Europe has also clearly shown that customers would rather go in for fuel-efficient cars, as was evident from the heady response to small cars from Suzuki and Hyundai in India.

Market expansion

The PSA group has everything going for itself in Europe but experts say it would be foolhardy to constantly depend on this option to build business in the long term. China and India are the most happening spots in the global automobile market and can double up as an affordable sourcing base too, said an expert.

While the French company has been tight-lipped on its India plans, industry sources say the automaker will build a base gradually before playing the numbers game.

There are a whole lot of issues to be sorted out first, they add. In the first place, there is still a degree of apprehension about brand Peugeot in the context of its earlier India innings. The second issue is the location and the third the business model.

Labour problems

There have been talks of Andhra Pradesh being the favoured destination though Tamil Nadu is also being seen as a strong contender. Observers believe that the recent labour strife in the MRF and Pricol facilities could weigh the scales in favour of Andhra Pradesh.

One of the unhappy memories of Peugeot in India was the lockout at the Kalyan plant, and Tamil Nadus recent cases of labour issues may just end up discouraging the company from investing in the State, said a source.

As for the business plan, the PSA group would logically be inclined to kick off with a mix of CKD (completely knocked down) assembly and import of cars as part of the brand building process. It is not going to be easy because nearly all the big names in the world automobile business are in India, an expert said.

India crucial

The key could lie in the global compact car, which the group is apparently working on and India will be a vital part of the plan. This is the only way costs can be kept in check while the company insulates itself from the risk of depending on a single market. This is precisely what Nissan, Ford, Honda and Toyota have in mind for the mid term.

Peugeots French counterpart, Renault, has not quite made a mark in India yet and it remains to be seen if this will impact its outlook or plans for the country. As sources say, the global slowdown has prompted carmakers to tread a lot more cautiously with their investments and it would be only natural for the PSA group to take one thing at a time.

http://www.thehindubusinessline.com/2009/10/05/stories/2009100550720200.htm

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NO SMOOTH DRIVE LIKELY FOR ELECTRIC CARS

Lijee Philip & Anirvan Ghosh

The Economic Times (Web Edition)

(Oct 05)

Mumbai/Bangalore: Premium pricing coupled with infrastructural bottlenecks may act as speed-breakers for global car manufacturers planning to launch electric vehicles in India. A slew of auto majors such as Renault, Nissan, General Motors, Mercedes, Volkswagen, BMW have announced plans to develop electric cars priced above $20,000 per car, people familiar with the matter said.

Industry watchers said Reva, the first company to successfully commercialise electric cars in the country, has managed to sell only 3,000 units in the past eight years. Lack of interior space, power and inability to do long distances in a single charge deterred customers from buying electric vehicles.

These car companies, along with Reva, currently the only EV maker in the country, are understood to be working closely with the Central and state governments here to develop infrastructure and get tax sops for better pricing. While the Delhi government is giving a 12.5% VAT refund, 12.5% actual subsidy, and a 2% road tax refund, making it cheaper to export, the other states such as Karnataka, Tamil Nadu, Himachal Pradesh are working closely to get sales-tax incentives. Car makers said that the government should ban conventional fuel vehicles in the most-polluted areas of the country.

Globally, countries like China have set a goal of having over 10 million electric vehicles in 10 years, ban conventional fuel cars at some of the most-polluted places, and set up a $100 million fund to support the technology development. Some of the other countries where EVs are successful, thanks to active government support, are Sweden and Denmark. This has allowed the car makers to price the cars competitively, said Chetan Maini, deputy chairman and CTO of Reva Electric Car.

If we get some tax relief, we can produce it at a lower cost, and also expand more aggressively throughout the country. Customers will go for it in the face of obvious cost and environmental benefits. Something like what Obama and Gordon Brown are trying to do in the US and the UK, respectively. (Obama administration will provide $2.4 billion for electric vehicle technology).

Recently, Reva has tied up with independent auto designer Dilip Chhabria to spruce up its looks and has tied up with GM India to develop electric vehicles for the Indian market. The company is also upgrading its existing range.

Global auto companies are developing electric vehicles with smaller batteries that can be recharged faster, go farther on a single charge and bring down prices compared to its petrol or diesel-powered counterparts, thus increasing the viability of such projects. EVs can be charged from a normal plug point consuming less electricity to run for a longer distance, Mr Maini said. With oil bills set to cross $100 a barrel in the next year, it makes sense to have a car that consumes normal electricity and saves the environment, said Vaishali Jajoo, Angel Broking analyst.

Industry experts said that EVs will not only help save fuel but also change driving patterns and improve quality of life in cities. Car makers are planning affordable small cars, platform-based electric vehicles to the market in line with the government objective of reducing fossil fuel dependence, said Karl Slym, president and managing director, GM India. Car makers peg that 20% of all cars sold should be EVs in the next 8-10 years.

Reva, in its new avatar, intends to sell 30,000 vehicles in three years. It has pitched NXR and NXG, the upgraded versions of its electric cars to European consumers at the recent Frankfurt International Motor Show in Germany. NXG or next generation, a sporty two-seater, which will go into production in 2011, has a top speed of 130 kph and can cover 200 km range per charge as against the current model which covered a lower range. Reva has an aggressive export plan for the new avatar. We can target the European markets at a more competitive price in the price range of Rs 7 lakh to Rs 10 lakh as compared to its global peers, said Mr Maini.

Nissan and its alliance partner Renault have stepped up their co-operation and a dedicated team is working together to find synergies in the field of EVs. The electric vehicles produced by Renault and Nissan will be powered by batteries developed by AESC, a Nissan-NEC JV. We want to launch our EVs in the Indian market and a lot will depend on government support, said K Tokuyama, MD and CEO of Nissan Motor India.

Renault intends to start with Fluence and Kangoo models. Nissans electric car Leaf is slotted for a 2010 launch. In the US, General Motors has announced that its new electric car, Volt will hit the roads by 2010. Back in India, it has tied with General Motors India to electrically power its fast-selling small car Spark.

Premium car makers like BMW and Mercedes are also developing electric vehicles at competitive prices. VW will launch Up, its electric vehicle, in the next 2-3 years. While the development of EVs is one of the viable options that car manufacturers will have to look into because of the climate changes and fuel concerns, manufacturers will have to work closely with the government in terms of logistics and get customer acceptability, said Abdul Majeed, auto practice leader, PwC.

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/No-smooth-drive-likely-for-electric-cars/articleshow/5088451.cms?curpg=2

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BIG GETS BETTER

Ameya Dandekar

The Hindu (Metro Plus)

(Oct 05)

Ever since its launch, the Honda CR-V has been the automatic choice for buyers looking out for an easy-to-drive SUV. But being the largest car manufacturer in India, Maruti wont give up so easily.

Now in an effort to get to the top of the urban SUV pile, Suzuki has put a bigger and more powerful engine in the Vitaras bay and has added a host of other improvements. But with a price hike of nearly Rs 2.5 lakh, do the improvements justify the extra dough you have to shell out? Considering the CR-V is still a whopping Rs 6 lakh dearer, the Vitara makes a good case for itself.

Step in

The Vitaras interior design is recognisable as a Suzuki. You can see SX4 and Swift parts all around. Hard plastics abound and the all-black interiors are not very inviting either not something you expect from a Rs 17-lakh car. However, on the plus side, the Vitaras interiors do deliver a lot of comfort. The front seats are wide and very supportive to the shoulders, back and thighs. The driving position is good too, with the steering and the drivers seat adjusting for height. The design of the centre console is quite attractive as well with deep red illumination.

The two-tone interiors of the CR-V look fresh and crisply designed. The dash is neatly laid out and there is much more of a quality feel here, similar to what we find in the other Hondas. The cabin is substantially more spacious. The dashboard design is also very clever and frees up a lot of space between the front seats. The contoured seats are supportive and cushion your body. It is also easy to find the perfect driving position in the CR-V thanks to a host of adjustments, like seat height adjust and reach and rake adjust for the steering.

The Vitara is roomy with spacious and comfortable seats. The rear seats are particularly so with their high seating position and a reclining backrest. They also have the right amount of cushioning albeit they are a bit flat and not that well-bolstered. But the upside is that the third passenger gets a good seat and the legroom is adequate.

The CR-Vs cabin is a nice place to be in. The wide front seats are comfortable and supportive. Rear seat comfort is also terrific but the seat cushions are a tad stiff. The 40:20:40 split rear seat on the CR-V is versatile and offers all kinds of seating combinations.

The highlight of the Grand Vitara is its new engine. It now gets a 2.4-litre petrol, as compared to the puny 2.0-litre unit on the earlier car. It also gets hi-tech variable valve timing, which is quite similar to Hondas i-VTEC system. The motor puts out a healthy 163.5bhp of power and 23kgm of torque. As a result of using the bigger engine, the Vitara now feels much brisker than the older unit.

It now surges forward in a strong and linear way. Throttle responses have improved across all engine speeds as compared to the older model and the Vitara feels more enthusiastic now. It reaches 100kph in a very respectable 11.73 seconds.

The 161bhp motor of the CR-V is very smooth in its power delivery and, unlike other motors, it becomes smoother as you rev it. Like most Honda engines, you have to work the engine hard to extract the most out of it. The highlight of this engine is exceptional top-end performance. The i-VTEC motor really gets into its stride once past 4000rpm and the CR-V starts covering pace rapidly. As a result, the CR-V goes past the 100kph mark in a scant 10.96sec and will reach a top speed of 207kph, which is truly exceptional for an SUV. The Hondas gearbox feels very refined and the six-speed manual is a joy to use.

Ride & handling

Both these cars come with four-wheel-drive transmission which allows owners to occasionally indulge in a spot of off-roading. The Grand Vitara is a better off-roader. The stiff suspension ensures that it is a good handler even on road. It corners with ample agility and you feel always well-planted, like you would in a saloon. The Vitara also feels more secure in the wet , thanks again to its permanent four-wheel-drive system. Additionally, the well-weighted, responsive and accurate steering, when coupled with Vitaras good body control, inspires a lot of confidence. But the stiff suspension compromises the ride comfort and we wish the ride was more supple.

The CR-V is a very enthusiastic handler and feels more like a sporty hatch. Turn into a corner at high speed and the fairly direct steering and tight body control inspire such confidence that even some saloons cant match its handling prowess. With disc brakes all round on both the cars, stopping power is great. However, like the Grand Vitara, the CR-Vs suspension is on the stiff side. There is a hard edge to the ride and sharp road irregularities can be felt. Overall, the CR-V has a flatter and more consistent ride and you are not tossed around. The Vitara retails for Rs 17.23 lakh, which is substantially less than the CR-Vs Rs 23.52 lakh, and comes loaded with decent equipment. However, we missed features such a powered drivers seat, electric folding mirrors and leather seats which are standard on the CR-V.

The CR-V comes with dual-zone climate control, auto-folding mirrors, powered drivers seat, telescopic steering wheel and sunroof as standard.

Suzuki offers a standard warranty of two years, limited to 40,000km. This can be extended by another two years and 80,000km. Honda offers the same warranty package as the Suzuki.

The Vitara returned 6.8kpl and 10.2kpl in city and highway fuel consumption tests respectively. The Honda returned 7.3kpl and 11.3kpl in the city and on the highway. The Grand Vitaras trump card is its price, which is a whopping Rs 6 lakh cheaper than the CR-V. Honda spare parts usually cost more than Marutis, but Hondas reliability is top-class. So trips to the workshop will be occasional. While the Honda may have better resale value, the CR-Vs inflated price tag makes it much more expensive to own.

Verdict

The new Grand Vitara has upped its game with more power and better equipment. The 2.4-litre engine offers lusty performance and has fantastic pulling power that makes it effortless to drive. You always feel theres a surplus of power thanks to the linear and seamless power delivery. Other pluses include very comfortable seats and impressive off-road performance.

The CR-V has been the best-selling petrol SUV in India for many years now. It combines practicality with strong performance and easy handling. It is well-built and refined as well. The engine is a jewel too. However, Honda has jacked up the CR-Vs price in recent times. So is it worth the extra Rs. 6 lakh you have to pay over the Vitara? Yes, but only just.

Technical data: (Honda CR-V)

Size 2354cc, 4 cylinders

Peak power 161bhp at 5800rpm

Peak torque 22.2kgm at 4200rpm

Boot space 556 litres

Economy 9.3kpl

Tank 58 litres

Range 540 km

Technical data: (Grand Vitara)

Size 2393cc, 4 cylinders

Peak power 163.5bhp at 6000rpm

Peak torque 23kgm at 4000rpm

Boot space 395 litres

Economy 8.25kpl

Tank 66 litres

Range 545 km

http://www.hindu.com/mp/2009/09/30/stories/2009093050080200.htm

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STYLE ON A SPIN

Binayak Dasgupta

The Hindu (Metro Plus)
(Oct 05)

The craze for customising cars has caught on considerably with city dwellers over the past few years. From Hollywood movies that featured flashy tuners with neon lights to racing video games with artsy graphics, the pocket-heavy car ent husiast is quite acquainted with options to turn his vehicle into a style statement. A visit to the hub of car customisation in the Capitals Lajpat Nagar makes it and evident that such enthusiasts mean serious business.

To tap this market, renowned car designer Dilip Chhabria announced a tie-up with multi-brand auto solution provider Carnation Auto recently. Hailing it as a red letter day, Chhabria explained at the laqunch event how this initiative would help his design studio reach out to more customers with the help of Carnations network.

Carnation, owned by former Maruti managing director Jagdish Khattar, has a presence spanning seven cities with 11 outlets. They currently offer servicing and repairing solutions to car owners of a number of brands and this partnership will enable them to offer customisation options as well, according to Khattar.

From semi-customisation kits, which can revamp a pedestrian-looking Tata Nano into a head-turner, to a complete customisation solution, which recreates the luxury of a plush private jet in a Toyota Innova, there will be a number of options for owners looking for an identity overhaul for their cars.

Khattar elucidated that the announced cost of customisation under this new venture is not much higher than what an individual would spend to get a similar solution from some place else.

With this announcement, people in places like NCR, Mumbai, and Hyderabad among others, can look forward to getting the iconic DC badge on their cars in their own cities. Earlier, they would have had to take their cars all the way to Pune.

http://www.hindu.com/mp/2009/10/05/stories/2009100550690300.htm

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COMMERCIAL VEHICLES Go To Top

ASHOK LEYLAND SEPT SALES DROP 12%

The Hindu Business Line (Web & Print Edition)

(Oct 04)

New Delhi: Ashok Leyland reported on Saturday a 12 per cent fall in its sales at 5,452 units for September, compared with 6,186 units in the same period a year ago.

However, over the previous month, August, sales were up 14 per cent, when the company had sold 4,784 units.

Cumulative sales for the April-September 2009 period fell 38 per cent to 21,994 units compared with 35,632 units in the same six month period last year.

Domestic sales drop

While domestic sales dropped 4,813 units in September, against 5,454 units in the same month last year, overall exports also fell 13 per cent in September 2009 at 639 units, against 732 units last year.

While individually exports were down in both light commercial vehicle and passenger medium and heavy commercial vehicles (M&HCVs) categories, the Goods M & HCVs category saw exports doubling at 402 units in September, in comparison to 205 units in the same month last year.

Mr Rajeev Saharia, Executive Director, Marketing, Ashok Leyland, had said earlier this week that the company is expecting a 5 per cent increase in sales for the fiscal.

The demand for multi-axle vehicles and tractors is growing fast now.

Also, with the boom in the construction sector, the demand for tippers is also growing, he said.

http://www.thehindubusinessline.com/2009/10/04/stories/2009100450620200.htm

Ashok Leyland sales down 11.86% in September

Business Standard (Web & Print Edition)

http://www.business-standard.com/india/news/ashok-leyland-sales-down-1186-in-september/372123/

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TATA MOTORS EXPECT DOUBLE DIGIT GROWTH IN CV SALES

PTI

See this story in: Business Standard (Web Edition)

(Oct 05)

New Delhi: The country's largest auto maker, Tata Motors said it expects to clock a double digit growth in sales in the commercial vehicle (CV) segment this fiscal on the back of reviving market demand.

The company hopes to benefit from orders for delivery of 5,000 buses to various state and local transport bodies under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

It is also going ahead with the launch of its one-tonne 'Super Ace' truck in December, besides rolling out the Ace EX with stop-start engine nationally within the next few months.

"We hope the pattern (of market revival) would continue and maybe we can expect a double digit growth this fiscal," Tata Motors President-Commercial Vehicle Business Unit Ravi Pisharody told reporters here.

He said the second half of the fiscal is crucial to sustain the bounce-back.

"After months of slowdown, the light and medium CV market has bounced back since past few months and now even the heavy vehicle sales have started reviving. The next six months would hopefully be good," Pisharody said.

The auto major had registered a total sales of 2,65,012 units of CVs during 2008-09.

Its cumulative CV sales during the first six months of the current fiscal was 1,61,700 units, a jump of 11 per cent over the corresponding period last year.

http://www.business-standard.com/india/news/tata-motors-expect-double-digit-growth-in-cv-sales/74987/on

Double-digit growth in CV within reach: Tata Motors

The Financial Express (Web & Print Edition)

http://www.financialexpress.com/news/doubledigit-growth-in-cv-within-reach-tata-motors/524989/

Tata Motors expect double digit growth in CV sales in FY 09

The Hindu Business Line (Web Edition)

http://www.thehindubusinessline.com/blnus/02041721.htm

Tata Motors expect double digit growth

The Indian Express (Web Edition)

http://www.indianexpress.com/news/tata-motors-expect-double-digit-growth/524856/

Tata Motors expect double digit growth in CV sales in FY 09

Deccan Chronicle (Web Edition)

http://www.deccanchronicle.com/business/tata-motors-expect-double-digit-growth-cv-sales-fy-09-466

Tata Motors expect double-digit growth in CV sales in FY 09
The Pioneer (Web & Print Edition)

http://www.dailypioneer.com/206734/Tata-Motors-expect-double-digit-growth-in-CV-sales-in-FY-09.html

Tata Motors see jump in CV sales

Asian Age (Delhi Print Edition)

Total SA appoints Indian as CMD

Hindustan Times (Delhi Print Edition)

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CONSTRUCTION & AGRI MACHINERY Go To Top

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2/3 WHEELERS Go To Top

BAJAJ AUTO RIDES ON DISCOVER, PULSAR; SEP SALES RISE 14%

The Financial Express

(Oct 04)

New Delhi: Riding on higher demand for the recently-launched Discover and Pulsar, Bajaj Autos two-wheeler sales rose 14.33% from 2,18,494 units in September last year to 2,49,795 units in September 2009.

The countrys second largest two-wheeler makers motorcycle sales went up 14.6% at 2,49,133 units last month vis--vis 2,17,365 units during the same month last year.

The company sold 94,000 units of Discover, including 71,000 of the newly-launched Discover DTS-Si and 56,000 Pulsars. In fact, 60% of its motorcycle sales in the month came from its bigger and sportier brands, the company said in a statement.

Registering its highest-ever monthly exports, Bajaj Auto sold 80,681 units in the overseas market in September as compared to 68,572 units in September last year, a growth of 17.7%.

Its first half, cumulative total sales were, however, down 3.65% at 10,85,901 units against 11,27,073 units during the first six months of last fiscal. However, the company hopes that the Kawasaki Ninja 250R, which will be launched on October 7, would add momentum to the growth in sales. Along with Bajaj, other two-wheeler players in the industry have also registered positive sales growth last month. While Hero Honda logged a growth of 4.2% at 4,01,290 units against 3,85,262 units in September 2008, sales of Chennai-based TVS Motors, the countrys third largest two-wheeler manufacturer, went up 4% last month at 1,42,553 units vis--vis 1,37,246 units during the same month last year. India Yamaha posted a growth of 160% at 26,394 units as compared to 10,142 units in September last year and Suzuki Motorcycle India saw its sales go up by 25.6% at 15,719 units compared to 12,514 units sold by the company is September last year.

http://www.financialexpress.com/news/bajaj-auto-rides-on-discover-pulsar-sep-sales-rise-14/524334/

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TVS SCOOTY RIDES HIGH ON WOMEN ON WHEELS NOTION

Priyanka Akhouri

The Financial Express

(Oct 05)

Mumbai: TVS Motors has seen a 24% year-on-year growth in sales of Scooty, thanks to its Women on Wheels concept, a training institute for women. With 25-30% of the Scootys being sold to women customers, TVS in FY10 is aiming at training around 50,000 women, which will, in turn, help to increase the sales of Scooty.

Having trained more than 42,000 women through its institute in the last two years and reaching out to over 3.9 lakh women, TVS says that this campaign has helped the company to attract more female customers.

S Srinivas, GM (marketing), TVS Motor, said, Around 20% women trained in our institute go on to buy our brand within three months. Our year-on-year growth rate is higher than the industry growth rate of 18%.

In FY10, the company has, so far, sold around 1,54,000 units. In 2008-09, TVS sold 1,00,000 gearless scooters every month, with 30,000 vehicles being sold to women.

Focusing on the growth of the two-wheelers, TVS was looking for an innovative concept to approach our target audience. We launched the Scooty Institute in tier II cities with the goal of approaching more women customers. This helped us to increase our customer base and our selling point for Scooty has increased among the women customers. Scooty, as a brand, has grown in terms of styling and easy-to-use features, Srinivas said.

The company usually target towns with population ranging between one and five lakh and has already trained women in Andhra Pradesh, Bihar, Chattisgarh, Jharkhand and so on. The concept of Women on Wheels was centralised in 2006 by Mudra Max under the name of TVS Scooty Institute with dealers approaching women in schools and colleges offering training in driving the two-wheeler. The brand earlier had Preity Zinta as its brand ambassador, and later on, used celebrities such as Minisha Lamba and now Sania Mirza to endorse it.

We constantly get requests from upcoming as well as established celebrities to get featured in the advertisement of our brands as its an opportunity for them to be seen in aspirational roles, says Srinivas.

http://www.financialexpress.com/news/tvs-scooty-rides-high-on-women-on-wheels-notion/525060/

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COMPONENTS Go To Top

NK MINDA GROUP JV WITH EMER OF ITALY

The Hindu
(Oct 04)

Chennai: NK Minda Group and EMER of Italy, owned by Palladio Finanziaria investment bank, have announced the formation of an equal joint venture to design, produce and sell alternative fuel systems and components for India and multiple global customers. The new company will be headquartered in New Delhi, says a release.

http://www.hindu.com/2009/10/04/stories/2009100456521100.htm

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ALLIED INDUSTRY Go To Top

DUMPING DUTY MOOTED ON NYLON TYRE CORD FABRIC FROM BELARUS

G. Srinivasan

The Hindu Business Line

(Oct 04)

New Delhi: The Designated Authority in the Commerce Ministry has recommended imposition of definitive anti-dumping duty on imported nylon tyre cord fabric (NTCF) from Belarus.

The product is a fabric of nylon, meant largely for tyre cord and is widely used as reinforcement fabric in various kinds of automotive tyres. The probe followed a petition from the Association of Synthetic Fibre Industry.

Inflicting injury

In its submission to the Authority, the petitioner said that the imports from Belarus increased during the period of investigation, particularly after the Government imposed anti-dumping duty against China on the subject goods with Belarus emerging as a new source of supply to inflict injury to domestic industry. There was also a price underselling by Belarus to the extent of 30-35 per cent.

The petitioner stated that consumers can use and are using the domestic and imported goods interchangeably as the two are technically and commercially substitutable.

It is also revealing to note that most of the domestic companies produce their own chips and thereafter yarn to produce fabric.

Below normal

In fact, the producers deem these as integrated production activities. Nylon chips and nylon yarn, produced as intermediates in the production process are normally produced only for consumption in NTCF production.

After examining the issues raised by the petitioner and also the user industry represented by the All India Tyre Manufacturers Association (ATMA) who opposed any move to impose anti-dumping duty on the subject goods, the Authority held that the imported product from Belarus was exported to India below its normal value.

As a result, the domestic industry has suffered material injury. Accordingly, it recommended the imposition of anti-dumping duty on NTCF from the Belarus manufacturer Grodno Khimvo lokno, who exports the subject goods from Singapore. It has to fork out $0.77 a kg. The same manufacturer producing and exporting from Belarus is to pay an anti-dumping duty of $0.77 a kg.

All other manufacturers/exporters from Belarus of the subject goods should pay an anti-dumping duty of $0.92 a kg for export of NTCF to India, the Authority held.

http://www.thehindubusinessline.com/2009/10/04/stories/2009100450970300.htm

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SAINT-GOBAINS RAJASTHAN PLANT WILL BE DELAYED BY A YEAR

N. Ramakrishnan

The Hindu Business Line

(Oct 05)

Chennai: Saint-Gobain Glass Indias new float glass plant in Rajasthan, which was to have gone on stream in the first quarter of 2010, will now come up a year later.

The company is waiting for the State Government to acquire all the land required for the project, before it begins construction on the plant. Much of the 150 acres required for the project have been acquired, according to the company.

The delay in the project has also coincided with the slowdown in the economy, especially in the real estate sector, which would have accounted for a bulk of the companys production of float glass at the plant.

Mr B. Santhanam, Managing Director, Saint-Gobain Glass India Ltd, says the plant with a capacity of three lakh tonnes of flat glass a year will begin production some time in

2011.

Saint-Gobain Glass India, a subsidiary of the French multinational Saint-Gobain, has taken advantage of the delay and the slowdown to prune the project cost.

The company had originally planned to spend Rs 1,000 crore on the new plant at Bhiwadi in Rajasthan, about 65 km from Delhi.

Mr Santhanam is confident that this will be pruned by at least 10 per cent.

We will take advantage of this delay to drive down the capex for this plant. It is a good opportunity for us, he told Business Line.

Saint-Gobain Glass India announced in June 2008 its investment in the Rajasthan plant, which would be the companys second float glass unit in the country.

Access to North market

Its first investment, at Sriperumbudur to the west of Chennai, has a capacity of 1,500 tonnes a day of float glass. The company signed an agreement with the Rajasthan Government in August 2008 for the project.

The company plans to create a world glass complex in Rajasthan, similar to the Chennai plant, to make a range of glass for architectural, automotive and solar industries.

The northern region accounts for a third of the companys sales and the Bhiwadi plant would give it better access to this growing market.

The company hoped to nearly halve the cost of transporting glass (close to Rs 3,000 a tonne) from the Sriperumbudur facility to the northern markets.

http://www.thehindubusinessline.com/2009/10/05/stories/2009100550740200.htm

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FINANCE & INSURANCE Go To Top

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OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top

FRENCH FIRM TOTAL SA APPOINTS B VIJAY KUMAR AS CMD

PTI

See this story in: Business Standard

(Oct 05)

New Delhi: B Vijay Kumar will be the Chairman and Managing Director (CMD) of Total India (R&M), succeeding Christian Chammas, a company release said here.

"Prior to this role, Kumar was Managing Director at Total Fiji, where he was responsible for business strategy and growth," it said.

Kumar has more than 30 years of extensive local and international experience in the downstream energy business, leading integrated organisations, developing new businesses and focusing on cross-cultural leadership development.

The new appointment, effective from October 1, was announced by Thierry Pflimlin, senior vice-president at Total Refining & Marketing (R&M) Asia-Pacific.

Kumar holds a Bachelor degree in Chemical Engineering from the National Institute of Technology, Rourkela and a Management degree from MDI Gurgaon.

Total India (Refining & Marketing) operates through four subsidiaries, Total Petroleum India, Total Lubricants India, Total LPG India, Total Vinergy Bitumen India, employing about 530 people.

Total is one of the worlds major oil and gas groups, with activities in more than 130 countries. Its 97,000 employees put their expertise to work in every part of the industry - exploration and production of oil and natural gas, refining and marketing, gas trading and electricity.

http://www.business-standard.com/india/news/french-firm-total-sa-appoints-b-vijay-kumar-as-cmd/74989/on

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ESSAR OIL ENTERS AUTO CNG, LPG BUSINESS

Manu P. Toms

The Hindu Business Line

See similar story in: Daily News & Analysis
(Oct 05)

Mumbai: Private sector oil major Essar Oil has tied up with Sabarmati Gas for auto CNG distribution in Gujarat.

Essar is also in talks with GAIL for CNG distribution. The company has also entered into auto LPG business in partnership with a number of players, including Aegis Logistics.

Facilitating supplies

Sabarmati Gas, a joint venture between Gujarat State Petroleum Corporation (GSPC) and Bharat Petroleum Corporation Ltd (BPCL), will set up CNG dispensing units in Essar outlets in the State. We will begin with five units, said Mr S. Thangapandian, Chief Executive Officer (Marketing), Essar Oil, told Business Line.

Meanwhile, the company has drawn out a big plan for auto LPG distribution. Essar has signed an MoU with Aegis Logistics for auto LPG supply. Aegis has an LPG import facility in Mumbai from where it will supply the auto gas to Essar, which in turn will market it in States including Gujarat, Madhya Pradesh, Rajasthan and Maharashtra.

The company is also in talks with Elf Gas India Ltd to distribute auto LPG in Tamil Nadu and Karnataka. While Essar has allowed the auto CNG distributors to set up their own dispensing units in its retail outlets, the business model for auto LPG sales is different. Essar itself takes care of the distribution and marketing of auto LPG.

State outlets

With the recent price cut the company has announced, Essars petrol and diesel prices are on par with the public sector oil marketing companies in nine States including Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and parts of Uttar Pradesh, said Mr Thangapandian.

Essar sells petrol at Rs 48.70 and diesel at Rs 36.70 in Mumbai. The company had earlier set a target of opening 1,500 retail outlets by March 2010. He said the company already set up 1,278 units. It has plans for setting up 100 more retail outlets in Gujarat and 50 in Karnataka this financial year.

http://www.thehindubusinessline.com/2009/10/05/stories/2009100550710200.htm

http://www.dnaindia.com/money/report_essar-oil-forays-into-auto-gas-retailing_1295107

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WORLD BANK SEES OIL AT $63 A BARREL IN 2010

Agencies

See this story in: The Economic Times

(Oct 04)

Istanbul: Oil prices are expected to average 63 dollars in 2010, after 55.5 dollars in 2009, the World Bank said in a report on the Middle East and North Africa released in Istanbul on Saturday.

Those prices are "sufficient to avoid a major crisis in oil-producing countries, but much lower than the boom of 2008," said the "Economic Development and Prospects" report.

The World Bank said that oil prices in 2009 were unlikely to be significantly affected by the factors that had contributed to high prices before mid-2008. "Global demand is likely to remain low," said the report, released in the run-up to the World Bank and International Monetary Fund annual meetings in the Turkish financial capital.

The IMF did not provide oil price projections for 2010 in its semi-annual World Economic Outlook report, published on Thursday.

According to its WEO report, global oil demand is expected to rise to 85.7 million barrels per day in 2010 from 84.4 mbpd in 2009, but still be below the 2008 level of 86.3 mbpd.

Oil prices dropped below 70 dollars a barrel on Friday after the US government reported worse than expected unemployment data that hammered economic recovery hopes for the world's largest energy-consuming nation.

http://economictimes.indiatimes.com/news/economy/indicators/World-Bank-sees-oil-at-63-a-barrel-in-2010/articleshow/5084549.cms

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INTERNATIONAL NEWS Go To Top

TOYOTA PRIUS WILL DRIVE INTO US BY 2012

Bloomberg

See this story in: Business Standard

(Oct 04)

Los Angeles: The worlds biggest seller of hybrid autos, Toyota Motor Corp, said it intended to begin offering plug-in versions of the Prius hatchback to US consumers within three years.

The target is to come to market with them by 2012, Irv Miller, a group vice-president for Toyotas US sales unit said at a conference in Los Angeles. Before that, Were going to study the challenges of consumer demand, he said.

Toyota already plans to begin US tests late this year on 150 Priuses with lithium-ion battery packs that can be recharged at electric outlets.

Toyota joins Nissan Motor Co, General Motors Co, Daimler and startups such as Tesla Motors Co in readying vehicles that run entirely or in part on electricity. Governments are pushing for such models to reduce gasoline use and trim emissions of carbon dioxide.

Unlike Nissan, which has said it expects to sell hundreds of thousands of Leaf battery cars within a few years, Toyota has said its less certain of consumer readiness to buy vehicles that cost more and offer less range.

Toyotas wariness stems from sales in California of its battery-powered RAV4 sport-utility vehicles early in this decade, Miller said.We had a lot of people raising their hands for the RAV4 EV, he said. As soon as we made them ready for sale, that line evaporated very quickly, he added.

Miller spoke at a panel discussion on advanced vehicles at a climate-change conference hosted by California Governor Arnold Schwarzenegger. Toyotas US sales unit is based in Torrance, California.

http://www.business-standard.com/india/news/toyota-prius-will-drive-into-us-by-2012/372114/

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BMW TO UNVEIL NEW CONVERTIBLE ON OCT 12

Business Standard (Web & Print Edition)

(Oct 04)

Mumbai: German luxury car maker BMW will launch its most awaited car, the Z4 (a convertible), on October 12 in Mumbai in an attempt to further bolster its presence in the multi-crore Indian luxury car market.

This would be the companys third offering in the convertible segment, where it also sells the M3 and M6 convertibles. Company officials have said that the car will have a price tag of Rs 50-60 lakh. BMW India is hopeful of selling 30-40 units of the Z4 in the first year.

While the company has not yet divulged details regarding the model slated for the Indian market, sources revealed that consumers in the country would get the straight 6-cylinder petrol, 258bhp, sDrive 30i Z4 model.

According to data made available by the company, the sDrive 30i can accelerate from 0-100 km/hr in 5.8 seconds with a top speed of 250 km/hr.

BMW India, which until the end of the financial year 2008-09 was trailing Daimler Benz-owned Mercedes in India, has so far this year gained a comprehensive lead over it. In the five months ended August, BMW sold 1,313 units a growth of 12.62 per cent over the same period last year. In comparison, Mercedes recorded sales of 1,128 units, registering a fall of 19.02 per cent during the same period. BMW India has set a target of selling 3,000 units in the current calendar year, up from 2,908 units sold last year.

http://www.business-standard.com/india/news/bmw-to-unveil-new-convertibleoct-12/372122/

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'POOR MAN'S PORSCHE' UNDER CONSIDERATION: REPORT

Agencies

See this story in: The Economic Times

(Oct 05)

Berlin: For decades the preserve of the rich and famous, the iconic Porsche sportscar may soon be available as a more affordable model, according to a senior executive at the German car maker.

The priority for the crisis-hit company is to produce a car significantly cheaper than the current "bottom-of-the-range" model, the Porsche Boxster , which costs 46,506 euros (67,778 dollars), Wolfgang Duerheimer, head of development, told Automobilwoche magazine.

Deeper co-operation with Volkswagen, Europe's biggest car maker, which in August announced a merger with Porsche, will make it possible to reduce costs, he said in an interview to appear on Monday.

Last month, Porsche said that sales had slumped by 24 percent in the financial year to July 31 but expressed optimism that the worst of the crisis was now in the rear-view mirror.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Poor-mans-Porsche-under-consideration-Report/articleshow/5087145.cms

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ECONOMY & FINANCE Go To Top

FARM OUTPUT DECLINE TO HIT GDP BY 5.8%

PTI

See this story in: The Hindu Business Line

(Oct 05)

New Delhi: India's economy is expected to grow between 5.2-5.8 per cent in 2009-10, much lower than last year as the agriculture output is estimated to decline significantly because of drought in 276 districts of the country, an industry paper has said.

The GDP projections for the current fiscal made by the Federation of Indian Chambers of Commerce and Industry (FICCI) are far more dismal than the estimates of 6 per cent by the Reserve Bank of India and 6.3 per cent by the Planning Commission.

Its projections are close to the assessment made by the International Monetary Fund about the Indian economy. According to the IMF, India's GDP is expected to grow by 5.4 per cent in 2009. Below normal rain to the extent of 20 per cent this year, the wo rst in 37 years, has led to drought in 44 per cent of India's 626 districts, FICCI said.

The overall Kharif output is expected to dip by 15 per cent and this may translate into a lower GDP of 5.2-5.8 per cent versus 6.7 per cent last year, it said adding the agriculture output may drop by 2-4 per cent.

Quoting the U S Department of Agriculture, FICCI said India's rice output is expected to fall sharply to 82 million tonnes in 2009-10 against an early forecast of 88 million tonnes. This would be 17 million tonnes below to 2008-09 production of 99.2 mill ion tonnes. - http://www.thehindubusinessline.com/blnus/01041320.htm

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