Indian Auto Industry News: Indian Auto Industry Update October 06, 2009

New Delhi: Labour unrest along the Gurgaon-Manesar belt could prove a party pooper just when things were beginning to look up for automobile companies.

Plants producing more than half of all cars and two-wheelers produced in India are houses in this region so that widespread labour unrest could spell doom for the industry in coming months. Employee unions across some component makers and even original equipment manufacturers (OEMs) have either struck work or are observing a "go slow" for the last fortnight.

Honda Motorcycle & Scooter India (HMSI), the clear leader in variomatic scooters and fourth largest two-wheeler maker in the country, has seen its production fall to almost half in recent weeks. A company official said that there is no strike but the "go slow" has meant that a third production line - which was scheduled to begin operations from September one - has been postponed. "This means a production loss of almost 600 two-wheelers per day. Overall, we are equipped to roll out 4,350 vehicles a day but we are doing only a little over 2,000 units because of the workers' attitude," the official said.The official said that the company is holding tripartite talks by involving labour unions and the state labour commissioner's office to map out a long-term settlement (LTS) on wages for the next three years. Rico Auto and Sunbeam Auto, two major parts' suppliers to large OEMs such as Maruti Suzuki India and Hero Honda Motors, are also reeling under a strike. An official at Rico said that almost 70% of its workers have stopped reporting for work, mainly people in supervisory and shopfloor roles. Rico supplies components such as case differentials, clutches, pumps, panels and hubs, brake discs, etc and has been forced to operate two 12-hour shifts against the normal practice of running three shifts of 8 hours each. Supplies to most OEM customers are down already and the situation could worsen unless immediate corrective steps are taken.

Sunbeam Auto, an engine parts supplier, is facing an identical situation with only 40% production. A company official said that for many critical engine components needed by Maruti and Hero Honda, his company is the sole supplier.Some other component makers, including Hema Engineering, AG International, Microtek and even Sona Koyo Steering Systems have been facing labour unrest increasingly over the last few weeks. There appears to be a hint of political rivalry as well, with some Congress affiliated unions facing dissent from within on the instigation of Left led unions. And since this is the election month in Haryana - polls are scheduled for the 13th - not much help is coming forth from the police machinery either.

Speaking to DNA Money, officials of the Haryana Labour Commissioner's office said that at least some labour issues could be resolved soon. "We want to be industry friendly. There are no criminal elements involved in any of the strikes...the HMSI issue is close to resolution but the matters of Rico and Sunbeam have been referred to the state government and will eventually come to the labour court."

http://www.dnaindia.com/money/report_labour-unrest-in-gurgaon-belt-may-spoil-auto-party_1295380

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INTERVIEWS/FEATURES Go To Top

'INDIA WILL BE FIFTH-LARGEST AUTO MARKET BY 2015': BENOIT TIERS, MD, AUDI
Sai Deepika Amirapu
The Economic Times (Web Edition)

German luxury carmaker Audi is optimistic about sales of the affluent cars, while projecting an 80% growth over last year. But he cautiously downplays this scorching pace of growth and talks about being profitable rather than grabbing the market share from his competitors, BMW and Merc. Benoit Tiers, managing director of the company's Indian subsidiary talks to ET NOW after Audi's annual golf tournament (Quattro Cup) at Hyderabad.

Excerpts:

Both BMW and Mercedes plan to sell more cars than Audi in India. How do you plan to beat competition?

India is a very interesting market because most manufacturers have their production plants in the country. The customer has a choice of products, even in the luxury car segment. But I am of the view that the quality of product and service of the dealers matter. Audi in India is a long-term commitment and my target is not to be number one in terms of sales figures. My aim is to establish the brand and build service and quality, so that the consequence will be sales. We may be late entrants in to the Indian market, but our rate of growth is higher. We're looking at being profitable first. We sold around 1,050 cars in India last year, a 120% growth.

How has the order rate been in the first half of the year? Are you tempering your outlook for the next three months?

Audi India was incorporated in March 2007, and ever since, we have been ahead of our targets here. We have done extremely well in September by delivering 205 cars to our customers. Our Q7 and A6 are in great demand, and we expect to sell 1,800 units of all models this year.

Do you plan to expand your dealer network from 12 currently? Any hiring plans?

Most certainly. It is important for us to be present where ever our customer is. By 2010, we will have 15 dealers, and by 2011, we wish to have 18 dealers pan-India. We also have our roadside assistance where the customer can avail services just by making a call. We will also marginally increase our headcount in regions where we have dealers.

Mercedes Benz will enter the used-car segment by year-end. You have any plans to foray into this market, although it is highly fragmented?

The used-market will get organised, and the market size will touch 1.6-million cars this year. This market will have more requirements due to its growth and we plan to enter this segment in 2010. We have our pre-owned used Audi car programme worldwide, where each car is technically and thoroughly checked before it is re-sold.

The credit crunch cooled demand for luxury cars in the US and the UK. Do you think India and China have a greater growth potential?

Clearly, India in the future is one of the biggest markets. Our estimation says India will be the fifth-largest automobile market in the world by 2015. We sold 1,20,000 cars in China last year. India will soon go that way, though it will not happen overnight. We are studying the market and we want to be ready for it.

Like Indian automakers, are you planning to offer any discounts and special offers to customers this festive season?

I think, it is important for us and our dealers to follow tradition in India. For this festive season, we've brought in more cars and we have a special scheme for Audi A6. About 20 customers in all the 12 dealers can avail this special final offer. We have no discounts, but we're providing greater access to our customers.

Do you plan to add another plant in India to assemble new Audi models that come to the Indian market?

No. Our idea is to have production facility in one location. Aurangabad will be our main facility and all new models that will be brought in will be assembled here. Our new SUV Q5 will be put together from next year. We will bring more models like small cars and others according to the demand.

http://economictimes.indiatimes.com/Opinion/Interviews/India-will-be-fifth-largest-auto-market-by-2015/articleshow/5091939.cms?curpg=2

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'AUDI LIKELY TO CROSS SALES OF 1,700 CARS IN INDIA THIS YEAR': BENOIT TIERS, MD, AUDI

K V Ramana

Daily News & Analysis (Web Edition)

Even as the country talks about the impact of recession and the stimulus packages for the industry, automaker Audi is excited about the response it has been getting from the Indian market. So much so, the company expects to overshoot its sales target for the year, managing director Benoit Tiers tells KV Ramana.

Excerpts:

How has been your experience in the Indian market particularly during the times of crisis?

We started in India just two years back in March 2007. We started manufacturing too by assembling the A6 model and in 2008, we started assembling the A4 model. Now, after two-and-a-half years of operations, we can say that operations in India are ahead of expectations. In terms of production, we are happy with the performance of A4 and A6. Next year, we will also start production of the Q5. Sales are growing very fast. In 2007, we sold only a few hundred cars and this year, we are likely to cross 1,600-1,700 cars in India. September was a very good month. We sold 205 units in September alone, compared to 80 in the corresponding period of the previous year. We could have done much better. Some customers had to wait a little bit. The production of Q7 and Q5 has to be increased to meet the demand. Audi worldwide too has saw good numbers. In 2008, Audi worldwide sold about one million units. Despite the global crisis, we took a lot of market share from the competition.

What models are driving sales?

We can definitely say that Q7 and A6 have done very good. These two models are really driving our sales at this point and this also shows the choice of Indian customers towards big cars.

Whether in India or worldwide, what helped you to counter the impact of slowdown?

Worldwide, the slowdown was felt by everyone in different ways. Audi is strong in Asia and Europe and less strong in the US. The US market was most touched by the slowdown.

So, we did not suffer much. Audi is number 1 in Europe and Asia, including China. The impact of the slowdown has not been felt much in the emerging markets of Audi. But the value of the product we offer too has made a lot of difference. People are looking for a well-designed and reliable car along with high resale value. When a customer wants to sell his car during the times of crisis, Audi offers the best resale value.

What are your indigenisation plans?
We are currently bringing in completely knocked down (CKD) kits for assembly in India. Despite this, it is little bit indigenised. The equipment in the car is more suited the local needs. Take the case of rear seats. The remote control is at the rear in the cars sold in India. The European customer drives his own car, but in India, the customer does not drive. So, the controls are at the rear. Also, take the care of suspension. We have designed it to suit the local road conditions. Air filters are different.

But what about localisation of your products?

So far, we are in discussion with a lot of component providers. But we have not taken any decision as yet.

By when do you think you will start localising?

I don't have a crystal ball towards the market. So far, the market is growing as expected. But for localisation, we need to have relevant volumes. Right now, we can't answer the question of localisation time plan. We will definitely be looking at localisation.

Will the improved sales change your India strategy?
The Indian strategy is clear. We know India will be one of the very big car markets. It is an about-1.5 million car market. But, it will grow to 3 million or more. What we do in 2009 is not very relevant to influence the overall India plan.

What makes India qualified to be branded as a big market for Audi?

The question of India is not about if it will be a big market, but about when it will be a big market. We know it will be a big market for us. We have experienced China. We started 20 years back in China, with 250 units a year. Audi India is delivering 120,000 units to China per year. So, there is no reason why India will not follow the same model.

Do you believe India has come out of the slowdown?

India and China seem have come out of the crisis.

You had planned to invest about 30 million euros in India till 2015. Is that going to change?

If the market grows, we are planning to go further on our investment.

Any plan to add new production facilities?

Our production facility will be centralised at Aurangabad. The future production capacity will depend on the market.

http://www.dnaindia.com/money/interview_audi-likely-to-cross-sales-of-1700-cars-in-india-this-year_1295421
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CARS, SUVs, MUVs Go To Top

SMALL-CAR EXPORTS TO EUROPE HIT A ROADBLOCK

Lijee Philip

The Economic Times (Web Edition)

Mumbai: Exports by Indian small-car producers such as Maruti Suzuki and Hyundai Motor have started shrinking as scrappage schemes in various European markets are set to lapse by year-end. These big auto makers saw their exports shoot up 35-40% in the last few months on the back of incentives offered by Germany, France and the UK to help owners of older cars and vans buy new fuel-efficient vehicles.

Germany, the biggest market in Europe, and Austria have already concluded their scrappage programmes and other countries are expected to wrap up their schemes by December.

So, as exports to Europe decline, Indian carmakers have started looking at non-European markets. While we are hoping that the European countries will announce new schemes to encourage small car exports or the existing schemes in some countries will get a further extension, we are simultaneously working with non-European countries, said a senior official at a Delhi-based car company.

Till September 30 this year, Maruti Suzuki had exported over 58,500 units, with A-Star accounting for 33,500 units, Nissan Pixo at over 25,000 units and other models contributing about 7,900 units. The countrys largest carmaker has targeted exports of 1.3 lakh units in 2009-10 against 70,023 units in the last fiscal year.

We are focusing on non-European markets for exports, but once the scrappage incentives are exhausted in Europe, the export numbers are likely to normalise, said a Maruti-Suzuki spokesperson. Analysts, however, do not expect Maruti Suzukis exports to cross 1.16 lakh units this year as many European countries have withdrawn their scrappage schemes. Of the total targeted exports, Europe would account for 90,000 units and the balance 30,000 units from non-European countries.

Hyundai Motor India (HMIL), the countrys largest car exporter, too, benefited from additional European export orders. More than 50% of our exports are targeted at European countries, with Germany accounting for the maximum, said Arvind Saxena, HMILs senior vice-president for sales and marketing. The company aims to export about 2.7 lakh units in 2009-10 against 2.45 lakh units last year.

We are covered for the calendar year as we get advance export orders. The export orders have lowered and we will start seeing the impact, Mr Saxena said. HMIL exports i10 and i20 models to Europe. To qualify for the scrappage benefit, the emission levels in the new car should be below 160 g per km. Germany had created a e5 billion fund for the scrappage scheme, doling out e2,500 incentive for a fuel-efficient new car.

France has set aside 220 million euros, offering 1,000 euros and a deferred tax benefit of up to 5,000 euros for a new car.

While the UK government had initially created a 300-million pounds corpus under cash-for-clunkers scheme and offered the customer 2,000 pounds for purchasing a new car, it is extending the offer with additional 100-million pounds funding. The other European countries that imported small cars under the scrappage programme are Spain, Italy, Austria and the Netherlands.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Small-car-exports-to-Europe-hit-a-roadblock/articleshow/5091853.cms

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10,000 UNITS OF LINEA SOLD SINCE JANUARY: FIAT INDIA

PTI

See this story in: The Economic Times (Web Edition)

Mumbai: Fiat India Automobiles Limited (FIAL), a 50-50 JV between Fiat Group Automobiles (Fiat) and Tata Motors Limited, has sold 10,000 units of its sedan, Linea, since its launch in January this year.

The number assumes significance as Fiat had sold only 3,550 cars in this period last year.

Fiat's Grande Punto also witnessed a sale of over 5,000 units within three months of introduction.

"Fiat has been deeply-rooted in the Indian psyche for many decades now and we want to see a lot many Fiat vehicles plying on Indian roads. The milestone achieved by Linea is a testimony that we are inching closer towards this goal," FIAL CEO Rajeev Kapoor said in a press statement issued here.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/10000-units-of-Linea-sold-since-January-Fiat-India/articleshow/5090079.cms

Fiat Linea sale crosses 10,000

The Hindu Business Line (Web & Print Edition)

http://www.thehindubusinessline.com/2009/10/06/stories/2009100650490301.htm

10,000 units of Linea sold since Jan: Fiat India

Yahoo India (Web Edition)

http://in.biz.yahoo.com/091005/50/bauabn.html

Fiat sells 10,000 units of Linea since January

Rediff India (Web Edition)

http://business.rediff.com/report/2009/oct/05/auto-fiat-sells-10000-units-of-linea.htm

10,000 units of Linea sold since Jan

Business Standard (Delhi Print Edition)

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MERC MAY LOSE TOP SPOT TO BMW IN INDIA

Swaraj Baggonkar

Business Standard (Web & Print Edition)

Mumbai: Indias identity as a Mercedes country will be under threat this year, as arch rival Bayerische Motoren Werke (better known as BMW) is on course to dethrone the Stuttgart-headquartered luxury car maker from the top slot for the first time ever in India.

Mercedes Benz just about managed to keep its neck ahead last year, with a lead of 537 units over BMW, according to data available with the Society of Indian Automobile Manufacturers.

However, handicapped by inadequate vehicle kits for the first nine months of this year for one of its models, a senior company executive stated it is unlikely Mercedes Benz will be able to surpass its own total posted last year. Mercedes Benz India sold 3,445 units last calendar year, while BMW sold 2,908.

This year, BMW took the lead during the January-August period, with sales of 2,305 units as compared to 1,876 posted by Mercedes Benz.

Wilfried Aulbur, managing director and CEO, Mercedes Benz India, said: We simply had far less number of kits available with us to satisfy the demand of the E-class (outgoing model), which was in the process of being phased out. We have introduced the new E-class with just one variant, which has a petrol engine. Our sales this year will be less primarily because the launch of the new E-class slowed things down.

He, however, declined to quantify the drop in sales the company is expecting.

Mercedes was forced to curtail its E-class supplies since the later part of last year, as it was gearing up to launch its newer version of the same car, labelled as the 2010 edition.

The E-class, brought to India as a completely knocked down unit and assembled at the Pune facility, comprises more than 30 per cent of the companys total sales in India. The last of the old E-class, rolled out from Pune four weeks before the new one, started production last month.

While BMW is aiming for sales in excess of 3,000 units this year, experts say the company will surpass the figure comprehensively, considering the growth so far this year has been 13-15 per cent.

The absence of a diesel variant, as well as a step-down option in the petrol version in the new E-Class, will impact Mercedes sales this year say experts. The recently launched all-new E-Class is available only in the top-end variant, having a 3.5 litre, V6 petrol engine priced at Rs 46.97 lakh (ex-showroom, Delhi).

Meanwhile, the 5-series, 7-series and SUV models of BMW continue to show robust demand, with sales growing in double digits. The company is gearing to launch the Z4 convertible sedan next week, in the price bracket of Rs 50-60 lakh to further boost its presence.

Already, Mercedes is preparing to come back hard at BMW, hoping the new E-class will bring back the lagging momentum next year.

I think we simply had just 650 kits of the E-class for the first nine months of this year and we are starting with just one engine variant with the new model. We wont be able to catch up with the numbers posted last year in just three months. There is a lot of demand for this segment and we are very hopeful that 2010 will be a blockbuster year, added Aulbur.

http://www.business-standard.com/india/news/merc-may-lose-top-spot-to-bmw-in-india/372344/

Merc may lose top spot to BMW in India

Rediff India (Web Edition)

http://business.rediff.com/report/2009/oct/06/bmw-set-to-take-top-spot-in-india.htm

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MERCEDES OPEN TO CNG E-CLASS IMPORTS

Manu P. Toms

The Hindu Business Line (Web & Print Edition)

Mumbai: Mercedes Benz India is ready to deliver the CNG variant of its E-Class sedan to customers who need them, said Dr Wilfried Aulbur, Managing Director.

We have a CNG variant and will import it based on demand, he told Business Line on the sidelines of the launch of the new E-Class here on Sunday.

The downside is that the imported car will attract 104 per cent duty, which will mean that it will be twice as much the latest edition of the E-Class (petrol) that costs Rs 45.89 lakh (ex-showroom Mumbai). The fact that CNG is largely retailed in Delhi and Mumbai also means that the market will be confined to these two cities.

Dr Aulbur said the company would consider assembly of the CNG version if there was adequate demand. The petrol Merc models are E-25 (25 per cent mix of ethanol) compliant while the diesel options can operate on bio-diesel.

Mercedes had earlier conducted a trial run of the CNG-E Class in India. The mileage of the car is estimated to be 18 km a kg. As for the bus business, Dr Aulbur said private operators were not too enthusiastic about buying intercity luxury coaches due to the swine flu outbreak which hit occupancy rates. The company has sold 25 buses so far this year. Incidentally, Mercedes-Benz India opened a new dealership in Jalandhar on Monday.

http://www.thehindubusinessline.com/2009/10/06/stories/2009100650500300.htm

Mercedes Benz E-Class launched in Mumbai

Daily News & Analysis (Web Edition)

http://www.dnaindia.com/money/report_mercedes-benz-e-class-launched-in-mumbai_1295262

Mercedes Benz E-Class launched in Mumbai

The Indian Express (Web Edition)

http://www.indianexpress.com/news/mercedes-benz-eclass-launched-in-mumbai/525254/

Mercedes Benz E-Class launched in Mumbai

Yahoo India (Web Edition)

http://in.biz.yahoo.com/091005/50/bauabo.html

Mercedes Benz E-Class launched in Mumbai for 45.9 lakhs

Rediff India (Web Edition)

http://business.rediff.com/report/2009/oct/05/auto-new-mercedes-e-class-at-rs-45-point-9-lakhs.htm

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VW PITCHES FOR 10% MARKET SHARE BY 14

The Financial Express (Web & Print Edition)

Chennai: It's now the turn of Europe's largest automaker Volkswagen to play the volume game in India. The company, which is ready to launch its compact Polo, hopes to see its Chakan plant (Pune) run on full capacity of around 100,000-plus cars per annum by 2014/15.

The company will have 8-10% of the passenger car market by then, said Jorg Muller, president and managing director, Volkswagen India.

"We plan to introduce three models the Polo will be followed by a sedan and another premium model in the next two to three years in order for us to achieve that target," he said. The company would introduce its iconic Beetle in India pretty soon, he added. "There is a huge market for compact cars in India. We would like to become a volume player and Polo provides us the right platform," he added.

Initially, the localisation level of Polo would be 50% which would be increased to 75% over a period of time. "The quality of components in India has improved a lot and this would help us increase our localisation level," Muller said. VW currently sources from 120 suppliers in India.

Volkswagen isn't the first global auto maker to look at sourcing from India. General Motors, Toyota, Fiat and Renault are among those who have identified India as a hub for component sourcing, largely because of its price competitiveness.

"We have started sourcing components for our global operations particularly for plants located in Russia and some European countries in a small way," Muller said. The company is also beefing up its distribution muscle it will increase the number of dealers to 200 by 2010, against 120 currently, with a focus on tier-II and tier-III cities.

To stay top of mind, the company is looking at opportunities to associate with sports.

"Globally VW has number of sport vehicles," he said, adding, "By promoting racing in India, we hope to get mileage for the Volkswagen brand, which in turn will give it a sporty image apart from improving its market share."

http://www.financialexpress.com/news/vw-pitches-for-10-market-share-by-14/525435/

Volkswagen lines up slew of launches

The Hindu (Web & Print Edition)

http://www.hindu.com/2009/10/06/stories/2009100652601400.htm

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AUDI SALES JUMP TWO-FOLD IN SEPTEMBER

PTI

See this story in: The Tribune (Web Edition)

New Delhi: Luxury carmaker Audi India on Monday reported over two-fold increase in its sales in September at 205 units over the same period last year. The companys sales in the first nine months have also soared by 71.56 per cent at 1,333 units as against 777 units in January-September period last year.

http://www.tribuneindia.com/2009/20091006/biz.htm

Audi sales jump two-fold in September

Deccan Chronicle (Web Edition)

http://www.deccanchronicle.com/business/audi-sales-jump-two-fold-september-839

Audi sales jump 2-fol in Sept.

Asian Age (Delhi Print Edition)

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TOYOTA TO STRENGTHEN DEALERSHIP NETWORKS

PTI

See this story in: Deccan Herald (Web Edition)

New Delhi: The company, which is present in India through a joint venture with the Kirloskar Group, on Monday reported a jump of 8 per cent in its sales during September at 6,187 units over the same month last year.

At present, Toyota has 90 dealerships and has plans to enhance it to 150 outlets, of which about 60 per cent would come up in semi-urban and rural locations, Toyota Kirloskar Motor (TKM) said. It is investing about Rs 3,200 cr in setting up its 2nd manufacturing facility in Bangalore with an initial production capacity of 70,000 units to roll out a strategic small car by early 2011.

http://www.deccanherald.com/content/28866/toyota-strengthen-dealership-networks.html

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FORD TO LICENSE BRAND IN INDIA

PTI

See this story in: Business Standard (Web & Print Edition)

New Delhi: US auto maker Ford, which is eying at becoming a significant player in the Indian car market by entering the compact car segment, has announced plans to license its brand in the country to sell merchandise as part of an image building exercise.

The company, through its global licence agent Beanstalk Group, has entered into a tie-up with Delhi-based licensing management firm Licence India for selecting licensees in the country for manufacturing and retailing of products.

We want to extend the brand through the licensing programme. It will help in reaching to more consumers as well as creating brand awareness. The first product would be out in the market in the first half of next year, said Ford Global Brand Licensing Mark Bentley.

Ford, which entered India in 1995, has been struggling to make a mark in the country and has only 2.07 per cent share in the over 1.2 million-units Indian passenger car market. It will be launching its compact car Figo in India next year, with which it aims to be a significant player in the market.

Bentley said the company will introduce various merchandise in a phased manner, starting with car accessories, followed by apparel in the first quarter next year.

Bentley, however, did not disclose details regarding the sales target for Fords merchandise and the number of licences the company plans to award in India.

Ford has a global licensing business of $1.5 billion and India is among the new country on the companys radar after the US, Europe, Mexico and Australia. The company has a portfolio of 350 licensee partners globally. The company would license its Ford Blue Oval logo, besides its subsidiary Mustang and For Trucks Build For Tough logo.

Ford India would act as a consultant in the licensing programme which would see the company brining out a range of products including clothing, head-wear, toys, home ware and decorative vehicle accessories.

http://www.business-standard.com/india/news/ford-to-license-brand-in-india/372337/

Ford to license brand in India

The Hindu (Web & Print Edition)

http://www.hindu.com/2009/10/06/stories/2009100654781600.htm

Ford to license brand in India

Rediff India (Web Edition)

http://business.rediff.com/report/2009/oct/05/auto-ford-to-license-brand-in-india.htm

Ford India to license brand & sell merchandise

Deccan Herald (Web Edition)

http://www.deccanherald.com/content/28859/ford-india-license-brand-amp.html

Fords nameplate to extend to lifestyle merchandise

The Hindu Business Line (Delhi Print Edition)

Ford to license brand in India
Business Standard (Delhi Print Edition)

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COMMERCIAL VEHICLES Go To Top

SALES FOR URBAN MISSION PUT CV MKT ON ROAD TO RECOVERY

The Financial Express (Web & Print Edition)

New Delhi: Owing to growing economic activities and increasing disbursement of buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), commercial vehicle manufacturers like Tata Motors and Eicher Motors have witnessed increase in sales last month.

Though sales of Ashok Leyland have also gone up in September vis-a-vis August, the company posted lower sales compared to September 2008. It hopes demand would pick up significantly in the second half of this year. This is because Ashok Leyland would start the delivery of buses under the JNNURM programme this month.

Tata Motors, the countrys largest commercial vehicle manufacturer, registered a 10% growth in commercial vehicle sales in September. The figure stood at 31,474 units against 28,649 in September 2008. The sales figures for Eicher Motors went up 37% at 2,558 units in September this year vis--vis 1,867 units in September 2008.

We have outpaced the market growth rate for the last few months. We have been working to improve the competitiveness of our products through better quality and stronger distribution network and this has helped us increase our market share across all product categories, Somnath Bhattacharjee, executive vice-president, (sales, marketing and aftermarket), VE Commercial Vehicles, said. According to a company statement, its market share in the 5-12 tonne light and medium commercial vehicle market went up to

24% in September this year against 18% in September 2008.

Sales of Ashok Leyland declined 11.7% last month at 4,813 units compared to 5,454 units in September 2008 though its month-on-month sales went up 13.7% from 4,223 units sold in August. We are revising our target upwards, maybe around 5% from the previous estimates, Rajiv Saharia, executive director, Ashok Leyland, said.

In the past few months, the overall market has looked up and we are positive about an upswing, he said, adding that the company expects a good second half with deliveries of 5,000 buses planned to various local and state transport bodies under JNNURM, over and above the 875 buses to Delhi Transport Corporation. While industry body Siam is yet to release its statistics, analysts expect the commercial vehicle industry to register low single digit growth in September against the 18.5% jump in total sales in August at 40,624 units.

http://www.financialexpress.com/news/sales-for-urban-mission-put-cv-mkt-on-road-to-recovery/525432/

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ASHOK LEYLAND EXPECTS 5% DOMESTIC SALES GROWTH

PTI

See this story in: The Hindu Business Line (Web Edition)

Alwar (Rajasthan): Hinduja Group's flagship company Ashok Leyland is revising its domestic commercial vehicle sales target to about five per cent this fiscal from an earlier estimation of flat or negative sales, on the back of reviving market demand.

We are now revising our target upwards, maybe around five per cent from the previous (estimates) that domestic sales would either be flat or even turn negative, Ashok Leyland Executive Director (Marketing), Mr Rajiv Saharia said here.

He said the recent revival of sales in the commercial vehicle (CV) market has brought optimism. In the last few months, the overall market has looked up and this has made us rethink. Now at least we are positive about an upswing, Mr Saharia said.

The Society of Indian Automobile Manufacturers (SIAM) says Ashok Leyland had domestic sales of 47,632 units in 2008-09. Its cumulative sales in the domestic market during the first six months of the current fiscal were down 40 per cent at 19,396 units, as against 32,326 units during the same period last year.

The company sold 4,813 units in September this year, registering a fall of 11.75 per cent over 5,454 units during the same month last year.

We expect a good second half during the fiscal with deliveries of 5,000 buses planned to various local and state transport bodies, Mr Saharia said.

http://www.thehindubusinessline.com/blnus/02051712.htm

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ASHOK LEYLAND IN TALKS FOR JOINT VENTURE IN ARGENTINA

M. Ramesh

The Hindu Business Line (Web & Print Edition)

Chennai: Ashok Leyland is in talks with Grupo Plaza of Argentina to set up a joint venture there.

The joint venture is for producing buses and trucks in Argentina, it is reliably learnt. Ashok Leyland has declined to comment on this, but sources close to the development say that the talks are in preliminary stages.

Transport tie-up

Grupo Plaza (the Plaza Group) is a large public transportation company with a strong presence in Argentina. Sources in the know have told Business Line that the group owns both inter-city and intra-city buses.

It has four companies operating long distance buses and twenty intra-city bus services. In addition, it also operates train services.

Tata-Iveco

Incidentally, Ashok Leylands principal competitor in India, Tata Motors, is also in talks with (Ashok Leylands erstwhile partner) Iveco of Italy, to set up a manufacturing centre in Argentina. This is the second time that Ashok Leyland is attempting to pitch tent in South America.

A few years ago, it was in talks to take over a Brazilian company called Tupy, but a deal did not materialise.

http://www.thehindubusinessline.com/2009/10/06/stories/2009100650360200.htm

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VE COMMERCIAL VEHICLES SEPT SALES UP 37 PCT

Yahoo India (Web Edition)

VE Commercial Vehicles reported 37 per cent increase in sales in September at 2,558 units as against 1,865 units in the same month last year.

The domestic sales during the month stood at 2,316 units as against 1,552 units last year, up 49 per cent, the company said in a statement. Exports during September was down 23 per cent at 242 units compared with 313 units last year.

Commenting on the sales performance, VE Commercial Vehicles Executive Vice-President (Sales, Marketing and Aftermarket) Somnath Bhattacharjee said the company has been able to outpace growth witnessed by the industry.

"We have been constantly working to improve the competitiveness of our products and offerings through improved product quality and distribution network. We have increased market share across all product categories by enhancing the customer value proposition," he added.

http://in.biz.yahoo.com/091005/50/bauabe.html

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CONSTRUCTION & AGRI MACHINERY Go To Top

EICHER SALES RISE 37% IN SEPT

The Hindu Business Line

Mumbai: The joint venture between Eicher Motors and Sweden's Volvo, VE Commercial Vehicles said on Monday that it sold 2,558 Eicher branded trucks and buses in September, compared with 1,865 units a year ago, a rise of 37.15 per cent.

Domestic sales rose 49.2 per cent to 2,316 units, though exports fell about 23 per cent to 242 units, the company said.

http://www.thehindubusinessline.com/blnus/02051110.htm

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2/3 WHEELERS Go To Top

BAJAJ AUTO MAY SET UP ASSEMBLY PLANT IN BRAZIL

PTI

See this story in: Business Standard

Mumbai: We are looking at setting up an assembly plant at a place called Manaus in Brazil in FY11. It is a Free Trade Zone, Bajaj Auto Ltds Vice-Chairman, Madhur Bajaj, told reporters here.

The company is in the process of studying the site and working out financial details, Bajaj said. He did not specify if the auto major was seeking a partner.

The countrys second-largest two-wheeler maker operates an assembly plant in Indonesia.

It has been mulling setting up of its plant in Brazil for over six-years now. Bajaj said, One of our distributors has already set up a plant in Egypt. They are also looking to set up plants in Nigeria, Iran and Colombia.

The company may also take up expansion of its facility at Waluj near Aurangabad, where it manufactures the Kawasaki range of motorcycles and three-wheelers.

We have a lot of land in Aurangabad, which has scope for very major expansion. It is likely that (production of) commercial vehicles would go there, Bajaj said.

Bajaj said expansion and upgradation, however, depended on how demand shaped up. Demand has been going up but a lot also depends on government policies and whether banks ease the norms for two-wheeler financing, he said.

Bajaj Auto had reported a 14.62 per cent increase in its motorcycle sales at 249,133 units in September. The company had sold 217,365 units in September last year.

This is significant as the auto majors cumulative motorcycle sales during the first six months of this fiscal were down by 3.37 per cent at 10,82,368 units.

The company currently exports to over 30 countries in Latin America, Africa, the West Asia, South and South-East Asia. Exports account for one-third of the companys total production, Bajaj said.

http://www.business-standard.com/india/news/bajaj-auto-may-setassembly-plant-in-brazil/372343/

Bajaj Auto plans to set up assembly plant in Brazil

The Hindu Business Line

http://www.thehindubusinessline.com/blnus/02051515.htm

Bajaj Auto to enter South American mart

Deccan Herald

http://www.deccanherald.com/content/28868/bajaj-auto-enter-south-american.html

Bajaj Auto may set up assembly plant in Brazil Free Trade Zone next fiscal

Daily News & Analysis
http://www.dnaindia.com/money/report_bajaj-auto-may-set-up-assembly-plant-in-brazil-free-trade-zone-next-fiscal_1295317

Bajaj plans new plant in Brazil

Asian Age

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BAJAJ AUTO GEARS UP FOR LARGER PIE IN COMMERCIAL VEHICLE BIZ

The Hindu Business Line (Web Edition)

Hyderabad: Launching a new three-wheeler cargo carrier, Bajaj Auto hinted at significantly boosting its market share of its commercial vehicles, taking it up to 50 per cent.

Describing the launch of RE 600 as a segment breaker, the Chief Executive Officer of Commercial Vehicles, Mr R.C. Maheshwari, said that the vehicle has been produced after extensive research, which showed that even three-wheelers with one tonne payload capacity were carrying less than 600 kg for most of the time.

First of its kind

Therefore, this is the first such product to make inroads into the market with a capacity to carry loads of 600 kg. With lesser capacity, high fuel efficiency and lower cost, it makes for an ideal cargo vehicle, he said.

Referring to the launch of Tata Ace, which had introduced a new segment, Mr Maheshwari said, We believe that this three wheeler product will make for an attractive buy for the budget-conscious and yet extremely efficient cargo carrier, with great manoeuvrability.

The Andhra Pradesh market for three wheelers is twice the size of Maharashtra, Gujarat, Tamil Nadu, Karnataka individually and bigger than most other States. We expect this launch to play a big role in the companys quest to garner bigger share of the commercial vehicle business, he said.

The company sells over 15,000 three-wheelers a month in the domestic market and exports about the same number to over 17 countries.

Without providing any timeline, Mr Maheshwari said that their 4-wheeler cargo carrier in the Tata Ace category is under development.

http://www.thehindubusinessline.com/2009/10/06/stories/2009100651821700.htm

Bajaj to up cargo three-wheeler play

Daily News & Analysis
http://www.dnaindia.com/money/report_bajaj-to-up-cargo-three-wheeler-play_1295382

Bajajs cargo vehicle

The Financial Express

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HARLEY-DAVIDSON BEGINS DEALERSHIP SELECTION PROCESS IN NEW DELHI

The Economic Times

New Delhi: Harley-Davidson India on Monday announced that they will initiate the selection process for dealerships, seeking interested parties from New Delhi and the NCR regions. As part of the selection process, Harley-Davison will also hold dealership camps in New Delhi on November 1st and 2nd, 2009 which will give the interested applicants an opportunity to meet with Harley-Davidsons representatives to guide the applicants through the requirements for opening Harley-Davidson dealerships in the region.

Harley-Davidson also announced that the deadline for dealership applications has been extended to November 2, 2009 given the forthcoming festive season and in order for all interested companies or individuals to apply for dealerships in their regions. Moreover, Harley-Davidson is also open to receiving indications of interest across all cities in India for future development.

Announcing the extension of the dealership application deadline and the dealer camp, Anoop Prakash, Managing Director, Harley-Davidson India said, We have had an overwhelming response so far and are grateful for the interest shown by the applicants. Given the legacy of Harley-Davidson, the selection process will evaluate the applicants understanding of the brand and delivering the brand experience to customers, as well as their business experience.

We have also decided to extend the application deadline keeping the forthcoming festive season in mind. While Punjab, Bangalore, Hyderabad, Mumbai and New Delhi are our priorities for opening dealerships in 2010, we are more than happy to consider applications from other locations that make business sense for both the dealer and Harley-Davidson. Our aim is to create a strong network of dealers that will provide our riders a world-class ownership experience, he further added.

http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/Harley-Davidson-begins-dealership-selection-process-in-New-Delhi/articleshow/5089680.cms

Harley-Davidson starts selecting dealers in Mumbai

Rediff India

http://business.rediff.com/report/2009/oct/05/auto-harley-davidson-starts-selecting-dealers-in-mumbai.htm

Harley-Davidson Eyes More Dealerships
The Tribune

http://www.tribuneindia.com/2009/20091006/biz.htm

Harley-Davidson begins dealership search in India

The Hindu Business Line

http://www.thehindubusinessline.com/blnus/19051606.htm

Harley-Davidson looks for expansion

Hindustan Times
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SCOOTER DIARIES

Sayantani Kar

Business Standard (the strategist)

Mumbai: India is the second-largest market for two-wheelers in the world, next only to China. In 2008-09, Indians bought over 7.4 million two-wheelers motorcycles, scooters, mopeds, step-thrus and electric two-wheelers. This year, the market has so far grown at over 17 per cent. If the trend holds for the rest of the year, 2009-10 could end with two-wheeler sales in excess of 8 million.

The opportunity was simply too good for Mahindra & Mahindra to resist for long. In the last few years, it has evolved from tractors to commercial vehicles and passenger cars. Two-wheelers were the only gap in its portfolio. If plugged, the company could straddle the entire spectrum of automobiles. There were advantages and disadvantages. First the negatives: The market for two-wheelers is as different from utility vehicles as cheese from chalk. And motorcycles comprise over 80 per cent of the market. The competition is cutthroat. It is not easy to gain an inch from street fighters such as Hero Honda, Bajaj Auto and TVS.

On the positive side, Mahindra & Mahindra is a trusted name. It has strong brand equity in rural markets which contribute 40 per cent to two-wheeler sales in the country. It has a wide distribution network in place. Most important, it has done a successful transition from tractors and commercial vehicles to cars, though these markets have nothing in common. The Scorpio is the largest-selling sports utility vehicle in the country. So, its ability to sell two-wheelers cannot be doubted.

Still, Mahindra & Mahindra did not want to leave anything to chance. It touched base with 7,500 respondents across the country last year to check if the foray into two-wheelers made sense. Most of them said that a Mahindra two-wheeler doesnt sound outrageous. That gave the company the confidence to roll out its two-wheeler plans. First off the block is its range of gearless scooters. (Motorcycles will have to wait till next year perhaps because the company does not want to rush to the market with a me-too product.)

But the scooter market is no less competitive. At one stage, it was on oxygen. Stylish and fuel efficient motorcycles had more or less killed the market for scooters. So much so, market leader Bajaj Auto decided to vacate the space. But the market has bounced back in the last few years because of two reasons: One, scooters now offer mileage that is not very different from motorcycles; and two, scooters require lesser maintenance than motorcycles because they are used in large numbers by women who are cautious drivers.

Honda leads the pack with a market share of 53 per cent, followed by TVS (21 per cent), Hero Honda (14 per cent) and Suzuki (8 per cent). Mahindra & Mahindras share is a tad above 2 per cent. (See chart)

The incumbents have worked hard to cement their positions. Honda can boast of superior mileage and style. Hero Honda has positioned itself as the scooter for women with a campaign that featured Priyanka Chopra. TVS has gone for a similar position with Sania Mirza as its brand ambassador. Suzuki has projected itself as a product for the whole family. There arent too many models in the market place, yet differentiation is a must for survival.

Power play
Mahindra & Mahindra has positioned its scooters, a portfolio of three (Duro, Rodeo and Flyte), as power scooters. With their international appeal and powerful performance, our world-class scooters will extend the Mahindra & Mahindra DNA of tough & rugged style to a whole new consumer segment, says Mahindra & Mahindra Vice-chairman and Managing Director Anand Mahindra.

Mahindra & Mahindra Vice-president (marketing) Devendra Shinde says the company wants to build on the image of its sports utility vehicles (the Scorpio and Xylo) machismo that its competitors cannot claim. Not only is it our lineage, but no other scooter in the market is positioned as delivering power. They are mostly for the family or women, says he.

So, each of the three scooters has been equipped with an 8-hp 125-cc engine, packing more power (better displacement) than the 100 cc scooters of rivals. The Suzuki Access is the only other scooter in the market that rides on a 125 cc engine.

What also helped was the acquisition of the assets of the Firodia-promoted Kinetic Motors in 2008 for Rs 110 crore. Kinetic had launched Flyte, complete with a 125 cc engine, in 2007. The acquisition thus gave Mahindra & Mahindra a ready power scooter to launch. This is what the company has done now, of course, after touching up the scooter a bit to give it a new look and feel.

Rivals arent sure the game-plan will work. The scooter market, they say, is clearly a family- and women-oriented market. Scooters are purely utility products, they are not lifestyle accessories. No one wants to show off ones scooter. Look at what happened to the (Kinetic) Blaze which had a 165 cc engine and was positioned along similar lines. (It was withdrawn.) It is unlikely that the market will shift beyond utility, says Suzuki Vice-president (sales and marketing) Atul Gupta.

While the Duro and Rodeo are still testing the waters, the Flyte has been selling 4,000 per month in the last six months. This is double the monthly sales of the Kinetic Flyte at its peak, says Shinde. For the record, Mahindra & Mahindra got four scooters in the Kinetic acquisition: The Flyte, Nova, Kine and 4S. Of these, it found the Flyte the fittest in technology, design and consumer feedback. The Nova, Kine and 4S will continue to be sold as long as there is demand. We wont spike their demand through any effort, says Shinde.

Though Kinetic was a well-known brand in the market for gearless scooters, there is only this much that its new owner could do with it. Kinetic could not match the investments made by rivals like Hero Honda, Bajaj Auto and TVS in product development, promotion and distribution. (It also played around with motorcycles for a while but with limited success.) It had a flourishing automobile components business which bagged much of the managements attention. When Honda exited the company in 1998, it was a big blow to Kinetic. Though it tried a few things, sales began to slow down, the line-up remained lackluster, distribution and after-sale service began to gather dust. That was when Mahindra and Mahindra took it over the acquisition of the factory cut sharply the go-to-market time.

Kinetic did have one advantage. SYM, the $1-billion Taiwanese automobile maker, was Kinetics partner in India and had helped it launch the Flyte. Mahindra & Mahindra could count on its technical expertise. In fact, the Taiwanese company gave valuable inputs in the development of the Duro and Rodeo too. Kinetic also had an 80:20 partnership with Italjet Moto SpA of Italy. It was through this joint venture that the Blaze was launched and subsequently discontinued. But Mahindra & Mahindra does not see much value in it. Italjet does not have much technology to offer. The collaboration with SYM is far superior, the engines are peppier. The resources needed to contemporise Italjet's products (the company does not exist any more) could be too large, says Shinde.

Mahindra & Mahindra can also draw on the expertise of Engines Engineering, the Italian automobile design and technology outfit that has worked on brands such as Ducati and Honda, which it bought in 2008.

Smart prices
The three scooters are priced between Rs 38,300 and Rs 41,300 (ex-showroom, Mumbai). Though priced in the same range as the Hero Honda Pleasure and TVS Scooty Pep, these are 5 to 6 per cent cheaper than market leader Honda Activa, despite an engine that is 12 to 18 per cent larger. These are also 8 to 12 per cent cheaper than Suzuki Access. The pricing strategy seems to be similar to the one Mahindra & Mahindra used when it launched the Scorpio low inaugural prices which can be ramped up once the brand is well established in the market place. On its part, the company does not confirm the rise prices might see in the time to come. Mahindra & Mahindra President (two-wheeler sector) Anoop Mathur says: The pricing is strategic for us. Of course, it is sustainable.

Mahindra & Mahindra wants to sell no less than 100,000 scooters in a year and a half. To create the demand for its scooters, it has come out with a teaser ad that highlights the power. There was some product truth in it and we also found that consumers, both women and men, want power in a scooter for various reasons such as carrying load, says Interface Communications COO Joe Thaliath, the creative agency. Brand-specific advertisements will follow soon. The company has also tried to reach out through a refurbished website and is present in the social media. Before the launch, there were teasers on YouTube. On the eve of the launch, around 300 links were posted on the web to create buzz. Floats and displays around malls and stores such as Big Bazaar and Spencer's reported conversions of 5 to 20 per cent.

Of the 300 dealers in place for the scooters, 60 per cent are old Kinetic dealers. There were some Kinetic dealers who did not want to come on board. Then there were others who did not have the requisite infrastructure and working capital (they need Rs 6-10 lakh of working capital to begin with apart from rents, and at least 1,000 square feet of space), says Shinde. There are about 120 new and existing four-wheeler dealers including those of tractors. Says Shinde: It would open up the opportunities to up-sell and down-sell. A Logan customer, for example, could be engaged to buy a scooter for his college-going kid. Adds Mathur: Our strength is in working with existing dealers to find synergies in selling experience.

There are some who believe that scooters will help Mahindra & Mahindra learn the tricks of the two-wheeler trade. The motorcycle market will be Mahindra & Mahindras ultimate target. The scooter market will be its learning ground before it enters the main two-wheeler category of motorcycles, says Ernst & Young National Leader (automotive sector) Rakesh Batra. At the moment, the company is dead serious.

http://www.business-standard.com/india/news/scooter-diaries/372254/

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COMPONENTS Go To Top

VW BEGINS COMPONENT SOURCING FROM INDIA

Business Standard

Chennai: India would become one of the major sources of components for our global units, said Jrg Mller, President and Managing Director of Volkswagen Group India.

The company has also set a target to capture 8-10 per cent of market share in the passenger car segment in India by 2014, with a series of launches and by doubling the number of its dealers.

Speaking to select media representatives here on Sunday, Mller said VW had started sourcing components from India to its Russian plant. He said they were looking at sourcing light systems, plastic-related items and metals for the European plants.

On VWs operations in India, Mller said,We sold 1,800 units during January-August this year, he said. The company has 15 models and has lined up five more launches, including hatchback and sedan versions of the Polo next year from its Rs 3,800-crore factory in Pune.

Localisation in the Polo would be 50 per cent to start with, to be increased to 75 per cent, said Mller. To increase the penetration, the company is planning to increase the number of dealers to 200 by 2012 from 120, he added.

The Pune plant represents the largest investment to date by a German company in the country. The plan is to employ 2,500 people there by the end of 2010.

http://www.business-standard.com/india/news/vw-begins-component-sourcingindia/372340/

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MOVING ON

Ranju Sarkar

Business Standard (the strategist)

New Delhi: Baba Kalyani, the chairman of Bharat Forge, is perhaps the best-known name in the world of automotive components. His list of clients is long and he has done a string of acquisitions abroad to grow. Yet, he expects supplies to non-automotive sectors to bring in 40 per cent of his revenues by 2012, and eventually 75 per cent by 2016.

SRF is the undisputed leader in the tyre cord market with a share of over 50 per cent. There isnt much competition in the marketplace. Its order books are full. Still, SRF wants to diversify into new areas like pesticides and grow its specialty textile business.

Surinder Kapur is another venerated name in the automotive components industry. His customers include the whos who of the automobile world: Maruti Suzuki and Mahindra & Mahindra, amongst others. Yet, the chairman of the Sona Group is trying to de-risk his exposure to the passenger car business by widening his product range to parts for trucks and farm machinery, and is also looking at developing a non-automotive business.

Margins under squeeze
As profit margins come under pressure, Indian component makers are drawing up plans to de-risk their business by leveraging their core manufacturing strengths or processes to develop allied businesses.

All businesses need to de-risk over time. We need to widen our range. We have 55 to 60 per cent share of the Indian market in the products we make for passenger cars, but we may not be able to retain this kind of share. Hence, we need to look at other products, segments and geographies as well as non-automotive businesses, says Kapur.

Kapur plans to engage a consultant to develop non-automotive revenue streams. We are trying to use our core strengths of machining, heat treatment and assembly (as well as casting, forgings and stamping capabilities) to develop new applications, says Kapur. Hes already supplying parts for the Tata World Truck and is developing parts for construction equipment. He also owns a car rental company.

Some like the Pune-based Bharat Forge Group adapted early to this game. In 2005-06, we made a strategic move to focus on the non-automobile business, says Kalyani. The automotive business is largely cyclical, and follows a cycle of four to five years. The downturn in commercial vehicles in 2001-02 hurt Bharat Forge badly as Tata Motors was a key customer. We thought the best way to de-risk against the cycle is to develop non-automotive businesses using our base knowledge of forgings, metallurgy and machining, he adds.

Besides automobiles, Kalyani makes forgings for the energy (for hydro and wind turbines), railway (axles for high-speed trains in Europe, crankshaft for locomotives) and marine (ship components) sectors. Bharat Forge has a large number of customers in energy, railways and oil & gas. It supplies rotor shafts for BHELs turbines, crankshafts for diesel locomotives of the Indian Railways, and also forged components for hydro and industrial turbines.

Theres a good reason why Kalyani wants to focus more on the non-automotive business. Margins in these sectors are well in excess of 20 per cent as these are high-value and custom-made items, though volumes are lower. Things for the automotive sector, on the other hand, dont look too good at the moment. Worldwide, though not so much in India, the sentiment has turned against car makers. They are under tremendous pressure to cut prices. Indian component makers were the first to integrate themselves with global automobile makers. Till the late 1980s and early 1990s, they were content to supply to the Indian market. Car technology was old, the roads were bad. As a consequence, the replacement market gave them very good orders. But with automobile technology growing by leaps and bounds, the need for regular replacements came down sharply. This forced them to look at car makers in the West for orders.

Though India and China have grown at a fast clip, the automobile market worldwide is still in pain. A large number of Indian component manufacturers were exporting to car makers in the US and Europe. There is now a question mark over that business.

Home disadvantage
India is an extremely price -conscious market. Car makers have for long been under pressure to keep prices low. As a result, they never fail to put pressure on component makers. In return for the large orders, they have no option but to accept low prices. This is a daily struggle in the lives of component makers. And the situation got really out of hand last year when commodity prices went through the roof.

The Automotive Component Manufacturers Association of India recently assigned credit-rating agency ICRA to study the swing in the fortunes of the industry. The ICRA study reveals that while the industrys net sales grew at a compounded annual growth rate of 16.8 per cent between 2004 and 2009 and operating profits rose 9.3 per cent, overall profits (profit before tax excluding other income) shrank 14.7 per cent.

The profit margins have been declining gradually since 2004 and saw a drastic drop in 2008 and 2009. Average gross profit margin and net profit margin for component makers between 2004 and 2009 were 6.7 per cent and 6 per cent, respectively. The industry recorded the lowest gross profit margin of 2.7 per cent and net profit margin of 1.8 per cent in the year ended March 2009 (the worst in last six years).

There is another factor at play here. Because of the stiff competition in the car market, most car companies offer wafer-thin margins to their dealers on car sales. Instead, they are encouraged to make money on the sale of spare parts. With this in mind, several car makers have told component makers to route all sales in the retail market only through them. The price, mind you, is the same at which it buys in bulk for its own production lines. In other words, the better profit margins in the retail market are vanishing fast for component manufacturers.

Then there is the China angle. Because of various concessions, Chinese components are up to 30 per cent cheaper than similar components produced in India. Several automobile makers have decided to source up to 30 per cent of their components from China. Component industry executives say that even if actual imports are less, the benchmark on prices is now set by China. For long, the industry has lobbied hard with the commerce ministry for anti-dumping duty on Chinese components. The only success has come in tyres. As a result, tyre companies have reported brisk sales in the last six to seven months.

This perhaps is the reason why SRF wants to reduce its dependence on tyre cord. At the moment, it accounts for around 50 per cent of the company's annual turnover. But the company wants to bring it down to around 40 per cent. According to SRF Managing Director Ashish Bharat Ram, any new business that his company will get into should have a large number of buyers (unlike the automotive sector) and intellectual property protection for its products.

What has helped is that large non-automotive, engineering-driven companies have realised the worth of Indian component makers. Their expertise in frugal engineering is now well established. As a result, the movement is not just one-way. EADS, which owns Airbus, has set up an office in the country with the mandate to source components. So, theres a pull from this side. Indian automobile component makers are high-quality suppliers, have all kinds of ISO certifications, follow TPM and TQM, and hence, are the ideal people to source from, points out ACMA Secretary General Vishnu Mathur. Other aerospace majors like Boeing and Lockheed Martin have also set up full-fledged offices and dedicated teams, but it is likely to be a long haul for Indian auto suppliers.

Many automotive component makers, including Tata and Mahindra & Mahindra, are keen to enter the defence and aviation businesses, but they need to come up with a firm plan, acquire technology for these sectors and understand that it is simply a different ballgame. This is not like the automotive business. The manufacturing systems, the specifications, and the quality requirements are so different, says a sector expert. A car has a life of five to seven years, while a plane flies for up to 30 years. So, the business relationship and cycles are long. The part approvals in aerospace can take anywhere between 15 months and 18 months; in automobiles, it now takes just two months. In other words, there is no scope for failures. There are, after all, no garages in space.

http://www.business-standard.com/india/news/moving-on/372256/

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ALLIED INDUSTRY Go To Top

SAFEGUARD PROBE ON PASSENGER CAR TYRES IMPORTS TERMINATED

K. R. Srivats

The Hindu Business Line

New Delhi: The countrys safeguards authority has terminated a safeguards investigation on passenger car tyre imports into India. This follows a request by the Automotive Tyre Manufacturers Association (ATMA) to terminate the investigation as the industry body had decided to withdraw its application.

The investigation was found to have become infructuous upon request for withdrawal of application, the Director-General (Safeguards) said in an order issued here last week.

The Director-General (Safeguards) had in May this year initiated safeguard investigations on increased imports of passenger car tyres. This was based on ATMAs application, which contended that increased imports of car tyres from China had threatened to disrupt the domestic market.

Tyre industry sources said that the domestic passenger car tyre makers case for imposition of safeguard duty was weak from the beginning. It was also highlighted that the tyre dealers fraternity and car manufacturers in India had opposed the levy of any

safeguard duty on passenger car tyre imports.

A trade delegation from China, representing exporters/producers, had also participated in hearings on the matter held in August, sources added.

http://www.thehindubusinessline.com/2009/10/06/stories/2009100650991500.htm

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BACK ON TRACK

Shyamal Majumdar

Business Standard (the strategist)

Mumbai: When Paras Chowdhary took over as the managing director of CEAT in 2001, he was thrilled to hear Chairman Harsh Goenkas assurance that he would get a free hand in running the company. But the caveat came swiftly: Chowdhary can ask for anything except money for additional investments.

It certainly wasnt music to his ears then, but the tyre industry veteran (Chowdhary was the CEO of Apollo Tyres for 11 out of the 22 years he spent there before joining the RPG Group) says he later understood Goenkas compulsions at that stage.

CEAT was for all practical purposes a sick company in 2001. The Rs 14-crore loss in that

year was a lesser evil; what was particularly worrying was that the company was paying Rs 115 crore towards interest and depreciation. For a company with gross sales of just Rs 900 crore, it was bad enough. Worse, both the loss as well as the interest amount were actually much more.

Here's why. CEAT then used to lend money to other group firms and charge interest on it which was considered as income. But the interest never came and the entire amount had to be ultimately written off. Analysts estimated the actual loss in 2000-01 at not less than Rs 60 crore and the interest and depreciation at Rs 140 crore.

Chowdhary admits CEATs identity was blurred at that stage - was it a tyre company or was it an investment company? We were postponing our problems to the future. There were too many problems that were not immediately visible on the balance sheet, he says, sitting in his modest second-floor office at the RPG Group headquarters in Worli, Mumbai.

So, in 2001, the problem looked quite complicated: CEAT was over-leveraged, it had no money to spend, no financial institution was willing to support it, and raising money through the equity route was just not possible as the share price at that time was too low.

There was more. No supplier was willing to give material unless the company cleared the dues of over Rs 150 crore. And it was getting increasingly difficult to explain to the investing community and the board the reasons for the worsening profit margin vis--vis its competitors.

Then there were legacy issues. Both its plants were in Maharashtra - one in Bhandup, a Mumbai suburb where the cost of operation was very high, and the other at Nashik. To ship its produce outside the state, the company had to pay huge octroi - a cost which its competitors who were well spread out weren't incurring. The factories were very old with practically no modernisation efforts. And since it was not a leader in the business, CEAT had to price its products 2 to 3 per cent lower than rivals.

Analysts say CEATs margins were hence around 5 per cent lower than competition. In an industry where the profit margin has been traditionally low at 6 to 7 per cent, you had it if your margin is 5 per cent lower than competition, admits Chowdhary. The companys relatively smaller size only added to the problems.

The fightback
Chowdhary had joined the RPG Group in 1997 but was heading the IT and telecom business for a peculiar reason: He had worked for Apollo long enough and didn't want to work for a rival tyre company. But in 2001, Goenka told him that CEAT was in a difficult spot and it would be great if he could take charge.

Chowdhary knew that there were no easy answers to the problems that CEAT faced: He couldnt change the location of the factories, he didnt have the power to abolish octroi, he couldn't change the fact that Mumbai was a high cost city, he didn't have control over the fact that CEAT was an old company of 1960 vintage and hence carried a lot of baggage, and, most important, he couldnt find any money to ride out of the crisis.

Despite these handicaps, CEAT's transformation is an eye-opener. Consider the numbers first. The companys interest burden in 2008-09 was Rs 91 crore less than 4 per cent of its net sales of Rs 2,500 crore. In 2001, when he took charge, it was 13 per cent of a relatively smaller base of net sales. Chowdhary is now aiming to bring that number down to 3 per cent, despite higher capital expenditure.

CEAT's operating profit before tax as a percentage of net sales has gone up to 13.5 per cent in the first quarter of 2009-10 from (-) 1.7 per cent in the year-ago period. Compare this with the corresponding figures of market leaders Apollo (12.1 per cent from 6.9 per cent) and JK (from 4 per cent to 6.9 per cent) and one starts getting a sense of the dramatic transformation. Productivity in CEATs two factories has gone up by nearly 50 per cent since 2001 without much reduction in manpower.

Chowdhary is candid enough to admit that all this has been possible partly due to luck but mostly due to some real hard work put in by his team members to implement a seven-fold turnaround strategy.

The turnaround
The first part of the strategy of course was to reduce the debt burden and thereby cut the interest payout. CEAT stopped all fresh investments as it was desperate to clean up its books. Result: CEAT has been repaying Rs 80 crore debt every year. Its total debt, including working capital loans, is now just Rs 398 crore.

Two, it decided to get into high-margin segments (90 per cent of its products are now in that category) with a vengeance. That explains Chowdhary's drive to focus on the replacement market where the companys share in its total sales was just 50 per cent. That figure went up to 75 per cent in the first quarter of 2009-10 - something Chowdhary says was a dream fulfilled. The replacement market is important for tyre manufacturers as the consumers here dont mind paying extra for a quality product.

But the fact is CEAT is the smallest player in radial tyres now with a monthly capacity of just 60,000 tyres against an average 200,000 of a couple of its competitors. To correct this, CEAT is setting up a grassroots radial plant at Halol in Gujarat at an investment of Rs 500 crore (half of that money will come from internal accruals). The plant, which will start production from August next year three months ahead of schedule, will have a monthly capacity to produce 180,000 tyres, taking its monthly production of radial tyres to 240,000.

Three, the company will start another plant at Ambarnath in Maharashtra by 2012, for which it has already been allotted 50 acres of land.

Four, it decided to get higher output from the two existing factories without making much investment. It was a difficult strategy to implement, but Chowdhary managed it by signing a long-term wage settlement with workers that was linked to productivity. A few anxious moments later, the Bhandup plant production went up almost 50 per cent. In the Nashik plant, production went up as much as 70 per cent.

The extent of the productivity increase surprised me. Money is a great motivator and the capacity of human beings to deliver is infinite, Chowdhary says. The workers made sure that plants were open even on Sundays.

Five, the company put its might behind ensuring the quality of the products. Earlier, the quality of its products was acceptable, but not something that would create a customer pull. This was even more so as CEAT started targeting 20 per cent of its revenues from the export market where profitability was good.

Six, Chowdhary made cost-cutting a religion for CEAT. So things such as better working capital management, manpower rationalisation, reduction of administrative cost, cutting the commissions of the cost & forwarding agents became the new buzzwords. For a Rs 2,500-crore company, we were even willing to question practices that could save us just Rs 25,000 annually, Chowdhary says. The cost of manpower will come down further once the Halol plant goes on stream because the salary of an industrial worker in Gujarat is at least 40 per cent lower than his counterpart in Maharashtra where CEAT's two plants are now located.

And seven, Chowdharys top team resorted to some smart buying of raw materials. For example, it imported 20,000 tonnes of natural buyer valued at Rs 200 crore in February/March on a staggered shipment basis. That gave it a 20 per cent cost advantage. Throughout the first and second quarter of this financial year, CEAT consumed natural rubber that was bought at Rs 75-80 at a time when the ruling market price of the raw material has been hovering around Rs 90-108 for the last three-four months.

Eye on the future
Chowdhary says CEAT now wants to grow at 20 per cent per annum against the industry average of 13-14 per cent. And he is hopeful that the market share, which is at 14 per cent now, will increase to 20 per cent even on an expanded market in five to six years. If that happens, CEAT hopes to improve its position to become the third largest tyre company in India from fourth now.

He also expects turnover to hit Rs 5,000 crore in FY 12 compared to an expected Rs 3,000 crore in this financial year. Thats easily achievable as the Gujarat plant alone is expected to contribute over Rs 1,000 crore in 2011-12.

ompetitors however are not losing any sleep. Say the chief executive of a rival tyre company: CEAT is doing better now, but that's just not enough. He adds the size of the company is too small compared to MRF, Apollo and even JK. Besides, CEAT, he says, has lacked a killer instinct and has been traditionally slow in responding to market requirements. The problems of the past are also difficult to correct, he says.

Chowdhary is aware of the problems. Its true all the problems have not been corrected, but we have made good progress, he says. That is reason enough for him to leave office at 6 pm every day as he has put together a capable team that can steer the company even in his absence. Goenka would nod in approval.

http://www.business-standard.com/india/news/backtrack/372257/

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OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top

FRENCH CO TOTAL SA APPOINTS VIJAY KUMAR AS INDIA HEAD

PTI

See this story in: The Hindu Business Line, The Statesman

New Delhi: For the first time, French energy major Total SA has appointed an Indian as its head for refining and marketing operations in the country.

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

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

Mr Kumar, who holds a degree in chemical engineering and business management, has more than 30 years of extensive local and international experience in the downstream energy business, leading integrated organisations and developing new businesses, Total said.

http://www.thehindubusinessline.com/blnus/14051710.htm

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=270609

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OIL SLIPS BELOW USD 70 PER BARREL

See this story in: The Indian Express, The Hindu Business Line

Singapore: Oil prices lingered below USD 70 as investors looked to third quarter company earnings reports this week for clues to the health of the US economy.

Benchmark crude for November deliver was down 5 cents at USD 69.90 by midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at USD 69.95 on Friday.

Last week, weak economic data weighed on crude prices.

The US reported worse than expected manufacturing and jobs numbers, with the unemployment rate rising to 9.8 per cent in September, the highest since 1983.

US oil inventory data was mixed last week, suggesting consumer demand has yet to rebound strongly from the recession.

"Economic and oil data remain consistent with a macro economy just beginning to push off the trough, leaving markets with a lack of clear direction," Goldman Sachs said in a report.

Traders will be eyeing the first earnings for the July to September period, with Aluminum producer Alcoa Inc., PepsiCo Inc. and Marriott International Inc. scheduled to report this week.

In other Nymex trading, heating oil was steady at USD 1.79 a gallon. Gasoline for November delivery held at USD 1.74 a gallon. Natural gas for November delivery fell 2.0 cents to USD 4.74 per 1,000 cubic feet.

In London, Brent crude fell 2 cents to USD 68.05 on the ICE Futures exchange.

http://www.indianexpress.com/news/oil-slips-below-usd-70-per-barrel/525196/

http://www.thehindubusinessline.com/blnus/10051206.htm

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INTERNATIONAL NEWS Go To Top

CHRYSLER REMAKE: NEW CEO SHAKES UP EXEC TEAM AGAIN

Agencies

See this story in: The Economic Times

Detroit: With sales down sharply and pressure to start generating cash before government loans run out, Chrysler CEO Sergio Marchionne shook up his executive team Monday, replacing two of his brand managers after just four months and splitting Dodge into car and truck units.

The changes show Marchionne's penchant for moving quickly and demanding performance, industry analysts say. But it's also a sign that all is not well inside the company's sprawling headquarters complex in the Detroit suburb of Auburn Hills.

``Something went wrong here,'' said Gary Dilts, a former Chrysler sales executive who is now senior vice president of global automotive operations for J.D. Power and Associates. ``He's going to mix and match this team until he gets the chemical balance where he wants it.''

Speed is crucial for Marchionne, who also runs Italy's Fiat Group SpA. It will be at least 18 months before Chrysler can launch a new car lineup based on smart, fuel-efficient Fiat designs. Until then, the third-largest U.S. car maker must survive with its current shaky lineup.

Marchionne, who led a stunning resurgence at Fiat, replaced Peter Fong, 45, as president and CEO of the Chrysler brand and Michael Accavitti, 50, as president and CEO of Dodge.

Fong also was the company's top sales executive, and both men appeared with Marchionne as the company's public faces just two weeks ago at the Frankfurt Auto Show in Germany.

But the moves come just four days after Chrysler reported a 42-percent drop in September sales, compared with the same month a year earlier. Through the first nine months of the year, Chrysler sales are off 39 percent, the largest drop of any major automaker.

Among Chrysler's problems is a weak lineup of midsize cars. Its current entries, the Sebring and Avenger, have sold poorly and have received low quality ratings from J.D. Power and Associates and Consumer Reports magazine, which found them inferior to the top-selling Toyota Camry and other competitors.

The Sebring-Avenger replacement will be based on a Fiat compact that will be stretched and widened to fit a midsize car.

Marchionne promises to introduce a new lineup chock with Fiat small and midsize cars in November, and separating out Dodge's car business will help rebuild its image.

The new offerings will also include trucks and larger cars from Chrysler that he hopes will be more appealing to Americans. The company's namesake brand will try to steal customers from Cadillac and other luxury brands.

Chrysler has been mostly mum about its new product plan. Even dealers have been kept in the dark.

Splitting the Dodge brand into truck and car operations mimics what Marchionne did with Fiat, where he successfully separated commercial vehicles from passenger cars, said Chrysler spokesman Gualberto Ranieri.

And a separate truck unit could also be sold off if Chrysler needs more cash. Although sales of the Ram pickup are down 27 percent for the year, it's still Chrysler's top selling vehicle at 143,205 through September.

http://economictimes.indiatimes.com/news/international-business/Chrysler-Remake-New-CEO-shakes-up-exec-team-again/articleshow/5092185.cms

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VW, MAN GAIN AMID TALK VW MIGHT LAUNCH BID - TRADERS

Reuters

See this story in: Yahoo India

Frankfurt: Shares in Volkswagen and heavy machinery company MAN SE extended gains on Monday amid market talk VW might make a bid for MAN and increase its 29.9 percent stake to majority control, traders said.

A Volkswagen spokesman decline to comment on the speculation. MAN was not immediately available for comment.

At 0935 GMT, ordinary shares in VW were 4.3 percent higher at 114.10 euros, making them the top gainers among German blue chips, which were up 0.15 percent.

MAN shares added 3.5 percent to 55.57 euros, making them the second-strongest gainers on the index.

VW's non-vote carrying preference shares were 0.92 percent higher at 75.290 euros.

"The rumour is helping MAN shares as it is simple takeover talk. The price of 65 euros per share is, however, not a huge premium and the talk might also be supporting VW shares as investors see it as getting a good deal for VW and increasing its vehicle offerings," says a Frankfurt-based trader.

http://in.biz.yahoo.com/091005/137/bauac7.html

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EX-FORD EXECUTIVES MAY BID FOR VOLVO

Matthew Dolan, WSJ

Mint

Aconsortium led by former executives at Ford Motor Co. is in talks to buy the auto makers wholly owned Swedish brand Volvo, according to a person familiar with the matter.

The Crown consortium is led by Ford director Michael Dingman and former Ford and Chrysler executive Shamel Rushwin. The news was first reported by European media over the weekend. Ford spokesman Mark Truby said that the company will not comment on potential bidders for Volvo.

Ford is already analysing a recent bid by Chinese auto maker Geely Holding Co. to acquire 100% of Volvo for around $2.5 billion (Rs11,875 crore), The Wall Street Journal reported on 25 September. The Geely offer is higher than Ford or outsiders had expected for a brand that has lost at least $1 billion in recent years. In the quarter ended 30 June, Volvo lost $231 million.

The offer, nonetheless, may be worth far less to Ford, given Geelys proposal to leave behind Volvo pension obligations, unwanted inventory and other substantial restructuring liabilities with Ford, people familiar with the offer have said. Geely and other Chinese firms want Volvo for its strong brand name and technology. Its dealer network also represents a chance to penetrate the US and European markets with non-Volvo product.

Another sticking point for Geely and another Chinese auto maker has been a preference to acquire only a portion of Volvo, while Ford has been adamant it wants to part with 100% of the unit. Originally, Geely had hoped that Ford would retain at least a 25% stake in Volvo, but Ford has declined to budge, according to a person briefed on the matter. The other Chinese bidder is Saic Motor.

http://www.livemint.com/2009/10/05213115/ExFord-executives-may-bid-for.html?atype=tp

U.S.-led consortium wants to buy Volvo
Business Standard

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ECONOMY & FINANCE Go To Top

RUPEE GAINS ON CAPITAL INFLOWS

The Hindu Business Line

Mumbai: The rupee gained by about 25 paise to touch a two-month high, despite weak domestic equity markets and the dollar strengthening against other major currencies. Strong capital inflows related to QIP issues were the reasons for the rupee gaining, said a forex dealer with a public sector bank. The rupee opened stronger at 47.65 and closed at 47.52, against Thursdays close of 47.74. During the day, the rupee touched a high of 47.49. There were dollar bids at lower level s from oil companies, the dealer said. In the forward premia, the six-month closed at 2.98 per cent (3 per cent) and the one-year at 3.18 per cent (3.19 per cent). Companies are raising fresh money overseas as the liquidity situation has eased. That is why we are seeing good inflows after May 2008. There is support for the rupee at 47.40 as importers may see this as a good level to buy dollar. But if it breaks that level, it may appreciate to 46, the dealer said.

http://www.thehindubusinessline.com/2009/10/06/stories/2009100651210600.htm

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SENSEX ENDS DOWN ON PROFIT BOOKING

PTI

See this story in: The Hindu Business Line

Mumbai: Snapping the three-day rally, the Bombay Stock Exchange benchmark Sensex on Monday fell by over 268 points as investors booked profit after the scaled a 17-month high last week amid weak global trends.

The 30-share Sensex, which had gained 441.55 points in the last three session, lost 268.14 points to 16,866.41 points as investors felt that the recent surge was overdone, amid reports of a weak US jobs data denting sentiment across Asia.

The wide-based National Stock Exchange index Nifty also fell by 80.20 points at 5,003.20, after touching an intraday low of 4,991.95 points. The current fall was led by stocks in realty, tech, metal, auto and banking segments.

Among the 30-BSE index related 23 stocks fell while seven ended with gains.

A steep fall in heavyweights Bharti Airtel, Reliance Communications, Reliance Industries, Infosys, Grasim and Sterlite Industries pulled the market down.

Bharti Airtel, the biggest cellphone service provider lost 8.05 per cent to Rs 400.30. Reliance Communications, the second-largest mobile phone operator, declined 5.60 per cent to Rs 300.20. Grasim Industries fell 7.10 per cent to 2,509.10 after it tran sferred its cement business to a subsidiary.

http://www.thehindubusinessline.com/blnus/05051901.htm

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GROWTH TO EXCEED 6.3 PC: MONTEK

PTI

See this story in: The Tribune

New Delhi: India will grow at more than 6.3 per cent exceeding the Planning Commission's forecast as the impact of drought would not be as bad as anticipated earlier, the Commission's Deputy Chairman Montek Singh Ahluwalia said.

"I am not revising the original forecast (of 6.3 per cent), the Planning Commission had made...But now I am eliminating the downside possibility of that forecast", Ahluwalia told reporters here.

The Planning Commission had projected a growth rate of 6.3 per cent for the current fiscal in its report on the status of the economy presented to the Prime Minister Manmohan Singh on September 1.

Although drought continues to be a matter of concern, "it will have probably (have) less of negative effect than was originally thought. There are signs of revival in the rest of economy", Ahluwalia said.

As regard other important agencies, the Reserve Bank in its monetary policy had projected six per cent economic growth for the current fiscal with upward bias. The Delhi-based economic think tank National Council for Applied Economic Research (NCAER) expects the economy to expand by 7 per cent.

Having grown by 9 per cent for three consecutive years, the economic growth slipped to 6.7 per cent during 2008-09 on account of the impact of the global financial meltdown. The economic growth during the first quarter (April-June 2009-10) of the current fiscal was 6.1 per cent.

http://www.tribuneindia.com/2009/20091006/biz.htm#9

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Last Financial closing

Sensex	16,866.41
US$ spot	Rs.47.51
US$	Y.89.9489
US$ 6 months	Rs.48.28
Yen	Rs.0.53
Euro spot	Rs.69.48
LIBOR 6 months	%
Call	%
GOI sec. 10 years	- - - -

Aluminium (per kg)	Rs.
Aluminium Ingot	Rs.
Copper (per kg)	Rs.
Gold (10gm)	Rs.15,560
Lead (per kg)	Rs.
Mild Steel Ingots (Mumbai)	Rs.
Nickel (per kg)	Rs.
Nickel Cathode	Rs.
Silver (1kg)	Rs.26100
Sponge Iron (per tonne)	Rs.15145.00
Steel Flat (per tonne )	Rs.31140.00
Steel Long GVD (per tonne)	Rs.
Steel Long BVN (per tonne)	Rs.22820.00
Tin (per kg)	Rs.
Zinc (per kg)	Rs.
Zinc Ingot	Rs.- - - -

Crude Oil (WTI)	$- - - -
Crude Oil (Brent)	$66.76

Automobile

Scip on BSE	Face Value (Rs)	Last traded Value (Rs)
Apollo Tyres	1	43.80
Asahi Ind	1	64.10
Amara Raja B	2	135.80
Ashok Leyland	1	40.60
Bajaj Auto	10	1476.25
Bharat Forge	2	265.10
Denso	10	91.05
Eicher Ltd	10	- - - -
Eicher Motor	10	548.55
Escorts	10	103.65
Exide Ind	1	89.15
Force Motors	10	161.65
Gabriel India	1	22.80
Hero Honda	2	1639.35
Hind Motors	10	23.10
Hi-Tech Gear	10	88.85
Jay. Bh. Maruti	5	46.50
Jamna Auto	10	53.50
JK Tyres & Inds	10	130.15
Kinetic Motors	10	26.20
Kinetic Engg	10	82.90
KOEL	2	109.80
Kirloskar Br:	2	208.75
LML Ltd	10	10.70
L&T	2	1654.90
Lumax Ind	10	179.50
Lumax Tech	10	45
M&M	10	896.45
Maruti Suzuki	5	1598.60
Motherson SS	1	110.30
Minda Inds	10	230.90
MRF	10	5442.55
MICO	10	- - - -
Omax Auto	10	49.20
Perfect Circle	- - - - - -	- - - -
Rico Auto	1	25.85
Sona Koyo St	2	14.90
SKF Bearing	10	- - - -
SRF	10	185.25
Swaraj Mazda	10	211.95
Tata Motors	10	561.05
TVS Motor	1	58

Metals

Scrip on BSE	Face Value(Rs)	Last traded Value (Rs)
Bhushan Steel	10	1341.35
Essar Steel	10	- - - -
Hindalco	1	118.15
Hind Zinc	10	807
Ispat Inds	10	23.60
Jindal Iron	10	- - - -
Jindal Stain	2	- - - -
JSW Steel	10	836
Jindal Steel	5	596
National Aluminium	10	336.65
SAIL	10	162.05
TISCO	10	497.45
Visa Steel	1	42.85

Indian Auto Industry News

Tuesday, October 6, 2009

Indian Auto Industry Update October 06, 2009

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Tuesday, October 6, 2009

Indian Auto Industry Update October 06, 2009

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