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JLR RECALLS 40 LAND ROVERS IN INDIA PTI See this story in: Business Standard (Web & Print Edition) Tata group-owned Jaguar Land Rover on Thursday said it is recalling 40 Land Rover vehicles from India to fix a technical fault as part of an ongoing global process that started in July. The company is globally recalling all the vehicles of two diesel models Discovery 3 and Range Rover Sport TDV6 which were manufactured between November 2005 and April 2007. We have 40 such vehicles in India, which are being recalled and fixed. The information for recalling the two models was posted during the end of July, Jaguar Land Rover (JLR) spokesperson Paul Chadderton told PTI from Warwickshire in the UK. The company is recalling the vehicles as these had some safety concerns related to braking system, he added. Our investigations had identified that oil may migrate into vacuum brake booster from the pump. So, we are fixing these and returning to the customers, Chadderton said. This the second time in this year that JLR is recalling its products from the global markets. http://www.business-standard.com/india/news/jlr-recalls-40-land-rovers-in-india/372738/ 40 Land Rovers recalled in India The Tribune (Web Edition) http://www.tribuneindia.com/2009/20091009/biz.htm#7 Brake woes force JLR to recall Daily News & Analysis (Web Edition) http://www.dnaindia.com/money/report_brake-woes-force-jlr-to-recall_1296636 JLR recalls 40 Land Rovers in India The Indian Express (Web & Print Edition) http://www.indianexpress.com/news/jlr-recalls-40-land-rovers-in-india/526709/ JLR recalls diesel models Asian Age (Web & Print Edition) http://www.asianage.com/presentation/leftnavigation/news/business/jlr-recalls-diesel-models.aspx JLR recalls diesel models Deccan Chronicle (Web Edition) http://www.deccanchronicle.com/business/jlr-recalls-diesel-models-982 JLR recalls 40 Land Rover vehicles in India The Hindu (Delhi Print Edition) 
TATA MOTORS CLIMBS HIGH AS JLR GETS FRESH FUNDS
The Hindu Business Line (Web & Print Edition) Mumbai: The infusion of fresh funds into Jaguar Land Rover pushed the Tata Motors share up by 5.35 per cent to a close of Rs 587 on Thursday. A day earlier, the company had announced that State Bank of India had okayed a loan of Rs 1,300 crore (175 million) to JLR. However, a section of market analysts have advocated caution to investors. Any fund flow to JLR will have a positive impact on stocks, said Mr Navin Matta, an analyst with Dolat Capital Market. Last year, there was a fund crunch, though that issue is getting addressed now. Tatas have money to run the business and, in the future, may look at refinancing their high-cost debt. There is nothing much in terms of investment opportunity in this stock, he said. Debt still high We have recently upgraded the price of the stock to Rs 560 and it went beyond that. If it goes higher from here onwards, there should be a cautious approach, said Ms Vaishali Jajoo, Senior Analyst, Angel Broking. JLR has borrowed Rs 3,700 crore from the likes of Standard Chartered Bank, Bank of Baroda and Burdale Financial, a subsidiary of the Bank of Ireland. As part of the revival plan, Tata Motors recently announced a shutdown of one of the two West Midland plants by 2014 and cost-cutting initiatives. The new fund flow has eased the financial situation but the debt-equity ratio is still very high. The companys debt is above Rs 30,000 crore, Ms Jajoo added. Bounce back Mr S. Ramnath, Director Research, IDFC-SSKI, said JLR would bounce back to profitability next year. We visited JLR dealers in the UK and got a good feedback. Tata Motors is probably the only company which continues to spend on R&D and revamp the JLR product portfolio during the recession, he said. According to him, this has resulted in improved footfalls. Once there is an economic upswing, people will return to JLR. The negative growth is contracting month by month. We expect a 20 per cent fall in JLR volumes this fiscal and an eight per cent growth next year. In the UK, Land Rover sales rose 34 per cent (year-on-year) to 6,587 units in September, while Jaguars were down by 248 cars at 3,360 units. http://www.thehindubusinessline.com/2009/10/09/stories/2009100951001000.htm TATA MOTORS: ON THE ROAD TO RECOVERY Shobhana Subramanian Business Standard (The Compass) Mumbai: With loans for JLR coming through and CV sales gaining momentum, the outlook is improving. The Tata Motors stock was up 5 per cent on Thursday with the Street relieved that the auto major has closed out a 175 million (Rs 1,300 crore) line of credit from State Bank of India. The funds will be used to run the Jaguar and Land Rover (JLR) business in the UK, which posted a loss of 64 million in the June 2009 quarter on revenues of 1.1 billion. It could be a while before JLR business turns around. But serious cost-cutting measures, including trimming the workforce, imposing a wage freeze and sourcing components from markets that offer cheaper alternatives, ensured that losses for the June 2009 quarter were about half the amount posted in the March 2009 quarter. What helped was mainly lower expenses on marketing overheads and raw material costs but analysts were expecting the raw-materials bill to be even smaller given the sharp drop in prices of steel and aluminium. Also, with demand in the key US and European markets still sluggish, sales were subdued with dealer volumes falling 52 per cent year-on-year while retail volumes were lower by 35 per cent year-on-year. On a sequential basis though, the numbers were more reassuring. In the meanwhile, the rationalisation measures initiated including the closure of one of its plants in the Midlands should help JLR break even in 2010-11 with losses being contained at 200 million this year compared with a loss of 307 million in 2008-09. With the recovery in the commercial vehicles (CV) sector in the home market gaining momentum, Tata Motors is expected to report revenues of Rs 7,700 crore for the September 2009 quarter, an increase of 9 per cent year-on-year. A smaller raw-materials bill is expected to result in a strong operating profit margin of 12 per cent (11.4 per cent in the June 2009 quarter) leading to a 65 per cent rise in the operating profit. The rise at the net profit level however would be modest at 27 per cent because of high interest costs. Tata Motors consolidated revenues for 2009-10 are expected to come in at around Rs 75,000 crore while the losses are expected to be lower at just under Rs 1,000 crore compared with Rs 2,276 crore in 2008-09. The stock has had a strong run gaining nearly 30 per cent since August, compared with a move of 6 per cent for the Sensex. But at Rs 587, all near-term upsides appear to be priced in. http://www.business-standard.com/india/news/tata-motorsthe-road-to-recovery/372673/ HONDA MOTORS' INDIA, THAILAND CAR SALES TO OVERTAKE FORECASTS
Bloomberg See this story in: The Hindu Business Line (Delhi Print Edition) Honda Motor Co, Japans second-largest carmaker, expects full-year vehicle sales in India and Thailand to exceed forecasts, the companys head of Asia operations said. Sales in Thailand this calendar year may reach last years level compared with a forecast for a 20 per cent decline, while sales in Indian will fare better than the estimated 20-30 per cent drop, Mr Fumihiko Ike, President of Asian Honda Motor Co, said in an interview in Tokyo. Compared with Europe and the US, recovery of these Asian economies has been slightly faster, Mr Ike said. Banks started loosening credit relatively early, which has helped because a high ratio of people buy cars and motorcycles on credit. Economic recovery in India and Thailand is boosting sales of Hondas Jazz and City compact cars. Small-car plans Tokyo-based Honda started selling the Jazz compact in India in June. The company also plans to introduce a small car targeting India and Thailand, which will be smaller than the Jazz within two to three years, within two to three years, Mr Ike said. It may export the car from Thailand to other countries in the region, he added. There is a huge income disparity gap in these countries, and our new product will meet untapped demand, he said. Eco project The car, with an engine of less than 1.2 litres, will qualify for Thailands eco car project. The government offers tax breaks to automakers and consumers for cars that get at least 20 km per litre (47 mpg). The car would be sold in India at a price equivalent to the average annual salary, Mr Ike said. He said Honda has no plans to bring out a car that competes with Tata Motors Nano. Japanese carmakers just cannot make a car like that, nor do they want to, he said.
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| TATA MOTORS TO LAUNCH MANZA SEDAN NEXT WEEK Business Standard (Web & Print Edition) Mumbai: Tata Motors, Indias biggest auto company, will look to strengthen its presence in the sedan segment with the launch of an all-new mid range sedan, Manza, next week. It will be priced in the range of Rs 5-7 lakh. The Manza is basically the sedan version of the indigenous hatchback, Indica Vista, launched by the company in August last year. The car is aimed at arresting the companys dwindling performance in the sedan category. Sources said Tata Motors will officially launch the car on October 14, though company dealers say it will be available in showrooms from October 10 onwards. The company has refused to comment on the launch. Analysts say Tata Motors has timed the launch ideally, as it will allow them to cash in on the festive customers, as the launch will take place only three days before Diwali. The car will be equipped with engines sourced from joint venture partner Fiat Auto, and will be built at the JVs Ranjangaon plant, near Pune. A 1.4 litre (Fire) petrol and a 1.3 litre multi-jet diesel (also called Quadrajet Common Rail Diesel) engine is expected to be seen in the Manza, which will be capable of generating peak power in the range of 90 bhp and above. The 1.3 litre diesel also powers the Indica Vista, along with a host of other cars such as the Fiat Palio and Punto, and the Maruti Swift and Ritz, with different power dimensions. The Manza will have a five-speed manual gearbox, power-assist steering, an integrated music system, air conditioning, power windows and central locking on the base variant, and bluetooth controls, antilock braking system and air bags in the top-end variant. The car is expected to be available in seven colours. On price, the Manza will compete for space against a number of established models like Chevrolet Aveo, Ford Fiesta, Maruti Swift DZire, Hyundai Accent, Ford Ikon, Mahindra Renault Logan and base variants of the Fiat Linea and Hyundai Verna. The Indigo range has been serving Tata Motors for over seven years. Since the first launch in 2002, a number of changes were made to the car, which included a short wheelbase version called Indigo CS and elongated version called Indigo XL. Although this would be the third new model launch by Tata Motors during the year (after the Nano and Xenon pickup and excluding Jaguar and Land Rover models), company officials had admitted there was a substantial delay in introducing the new set of vehicles it had planned to launch. http://www.business-standard.com/india/news/tata-motors-to-launch-manza-sedan-next-week/372737/ HYUNDAI, SRK REWRITE BRAND-CELEBRITY SCRIPT
Nandini Sen Gupta The Economic Times (Delhi Print Edition) There is nothing new about Bollywood ambassadors endorsing car and bikes. Everyone from Aamir Khan to Abhishek Bachchan, Saif Ali Khan to Hrithik Roshan feature in some automobile endorsement or the other. But car maker Hyundai is rewriting the usual brand-celeb script with Shah Rukh Khan.
Khan is actually involved in the scripting, advertising and storyboard brainstorming for the i10 brand which he represents. His company Red Chillies is also making the new i10 commercial which will debut for the Diwali season starting October 8.
Speaking to ET Now, Shah Rukh Khan said: Many of the companies I represent take feedback from me. I use these productslike the Hyundai carsso I can give a creative suggestion. In most of the scripting and advertising I do take a very active call.
The latest commercial for the i10 also included substantial inputs from the King Khan. Normally for a commercial, the story and script is developed and decided by Hyundai and its advertising agency Innocean , said the Hyundai spokesperson . Once the story board is decided it is shared with SRK and at times he gives his inputs and suggestions about the production or dialogues so that it adds value to the entire script or story. For this particular ad also the same procedure was followed.
The new i10 spot featuring SRK will highlight a fresh positioning twist for the car as a chic, urbane, stylish, reliable and desirable product . That positioning has also necessitated a tweak in the branding for Hyundais flagship Santro. We are now positioning the Santro as a more family-oriented mass car which has its advantages like mileage, cost of ownership and trust of over 15 lakh customers, says the Hyundai executive. Also, it is targeted towards tier 2 and tier 3 towns while the i10 is positioned as the most desirable compact car with primary target being young working couples; small nuclear families and more for urban use. The new spot will also highlight this difference using Khan to drive home the point. But for SRK, despite the branding tweak Santros essential positioning has remained unchanged. Technically, space wise, feature wise and to competition the Santro may be evolving but its basic value has remained unchanged. Its still an affordable car for a family buying its first car, he says.
Khan, who has been associated with Hyundai from the very beginning first as Santro ambassador and now as i10 brand-amuses the cars first up as they are launched in India. Despite the recent brouhaha over the use of Dish TV which he also endorses , Khan says he actually uses the products he endorses. The products I endorse are of the highest order. Hyundai is one of the leading companies and you would buy their car, he says adding that he takes his kids for ice cream at night in the i10.
Thats where his involvement in the product too comes in. I often tell them can we add something like this to this car or do things differently, Khan says. I understand these are big decisions and a company like Hyundai wont do things simply because I say so but I bring in a creative voice.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" FORD MOTOR TO LAUNCH NEW CAR EVERY 1-1.6 YR Sutanuka The Economic Times (Web Edition) Kolkata: US car maker, Ford Motor, has decided to launch a new car every 12 to 18 months in India as part of its strategy to spruce up market share. This was indicated by Michael Boneham, president and MD of Ford India here on Thursday.
Talking to newsmen at the inauguration of Fords new dealership, Victoria Ford, Mr Boneham said: "We now have a market share of nearly 2% and we want to grow it significantly in coming years. Launching of new cars from the Ford stable, will play a crucial role in growing our market share in India." However he refused to divulge what sort of market share the company aims to achieve in the long run.
For calendar year 2009, Ford India aims to achieve a sales of 30,000 cars compared to 29,000 cars sold in calendar 2008. "In September 09, we have been able to sell 3,500 cars which is a 50% increase year-on-year basis," said Nigel
Wark, executive director (marketing, sales and services).
The company exports its cars produced in India to South Africa. Last year, the company had exported nearly 4,000 cars. "This year, we expect to maintain the same export level," said Mr Boneham. Fords foray into the Indian compact car market with Figo is expected by the first quarter of calender 2010 and the vehicle would be exported to Asia Pacific and Africa along with sales in India.
Ford India is investing $500 million in expanding production at its Chennai plant from 1 lakh to 2 lakh vehicles, apart from producing 2.5 lakh engines, both in petrol and diesel. "The engine plant will be the export hub for Asia Pacific and Africa," Mr Boneham said. He, however, declined to state what percentage of production would be earmarked for the overseas markets.
Relaunching its SUV Endeavour with some added facilities, Boneham said the new Figo, on which the company is depending to get into the lucrative A segment, would be available in both petrol and diesel variants. "We are coming up with a 1.2 litre petrol engine while the diesel variant would be a sub 1.5 litre one," he said. "Pricing of the car will be extremely competitive," Mr Boneham said assuring that the car would be loaded with goodies. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Ford-Motor-to-launch-new-car-every-1-16-yr/articleshow/5103255.cms Fords Chennai plant to cater to Asia-Pacific, Africa markets mint (Web Edition) http://www.livemint.com/2009/10/08171852/Ford8217s-Chennai-plant-to.html VOLKSWAGEN STARTS TRIAL PRODUCTION OF POLO
The Economic Times (Delhi Print Edition) Europes largest carmaker, Volkswagen, has started the trial production of its small car Polo, which will be showcased at the upcoming Auto Expo in Delhi before hitting the market in March next year, reports Chanchal Pal Chauhan from New Delhi. The small car expected to be priced in the Rs 4-5 lakh bracket, will be launched simultaneously with petrol and diesel engines. Speaking to ET, Joerg Mueller, president and MD of Volkswagen India, confirmed that the firm has started the production at its Chakan factory. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| Suprotip Ghosh Hindustan Times (Web & Print Edition) Mumbai: The joint venture to make light trucks between Ashok Leyland Ltd and Japans Nissan will be commissioned by the fiscal year 2011-12, meeting its current schedule after hiccups arising from the global financial crisis, the ventures India head said. We are very serious and confident with the projects progress. Due to the financial crisis, it was postponed for a few months. We expect it to come on stream in 2011-12, Kiminobu Tokuyama, managing director and chief executive officer, Nissan Motor India told Hindustan Times. Earlier reports in June 2009 had said that the plans for the factory, to come up at Pillaipakkam, near Chennai, had run into difficulty. Initially, the new truck was to be launched in the country by mid-2010. Nissan is confident about the prospects of the light commercial vehicle market in India, and is still evaluating which vehicle it will roll out of the joint venture, said Tokuyama. He did not give further details. Nissan, one of the worlds top five car companies, plans to capture five per cent of Indias car market in the medium term, Tokuyama said. Indias light commercial vehicle market saw a year-on-year sales growth of 8.66 per cent in the April to August period of 2009. In the same period, overall commercial vehicle sales fell 15.30 per cent. Heavy and medium commercial vehicle sales dropped by 36.79 per cent, according to the Society of Indian Automobile Manufacturers. The LCV plant will only produce cars for the domestic market and there are currently no plans of exports from here, Tokuyama said. http://www.hindustantimes.com/News/auto/Leyland-Nissan-light-truck-venture-on-track/Article1-462816.aspx# ASHOK LEYLAND: PRICING IN THE RECOVERY AND BEYOND Mobis Philipose, Vatsala Kamat & Ravi Ananthanarayanan Mint (Web & Print Edition) Things are getting incrementally better for Ashok Leyland Ltd. Although its sales volumes fell by about 12% on a year-on-year basis in September, they were still 14% higher compared with the previous month. Now, as the industry enters the second half of the current fiscal year, Ashok Leyland seems poised to grow by around 50% on a year-on-year basis given the resurgence in economic activity on one hand and the benefit of a very low base on the other. Apart from the recovery in industrial activity, the firm is also making attempts to facilitate low-cost finance for truck operators, which should help improve volumes. Dealer reports validate this optimism. A few large dealers in the southern markets state that while demand is not robust, it has been picking up considerably in the past few months. What will also aid volumes in the coming months is that inventory lying with dealers has been brought down considerably over the last few months. Meanwhile, the government order for 5,200 buses from the state transport undertakings under the JNNURM scheme will also begin to reflect on the companys sales in the second half of this fiscal year. With modern buses being added to their fleet by tour operators, the bus segment is likely to account for around 25% of the companys heavy commercial vehicles sales (in volume) during FY10 compared with 20% in FY09. Ashok Leyland has also indicated that its unit in Uttarakhand will go onstream by March 2010, adding a capacity of 50,000 units to its existing 100,000 units per annum. This will bring down the capacity utilization from current levels. But the profits made out of Uttarakhand are entitled to income tax and excise duty exemptions, which will negate the impact of the drop in utilization to a large extent. The company will also gain from lower steel prices, nearly 25-30% lower compared with the average for the previous fiscal year. All this augurs for an improvement in operating profit margins (or earnings before interest, tax, depreciation and amortization, expressed as a proportion of sales) which had fallen to an abysmal 1.3% during the first quarter of the current fiscal. While analysts expect strong earnings growth between FY10 and FY12, given an earnings projection of Rs3 per share for FY11, at Rs41 the stock seems more than fairly priced. http://www.livemint.com/2009/10/08224257/Ashok-Leyland-pricing-in-the.html
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SMEV SEEKS STRINGENT NORMS FOR LOW SPEED ELECTRIC 2 WHEELERS Business Standard Mumbai/ Ahmedabad: In a bid to remove 'fly-by-night' players who import electric two wheelers unlike the domestic ones, members of the Society of Manufacturers of Electric Vehicles (SMEV) are seeking stringent norms to be levied for low speed two wheeler electric vehicles from Automotive Research Association of India (ARAI). SMEV, which has players like Hero Electric, Electrotherm, BSA and Ultra, believes the stringent norms would discourage unorganised players from importing cheap vehicles in the market. "It is because of some unorganised players who simply import electric vehicles that do not comply with Indian road conditions that the organised players tend to lose goodwill in the market. We are, therefore, asking ARAI to make low speed norms more stringent that would remove such 'fly-by-night' players and protect the goodwill of organised players who follow the association's norms diligently," said Naveen Munjal, president of Society of Manufacturers of Electric Vehicles (SMEV) and managing director of Hero Electric. The society has also roped in battery manufacturers like Exide and Amara Raja in order to understand the scope of developing batteries for electric two wheelers indigenously. "We understand that manufacturing battery in India would be costlier than importing it from countries like China. However, we have roped in players like Exide and Amara Raja into our society and trying to understand whether there is a possibility of developing these batteries in India rather than importing," said Munjal. According to Munjal, almost all the domestic electric two wheeler players import batteries from China and other countries. "Almost everyone is currently importing batteries. Moreover, it tends to be cheaper to import than to manufacture here since the infrastructure as well as supply and logistics are better in countries like China than in India," he added. Currently, the electric two wheeler vehicle market in India is as big as 1,20,000 units, Munjal said. http://www.business-standard.com/india/news/smev-seeks-stringent-norms-for-low-speed-electric-2-wheelers/372683/ Need to regulate electric vehicle industry: SMEV The Hindu Business Line http://www.thehindubusinessline.com/2009/10/09/stories/2009100950180200.htm
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TYRES & AUTO PARTS MAY COST MORE
Amiti Sen The Economic Times New Delhi: Prices of a variety of goods, such as automotive tyres and tubes, motor vehicle parts, outdoor furniture, surgical gloves and footwear, could go up if the government goes ahead with a proposal to levy anti-dumping duties on rubber chemicals from China and Korea.
The duty of up to Rs 60 per kgrecommended by the directorate general of anti-dumping (DGAD) after it found that prices prevailing in exporting countries were higher than the prices offered to Indian importerswill be implemented as soon as it is notified by the finance ministry, said a commerce department official, who asked not to be named.
The decision may result in an increase in the cost of production of a number of products that use rubber and rubber compounds, which, in turn, could push up prices. Rubber chemicals are used as quality enhancers in the production of rubber and rubber compounds.
The investigations were carried out following a complaint filed by Nocil, Indias largest rubber chemicals manufacturer, on behalf of the domestic industry. In its petition, Nocil said dumping of rubber chemicals by China and Korea had rendered the domestic industry unviable, resulting in two producers, Bayer India and ICI India, stopping production of these items.
After going through submissions of all the interested parties, the DGAD the commerce departments arm for carrying out anti-dumping investigations observed that imports originating from China and Korea are taking place at dumped prices and it has affected the performance of the domestic industry in terms of profits, cash flow and return on investment.
The final duties recommended by the DGAD on a variety of rubber chemicals range from Rs 11.31 per kg to Rs 60.59 per kg.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| ALLIED INDUSTRIES TYRE PRICES RISE BY UP TO 7% AS DEMAND REVS UP Chanchal Pal Chauhan The Economic Times New Delhi: The prices of car and two-wheeler tyres have risen by up to 7% this festival season due to unprecedented demand for vehicles and lower supply. While the owner of a vehicle will need to shell out 5-7% more, or Rs 150-200, for a new tyre, carmakers will have to absorb an additional cost of around Rs 800 for every new car they sell.
A shortage in the market has led to shrinking of inventories at tyremakers to just 5-7 days from 20-25 days, hurting production at carmakers such as Maruti Suzuki, Hyundai Motor India, Tata Motors, General Motors India and Ford India.
Two-wheeler makers such as Hero Honda Motors, Bajaj Auto, Honda Motorcycle & Scooter and TVS Motor are also facing production bottlenecks. Reduced output will lead to delayed deliveries by these automakers.
There has been an unprecedented demand for tyres from various automakers and we are trying to meet it with all our plants operating at full capacity, said AS Mehta, director for marketing at JK Tyres & Industries.
Although, carmakers refuse to disclose the impact on production, analysts estimate that output may fall by 5-10% as tyre supplies are far below requirement. Also, tyre supplies were hit by a labour strike at an MRF Tyres plant in August. The output at the countrys largest tyre company is coming back to normal.
There is a demand-supply mismatch. While production has increased in the past few weeks, the supply of tyres has not kept pace, resulting into shortages. We have asked tyre companies to augment supplies but that has not happened yet, a senior executive at Tata Motors said.
Automakers have alleged that tyre companies are charging arbitrary prices, but tyre makers say that they are trying to meet demand despite production constraints. Tyres is a capital-intensive industry and there has been no major capacity addition in a year due to slowdown in the market and economic recession. While sales have jumped in recent months, production has not increased to that level, leading to shortages, said a senior executive of a tyre company on condition of anonymity.
The tyre supply squeeze is expected to ease soon as auto sales are likely to drop once the festival season ends in October and tyre makers add fresh capacities in the coming months.
Tyre dealers, meanwhile, said that manufacturers have withdrawn discounts and incentives due to shortage in the market. The industry produces 12-14 lakh car tyres every month, of which about 60% is picked up by carmakers to bundle them with new vehicles they sell. The rest of the production is sold in the retail market for consumers to replace worn-out tyres.
Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/news/news-by-industry/auto/tyres/Tyre-prices-rise-by-up-to-7-as-demand-revs-up/articleshow/5103915.cms
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| ICICI BANK CUTS AUTO LOAN RATES BY 0.5 PER CENT PTI See this story in: The Economic Times Mumbai: India's second largest lender, ICICI Bank cut its auto loans by 0.5 per cent to 10.75-11 per cent with immediate effect. The bank decided to cut rate as a festive offer, a bank spokesperson said. http://economictimes.indiatimes.com/news/news-by-industry/banking/-finance-/finance/ICICI-Bank-cuts-auto-loan-rates-by-05-per-cent/articleshow/5103004.cms ICICI Bank cuts auto loan rates The Hindu Business Line http://www.thehindubusinessline.com/2009/10/09/stories/2009100950530603.htm ICICI Bank slashes auto loan rates Asian Age http://www.asianage.com/presentation/leftnavigation/news/business/icici-bank-slashes-auto-loan-rates-.aspx ICICI Bank The Statesman http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=271070 ICICI offer The Telegraph http://www.telegraphindia.com/1091009/jsp/business/story_11594261.jsp ICICI Bank reduces auto loans by 50 bps The Times of India http://timesofindia.indiatimes.com/business/india-business/ICICI-Bank-reduces-auto-loans-by-50-bps/articleshow/5102958.cms CAR BUYERS WARY OF LOANS, DIG INTO SAVINGS Shally Seth mint Mumbai: Auto finance has become cheaper as the credit crunch has eased, and public sector banks are aggressively pushing car loans, but many buyers are still fighting shy of borrowing, digging into their own savings instead. Auto makers and lenders cite factors ranging from the debt aversion of the rural rich to more cash in the hands of city consumers to explain the phenomenon in a country where automobile sales have traditionally been driven by the availability and cost of credit. One reason why more buyers are preferring to buy vehicles with their own savings, according to auto makers, could be the increased share of rural areas in overall car sales. Affluent rural consumers prefer to use their own money to buy vehicles instead of borrowing. When the sales from rural India go up, there is more cash coming into the showrooms, said Shashank Srivastava, chief general manger at Maruti Suzuki India Ltd, the countrys largest car maker, which is now drawing 12% of its sales from rural areas against 9-10% a year ago. At Hyundai Motor India Ltd, the second largest car maker in the country, the countryside accounted for 28-29% of sales in the eight months to August, up from 20-21% in the corresponding period last year. Following rising loan defaults and a credit crunch in the aftermath of the global financial crisis that peaked in the third quarter of fiscal 2009, private sector banks such as ICICI Bank Ltd, HDFC Bank Ltd and Kotak Mahindra Bank Ltd had cut down on car loans. Traditionally, these three banks accounted for a large chunk of auto loans. Private sector banks share in financing auto sales fell from 50% in the June 2008 quarter to 30% in the December 2008 and March 2009 quarters, said Joseph George, an analyst at BNP Paribas Securities India Pvt. Ltd, in an August report. When interest rates were high last year ahead of the global financial meltdown, cash sales went up to 35% for cars and 85% for two-wheelers. Even after interest costs declined by 2 percentage points and the availability of loans improved, cash sales continue to be at the same levels, said Ashok Khanna, executive vice-president and business head of auto loans at HDFC Bank. One-and-a-half years back, before the recession had set in, this used to be 10% for cars and 50% for two-wheelers. Maruti Suzukis Srivastava and a senior Hyundai Motor executive corroborated this. Marutis sales of cars purchased with cash have risen to 33.8%, up from 26% in fiscal 2007 and 33.5% in fiscal 2008, said Srivastava. Arvind Saxena, senior vice-president, sales and marketing, at Hyundai Motor, said under 30% of the cars sold by the unit of South Koreas largest auto maker used to be bought with cash until 2007. The proportion rose to 35% in 2008 and continues to be at the same level. The retrospective pay revision of about 4.5 million Central government employees, following the recommendation of the Sixth Pay Commission in 2008, could also have triggered the cash purchases, said Prem Bagga, a Delhi-based dealer of Bajaj Auto Ltd, Indias second largest two-wheeler maker. Moreover, a drop in the rate of interest on bank deposits from 9-11% last year to 6-7% is possibly discouraging savings and the cash is being used to fund big-ticket purchases, said Sandeep Bafna, a Mumbai-based dealer of Hero Honda Motors Ltd and Maruti Suzuki. But all financiers dont agree with this thesis. Shyam Mani, managing director at Tata Motorfinance, the non-banking finance arm of Tata Motors Ltd, said cash purchases of cars have gone up, but this doesnt mean financing in general has declined. According to Mani, in many cases the source of finance is not known. People do come with demand drafts from cooperative or public sector banks and many dealers consider them as cash purchases. Financiers say cash purchases will decline in coming months with state-owned banks pushing their products and private banks showing renewed willingness to lend. Incrementally more people are taking loans, said Sumit Bali, chief executive at Kotak Mahindra Prime Ltd, the non-banking finance arm of Kotak Mahindra Bank. http://www.livemint.com/2009/10/08212653/Car-buyers-wary-of-loans-dig.html
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| Agencies See this story in: The Indian Express
Singapore: Oil rebounded in Asian trade on Thursday, lifted by strong regional stocks, which rallied after US aluminium giant Alcoa said it swung to profit in the third quarter. New York's main contract, light sweet crude for November delivery, was up 83 cents to USD 70.40 a barrel in morning trade. Brent North Sea crude for November delivery climbed 82 cents to USD 68.02. "Oil is drifting up as Asian stock markets are also trading higher," said Victor Shum, a senior principal with energy consultancy Purvin and Gertz in Singapore. He said news that Alcoa had returned to profitability after three consecutive quarters of losses drove stocks and oil prices higher. Alcoa said its net income was USD 77 million, compared with a net loss for the second quarter of USD 454 million. It was the first company in the blue chip Dow Jones Industrial Average index to announce results for the September quarter. Revenues were USD 4.6 billion compared with USD 4.2 billion in the second quarter, a nine per cent increase, Alcoa said in a statement. Alcoa's report is "very positive and this really marks a strong start for the third quarter corporate earnings season," Shum said. "This sparked the stock markets in Asia to turn up and oil has gained along with them," he added. http://www.indianexpress.com/news/oil-rebounds-to-usd-70.40-a-barrel/526574/
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| GM NEARS $150 MILLION HUMMER SALE TO TENGZHONG Bloomberg See this story in: Business Standard, The Financial Express Hong Kong/ San Francisco/ Michigan: General Motors Co, seeking to shed brands after emerging from bankruptcy, is nearing an agreement to sell its Hummer sport-utility vehicle business to Chinas Sichuan Tengzhong Heavy Industrial Machinery Co for about $150 million, said three people familiar with the deal. The parties are trying to reach a deal or tomorrow, said the people, who asked not to be identified because the negotiations are private. GM estimated the brands value at $500 million in bankruptcy court documents. Selling Hummer would give GM tangible progress toward its restructuring plan after the sale of the Saturn brand to Penske Automotive Group Inc. fell through last week. For Tengzhong, a deal would propel the industrial manufacturer into the global auto industry. Its important for GM to get some cash, without a doubt, said Joseph Phillippi, president of AutoTrends Consulting Inc. in Short Hills, New Jersey. This economy is still bumping along on the bottom here. Any appreciable amount they can get means more reserves, means keeping your powder dry until this economy improves. Tengzhong, based in Chengdu, China, said in June that it was in talks to buy Hummer as part of GMs plans to shed half of the eight brands it sells in the US. The companies said the deal would protect more than 3,000 US corporate, manufacturing and dealership jobs. The sale requires the acceptance of regulators in the US and China. Tengzhong plans to apply for Chinese approval once a binding agreement with Detroit-based GM is made, one of the people said. Nick Richards, a Hummer spokesman, and Christina Stenson, a New York-based spokeswoman for Sichuan Tengzhong, declined to comment. Tengzhong will assume Hummers dealer accords and a senior management team, and it plans to use GM for contract assembly. The purchase is the first entry into the passenger-vehicle business for Tengzhong, a closely held maker of special-use vehicles, structural parts for highways and bridges, and construction machinery. Credit Suisse is the financial adviser and Shearman & Sterling LLP is international legal counsel to Tengzhong. Citigroup Inc is advising GM. GM emerged from bankruptcy on July 10 and is keeping its Chevrolet, Cadillac, Buick and GMC brands for sale in the US. Koenigsegg Automotive AB, the Swedish maker of exotic sports-cars, has agreed to buy Saab, while Pontiac is being eliminated. The automaker bought the license for the Hummer brand from AM General in 1999 and started selling the $140,000 H1, a 7,600-pound (3,400-kilogram) SUV patterned after the all-terrain military vehicle popularized for road use by actor Arnold Schwarzenegger, who is now Californias governor. Rising gasoline prices eventually eroded demand. GM halted production of the H1 in 2006, when Hummers US deliveries peaked at 71,524, according to Autodata Corp. US sales of the SUVs, which start at about $31,000 for the H3, fell 51 per cent in 2008 and 63 per cent this year through September. http://www.business-standard.com/india/news/gm-nears-150-million-hummer-sale-to-tengzhong/372706/ http://www.financialexpress.com/news/gm-says-costcutting-nearly-done-sales-chief-out/526758/ GM SAYS COST-CUTTING NEARLY DONE Reuters See this story in: The Indian Express
Detroit : General Motors Co is on track to complete a wrenching cost-cutting but faces risks from an uncertain US economy and rising unemployment as it tries to win back consumers, the automaker said on Wednesday. In an update on GM's progress in the three months since it emerged from bankruptcy, Chief Executive Fritz Henderson also said Mark LaNeve, the company's top US sales executive, would be leaving the company. LaNeve, 50, becomes the latest senior GM executive to leave at a time when Henderson is pushing to change the culture of the 101-year-old automaker under the scrutiny of a new board demanding quick results. Susan Docherty, 46, a veteran GM executive whose career has included stints managing the now-scrapped Hummer and Pontiac brands, was named to replace LaNeve. Henderson declined to discuss what he called rumors that Chief Financial Officer Ray Young would also depart. GM's new 13-member board, led by Chairman Ed Whitacre, met this week in Detroit for the third time since the new company was launched out of bankruptcy with $50 billion in US government funding. At the board's prior meeting, directors discussed the possible departure of Young and made it clear the US sales team would have to deliver a quick turnaround to avoid a shake-up, people familiar with the discussions have said. GM ended the third quarter with its global and US market share above initial targets, despite a high-profile bankruptcy that hurt its credibility among consumers. GM said its global market share was 11.9 per cent in the third quarter. Its US market share -- including brands being scrapped, such as Pontiac and Saturn -- was 19.5 per cent, down from 22.1 per cent at the end of 2008. Henderson also said GM expects to close deals to sell its Saab and Hummer brands by the end of 2009 and is preparing for an initial public offering in 2010 that would reduce the US government's majority ownership stake. Discussions with senior representatives of Sichuan Tenzhong Heavy Industrial Machinery Co, a Chinese company seeking regulatory approval to buy Hummer, continued this week in Detroit, Henderson said. "The buyer is very interested in getting the deal closed," Henderson said. http://www.indianexpress.com/news/gm-says-costcutting-nearly-done/526589/0 NISSAN'S NEW CONCEPT CAR 'FEELS LIKE FLYING' Agencies See this story in: he Economic Times Tokyo: Nissan unveiled on Thursday a futuristic concept car that tilts to the side when going around bends to make drivers feel like they are gliding through the air.
The zero-emission electric "Land Glider" seats two people -- one in the front and one in the back.
Just 1.1 metres (3.6 feet) wide, it can easily squeeze into tight parking spaces and through narrow streets.
"In the past a car used to move only in a two dimensional way but the Land Glider can move in a three dimensional way," said Nissan's Ryusuke Hayashi, who is overseeing the project.
"Although you are driving on the road, you feel as if you are flying," he said at a preview of the car.
Inspired by motorbikes and glider aircraft, the four-wheel car has tilting wheels and moving fenders that enable it to lean by up to 17 degrees. Special sensors calculate the best tilt for negotiating a corner.
Instead of a steering wheel, it has airplane-style controls. With a cocoon-like cabin and a body designed to look like it is protected with armour, the Land Glider also aims to give motorists a sense of security.
The vehicle will be on display at this month's Tokyo Motor Show -- which opens to the public from October 24 to November 4 -- along with the electric Leaf that Nissan plans to launch late next year.
Japan's number three automaker will also display a chunky concept sports crossover, Qazana, that looks halfway between a tank and a beach buggy and aims to put some of the fun back into driving. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Nissans-new-concept-car-feels-like-flying/articleshow/5100624.cms Nissans new concept car feels like flying mint http://www.livemint.com/2009/10/08104556/Nissan8217s-new-concept-car.html
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| ECONOMY
RUPEE RISES
PTI See this story in: The Hindu Business Line Mumbai: The rupee strengthened by another 30 paise to trade at one-year high of 46.36 a dollar on Thursday, extending its rally for the fifth straight session, as corporates and exporters continued to sell dollars. Expectations of increased capital inflows into domestic equities which may open higher in line with other Asian markets also supported the rupee. The local unit appreciated by 30 paise to one year high of 46.36.On Wednesday, the rupee ended 22 paise higher at 46.66/67 against the US currency on heavy dollar selling. Dealers said besides the greenback weakening against major currencies, expectations of a strong opening in the equity markets, in line with firming trends in Asian market, gave a boost to the rupee sentiment. The rupee is up almost 12.6 per cent from its record low of 52.20 a dollar in early March this year. http://www.thehindubusinessline.com/blnus/05forex.htm
SENSEX ENDS UP BY 37 POINTS PTI See this story in: The Hindu Business Line Mumbai: A surprise bonus announcement by market heaviest Reliance Industries Ltd (RIL)failed to cheer investors, with benchmark Sensex gaining only marginal 36 points. Marketmen said investors are treading a cautious path and are awaiting guidance from Infosys earnings tomorrow. They said markets had already surged to one-year of 17,000-level last week on anticipation of robust second quarter results after advance tax payment increased by 13 per cent. Investors are now awaiting definite clues from Infosys now, they added. The Bombay Stock Exchange 30-share index logged a high of 16,998.52 in afternoon trade after RIL surged five per cent after the company's announcement of 1:1 bonus yesterday for the first time in 12 years. Brokers attributed initial surge in shares to speculative buying triggered by bonus shares by RIL. RIL bonus was expected to boost market sentiment but smart investors booked profit after early trade as they did not want to increase exposure to markets,'' said SMC Global Vice President Rajesh Jain. The barometer index finally settled at 16,843.54 a rise of mere 36.88 points or 0.22 per cent over its previous close. Dealers said buying in realty, FMCG auto and refinery counters prevented steep fall as selling pressure was heavy. However, new ec onomy telecom and IT shares continued their downtrend on profit-booking. The market was also partly supported by a firming trend in Asian and global bourses. Buying activity spilled over a wide-front as midcap index rose by 0.73 per cent to 6,341.19 and smallcap index by 0.21 per cent to 7,422.34. The realty sector index ro se by 2.21 per cent to 4,429.68 followed by FMCG by 1.76 per cent to 2,750.05. Auto rose by 1.53 per cent to 6,554.74, metal by 1.34 per cent to 14,676.78, power by 1.25 per cent to 3,125.66, healthcare by 0.90 per cent to 4,451.86 and oil and gas by 0.8 8 per cent to 10,250.55. Also, consumer durable rose by 0.86 per cent to 3,655.66, bank by 0.83 per cent to 9,913.79 and PSU by 0.81 per cent to 8,957.37. The communication segment stocks continued to remain under pressure, with market leader Bharti Airtel down by 6.61 per cent to Rs 334.65. Kotak Securities reiterated its cautious'' view on the sector and its reduce'' rating on Bharti. Bharti has lost 2 0 per cent this week and is the only stock among the 30 Sensex members to decline this year to date. Reliance Communications, the second-largest mobile phone operator, dropped 6.01 per cent to Rs 246.30, also extending its decline this week to 20 per cent. http://www.thehindubusinessline.com/blnus/05081901.htm
INFLATION RATE EASES MARGINALLY TO 0.7% The Hindu Business Line New Delhi: The annual Wholesale Price Index-based inflation rose 0.7 per cent during the week ended September 26, below the previous weeks annual rise of 0.83 per cent. The official WPI for All Commodities for the latest reported week declined by 0.1 per cent to 243 points from 243.3 points for the previous week. Headline inflation was recorded at 12.08 per cent during the corresponding week of the previous year. The 52-week average inflation for the week ended September 26 was 2.84 per cent. On a disaggregated basis, the Primary Articles group index for this major group rose by 0.1 per cent as the index for Food Articles group declined by 0.2 per cent due to lower prices of poultry chicken (3 per cent) and bajra, fruits and vegetables, condiments and spices and arhar (1 per cent each). However, the prices of tea (2 per cent) and maize and eggs (1 per cent each) moved up. Non-food articles rise The index for Non-Food Articles group rose by 0.2 per cent due to higher prices of groundnut seed (3 per cent). However, the prices of gingelly seed (9 per cent) and rape and mustard seed (1 per cent) declined. The index for the Minerals group rose by 4 per cent due to higher prices of gypsum (9 per cent) and iron ore (6 per cent). However, the prices of chromite (50 per cent), barites (8 per cent), fire clay (7 per cent), steatite (6 per cent) and vermiculite (1 per cent) declined. The Fuel and Power group index declined by 0.1 per cent due to lower prices of bitumen (2 per cent). The Manufactured products group index declined by 0.2 per cent as the index for Food Products group declined by 1.3 per cent due to lower prices of oil cakes (5 per cent), imported edible oil (2 per cent) and sugar, malted food, coconut oil and groundnut oil (1 per cent each). However, the prices of gur (3 per cent), salt (2 per cent) and butter (1 per cent) moved up. The index for Textiles group rose by 0.3 per cent due to higher prices of hessian and sacking bags and hessian cloth (4 per cent each). The index for Chemicals and Chemical Products group rose marginally due to higher prices of methanol (9 per cent). However, the prices of PVC resins (4 per cent) declined. The index for Basic Metals Alloys and Metal Products group declined marginally due to lower prices of zinc (6 per cent), steel ingots (4 per cent). However, the prices of steel wire ropes (2 per cent) moved up. Machinery and tools The index for Machinery and Machine Tools group declined by 0.1 per cent due to lower prices of components and accessories of switch gears (6 per cent) and electric motors (2 per cent). However, the prices of air and gas compressors (1 per cent) moved up. For the week ended August 1, the final WPI for All Commodities stood at 239.4 points compared with the provisional estimate of 237.2 points and annual rate of inflation based on the final index, calculated on point-to-point basis, stood at -0.83 per cent compared with -1.74 per cent points. http://www.thehindubusinessline.com/2009/10/09/stories/2009100952021500.htm Last Financial closing | Sensex | 16,843.54 | | US$ spot | Rs.46.31 | | US$ | Y.88.2622 | | US$ 6 months | Rs.47.1 | | Yen | Rs.0.52 | | Euro spot | Rs.68.39 | | LIBOR 6 months | % | | Call | % | | GOI sec. 10 years | - - - - | | Aluminium (per kg) | Rs. | | Aluminium Ingot | Rs. | | Copper (per kg) | Rs. | | Gold (10gm) | Rs.15,870 | | Lead (per kg) | Rs. | | Mild Steel Ingots (Mumbai) | Rs. | | Nickel (per kg) | Rs. | | Nickel Cathode | Rs. | | Silver (1kg) | Rs.27300 | | Sponge Iron (per tonne) | Rs. | | Steel Flat (per tonne ) | Rs. | | Steel Long GVD (per tonne) | Rs. | | Steel Long BVN (per tonne) | Rs. | | Tin (per kg) | Rs. | | Zinc (per kg) | Rs. | | Zinc Ingot | Rs.- - - - | | Crude Oil (WTI) | $- - - - | | Crude Oil (Brent) | $67.45 | Automobile | Scip on BSE | Face Value (Rs) | Last traded Value (Rs) | | Apollo Tyres | 1 | 47.10 | | Asahi Ind | 1 | 70.70 | | Amara Raja B | 2 | 138.15 | | Ashok Leyland | 1 | 41.55 | | Bajaj Auto | 10 | 1546.10 | | Bharat Forge | 2 | 275.85 | | Denso | 10 | 87.85 | | Eicher Ltd | 10 | - - - - | | Eicher Motor | 10 | 523.25 | | Escorts | 10 | 105 | | Exide Ind | 1 | 94.85 | | Force Motors | 10 | 153.55 | | Gabriel India | 1 | 22.80 | | Hero Honda | 2 | 1669.05 | | Hind Motors | 10 | 23.35 | | Hi-Tech Gear | 10 | 90.50 | | Jay. Bh. Maruti | 5 | 45.20 | | Jamna Auto | 10 | 50.15 | | JK Tyres & Inds | 10 | 137.05 | | Kinetic Motors | 10 | 25.40 | | Kinetic Engg | 10 | 83.85 | | KOEL | 2 | 112.75 | | Kirloskar Br: | 2 | 203.45 | | LML Ltd | 10 | 10.40 | | L&T | 2 | 1649.80 | | Lumax Ind | 10 | 165.45 | | Lumax Tech | 10 | 44.05 | | M&M | 10 | 912 | | Maruti Suzuki | 5 | 1510.60 | | Motherson SS | 1 | 111.90 | | Minda Inds | 10 | 216.40 | | MRF | 10 | 5481.95 | | MICO | 10 | - - - - | | Omax Auto | 10 | 47.95 | | Perfect Circle | - - - - - - | - - - - | | Rico Auto | 1 | 25.30 | | Sona Koyo St | 2 | 14.60 | | SKF Bearing | 10 | - - - - | | SRF | 10 | 184.10 | | Swaraj Mazda | 10 | 215 | | Tata Motors | 10 | 587.40 | | TVS Motor | 1 | 56.95 |
Metals
| Scrip on BSE | Face Value(Rs) | Last traded Value (Rs) | | Bhushan Steel | 10 | 1322.15 | | Essar Steel | 10 | - - - - | | Hindalco | 1 | 129.25 | | Hind Zinc | 10 | 838.55 | | Ispat Inds | 10 | 23.05 | | Jindal Iron | 10 | - - - - | | Jindal Stain | 2 | - - - - | | JSW Steel | 10 | 910.85 | | Jindal Steel | 5 | 597.10 | | National Aluminium | 10 | 346.25 | | SAIL | 10 | 174.60 | | TISCO | 10 | 535.10 | | Visa Steel | 1 | 41.95 |
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