Mumbai: The Diwali period has been very good in sales for car and bike dealers. Many authorised dealerships, including those of Maruti Suzuki, Hero Honda, Bajaj Auto and Hyundai Motors, reported speedy exhaustion of stock, despite all companies keeping inventory as high as possible.

Although most companies had geared for increased production at their plants, most say the surge in demand was unexpected, partly driven by yesteryear purchases which had been postponed earlier due to lack of funds.

Arvind Saxena, senior V-P (sales and marketing), Hyundai Motor India, said: Diwali this year has been exceptional in comparison to last year. We are still compiling all-India figures but initial indications suggest we have done 60 per cent better. Usually, sales rise by 40 per cent every year during the period.

The Korean brand has a 21 per cent market share and has seen a drop in outright purchases, from 40 to 33 per cent in buying of vehicles by Diwali. This is mainly because of its recent tie-ups with public sector banks, providing attractive financing options.

Leader Maruti Suzuki (car market share of 52 per cent as on September) has reported sales of 12,000 units during the three days from Dhanteras (considered the most auspicious day to buy new products by Hindus) to Diwali.

The company says this would be its best-ever performance during the festival of lights.

R C Bhargava, Chairman, Maruti Suzuki, said: Although we would prefer to compare our sales performance with that of 2007-08, more than last year when the industry was hit by the slowdown, it (sales) was still much better than that (2007-08) year.

Pune-based Bajaj Auto, too, reported a stock-out (complete emptying of stock) for most of its Pulsar models, as well as the Discover.

Said Milind Bade, general manager, marketing: The response we received was phenomenal, as we were out of stock for some models very swiftly. We are ramping up production but still what we are producing right now is sold (to dealers) as quickly and this has been going on for the past 40 days. The demand has been well beyond our expectations.

Analysts say the increased push by public sector banks to provide finance at the directives of the Reserve Bank of India, return of positive buying sentiment at the most opportune time (stock market being on an upswing, merging with the festive season) and aggressive marketing push by auto companies resulted in the surge.

S P Shah, president, Federation of Automobile Dealers Association, said: The average increase in sales has been more than 30 per cent across our member-units. On Dhanteras (October 15), sales in a lot of dealerships doubled when compared to the same day last year.

Anticipating the surge, Maruti Suzuki had raised its production by 25 per cent and asked all its vendors to jack up component supplies for key models like the A-Star, Alto, Ritz, Swift and DZire a few months earlier. Hyundai, similarly, added a third shift at its Chennai facility last month, just in time to meet the festive demand.

The company had earlier planned to introduce this shift in August last year but was forced to alter this, as the domestic market seemed too weak then to support the additional output.

http://www.business-standard.com/india/news/festive-demand-clears-automobile-stocks/373867/

LABOUR UNREST SLAMS BRAKES ON AUTO HUB

The Economic Times (Web & Print Edition)

New Delhi: Striking workers brought Indias automobile hub in the Gurgaon-Manesar belt to a near standstill on Tuesday as the intensifying and increasingly violent agitation threatened to cast an ominous shadow over a sector that has been at the vanguard of the countrys economic recovery.

Trade unions have sought immediate intervention by the prime minister, and a member of Parliament even warned of an armed struggle against what he called private militia engaged by corporate managements.

Production at some 60 auto and component manufacturing units, except Maruti Suzuki, was severely affected with around a lakh workers observing a day-long token strike called by trade unions protesting the death of a striking employee of autoparts maker Rico Auto on Sunday.

CPI MP and All India Trade Union Congress (AITUC) leader Gurudas Dasgupta alleged that 26-year-old Ajit Kumar Yadav was killed on Sunday when bouncers with guns employed by the company management tried to break up a peaceful protest by over a thousand employees demanding better wages and work conditions. Mr Dasgupta has now issued a 48-hour warning to the central and Haryana governments.

Arvind Kapur, CMD of Rico Auto, was not available for comment. However, agency reports quoted a senior Rico official as saying that the worker died when the striking workers tried to prevent others from entering the company. He said the management had no role in Sundays incidents and that they were willing to give Rs 5 lakh as compensation to the victims family.

The 40-km strip stretching from Gurgaon to Manesar in Haryana, bordering Delhi, with some 600 automobile and parts suppliers, has been gripped by strikes at more than a dozen companies since last July. The belt accounts for two-thirds of all cars and motorcycles produced in the country and is home to raft of companies, notably the countrys biggest carmaker Maruti Suzuki, Hero-Honda and Honda Motorcycle and Scooter India (HMSI).

Trouble in the sector could have a knock-on effect on the wider economy, given that its a big employer. For the first half of the year, the automotive industry grew by 14.5% as against the corresponding period last year, making India the second-fastest growing automotive market in the world.

The labour troubles mostly stem from the wage difference between temporary employees and those who are in the permanent payroll of various companies. With firms refusing to shift casual workers to the permanent category, this segment went up in arms. Permanent employees, who earn more than twice the casual labour, too started protesting demanding higher productivity-linked allowances as most automobile companies have been posting double-digit growth in the past two years.

Society of Indian Automobile Manufacturers Association (SIAM) has already warned of a drop in production in many of its member companies. Prolonged trouble at component makers like Rico Auto, a company that supplies engine parts to players such as Maruti Suzuki, could ultimately affect production at companies not witnessing strikes.

Production has come down drastically at HMSI, and other auto manufactures too would take a hit by the ongoing agitation. Many of the component maker facing industrial unrest are single source suppliers to auto makers that could seriously jeopardise production lines in coming days, SIAM director general Dilip Chenoy told ET.

The worlds largest motorcycle maker, Hero Honda, also saw low turnout at its Gurgaon plant on Tuesday and over a 100 medium and small industries remained closed or partially-affected.

The ongoing workers strike at auto component firms has impacted our operations. Production in the morning shift at our Gurgaon plant was impacted on Tuesday due to short supply of components, a Hero Honda spokesman said.

Maruti Suzuki maintained production close to normal, but the company is keeping a close watch on its suppliers operations. We could be impacted by the irregular supplies from our vendors, but the production at our factory was normal with all the staff reporting to work as usual, a spokesman said.

Meanwhile, the Haryana government has formed a core committee to look into the issue. In a meeting headed by the chief secretary in Delhi, a high-level committee comprising additional district commissioner, sub-divisional magistrate, deputy labour commissioner and representatives from various unions to negotiate with the agitating workers and strive for an early settlement on the simmering issue.

It (the committee) has representations from all corners, including unions, and we are expecting some early solution to restore law and order in the region, Haryana labour commissioner Surina Rajan said.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Labour-unrest-slams-brakes-on-auto-hub/articleshow/5143754.cms

Strike paralyses Gurgaon auto hub

Business Standard (Web & Print Edition)

http://www.business-standard.com/india/news/strike-paralyses-gurgaon-auto-hub/373834/

One-day strike cripples Gurgaon-Manesar belt

The Hindu Business Line (Web & Print Edition)

http://www.thehindubusinessline.com/2009/10/21/stories/2009102151380200.htm

Auto belt grinds to a halt

Daily News & Analysis (Web Edition)

http://www.dnaindia.com/money/report_auto-belt-grinds-to-a-halt_1301107

Haryana industrial belt hit by strike

Deccan Herald (Web Edition)

http://www.deccanherald.com/content/31402/haryana-industrial-belt-hit-strike.html

Auto stir escalates as workers of 70 cos join in

Yahoo India (Web Edition)

http://in.biz.yahoo.com/091020/50/baue1h.html

Gurgaon hit by labour stir; 8,000 protest

mint (Web & Print Edition)

http://www.livemint.com/2009/10/20225751/Gurgaon-hit-by-labour-stir-8.html?h=A1

Haryana Industrial belt hit by autoworkers strike

mint (Web Edition)

http://www.livemint.com/2009/10/20140747/Haryana-industrial-belt-hit-by.html

Strike shuts Gurgaon-Manesar belt

The Indian Express
http://www.expressindia.com/latest-news/strike-shuts-gurgaonmanesar-belt/531074/

Strike hits auto belt in Manesar

Asian Age

Work hit in Gurgaon as 30,000 join strike

The Times of India

Striking workers hold Gurgaon to ransom

The Pioneer

Striking halts work in Gurgaon firms

The Hindu
Strike in Gurgaon auto hub

Hindustan Times

AUTO STIR ESCALATES AS WORKERS OF 70 COS JOIN IN

The Financial Express (Web & Print Edition)

New Delhi/Chandigarh: Work at Indias auto hub, the Gurgaon-Manesar belt, was thrown out of gear on Tuesday after workers of around 70 auto companies, including major component makers, joined the labour unrest by workers of Rico Auto and Honda Motorcycle and Scooter India (HMSI).

Apprehending a longer standoff, the countrys top four-wheeler and two-wheeler makers Maruti Suzuki India and Hero Honda have started putting in place contingency plans.

Unofficial estimates put the total number of workers who stayed away from work at over one lakh. Police had to invoke Section 144 of CrPC, that bans assembly of over five persons, to counter the agitation. Senior officials of the state govenements labour department and the Gurgaon deputy commissioner set up a committee to tackle the dispute.

Despite Rico Auto, operations at other leading component makers like Lumax, Sunbeam, Caparo Maruti, Delphi and Gabriel were also impacted. An Assocham release has put the impact of the strike at Rs 500 crore a day.

The strike got off to a violent start on Tuesday with angry workers assaulting a senior official of Rico in the morning. Rico and Honda Motorcycle and Scooter India (HMSI) reported zero attendance on during the day.

Maruti Suzuki India, however, said its operations were not impacted. Most company managements have cited demand for wage hikes as the main reason for the protests, while on the other hand, the employee unions are blaming the management for forcefully locking them outside the factory.

Talking to FE, a Maruti spokesperson said that all these are crucial suppliers and it will resort to sourcing from alternate areas in case the unrest continues. However, the companys internal operations have not been hurt with all employees reporting for work.

Rico Auto and Sunbeam are Hero Hondas major vendors. The companys operations at the Gurgaon plant during the morning shift were impacted due to shortage of supplies. The ongoing workers problem at some of the auto component suppliers plants have affected our operations. We hope the industrial environment in the region will return to normalcy soon, said a Hero Honda spokesperson.

An analyst said if the agitation intensifies, manufacturing can shift to other plants. Hero Honda produces around 11,000 vehicles per day from Gurgoan and Bawal plants and its Haridwar facility has a production capacity of 4,000 units per day.

However, Honda Motorcycle and Scooter India (HMSI), which has seen production go down by 50% in the last one month due to internal labour issues, does not see an impact of vendors strike as the company has enough supplies due to the slowdown in production, said a company official.

Ajit Kumar Yadav, a worker at Rico, had died during group clashes at the company plant on Sunday, prompting employees of Maruti, Microtech, Sunbeam, Honda Motorcycle and Scooter India, Lumax and Automax, among others, to join the protest on Tuesday.

When contacted, officials of Rico told FE that as per the companys HR policy, a compensation of Rs 5 lakh has already been announced for the victims family and the company will also provide a job his wife.

Abhay Jain, public relations officer of the company, said, The compensation was announced on Sunday and we are ready to resolve the matter. But the workers are not listening to the management. Out of the 3,500 workers of Rico, about 20% are on strike and they are forcing others to join them.

Jain added, The employees demanded a hike of Rs 10,000 per annum in their salary for three consecutive years, which is not feasible. Moreover, the union is not even registered with the Haryana government.

Pushpinder Singh, secretary of RICO employees union, said, When we came back to office on September 21 after filing for registration of our union in the labour department in Chandigarh, the company officials forcefully locked us out and suspended 16 workers. On Sunday, the police lathi-charged at the agitating workers which left many injured and one dead. We are demanding that the union be recognised and due compensation given to the injured.

Assocham has condemned the incident and urged the Haryana government to see that the agitation does not escalate. Secretary general D.S. Rawat said, Such stray and isolated incidents will not adversely impact the investment climate of progressive states like Haryana. But such an industrial unrest can prove counter-productive in the absence of precautionary measures..

http://www.financialexpress.com/news/auto-stir-escalates-as-workers-of-70-cos-join-in/531089/2

INTERVIEWS / FEATURES

THIS SWIFT MAN IS DRIVEN BY GUT FEEL

Bhanu Pande & Shailesh Dobhal

The Economic Times (Delhi Print Edition)

New Delhi: As the marketing head of the countrys leading carmaker Maruti Suzuki, its natural for Mayank Pareek to profess his love for cars. As an engineering student, I opened and closed so many car engines, says the IIM-Bangalore and IIT-BHU alumnus. And many I could not close, he chuckles. However, minutes into conversation, its easy to note that his real study is somewhere elsedemographics.

Its a slow change, not palpable till its already upon you, says the 47-year old. Marketing for Pareek is almost science. He pours into reams of demographic data to get a sense where his consumers will drive the car marketzippy hatchbacks, powerful, yet fuel efficient sedans, a segment of one, just where. And more critically, just who his consumer will bethe double-income-no-kids city dweller or the rural sarpanch.

A keen observer of the development-consumption linkages, Pareek cheered when finance minister Pranab Mukherjee announced a whopping 43% increase in outlay for rural development in his budget speech in July this year.

Speak numbers, and hes got everything on his fingertipsvillages in India, tehsils, agriculture growth over the years, the countrys income pyramid, well, you get the sense.
Years spend as a field salesman, a stint at managing dealerships and then in corporate planning for taking the carmaker public in 2003, perhaps gave Pareek his appreciation for number-driven marketing approach.

Hell be a great guy if you need help on crystal ball gazing, says Sunil Sachdeva, founder director of ad agency Capital Advertising that handles Marutis Swift advertising.

But before you brand him as a marketing nerd, he corrects the perception. In the end, all figures seen, its a gut decision. Otherwise, why would I go ahead with the Swift launch inspire of no go calls from all internal research?

Well yes, just why? Somehow, deep down I felt that there was this consumer already there in urban India who was ready for pricier, yet different hatchback. The hunch proved right, and Swift is now Marutis third-largest selling model after Alto and Wagon R.

Though he is uncompromising on systems and processes, hes also the intuitive marketer, who fundamentally believes in the power of young consumers, the Rang De Basanti generation as he calls them, says Sachdeva.

To his credit, Pareek does see the big picture, even gives credit to competition where its due. Tata Nano, a segment that were clearly not getting into, will put many more people on (four) wheels, and that will create a still lower ladder for car ownership in the country and that will be good for us too. Declining a mega buck multinational bank at the IIM campus back in 1991 and settling for a modest sales job at Maruti seems to have more than made up as Pareek says he revels in the challenges and complexity of auto marketing.

Pareeks talent was noticed early in his career when he was handpicked as a member of Maurtis marketing team by former chief Jagdish Khattar. And he directly reported to Khattar for almost ten years.

During these years, Maruti broadbased its brand experience for consumers to encompass after-sales service (Maruti Service Masters), sale and purchase of old cars (Maruti True Value), insurance (Maruti Insurance) and fleet management (Maruti N2N).
Pareeks role didnt just confine to narrow brand marketing, instead he worked on a much wider canvas that has made what the brand Maruti is now, says Khattar, who has now started his own auto sales and service venture, Carnation.
Most part of this decade, Maruti led by Khattar has worked on a simple principleidentify specific consumer segment and approach them with appropriate brand proposition. So, in came schemes targeting teachers, lawyers, PSU employees and now doctors and Pareek has been at the centre of it all.
Marutis initiatives werent just limited to making purchase decision easy, its segment specific product development remained fairly brisk.
Pareek says the companys idea of multiple brands within each segment was driven by fast-emerging consumer niches. So never mind the overlaps, Maruti has six models in a single segment (A2)Alto, Wagon R, Estilo, Ritz, A-Star and Swift.
But dont they cannibalise each other? Pareek says, both Swift and Ritz models are meant for the people young at heart. While Swift is about attitude and targets younger audience, Ritz does the same for the buyers in relatively older age group. Wagon R is for the functional man, Estilo for youngsters with attitude, and A-star for the consumer who likes the kick of the car that could set their adrenaline flowing.

What sets Pareeks adrenaline flowing is the rural market. It has been a single mindset obsession with him for the past two years now, something that has helped the company tide over the sales slowdown that started in October last year.
Before last years slowdown, everyone, including us, used to merely reap the rural demand. But as urban markets froze last year, we were the early ones creating demand for cars in villages, he says.

And that busted the myth that rural consumers are poor, he says. Even if we can find one family in ten villages which can buy a car, then we have found our customer.

Almost one in every six cars sold by Maruti is now bought by rural consumers, up from just one in thirty two-years ago. Rural India was an obvious market for every carmaker to explore, given the urban slowdown, but how did Maruti go about doing it?
Like everything else, God is in the detailing, comes back the mans methodical, mathematical approach.

If youre with the countrys leading car marketer, it is difficult to resist the questionwhy is car advertising in India so drab? Since 50% of the buyers in India are the first time buyers, we have to give them some rational reason to buy. Well, numbers again.

CARs,SUVS & MUVs

TATA REVS UP TO TAKE ON PREMIUM SUV CONTENDERS

Arun Jayan

Yahoo India (Web Edition)

See this story in: The Indian Express (Delhi Print Edition)

Pune: After the launch of its small car, the Nano, Tata Motors is all set to cruise into the SUV segment with the launch of the Indicruz Xover early next year. The car is touted as a crossover between an SUV and a sedan a multipurpose vehicle that falls under the premium SUV segment.

Speaking on the sidelines of the launch of Tata Indigo Mansa here on Tuesday, Tata Motors vice-president S Krishnan confirmed that the Indicruz would hit Indian roads early next year and the production of the car would be from the company's plant in Pune.

Krishnan said the new car would be pitched against the Honda CR-V and the Mahindra Xylo, which are doing reasonably well in the segment. "The Indicruz is a combination of a sedan and an SUV and will compete in the premium SUV segment. Premium SUVs sales are good with the Mahindra Xylo selling 2,500 per month. We are targeting to tap the full potential of this segment with the launch of the new car," he said.

The crossover vehicle is designed to look like an SUV but offers the comfort of a sedan with good handling characteristics. Tata's Safari and Sumo Grande, which run on the 2.2L Dicor engine, are already doing well and the Indicruz is expected to co-exist with these brands.

Speaking about the Nano, Krishnan said production of the car at the Pantnagar, Uttaranchal, plant would be scaled up by 20 per cent by this month-end. "Till the Sanand plant in Gujarat gets ready, production will continue from Pantnagar. Out of the one lakh Nano orders 7,500 cars have been delivered," he said.

http://in.news.yahoo.com/48/20091021/1238/tbs-tata-revs-up-to-take-on-premium-suv.html

INDIA MAY GET TOYOTA HYBRIDS

PTI

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

Tokyo: The worlds largest car maker, Toyota, said it was considering the introduction of hybrid vehicles in India, besides working on other alternative fuel models for the global market.

We are looking at introducing hybrid vehicles in India and currently we are studying the market, Toyota Motor Corporation (TMC) Assistant Manager (Global Strategic Planning Group) Katsuhiko Koganei told a group of visiting Indian journalists here.

The new vehicle would be a passenger car, he added. Koganei, however, declined to give any time frame or the likely-hybrid model which would be introduced in India.

Sources close to the development said the company could launch its successful hybrid car Prius in India, depending upon its ongoing feasibility study. On the initiative taken by the company on alternative fuel technology, TMC Project General Manager (Research and D Management Division) Yutaka Matsumoto said: We are working on bio-fuel, natural gas and hydrogen-based vehicles. Toyota develops and offer products based on the right vehicle for the right place at the right time concept.
http://www.business-standard.com/india/news/india-may-get-toyota-hybrids/373866/

GM INDIA LAUNCHES CHEVROLET CRUZE IN CHENNAI

The Hindu (Web & Print Edition)

Chennai: GM India has launched Chevrolet Cruze in Chennai. Karti P. Chidambaram introduced this vehicle at KLN Motors. According to Chandrashekar, Managing Director of KLN, 15 Chevrolet Cruze had been booked so far. The LT variant is priced at Rs. 10.98 lakh and that of LTZ model at Rs. 12.44 lakh, ex-showroom, Chennai.

http://www.hindu.com/2009/10/21/stories/2009102156351400.htm

COMMERCIAL VEHICLES

TATA MOTORS COMPLETES HISPANO BUYOUT

The Hindu Business Line (Web & Print Edition)

Mumbai: Tata Motors has wrapped up its acquisition process of Spanish bus body builder Hispano Carrocera. The company had picked up 21 per cent in Hispano in 2005 and has now exercised the call option to buy out the balance 79 per cent stake from Investalia S.A of Spain. Tata Motors had then paid 12 million for equity, debt and technology licensing. It also got the brand rights from Hispano.

Cost of buy

As for the present buyout cost for the 79 per cent stake, company sources said it was nothing substantial and much less than 12 million. Hispano is a specialised coach builder with two manufacturing facilities Zaragoza in Spain and Casablanca in Morocco which have a capacity to make 600 units. The company specialises in luxury coaches.

Tata Motors intercity luxury coaches with Hispano design and technology are built at the Automobile Corporation of Goa (ACGL) plant. With the Marcopolo joint venture and Hispano acquisition, the company now has a complete range of buses, the spokesperson said. Tatas have a 43 per cent stake in ACGL.

Target market

The Marcopolo plant in Dharwar, Karnataka, rolls out fully-built buses while the ACGL facility focuses on bus body building. The Hispano buses cater to the high-end intercity luxury coach segment and the Marcopolo range is intended for the mass market which means high volumes.

With the new bus body building code in place, vehicle makers are attempting to do away with vendors. Unlike the earlier practice of confining themselves to making chassis and entrusting coach building to third parties, bus-makers are now looking at greater control over body building or making coaches on their own.

http://www.thehindubusinessline.com/2009/10/21/stories/2009102150660300.htm

Tata Motors buys 79% in Spain's Hispano

Daily News & Analysis (Web Edition)

http://www.dnaindia.com/money/report_tata-motors-buys-79pct-in-spain-s-hispano_1300873

Tata Motors

The Statesman (Web Edition)

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=272457

Tata buy

The Telegraph (Web Edition)

http://www.telegraphindia.com/1091021/jsp/business/story_11638811.jsp

Tata Motors buys 79 pc in Hispano Carrocera

Deccan Herald (Web Edition)

http://www.deccanherald.com/content/31490/tata-motors-buys-79-pc.html

Tata Motors buys 79 pct in Spain's Hispano

Yahoo India (Web Edition)

http://in.biz.yahoo.com/091020/137/baudxk.html

Tata Motors acquires remaining stake in Spanish bus and coach maker

mint (Web & Print Edition)

http://www.livemint.com/2009/10/20180954/Tata-Motors-acquires-remaining.html?h=B

Tata Motors buys 79% in Spain's bus and coach maker Hispano

The Economic Times (Web & Print Edition)

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Tata-Motors-buys-79-in-Spains-bus-and-coach-maker-Hispano/articleshow/5142275.cms

Tata Motors ups stake to 100% in Spanish bus firm

Business Standard (Web & Print Edition)

http://www.business-standard.com/india/news/tata-motors-ups-stake-to-100-in-spanish-bus-firm/373865/

Tata Motors buys out Hispano

The Financial Express (Web & Print Edition)

http://www.financialexpress.com/news/tata-motors-buys-out-hispano/531124/

Tata Motors buys Spanish firm fully

Hindustan Times (Delhi Print Edition)

Tata Motors takes control of Hispano

The Times of India (Delhi Print Edition)

CONSTRUCTION & AGRI MACHINERY

KAMCO PAYS DIVIDEND

The Hindu Business Line

Thiruvananthapuram: The State Government-owned Agro Machinery Corporation (Kamco) has paid Rs 48.44 lakh to the Government as dividend for 2008-09. An official spokesman said here that the Agriculture Minister, Mr Mullakkara Ratnakaran, received the demand draft from Kamco Chairman, Mr V. Chamunni, at a simple function held here on Monday. On a profit for the last 25 years, the company had registered a turnover of Rs 120.29 crore and working profit of Rs 11.77 crore during the year under reference. It manufactured 9,647 power tillers and 1,293 power reapers during the year. It proposes to launch small tractors and new power tillers as part of a diversification programme.

http://www.thehindubusinessline.com/2009/10/21/stories/2009102151591701.htm

TWO & THREE WHEELERS

- - - - -

AUTO COMPONENTS

WORKERS AT AUTO COMPONENT PLANTS TO GO ON STRIKE

Chanchal Pal Chauhan

The Economic Times

New Delhi: A strike by workers on Tuesday at over two dozen mid-size and small component makers in the Gurgaon-Manesar belt, the countrys largest auto manufacturing hub, will lead to production bottlenecks for top automakers and delivery delays for waiting customers.

The workers are protesting the death of a fellow worker on Sunday evening at the Gurgaon plant of components maker Rico Auto after a clash between workers and company security that also left over 50 injured. The protesting workers have called a meeting on Monday night to decide future course of action.

There has been no conclusive outcome of the ongoing agitation. Now, it has turned violent and we will resort to mass protest to raise our issues with the management and the Haryana government, said DL Sachdev, national secretary of All Indian Trade Union Congress.

The labour strike at the moment is limited to component makers, with workforce at major automakers such as Maruti Suzuki and Hero Honda not joining the protest.

The break in auto components production comes at a time when demand for new cars and twowheelers is at an alltime high. The festival season this year saw the highest offtake of vehicles from showrooms, with all major companies posting years highest sales over the last few weeks.

The labour unrest has hit output in the auto manufacturing hub with an erratic components supply affecting production at Maruti Suzuki, Hero Honda, Honda Motorcycle and Scooter India (HMSI), Hyundai Motor India and Honda Siel Cars.

HMSI saw its sales dip 10% to 81,505 units in September due to worker strike over revision of wages even as the two-wheeler industry grew 8% to 8.38 lakh units in the month over the year-ago period.

A production delay will add to the customers waiting period, which has already touched a high of three months due to unprecedented demand in the festival season.

http://economictimes.indiatimes.com/news/news-by-industry/auto/auto-components/Workers-at-auto-component-plants-to-go-on-strike-today/articleshow/5140942.cms

RANE PROFIT

Business Standard

Rane (Madras) Limited (RML), one of the leading auto component manufacturers in India, has reported a profit after tax of Rs.3.31 crore for the quarter ended September 30, 2009 as against a loss of Rs.43 lakh during the same quarter last fiscal. The revenue during the quarter however marginally down to Rs.99.10 crore as against Rs.101.25 crore.

ALLIED INDUSTRIES

APOLLO TYRES AIMS 50% HIGHER REVENUES IN 2010
Chanchal Pal Chauhan
The Economic Times

Apollo Tyres Ltd said on Tuesday that it is aiming at 50% higher revenues for the year ending March10 over Rs 5,000 crore clocked during the previous fiscal, largely due to contributions from recently acquired European subsidiary Vredestein Banden BV.

In its latest quarter ended September, the firm posted a sharp jump in profits to Rs 129.2 crore, compared to Rs 15.1 crore in the year ago period, partly due to earnings from Vredestein and its South African subsidiary Dunlop Tyres.

Its consolidated revenues also jumped over 60% to Rs 2,046 crore in the September quarter, against Rs 1,262 crore in the same period last fiscal. The company refused to disclose revenues separately coming from its two subsidiaries. Vredestein was acquired by Apollo on May 15 this year and started contributing to consolidated results from the same day.

Shares of Apollo Tyres closed at Rs 54.55 on the Bombay Stock Exchange, up 5.11% from the previous close.

Our volumes grew 25% in the July-Sept period with strong demand coming from domestic market for truck, bus and passenger cars. Besides, better utilization of our plants and the lower interest costs also abetted higher profits, said Neeraj Kanwar, managing director of Apollo Tyres.

The company has also increased prices of all tyres by 3% early this month which would help it improve margins in the coming quarters. It is also banking on its new tyre manufacturing unit in Chennai with a capacity of 4,500 tonnes per day that will start commercial operations by the end of the current calendar year.

http://economictimes.indiatimes.com/news/news-by-industry/auto/tyres/Apollo-tyres-aims-50-higher-revenues-in-2010/articleshow/5142742.cms

Apollo Tyres net jumps to Rs 129.2 cr

The Hindu Business Line

http://www.thehindubusinessline.com/blnus/02201602.htm

Apollo Tyres Sept qrt net at Rs 129.2 cr

The Statesman

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=272452

Apollo Tyres raises sales forecast to 15% this fiscal

mint

http://www.livemint.com/2009/10/20220307/Apollo-Tyres-raises-sales-fore.html

Apollo tyre

Hindustan Times
Apollo Tyres Q2 profit rises

The Times of India

APOLLO TYRES SEES OEM DEMAND SURGE

Neha Rishi

Daily News & Analysis

Mumbai: Apollo Tyres sees greater original equipment (OEM) orders driving revenues as the revival in the auto sector gathers pace.

In September 2008, OEM demand for the tyre industry had practically collapsed, especially in the case of medium and heavy trucks, while light commercial vehicles and passenger cars managed to stay afloat, said Gaurav Kumar, group head (corporate strategy and finance), Apollo Tyres.

"The replacement market has been doing well, but now the OEM segment is picking up," he said. Besides the strong growth in the passenger car market, the trucks and bus segment is also showing signs of revival.

"Truck tyre OEM sales data are very encouraging. In April-August, there was an 8% jump in medium and heavy commercial vehicle OEM tyre sales over last year, while the light commercial vehicle segment saw a jump of 14%," Kumar said.

According to Auto Components Manufacturers Association (ACMA) data for April-August, 5.3 million tyres were sold to OEMs in the medium and heavy commercial vehicles segment as against 4.8 million for the same period last year.

In light commercial vehicles, the number jumped from 1.6 million tyres to 1.8 million tyres. For the quarter ended September 30, Apollo has seen an overall volume growth of 24% on a year-on-year basis. According to industry experts this will surge to 33% in the third quarter.

But Mahantesh Sabarad, senior research analyst with domestic brokerage Centrum Broking said since Apollo is already operating at 100% capacity and also expects OEM demand to grow, it's replacement segment revenues will take a hit as the company will have to cut back on replacement supplies to meet OEM demand.

Margins in OEM supplies are less than the replacement segment. "The point is, unless Apollo supplies the original tyres, how will it have a replacement market?" asked an analyst with a foreign brokerage. "That's the Catch-22 situation."

Apollo's Kumar is confident of maintaining tonnage growth in the third quarter despite the expected contraction in the replacement segment. The company's quarter on quarter increase in volumes is not substantial, but year on year volume surge is significant.

In September last year Apollo sold 66,000 mt of tyres which dropped to 59,000 mt in December. This number has risen to 80,000 mt of tyres this September.

"The company is confident of maintaining this tonnage growth in December as well, the volume surge of 33% is possible," said an analyst tracking the company, on the condition of anonymity. While volume growth does not seem to be a worry for Apollo, the sequential rise in the raw material costs might add pressures to the profits.

"Raw material costs is significantly low now and has grown 3% sequentially but in the current quarter we will see an increase of at least 10% in this cost. Rubber price for the quarter ended was Rs 100 per kg has already risen to Rs 110 per kg," Kumar said.

He said the increase in raw material cost will put pressure on prices. "With respect to tyres for OEMs, we are in an advanced stage of talks for finalising the prices. However, in the case of the replacement market, with effect from October 1, there will be a 3% price hike across product categories."

Apollo's Chennai facility, which will begin production in December this year, will first manufacture tyres for passenger cars and by the last quarter of the fiscal start production for truck and bus segments.

The plant will have a capacity to produce 1,50,000 mt annually by FY13 and by FY11 it will reach one fourth of that capacity.

The capex for the Chennai plant is Rs 2,000 crore of which Rs 1,000 crore has been spent this year, balance will be spent my March 2012.

The company recorded a sequential jump of 7.86% in net profit in the second quarter from Rs 94.67 crore to 102.10 crore.

http://www.dnaindia.com/money/report_apollo-tyres-sees-oem-demand-surge_1301064

APOLLO TYRES: VOLUME PUSH

Vishal Chhabria

Business Standard

Mumbai: A growth rate of 24 per cent in volumes as well as revenues year-on-year helped Apollo Tyres, Indias largest commercial vehicle (CV) tyre maker, top revenues of Rs 1,220 crore on a standalone basis for the September 2009 quarter. Consolidated revenues were higher by 62 per cent year-on-year to Rs 2,046 crore, but about 44 per cent of this growth is on account of the May 2009 acquisition of the Dutch tyre company, Vredestein. Strong replacement demand (almost three-fourth of sales) and a pickup in sales of new CVs should help the company record 8-10 per cent volume growth in the standalone operations, going ahead.

While its Indian and South African operations are likely to record good growth, the pain points will be its European operations,where the company recorded sales of about Rs 550 crore, which are flat vis--vis last year, with net profit margins of just two per cent.

At the operating profit level, despite increase in other expenditure (primarily sales and marketing expenses) by half, a 10 per cent dip in raw material (rubber) prices year-on-year and lower inventory costs helped improve profit margins by a little over three-fold to 16.5 per cent. While operational efficiency and higher volumes have helped the company improve its profit margins, the road ahead is likely to be difficult.

Rubber prices, which have risen sequentially by three per cent, are currently at Rs 110 per kg as compared to the average price of Rs 100 per kg the company paid during the September 2009 quarter. The company believes expenditure under this head alone would increase by 10 per cent for the December quarter. However, it expects higher volumes in the replacement segment, the improvement in new CV production and price hikes (effective October 1) already undertaken, to help it maintain margins at around 12-13 per cent levels.

Despite the looming pressure on margins due to a spike in raw material costs, the markets were pleased with the September 2009 quarters performance and the volume growth expected from a recovery in the auto sector. The stock was up 5.5 per cent to Rs 54.55, after making a new 52-week high of Rs 56.90. It has outperformed the BSE Sensex since mid-July this year. And, at current levels, it trades at a PE of 8.26 times its estimated 2009-10 earnings, leaving limited room for further upside in the near term.

http://www.business-standard.com/india/news/apollo-tyres-volume-push/373817/

PROFIT RIDES ON LOW INPUT COSTS, HIGHER TYRE PRICES
Shikha Sharma
The Economic Times

Thanks to a double-digit growth in topline and a sharp decline in raw material costs, Apollo Tyres surprised the market on Tuesday with a sharp jump its net profit during the second quarter. The tyre makers net profit jumped by 13 times to Rs 102 crore during September 2009 quarter compared to just Rs 7.8 crore a year ago. The market was pleased with the result. Apollos stock price went up by 5.11% to close at Rs 54.55, its highest in 21 months, aided by the net profit and its India sales outlook, which cited better demand for vehicles. Most of the upside in profitability came from lower expenses on raw materials, thanks to a moderation in the rubber prices and petro-based chemicals two of the industrys key inputs. The companys raw material cost was down 11% during the quarter despite higher sales volume as indicated by a 24% y-o-y growth in net sales. Raw materials now account for 58% of the companys net sales, down from 80.6% a year ago. The topline benefited from higher price realisation, as most tyre makes raised prices in the last quarter. This helped Apollo to triple its operating margin to 16.4% of net sales in the second quarter from 5% during the same quarter last year. The bottomline was also aided by a decline in interest cost that was down 21% y-o-y. This is due to the capitalisation of interest cost for the capex related to Chennai plant.

On a consolidated basis, the company has reported a net profit to Rs 129 crore as compared to Rs 15.1 crore in the corresponding period. Pursuant to the acquisition of Vredestein Banden, a Dutch tyre manufacturing company on May 15, 2009, the figures for the prior period are not comparable at the consolidated level.

It had increased prices by 3% in October this year, due to improved domestic demand. Further, it is banking on its upcoming greenfield unit in Chennai, which is scheduled to start commercial operations by the end of the current year. The sustainability of the growth momentum will, however, depend on its ability to maintain operating margins at the current level. It expects to maintain a 12-15% growth in margins in H2. This, in turn, will depend on the movement in rubber prices, future volume growth and the ability of the company to raise the selling price.

AMARA RAJA AIMS TO TREBLE SALES WITH NEW MARKETS, PRODUCTS

C.R. Sukumar

mint

Hyderabad: Indias second largest maker of batteries, Amara Raja Batteries Ltd, aims to more than treble its revenue by 2015 with new products and expansion into new markets, riding the growth in automobile sales.

Amara Raja expects to be a Rs5,000 crore company by revenue in five years, growing at 25-30% a year, managing director Jayadev Galla said in a recent interview. Thats at a slower pace than its 50% compounded annual growth rate in last five years.

In 2008-09, Amara Rajas gross sales increased 17.33% to Rs1,584 crore, but net profit declined 17.26% to Rs80.5 crore, dragged by the slowdown in the auto sector, volatility in prices of lead, its key raw material, and foreign exchange losses.

The company is now counting on the early signs of recovery in both the global economy and in its two main businessesindustrial and automotive batteriesto offer it new opportunities.

Indias automobile industry has been a star performer in the manufacturing sector even during the economic slowdown. Car sales rose almost 15% in April-September.

Amara Raja has a market share of 30% for its industrial batteries and 26% for auto batteries supplied as part of the original equipment in vehicles. In the organized auto battery replacement market, it has a 32% share. The Indian storage batteries market is estimated at Rs9,000 crore, of which industrial batteries account for Rs3,700 crore and automotive batteries, Rs5,300 crore.

As part of its expansion, Amara Raja recently launched two-wheeler batteries using so-called valve-regulated lead acid (VRLA) technology that do not require to be topped up periodically with distilled water.

The company is now in parleys with (a) few high-volume motorcycle manufacturers in the domestic market for forging OEM (original equipment manufacturers) supply arrangements for its new-technology batteries and expects to firm up at least one deal this fiscal, said Galla. (But) we will not enter into OEM deals unless we are sure of getting at least 25% of OEM requirement of each of the automobile manufacturers.

Amara Raja is expanding capacity for its VRLA batteries to 1.8 million units a year from 1.6 million units now, and its regular two-wheeler battery capacity to 2.4 million units from 1.8 million units, spending around Rs90 crore. It plans to fund the entire investment through internal accruals.

The two-wheeler batteries command higher margins in the range of 25-30% and will help improve overall operating margins of the company, said Kunal Dalal, an analyst at equity research firm Nirmal Bang Securities Pvt. Ltd, which has a buy recommendation on the Amara Raja stock.

The total two-wheeler battery market in India is estimated at 11 million units, and at least 60% of the requirement is met through firms supplying batteries as part of the original equipment.

The firm plans to add two assembly lines for two-wheeler batteries at its production facility near Tirupati in Andhra Pradesh, and is in talks with electric bike makers for deals while assessing the needs of hybrid cars, Galla said.

In the industrial batteries market, the company is focusing on high-growth segments such as telecom and UPS (uninterrupted power supply). While 70% of its industrial batteries cater to the telecom sector, 20% are for UPS and the balance for other applications.

India is the worlds fastest growing mobile-phone market, with around 10 million connections being added every month. As long as that growth continues, we will have to keep on expanding our production capacities, said Galla.

He added the firm expects to launch so-called front terminal access (FTA) batteries for the telecom infrastructure segment by April.

With a mobile penetration of just 38% in India, as against 60% in China, we feel there is enough scope of growth for the telecom sector, said Nirmal Bang analyst Dalal. With Amara Raja a preferred supplier to almost all telecom operators in the country, the growth opportunities seem tremendous.

Amara Raja shares have more than tripled this year. On Tuesday, the shares declined 1% to close at Rs154.75 each on the Bombay Stock Exchange, on a day the Sensex declined 103 points, or 0.59%, to close at 17,223.01.

http://www.livemint.com/2009/10/20215007/Amara-Raja-aims-to-treble-sale.html

FINANCE & INSURANCE

TATA MOTORS TIES UP WITH ANDHRA BANK FOR VEHICLE FINANCING

PTI

See this story in: The Hindu Business Line

New Delhi: Tata Motors on Tuesday said it has tied up with public sector lender Andhra Bank for providing finance services to customers for commercial vehicles.

Tata Motors has entered into an understanding with the Andhra Bank for financing its range of commercial vehicles to provide an added facility of finance to its customers, the company said in a statement.

Under the arrangement, Andhra Bank will offer loans for Tata Motors' commercial vehicles up to 90 per cent of the on-the road cost(including vehicle cost, road tax and insurance), for up to 6 years, at a rate of 12.5 per cent, it said.

The facility will be available at all the 1,550 branches of the bank and commercial vehicle dealerships of Tata Motors.

http://www.thehindubusinessline.com/blnus/02201420.htm

Tata Motors ties-up with Andhra Bank for vehicle financing

mint

http://www.livemint.com/2009/10/20133927/Tata-Motors-tiesup-with-Andhr.html

OILS, LUBES & ALTERNATIVE FUELS

OIL RALLIES ABOVE $80/B ON WEAK DOLLAR

Reuters

See this story in: The Hindu Business Line

Singapore: US crude futures rose more than half a per cent on Tuesday to a one-year high of $80.05 a barrel on a weak dollar and firm US stock markets.

US crude for November delivery rose 44 cents to $80.05 a barrel by 0311 GMT, its highest since October 14 last year. London Brent crude rose 38 cents to $78.15 a barrel. http://www.thehindubusinessline.com/blnus/05201002.htm

INTERNATIONAL

HONDA EYES ELECTRIC CAR LAUNCH IN MAJOR MARKETS

Reuters

See this story in: The Economic Times

Tokyo: The head of Honda Motor Co said he would consider launching electric cars in the United States, Europe and Japan, a sign Japan's No. 2 automaker is changing its strategy for the next generation of fuel-efficient vehicles.

Honda has been a strong proponent of hydrogen fuel-cell vehicles as the most promising zero-emission alternative to today's combustion engine cars, dismissing plug-in electric cars as a short-range option that uses too many expensive batteries.

But Honda has recently said that slow progress in setting up hydrogen fuelling stations could limit the sale of its fuel-cell vehicles, and that it may need pure electric cars to meet tough regulations in California.

Chief Executive Takanobu Ito said that in addition to the US market, the automaker would consider electric cars for other markets including Europe and Japan.

Ito told an industry seminar that he still believed that hydrogen fuel-cell vehicles would in the end be the key car technology but that electric cars would be a core offering for it in the future.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Honda-eyes-electric-car-launch-in-major-markets/articleshow/5141045.cms

Honda eyes electric car launch in major markets

Mint

TOYOTA LAUNCHES NEW HYBRID, HONDA WARMS TO ELECTRIC

Reuters

See this story in: The Economic Times

Tokyo/Seoul: Toyota Motor Corp is ramping up its push on gasoline-electric hybrids, launching a new model in Japan and taking on up-and-coming rival Hyundai Motor Co in its Korean home market with its flagship Prius.

Looking a step beyond hybrids, the head of Honda Motor Co said he was considering launching electric vehicles in the United States, Europe and Japan, indicating a shift in the strategy of Japan's No.2 car maker for zero-emission cars.

Toyota, the world's largest automaker, said on Tuesday it aims to sell 36,000 units a year of its new Sai hybrid sedan in Japan, taking another step towards its goal of selling 1 million hybrid vehicles annually worldwide soon after 2010.

The Sai sedan, which goes on sale in Japan in December with a base price of 3.38 million yen ($37,290), is the second hybrid-only model under the Toyota brand after the less expensive Prius, and is a repackaged version of the Lexus HS250h hybrid.

Miles ahead
Toyota is still miles ahead of competitors in the fast-growing hybrid field, which has enjoyed tailwinds especially in Japan thanks to generous subsidies and reduced taxes on cleaner cars.

It expects to sell 500,000 to 600,000 hybrid vehicles globally this year, while facing a short-term battery supply bottleneck for anything further.

Honda, whose Insight hybrid is trailing far behind the Prius, has been aiming to leapfrog the competition in the next generation of zero-emission technology by focusing on the development of hydrogen fuel-cell cars.

But faced with slow progress in setting up hydrogen fuelling stations, Honda has been forced to take a closer look at plug-in electric cars, which it has until recently dismissed as a short-range option that uses too many expensive batteries.

Chief Executive Takanobu Ito, who had previously acknowledged Honda may need pure electric cars to meet tough regulations in California, told an industry seminar he would consider launching electric cars for Europe, Japan and other markets as well.

Toyota and Nissan Motor Co have announced plans to offer plug-in electric vehicles globally by 2012, while General Motors' Chevrolet Volt is expected to hit showrooms next year.

"There is no change to my view that hydrogen fuel-cell cars will in the end be proven the best," Ito said.

"(But) electric vehicles will also be a core option for cars in the future," he added.

Toyota's Sai has a listed mileage of 23 km/litre (54 mpg), or twice that of a comparable gasoline car, chief engineer Shigeru Nakagawa told a news conference.

Toyota said it had no plans to export the Sai, which will be built by unit Toyota Motor Kyushu in southern Japan and was derived from a Japanese character meaning talent and coloration.

Korea push
Toyota also on Tuesday launched its brand in South Korea, a market dominated by Hyundai and affiliate Kia Motors Co, first with the Prius and Camry hybrids, as well as the RAV4 sports utility vehicle and non-hybrid version of the Camry, its most popular sedan.

Toyota expects to sell a combined 500 vehicles per month initially in South Korea, and aims to raise that to a still-modest 700 units beginning in 2010.

"The introduction of the Toyota brand into South Korea is aimed to meet the diversifying needs of consumers in this growing market," Toyota Executive Vice President Yukitoshi Funo told a news conference.

Hyundai has been grabbing market share globally from Toyota and other major automakers, winning over customers with its line of cheap, fuel-efficient models and catchy marketing campaigns.

In July, Hyundai launched its first hybrid in the South Korean market, a liquefied petroleum gas-electric vehicle, and is due to launch its first gasoline-electric hybrid, a version of the flagship Sonata, in the latter half of 2010.

http://economictimes.indiatimes.com/news/international-business/Toyota-launches-new-hybrid-Honda-warms-to-electric/articleshow/5141716.cms

Toyota mulls rolling out hybrid vehicles in India

The Hindu Business Line

http://www.thehindubusinessline.com/blnus/02201601.htm

Toyota mulls launching hybrid vehicles in India

The Tribune

http://www.tribuneindia.com/2009/20091021/biz.htm#3

Toyota mulls launching hybrid vehicles in India

The Indian Express
http://www.indianexpress.com/news/toyota-mulls-launching-hybrid-vehicles-in-india/530969/#

Toyota unveils new hybrid-only model

Deccan Chronicle

http://www.deccanchronicle.com/business/toyota-unveils-new-hybrid-only-model-349

Toyota mulls hybrid car for India

Deccan Herald

http://www.deccanherald.com/content/31482/toyota-mulls-hybrid-car-india.html

Toyota unveils new hybrid luxury sedan

mint

http://www.livemint.com/2009/10/20095617/Toyota-unveils-new-hybrid-luxu.html

Toyota brings in more expensive hybrid car Sai

The Times of India

TOYOTA ENTERS KOREA

Bloomberg

See this story in: Business Standard

Seoul: In a move that will be closely watched by the Indian side of the ongoing free trade agreement negotiations with the European Union (EU), Sri Lanka is set to lose up to $150 million of trade preferences granted to it by the EU.

The European Commission, the EUs trade authority, published the findings of a year-long investigation into allegations of human rights abuses in Sri Lanka on Monday. According to the report, Sri Lanka is in breach of its commitments to the EU and is therefore liable to lose its privileges under the Generalised System of Preference (GSP) Plus trade scheme.

The GSP Plus system was devised by the EU to help developing countries boost their economies in return for ar pledge to improve human rights and labour standards by adhering to 27 international rights agreements. The linking of a final trade agreement to human rights issues by the EU is also one of the sticking points in the EU-India FTA negotiations.

The Commissions findings on Lanka reportedly show evidence of police violence, torture and breaches of labour laws, notably the use of underage children. The report focuses on abuses related to the 25-year-long civil war in Sri Lanka between the government and Tamil rebels. The EU says its has found violations of the UN Convention against Torture, UN Convention on the Rights of the Child and UN Covenant on Civil and Political Rights.

The Commission will discuss Mondays report and decide by the end of November whether to propose to EU member-states that they temporarily suspend Sri Lankas GSP Plus status. Any decision is likely to take effect by the middle of next year.

In the event of the preferential tariffs being scrapped Sri Lankan exports would become around six per cent costlier. Sri Lankas textile industry, which makes up 10 percent of Gross Domestic Product and employs upwards of 250,000 people, is particularly likely to be hard hit, leading to large-scale job losses.

In 2008, the EU was Sri Lankas largest export market, accounting for 36 per cent of all exports. Garments earned the country a record $3.47 billion from EU markets and were its top source of foreign exchange.

http://www.business-standard.com/india/news/toyota-enters-korea/373845/

Toyota pushes into Korea

Asian Age

http://www.asianage.com/presentation/leftnavigation/news/business/toyota-pushes-into-korea.aspx

Toyota enters Korea, ups challenge for Hyundai

mint

http://www.livemint.com/2009/10/20225637/Toyota-enters-Korea-ups-chall.html

Toyota enters South Korea

Hindustan Times
Toyota enters South Korea challenges Hyundai

Business Standard

ECONOMY

RE STRENGTHENS FURTHER

The Hindu Business Line

Mumbai: The rupee appreciated by 19 paise against the dollar on Tuesday, buoyed by the greenbacks weakness internationally.

The rupee opened at 46.08 and strengthened to touch an intra-day high of 45.94. It weakened to close at 46.11, against the previous close of 46.30.

The rupee gained in the first half of trade on the back of dollar selling in the market after the greenback weakened against other major currencies in the overseas markets. The bunched up dollar inflows after the long week-end also propped up the rupee, said a dealer with a state-run bank.

However, dollar buying by oil companies after crude crossed $79 a barrel and the correction in the domestic equity markets put pressure on the rupee to give up some of its gains, added the dealer.

In the forward premia market, the six-month premium ended lower at 3.32 per cent (3.37 per cent) and the one-year ended at 3.30 per cent (3.35 per cent).

http://www.thehindubusinessline.com/2009/10/21/stories/2009102150810600.htm

RIL LEADS FALL IN MARKETS; SENSEX DOWN 103 POINTS

PTI

See this story in: The Hindu Business Line

Mumbai: Erasing early gains, the Bombay Stock Exchange benchmark Sensex on Tuesday closed down by 103 points on profit-booking by funds in blue-chip stocks.

The 30-share Sensex settled the day lower 103 points at 17,223.01. The key index touched the day's high of 17,457.26 in continuation of gains in the last two sessions before registering the fall.

The wide-based National Stock Exchange index Nifty fell by 27.35 points to 5,114.45, after rising to 5,181.95. A weak opening in European stock markets fuelled selling among overseas and general investors.

In the 30-BSE index-linked stocks, 18 closed with losses and 12 ended in positive zone.

Reliance Industries, the most valuable and a heaviest on the Sensex, slid the most in more than a month by losing 1.84 per cent to Rs 2,183.85.

Incidentally, the Supreme Court has begun hearing the gas supply dispute case between RIL and Anil Ambani Group company RNRL.

Another heavyweight Infosys Technologies closed down by 0.36 per cent to Rs 2,185.65. The two carry nearly 24 per cent weight on the Sensex.

Stocks in oil and gas, consumer durables, capital goods, healthcare, power, teck, bank and FMCG sectors recorded small to notable losses.

http://www.thehindubusinessline.com/blnus/05201901.htm

ECONOMY TO GROW AT 6-6.5%: MANMOHAN

PTI

See this story in: The Statesman

New Delhi: The Indian economy would grow by 6-6.5 per cent in the current fiscal despite being affected by the global financial crisis and drought in the country, the Prime Minister, Dr Manmohan Singh said.

Our growth rate in the current year will be 6-6.5 per cent. We are the second fastest growing economy in the world (after China), Dr Singh said at the conference of the Armed Forces here.

He said though the country's exports and foreign investments were hit by the global economic problems, the Indian economy had shown remarkable resilience.
Due to demand slump in the Western markets, India's exports have declined by 31 per cent in the April-August period of 2009-10.

With drought affecting more than 50 per cent of the districts, the Prime Minister said it had impacted the most vulnerable sections of our society.
However, the state of the economy compares well, given the fact that the International Monetary Fund projects the world economic activity to contract by 1.4 per cent in 2009.

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=272465

Last Financial closing

Sensex	17,223.01
US$ spot	Rs.46.04
US$	Y.90.3473
US$ 6 months	Rs.48.87
Yen	Rs.0.51
Euro spot	Rs.68.94
LIBOR 6 months	%
Call	%
GOI sec. 10 years	- - - -

Aluminium (per kg)	Rs.
Aluminium Ingot	Rs.
Copper (per kg)	Rs.
Gold (10gm)	Rs.15,890
Lead (per kg)	Rs.
Mild Steel Ingots (Mumbai)	Rs.
Nickel (per kg)	Rs.
Nickel Cathode	Rs.
Silver (1kg)	Rs.27200
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)	$77.01

Automobile

Scip on BSE	Face Value (Rs)	Last traded Value (Rs)
Apollo Tyres	1	54.65
Asahi Ind	1	75.15
Amara Raja B	2	154.95
Ashok Leyland	1	43.85
Bajaj Auto	10	1501.05
Bharat Forge	2	284.90
Denso	10	95
Eicher Ltd	10	- - - -
Eicher Motor	10	516.50
Escorts	10	127.65
Exide Ind	1	107.95
Force Motors	10	181.90
Gabriel India	1	26.60
Hero Honda	2	1661.05
Hind Motors	10	22.65
Hi-Tech Gear	10	93.85
Jay. Bh. Maruti	5	53.10
Jamna Auto	10	57
JK Tyres & Inds	10	158.65
Kinetic Motors	10	25.90
Kinetic Engg	10	96
KOEL	2	129.15
Kirloskar Br:	2	210.40
LML Ltd	10	10.40
L&T	2	1674.20
Lumax Ind	10	170.50
Lumax Tech	10	57
M&M	10	907.95
Maruti Suzuki	5	1545.65
Motherson SS	1	110.90
Minda Inds	10	225.45
MRF	10	6302.50
MICO	10	- - - -
Omax Auto	10	55
Perfect Circle	- - - - - -	- - - -
Rico Auto	1	24.80
Sona Koyo St	2	17.90
SKF Bearing	10	- - - -
SRF	10	219.10
Swaraj Mazda	10	219.95
Tata Motors	10	578.75
TVS Motor	1	61.45

Metals

Scrip on BSE	Face Value(Rs)	Last traded Value (Rs)
Bhushan Steel	10	1394.10
Essar Steel	10	- - - -
Hindalco	1	141.30
Hind Zinc	10	885.45
Ispat Inds	10	24.05
Jindal Iron	10	- - - -
Jindal Stain	2	- - - -
JSW Steel	10	922.75
Jindal Steel	5	701.25
National Aluminium	10	358.35
SAIL	10	194.70
TISCO	10	575.25
Visa Steel	1	41.90

Indian Auto Industry News

Tuesday, October 20, 2009

Indian Auto Industry Update October 21, 2009

CARs,SUVS & MUVs

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Indian Auto Industry Update October 21, 2009

CARs,SUVS & MUVs

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