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| INDUSTRY Tata Motors sales soar 34% in October INTERVIEWS/FEATURES Maruti Suzuki: SX4 redux COMPONENTS Govt to contest EU's probe on steel fasteners ALLIED INDUSTRIES JK Tyre to increase radial supplies to Tata, Ashok Leyland FINANCE & INSURANCE Magma Fincorp to raise Rs 2,000 cr in 6 months OIL, LUBRICANTS & ALTERNATIVE FUELS Oil rebounds above $77/barrel | CARS, SUVs, MUVs Car-makers ride the festive spirit; Maruti sales up 21% Shahid Kapoor gets new Range Rover COMMERCIAL VEHICLES M&M explores passenger variant for Gio Eicher arm may partner Swedish co CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS Bajaj motorcycle sales rise 52 pc in October | |||
 INDUSTRYPTI See this story in: Business Standard (Web & Print Edition) New Delhi: The country's largest auto maker, Tata Motors, posted 34.42 per cent jump in its total sales during October at 53,404 units. The company had sold 39,729 units in the same month in 2008. The homegrown firm's total passenger vehicle sales in the domestic market grew by 17.61 per cent at 20,011 units last month, against 17,014 units in the same month last year, the company said in a statement. However, its exports in October plummeted by 19.91 per cent at 2,852 units, compared with 3,561 units in the same month last year, it added. The 'Indica' range reported sales of 9,640 units, up 2 per cent over October, 2008, the company said. After decline for seven consecutive months, the 'Indigo' family recorded 6.1 per cent growth in sales at 4,899 units, in October over the same month last year. The firm attributed the rise to the launch of Indigo Manza. 'Sumo' and 'Safari' accounted for sales of 2,454 units, a decline of 16 per cent compared with October last year. In the commercial vehicles segment, October sales in the domestic market stood at 30,541 units, compared with 19,154 units sold in the same month last year, up 59.45 per cent. Sales of the company's light commercial vehicles during the month stood at 18,625 units, up 57 per cent, while medium and heavy commercial vehicle sales stood at 11,916 units, a jump of 63 per cent compared with October, 2008. The cumulative sales of passenger vehicles in the domestic market in the first seven months of this fiscal were up 3.16 per cent at 1,18,579 units, against 1,14,943 units in the year-ago period, Tata Motors said. The company's small car Nano reported a cumulative sale of 10,518 units since its launch on July 17. Commercial vehicles' cumulative sales in the domestic market for the fiscal were at 1,92,241 units, a jump of 17 per cent over the corresponding period in the last year. Tata Motors sales soar 34% in October The Economic Times (Web Edition) Tata Motors sales up 34% Deccan Herald (Web Edition) Tata Motors The Statesman (Web Edition) The Economic Times (Web Edition) Getting some respite from the sluggish performance of the last few months, the country's auto majors have reported a significant growth in October 2009. While Maruti Suzuki India, for instance, has posted a 32.45 per cent jump in total sales at 85,415 units in October compared to the same period last year, Hyundai Motor India's total sales for October 2009 stood at 51,736 units as against 46,596 units in October 2008, registering 11% cumulative growth. Maruti's sales in the domestic market grew 21.01 per cent to 71,551 units in October from 59,127 units in the same month last year, while exports rose over two-fold to 13,864 units compared with 5,363 units in the year-ago period. Sales of M800, however, declined by 5.53 per cent to 3,124 units compared to the same period last year. The A2 segment (comprising Alto, Wagon R, Estilo, Swift, A-Star and Ritz) witnessed a growth of 18.43 per cent at 51,437 units compared to the same period last year. Sales in the A3 segment (consisting of SX4 and DZiRE) increased by 62.68 per cent to 8,804 units compared with 5,412 units in the corresponding period last year, the company said. Maruti's passenger car sales in October rose 21.99 per cent to 71,383 units as against 58,515 units in the same month in 2008. Hyundai Motor India's total sales for October 2009 stood at 51,736 units as against 46,596 units in October 2008. The domestic sales grew by 41.4% and accounted for 28,301 units as against 20,009 units in October 2008 while the overseas sales dipped by 3,152 units to 23,435 units in October 2009. Commenting on the company's performance in October, Arvind Saxena, senior vice president - marketing and sales, HMIL, said, "The festive period of the last two months generated strong sales and has given the Indian automobile industry some respite from the sluggish performance of the last few months. Now it looks that this period of strong sales would propel the industry into a positive double digit growth for the remainder of the year. This might be the turning point the Indian automotive industry has been waiting for." Meanwhile the country's second largest two-wheeler maker, Bajaj, also reported a 52.38 per cent increase in its motorcycle sales at 2,49,681 units in October 2009 as against 1,63,850 units sold in October last year. "Bajaj motorcycles grew 52 per cent in October 2009, despite several supply constraints. Bajaj is confident of maintaining this growth rate for the rest of 2009-10," the company said in a press release. BAL's exports went up by 11.88 per cent to 84,012 units in October from 75,092 units a year ago. This was the highest-ever monthly export reported by the company. The Economic Times (Web & Print Edition) Mumbai: Consumers in emerging markets have saved the day for top global auto makers grappling with the after-effects of the steepest fall in global output since the Great Depression. On Monday, Japans Suzuki Motor said that its annual operating profit would be four times more than previously forecast because of strong sales in India, according to a Reuters report. Auto majors such as Suzuki and Hyundai Motors, South Koreas biggest automobile maker, have seen growth buoyed by sales of small car in emerging markets. According to international media reports, Hyundai recorded about 55% of sales from China and India while Toyota saw around 31% of sales coming from emerging markets. Hyundai, the second-largest carmaker in India, exported Santro cars and Accent sub-compacts made in India to over 100 countries, said company officials. Analysts say that small cars have emerged as a source of competitive advantage for these companies, giving them an edge over other big carmakers such as Ford and General Motors (GM), which have taken a hit in numbers. When contacted, RC Bhargava, chairman of Maruti-Suzuki, said: We will produce over one million cars this year and will certainly boost the consolidated balance sheet of Suzuki. A good-performing subsidiary always helps the parent company. Indian advantage Suzukis 50% share in the rapidly-growing Indian market provides it an unusual advantage, at least in the current circumstances, compared to its much bigger rivals like Toyota and Honda who are more exposed to the US and European markets. India makes almost a quarter of Suzukis global production, company officials say. Maruti Suzuki, Indias largest carmaker, also posted a 32% growth in domestic sales at 85,415 units in October 2009. Hyundai Motor Indias total sales for October 2009 stood at 51,736 units, up 11%. Tata Motors and M&M the two largest companies owned by Indian entrepreneurs saw growth rates in excess of 20% in October. Crucially, Tata Motors has seen a smart recovery in sales of commercial vehicles, a bellwether for economic growth. India is the worlds fifth or sixth largest maker of passenger vehicles, depending on definitions. Sales of cars and utility vehicles is expected to be around 1.8 million units for the year ended March 31, 2010. Despite the brisk growth rate in India, they palled compared to the eye-popping 9.6 million units sold in the first nine months of 2009 in China. The sharp contraction of consumer demand in the US has propelled China into the position of the worlds largest automobile market. Government incentives Domestic growth rates have been boosted by Indian governments efforts to combat the fallout of the financial meltdown in the second half of 2008. As a result, taxes on small cars defined according to length and the size of the engine as well as trucks were cut to 8%, the lowest level in many years. This is true for countries worldwide. China has halved taxes on small cars, while developed markets have sought to boost sales by encouraging consumers to bring forward purchases of new cars. The most famous of these is the cash for clunkers programme introduced in the US that encouraged car owners to purchase a more fuel-efficient one by trading in a less-efficient car. Both Germany and France have had similar schemes, popularly known as scrappage schemes. Exports of small cars from India to European countries have benefited from these. However, the expected withdrawal of incentives by fiscally-strapped government means that the future outlook in most of the worlds biggest markets is uncertain. Its doubtful whether these scrappage incentives would switch smoothly into real demand, Suzukis chief executive Osamu Suzuki was quoted as saying in the Reuters report. In India, a fiscally-strapped government is likely, sooner or later, to roll back the excise duty cuts Carmakers are keeping their fingers crossed over sustaining the growth momentum, especially on account of fears that the government may withdraw excise tax incentives. Pent-up demand Industry officials say the jump in demand this year is owing to a pent-up demand, especially since Indian consumers cut spends in 2008. Car sales in 2008 recorded a muted single-digit growth rate in the wake of global financial meltdown that affected buying sentiments. Last month, while Maruti saw a dip of 6% in Maruti 800 sales; Alto, Wagon R, Estilo, Swift, A-Star and Ritz witnessed a growth of 18% at 51,437 units. The festive period of the past two months generated strong sales and gave the Indian automobile industry some respite from the sluggish performance of the past few months. Now it looks that this period of strong sales would propel the industry into a positive double-digit growth for the remainder of the year. This might be the turning point the Indian automotive industry has been waiting for, said Arvind Saxena, senior vice-president - marketing and sales, HMIL. Tata Motors reported a 28% increase at 22,232 units, the highest this fiscal. Ford India and General Motors India also showed significant growth in October 2009. Ford saw a 98% jump in sales at 3,458 units, primarily triggered by growth in Fiesta sales. Riding high on the success of the Chevrolet brand, General Motors India registered a record growth of 15% in sales at 7,413 units in October 2009. For Honda Motors, the phenomenal popularity of the City model resulted in a 347% growth at 6,909 units in October. Growing consumer optimism coupled with an array of new launches by us during the festival season catapulted our sales for the month, said Jnaneswar Sen, VP- marketing, HSCI. Lower interest rates are playing a major role to prompt people to buy new cars. Having cleared most of the inventory, companies currently are ramping up production, said M Sabarad, analysts at Centrum Broking. Two-wheeler sales Meanwhile, Hero Honda the countrys largest motorcycle maker, reported a 0.48% growth in sales at 3.54 lakh units. The countrys second-largest two-wheeler maker, Bajaj, also reported a 52% increase in its motorcycle sales at 2.49 lakh units. Despite several supply constraints, Bajaj is confident of maintaining this growth rate for the rest of 2009-10. Pulsar and Discover have triggered the growth for Bajaj Auto in the recent months, the company said in a statement. This was the highest-ever monthly export reported by the company. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Diwali provides the bang to vehicle sales in OctoberThe Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/11/03/stories/2009110350380200.htm New launches, festivals drive October automobile sales Mint (Web & Print Edition) http://www.livemint.com/2009/11/02230541/New-launches-festivals-drive.html Auto sales vroom 30% on festive spirit Business Standard (Web & Print Edition) http://www.business-standard.com/india/news/auto-sales-vroom-30festive-spirit/375129/ Auto sector keeps momentum in tact The Pioneer (Web & Print Edition) http://www.dailypioneer.com/213094/Auto-sector-keeps-momentum-in-tact.html Automobile sector rides on sales boom The Statesman (Web Edition) http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=273798 Festive boost for auto sales in October The Times of India (Web & Print Edition) http://timesofindia.indiatimes.com/biz/india-business/Festive-boost-for-auto-sales-in-October/articleshow/5190821.cms Vehicle sales zoom in festive zing Hindustan Times (Web & Print Edition) http://www.hindustantimes.com/News-Feed/auto/Vehicle-sales-zoom-in-festive-zing/Article1-471983.aspx Auto sales rev up in October; Honda leads the charge The Tribune (Web Edition) http://www.tribuneindia.com/2009/20091103/biz.htm#4 Festive season puts spring back in sales of cars, scooters Yahoo India (Web Edition) The Indian Express (Delhi Print Edition) http://in.news.yahoo.com/48/20091103/1238/tbs-festive-season-puts-spring-back-in-s.html | ||||
| Rohin Nagrani Business Standard (the strategist) Within the first three months of its launch in 2007, the Maruti Suzuki SX4 had overtaken the then Honda City to become the market leader in its segment. Two years hence, the situation is rather different. The Honda City has recovered lost volumes. And Maruti Suzukis very own Swift Dzire is the leader in the segment. And all of this has been at the cost of the SX4, once the darling of its segment. So what went wrong, and why has Maruti Suzuki re-launched the SX4? There are two stories to the tale. One revolves around meeting the impending Bharat Stage-IV norms beginning April 1, 2010. The other is to infuse life in a car that is being attacked from all sides. So the company has gone ahead and spruced up the interiors, changed the grille and even added the option of a 4-speed automatic to take on the Honda City automatic. Says Maruti Suzuki Executive Officer (marketing & sales) Mayank Pareek: The new SX4 with its range of contemporary features is sure to win hearts. But will it? For starters, the SX4 automatic is priced at Rs 8.02 lakh (ex-showroom, Delhi), while the Honda City is nearly Rs 1.5 lakh dearer. The only other automatic option that comes close is the Hyundai Verna diesel at Rs 8.66 lakh. Given these considerations, the automatic could stand to add some volume to the SX4. So far, the SX4 has been selling at an average of 1,200 units a month, while the Honda City averages around 4500 units a month. So the SX4 still has a lot of catching up to do. But it wont be easy, given the lack of a diesel engine in its lineup. This is where the Swift Dzire has managed to rake in the volumes. Its premium variants have stolen away some of the magic of the entry-level variants of the SX4, while the option of a diesel engine has meant that the Dzire averages in excess of 6,000 units a month. For Maruti Suzuki, the idea of creating two products that deliver great value at nearly similar prices led to the SX4 volumes taking a plunge. The company also doesnt intend to offer a diesel engine option in the near future, since its only diesel engine, the 1.3 Multijet, is being shared between the Swift, Ritz and Dzire, and it cant seem to satisfy demands in these segments. So, until then, it will have to leave the new SX4 to fend for its survival in a segment that will see new launches in 2010 from Volkswagen, Nissan and Toyota. But given Maruti Suzukis strategy to become more visible as more than just a hatchback maker, it will try to give it all to ensure the SX4 can become successful once again. | ||||
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| Sohini Das Business Standard (Web & Print Edition) Ahmedabad: Mahindra & Mahindra (M&M) is all set to expand its newly-launched Gio platform, a 0.5 tonne truck. The company plans to come up with passenger carrier versions and a CNG variant, and is eyeing export markets in the long run. It has first-mover advantage in the segment that has been created with the launch of the Gio, which falls between the Tata Ace and the three-wheeler space. We have been able to offer the product at a very competitive price of Rs 1.65 lakh, merely Rs 25,000-30,000 more than a three-wheeler," said Vivek Nayer, senior vice president, marketing, automotive sector, adding that the net cost of developing the product was only Rs 25 crore. M&M has used in-house tooling technology and the engine has been developed by US-based Kohler. It is now looking at leveraging this cost advantage to address the export market, as well as come up with newer variants on the same platform. Nayer told Business Standard, "We will, however, focus on addressing the domestic demand first". M&M will now produce 2,000 units per month at its Haridwar plant and the capacity can be easily scaled up to 3,000 units per month without additional investments. While the Gio has been developed keeping in mind intra-city transportation requirements, the passenger variant could be positioned for inter-city travel as well, on the lines of the Tata Magic. As of now, M&M hopes to garner market share from both the three-wheeler as well as the light commercial vehicle (LCV) space. "A mini-truck is typically priced at Rs 2.78 lakh, while a three-wheeler costs around Rs 1.38 lakh. According to market surveys, in intra-city travel, the cargo capacity of a one-tonne truck is not always fully utilised and it offers 16-18 kilometres per litre (kmpl), Nayer claimed. M&M is claiming to offer 32 per cent savings in operating costs compared to a mini-truck, as it says Gio will give 27 kmpl, with an optimum-size cargo box of 500 kg. Together, the mini-truck and the three-wheeler market in India is estimated at 180,000 units per annum or 15,000 units per month. Of this the mini-truck sells around 110,000 units and the three-wheeler around 68,000 units. "We are expecting the market to grow by around 10-12 per cent per annum, as well as the Gio giving rise to a new segment altogether," Nayer said. The Hindu Business Line (Web & Print Edition) New Delhi: Eicher Motors Ltd (EML) has informed the NSE that its subsidiary company VE Commercial Vehicles (VECV) is looking to enter into a joint venture with Swedish firm Vinn Group AB in the field of Engineering Design Services.Vinn Group AB is a joint venture between Vinn Group and Volvo Technology Transfer AB (VTT), a wholly owned subsidiary of AB Volvo. VECV would look to align its engineering design services division along with EES Inc, USA and its two subsidiaries in China, c ollectively referred as EES Division. This division currently contributes around 2 per cent of VECVs consolidated revenues and around 1.7 per cent of EMLs consolidated revenues. An MoU for this purpose is being signed between VECV and Vinn Group. | ||||
| PTI See this story in: The Economic Times New Delhi: The country's second largest two-wheeler maker, Bajaj, on Monday reported a 52.38 per cent increase in its motorcycle sales at 2,49,681 units in October. The company had sold 1,63,850 units in October last year, Bajaj Auto Ltd (BAL) said in a statement. "Bajaj motorcycles grew 52 per cent in October, 2009, despite several supply constraints. Bajaj is confident of maintaining this growth rate for the rest of 2009-10," it added. Total two-wheeler sales during the month also increased by 51.06 per cent to 2,49,974 units compared with 1,65,477 units in the same period a year ago, it added. BAL's exports went up by 11.88 per cent to 84,012 units in October from 75,092 units a year ago. This was the highest ever monthly export reported by the company. Total vehicle sales of the company last month stood at 2,80,455 units compared with 1,91,840 units in the same period a year ago, up by 46.19 per cent, the statement said. However, BAL said its commercial vehicle sales were hampered by "production constraints", but did not give any detail. The company sold 127 units of Kawasaki Ninja 250R, which was launched on October 7 in the country. BAL sold 95,139 units of its new 100cc Discover DTS-Si in October. Besides, it also sold 55,413 units of Pulsar. Bajaj Auto 2-wheeler sales up 51% in October The Hindu Business Line Bajaj motorcycle sales rise 52% in Oct Yahoo India Bajaj motorcycle sales rise 52% in Oct The Indian Express Bajaj bike sales up 52% Deccan Herald Bajaj Auto The Statesman PTI See this story in: The Hindu Business Line New Delhi: Two-wheeler maker India Yamaha Motor on Monday said its sales have jumped by 44.40 per cent in October at 26,879 units, on positive consumer confidence and recent launches. The company had sold 18,614 units in the same month last year, India Yamaha Motor said in a statement. It attributed the growth to the success of its various launches, besides the return of consumer confidence. FZ16, Fazer and R15, have received overwhelming consumer response ever since their launch and the same is the case with the new limited editions of FZS, FZ16 and Fazer, India Yamaha Motor Chief Executive Officer and Managing Director, Mr Yukimine Tsuji said. He said the company's special offers during the festive season also contributed to the rise in sales. Besides trying to increase sales, the company is also focusing on its recently introduced 'Yes! Yamaha' campaign to project its brand image. As part of this, it has introduced the concept of Yamaha Bike Station which functions as showroom-cum-facility provider and also sells parts, the company added. India Yamaha sales up 44% in October Deccan Herald Yamaha Motor The Statesman The Telegraph TVS Motor Company has posted a 12 per cent growth in two-wheeler sales of 1,31,029 units against 117,101 units in the year-ago period. The company sold 8,68, 509 units in the current financial year till October 2009 against 1,00,088 units in the corresponding period last year. The Indian Express New Delhi: Ducati Motor Holding, the worlds leading producer of racing motorcycles, announced the opening of its first showroom in the Indian market in partnership with Precision Motor India Pvt Ltd. On the occasion, Cristiano Silei, VP (sales), Ducati said: "We believe India will play an increasingly relevant role in the motorcycle industry and we are pleased to be among the first to recognize it and be and active part of the development in the market We are passionate about promoting and developing Ducati in the Indian market," said Ashish Chordia, Chairman and CEO of Precision Motor India. 'THE NUMBER OF ENQUIRIES WE HAVE GOT FOR OUR BIKES IS PHENOMENAL'': CRISTIANO SILEI,VICE-PRESIDENT (SALES), DUCATI MOTOR HOLDING Swaraj Baggonkar Business Standard Mumbai: While the world tries hard to get out of the 2008 economic slump, India, with its burgeoning class of millionaires, has beckoned renowned automotive companies to launch their latest products here. The latest to come here is the legendary Italian motorcycle maker, Ducati, which is opening its first sales outlet in the country in Worli, Mumbai, with many more slated for the next few years. Swaraj Baggonkar spoke to Ducati Motor Holding Vice-President (Sales) Cristiano Silei on the companys India plans. Excerpts: You unveiled the bikes in May last year, but you are selling them only now... We had decided earlier on that we will not start sales until we have a complete infrastructure in place where we could properly service the motorcycles, as well as sell them. And we wanted to start with Mumbai and Delhi (Gurgaon before year end). What is the response? About 300 enquiries and well over 20 dealer enquiries, and obviously these will be the first people we would be in touch with over the next few weeks. At the time of launch, the global CEO of Ducati said hed be happy if even 50 bikes are sold in a year. At that time, we were entering a market which had no prior statistical history of large motor bikes. The number of enquiries we have got is phenomenal and much more than what we had expected, considering the dealership is not even open yet. I am sure if we would have opened a dealership at that time, we would have sold more than 50 units by now. We will do much more next year. How many dealer outlets do you plan in the next year? We are going step by step, starting with Mumbai. Then Delhi, Hyderabad, Bangalore, Chennai and Kolkata, and after that, other important areas will be targeted, depending on the demand two years later. What products are you launching and at what price points? We are launching five models with multiple variants -- Hyper Motard, Monster, Streetfighter, Superbike and SportClassic. These will be available between Rs 9.66 lakh to Rs 43.36 lakh (ex-showroom). However, we think the Multistrada 1200, to be showcased next month at the Milan Motor Show, will be the perfect bike for the Indian market. You also had component sourcing plans from India? We are sourcing some components from India. We are very satisfied with the business we have done till now and we will look to expand our opportunities. We also have a partnership with Tata Consultancy Services, working on our IT infrastructure support. What is the waiting period on your bikes? Will India have a specific yearly quota, like other premium automakers who also import vehicles here? We are trying to offer the shortest period of waiting time to the customer. Usually it is 3-4 months, but we are trying to shorten that. There will be no quota system for the country, we will bring to India as many as units as the demand. Are you looking to tie-up with any financial institution for facilitating finance? At the moment it is not available but it will certainly come down the road. | ||||
| PTI See this story in: Business Standard New Delhi: The government would contest the claims of European steel product makers that it is subsiding domestic manufacturers and has asked the engineering industry to collect data that would help in defending Indian firms. The European Union (EU) had initiated the anti-subsidy proceedings in August against Indian exports of certain type of stainless steel fastners like screw, nuts and bolts on a complaint by its steel fasteners industry and has asked India to file a reply, an official said. The government has asked the EEPC, the apex body of engineering goods exporters, to collect all the data that would help in contesting the EU's proceedings against Indian firms. "The EU has initiated an anti-subsidy proceeding against export of certain stainless steel fasteners and parts (manufactured by cold forged process or without heating) originating from India," the official said. India's exports of steel fastners to the EU was estimated at $149 million during April-December 2008-09. Anti-subsidy means a subsidy as a financial contribution made by a government which confers a benefit to the producer or exporter. The countervailing duties would neutralise the benefit of such a subsidy. The Hindu Business Line Mumbai: Elgi Equipments Ltd has recorded a profit after tax of Rs 17.3 crore for the second quarter of 2009-10 compared with Rs 12.7 crore in the same period previous fiscal driven primarily by cost control. For the half year ended September 2009, sales grew by 5 per cent from Rs 277 crore to Rs 291.8 crore. Compressor business grew by 8 per cent. The recovery in domestic market is evident in certain sectors and focus on those sectors ensured sales growth, the company said in an announcement to BSE. The company has announced an interim dividend of 75 per cent. | ||||
| ALLIED INDUSTRIES JK TYRE TO INCREASE RADIAL SUPPLIES TO TATA, ASHOK LEYLAND PTI See this story in: The Economic Times Mysore: JK Tyre & Industries is looking to increase direct supply of truck and bus radial tyres to commercial vehicle makers like Tata Motors and Ashok Leyland by three times in next two years. The company, which recently increased production capacity of truck and bus radials to eight lakh units annually, sells only five per cent of it to original equipment manufacturers (OEMs), with the rest going to the after sales market. "In truck and bus radials, our sales to OEMs is only around five per cent of out annual total production. We are now looking to increase the share by three times to 15 per cent within the next two years," JK Tyre & Industries Vice Chairman and MD R P Singhania said. He said the rate of radialisation (changing from the traditional tyres that uses nylon threads to the one that uses steel wire) among truck and bus manufacturers is increasing rapidly and JK Tyre is aiming to tap this market. "Companies like Tata Motors and Ashok Leyland have increased the use of radials and we are hopeful of tapping the market offered by OEMs," Singhania said. He said currently in India, the overall radialisation in trucks and buses is only 10 per cent but the figure is going to increase to 25 per cent within the next five years. In the last fiscal, total commercial vehicle sales in the country were 3.84 lakh units, according to the Society of Indian Automobile Manufacturers. JK Tyre had last week announced plans to further increase its capacity of truck and bus radials to 12 lakh units annually within next two years, from the existing eight lakh units. The additional capacity, part of the company's Rs 1,200- crore investment plan over next 3-4 years, would be made either at JK Tyre's truck and radial plant at Mysore or in its upcoming greenfield project in one of the Southern states. Singhania said radials are increasingly preferred by CV owners as they have longer lifespan, besides offering better mileage, quoting studies by the Pune-based Central Institute of Road Transport (CIRT). "Radials are more expensive than bias tyres but they deliver more than double the mileage of bias tyres. Radial tyres also offer 12 per cent more fuel efficiency than the bias tyres and so ultimately, radials are more economic," he said. JK Tyre to increase radial supplies to OEMs The Hindu Business Line G. Srinivasan The Hindu Business Line New Delhi: The Designated Authority in the Commerce Ministry has recommended the imposition of a definitive anti-dumping duty on imported tyre curing presses, broadly known in trade parlance as tyre vulcanisers or rubber processing machineries for tyres. Tyre curing press is a machine used for curing tyre during its manufacture, where tyres obtain their final shape and tread pattern. Hot moulds shape and vulcanise the tyres. The mould are engraved with the tread pattern, the sidewall markings of the manufacturer and those required by law. After curing, the tyres are removed from their moulds and taken to final finish and inspection. L&T complaint Taking up a complaint lodged by Larsen and Tourbo Ltd, Chennai, which has claimed that there is no known difference between the products manufactured by it and the subject goods exported from China, the petitioner contended that this could have any impact on price, usage and quality on its own product sold in the domestic market. Injury to domestic scene Stating that analysis of the performance of the domestic industry over the injury period reveals that the performance of the domestic industry has materially deteriorated, the Authority establishes the causal links between dumped imports and the injury to the domestic industry on three crucial counts. Firstly, it said, the volume of dumped imports from China has sharply increased at significantly lower prices during the injury investigation period, resulting in significant price undercutting and underselling. As a direct result, the indigenous industry could not hold or increase its prices in line with increase in the cost of production, resulting in financial losses. Secondly, it argued, the increase in import volumes and suppression of domestic prices adversely affected the profits, cash flow and return on investments of the company. Thirdly, significant positive price undercutting led to spurt in market share of imports from China to the dismay of the domestic industry, it said, adding that the domestic industry appears to have responded to the decline in import prices by suppressing its prices and consequently suffered financial losses. Definitive duty Having been convinced of the fact that the domestic industry has suffered material injury, which was caused to it both by volume and price effect of dumped imports from China, the Authority has recommended definitive anti-dumping duty. In deference to the lesser duty rule, it has plumped for definitive anti-dumping duty equal to the lesser of margin of dumping and margin of injury so as to remove the injury to the indigenous industry. It further held that there is a significant differentiation of the product in terms of its capacity and prices and hence a duty in terms of reference price or fixed duty would not be appropriate in this case. Accordingly, the Authority recommends imposition of the measure as an ad valorem duty, to be worked out as a percentage CIF (cost, insurance and freight) value of imports of the subject goods from China. The anti-dumping duty hence is 10 per cent of CIF value of tyre cutting presses all sizes up to 130 if they are exported from China, even if the exporter and producer are from different countries and including all those exporters and producers from China. | ||||
| Business Standard Kolkata: The company would raise the funds through bank loans, debentures, bonds and securatised papers, said Sanjay Chamria, vice chairman and managing director, Magma Fincorp on the sidelines of a press conference here. The company posted 39 per cent rise in net profit for the quarter ended September 2009 at Rs 15.75 crore, against 11.28 crore in the same period last financial year on a consolidated basis. The profit was driven by increased disbursals in high-yielding segments like tractor, small and medium enterprises and used commercial vehicles, said Chamria. Due to increased yields in the high-yield segments,we were able to maintain net interest margin (NIM) of more than five per cent in the quarter, against an average of 3.6-3.8 per cent last year, he said. The contribution of the three segments increased from eight per cent last year to about 13 per cent in the quarter under consideration. Even in the four core segments, our NIM was about four per cent, and so we have been able to reduce the cost of funds. We want to increase the contribution from the three high-yielding segments to 15 per cent by the end of the financial year, said Chamria. The yields in the high-yield segments varied between 18-21 per cent, against about 14 per cent in the core segments. In the second quarter the company disbursed Rs 892 crore, against Rs 876 crore in the same period last financial year, showing a marginal increase of about one per cent. Over the Q1 of 2009, the disbursals increased by 21 per cent. The company recently signed a joint venture agreement with HDI Gerling, part of the Talanx Group, to form Magma HDI General Insurance Company Limited. The new insurance company has applied to the Insurance regulator IRDA for necessary licenses to commence operations, and is expected to be functional by the first half of the next financial year. | ||||
| Agencies See this story in: The Hindu Business Line Mumbai: Oil rose above $77 a barrel on Monday, retracing some of the previous sessions 3.6 per cent drop, as bullish manufacturing data from China helped to allay fears about the pace of the rebound in global energy demand. US crude for December delivery rose 28 cents to $77.28 a barrel by 0258 GMT, after settling down $2.87 at $77 a barrel on Friday. London Brent crude rose 40 cents to $75.60. The yen rose to two-week highs while the US dollar clung to gains on Monday as jittery investors cut back long positions in growth-linked currencies. http://www.thehindubusinessline.com/blnus/05021001.htm | ||||
| Kevin Krolicki and Michel Rose/Reuters Yahoo India Detroit/Paris: Ford, Renault, Peugeot, Toyota and BMW signaled on Monday that the automotive sector is stabilizing, but most stopped short of predicting a rebound next year. Ford Motor Co surprised Wall Street with a quarterly profit and raised its 2011 outlook to "solidly profitable". The U.S. automaker said the third-quarter results were helped by cost cuts, improved credit results and increased North American market share. Ford executives are optimistic about next year, but acknowledged the near-term uncertainty. "We're just not sure mainly about the strength of the recovery, just like everybody else," Ford Chief Executive Alan Mulally said on a conference call. At the Reuters Auto Summit in Paris, Renault SA and Peugeot SA said they see a strong end to 2009 as drivers flock to take advantage of government incentives to trade in old cars. However, they agreed that questions remain about 2010 with sales slumping as much as 10 percent. At the summit in Detroit, Toyota Motor Corp's U.S. brand chief, Bob Carter, said a gradual recovery for the industry was taking shape, with total U.S. industry sales seen rising 4.8 percent or more next year to more than 11 million. "We believe the bottom of the cycle occurred in the first two weeks of April," he said. "In the month of September and closing out October, we see ourselves back on the slow and steady improvement track." Jim O'Donnell, president of BMW North America, also said U.S. industry sales would be close to 11 million units next year, but that was down from the 11.5 million he had expected as recently as September. "It will be a slower recovery than I had originally anticipated," he said. "There is still a lot of consumer debt out there. That is keeping the average consumer from going out and making big purchases." Group 1 Automotive's CEO, Earl Hesterberg, said he saw no signs of a rebound in consumer confidence and held "no significant optimism" for U.S. vehicle sales in November and December. He called 11 million units a reasonable U.S. sales forecast for 2010. Meanwhile, Jerry York, a former General Motors Co director, said he saw U.S. auto sales remaining flat next year. "I just can't fathom anything that's going to cause a material increase in auto sales in this country in 2010," he said. Still, more optimism is circulating in the auto world. Penske Automotive Group Inc said on Friday it had received offers from foreign automakers to sell their brands in the United States through Penske dealerships. Automakers in the U.S. market are set to report October sales on Tuesday. Analysts expect the strongest results of 2009 excluding July and August, when sales received a boost from the U.S. government's "cash for clunkers" trade-in incentives. However, doubts still remain about the speed and strength of any recovery. Not all the news has been good for Ford. The United Auto Workers union overwhelmingly rejected proposed concessions Ford has said it needs to stay competitive. Ford is the only large U.S. automaker to avoid bankruptcy in 2009, but it posted losses totaling $30 billion from 2006 through 2008 and remains saddled with a much heavier debt load than GM or Chrysler. The UAW also is trying to convince Italian automaker Fiat SpA to reverse plans to close Chrysler plants scrapped in the U.S. automaker's bankruptcy. Fiat, which assumed control of Chrysler when it emerged from bankruptcy in June, is due to announce a new five-year strategic plan for the ailing Chrysler on Wednesday. Agencies See this story in: The Economic Times Montreal: Ford workers approved a cost-cutting agreement with management that includes shutting down a manufacturing plants in Canada in 2011, a move that will cut 1,500 jobs, the Canadian Auto Workers union said Sunday. "No one should mistake workers' approval as satisfaction with the new agreement," CAW President Ken Lewenza said after the agreement passed with 83 per cent of the vote. "Members had faith in the union to negotiate the best agreement possible and protect their interests over the long term, but the problems faced by industry cannot be resolved at the bargaining table," Lewenza added. Besides the loss of some 1,500 jobs at the Ford plant in St. Thomas, Ontario, that will close in the third quarter of 2011, the October 30 deal also includes a reduction in vacation, break times and co-payments on health care. The agreement, which expires in September 2012, includes a commitment by the US automaker to keep at least 10 per cent of its North American production in Canada. No estimates were provided on the savings the cost-cutting agreement will entail. The deal is the second cost-cutting agreement reached between the CAW and Ford in 18 months. Although Ford did not accept bailout money from the US government like Chrysler and General Motors did, the CAW said Ford followed the pattern set out earlier in the year by its US rivals to cut significant portions of their Canada operations as part of restructuring. In their deals, GM and Chrysler workers accepted 16-dollars and 19-dollars-per-hour pay cuts respectively. Chrysler and GM both filed for bankruptcy and received billions of dollars in US government aid. Canada's government also pumped billions of dollars into the companies as part of packages to keep their auto manufacturing operations here afloat. The St. Thomas plant produces the Ford Crown Victoria -- a model routinely chosen by US police forces and New York taxis -- as well as the Mercury Grand Marquis. Ford posts profit of $997 m Deccan Herald Ford profit The Telegraph Ford posts billion dollar profit in third quarter Bloomberg See this story in: The Financial Express Ford Motor Co, the only major US automaker to avoid bankruptcy, posted a $997 million net income in the third quarter and its first operating profit since early 2008. It expects to be solidly profitable in 2011. On an adjusted basis, Ford reported a quarterly pretax profit of $1.1 billion, or 26 cents a share, compared with a year-earlier loss of $3 billion or $1.32. Ford beat the 20-cents per share adjusted loss it was forecast to report by an average of 11 analysts surveyed by Bloomberg. Chief executive officer Alan Mulally, who kept Ford out of Chapter 11 as General Motors Co and Chrysler Group LLC reorganized, is trying to extend sales momentum the Dearborn, Michigan-based automaker built by avoiding a bailout. It posted its first consecutive quarterly net profit under Mulally on Monday. Ford is a company thats well into a turnaround, said Bernie McGinn, president of McGinn Investment Management of Alexandria, Virginia, which owns about 320,000 Ford shares. They did it by themselves and didnt take government money. That gives people a good gut feeling and theyre being rewarded for that. The company reported a quarterly net profit of 29 cents a share, compared with net loss of $161 million, or 7 cents, a year earlier. Ford had positive automotive cash flow of $1.3 billion compared with cash consumption of $1 billion in the second quarter. In the year earlier quarter, Ford used $7.7 billion. Ford finished the third quarter with $23.8 billion in automotive cash, up from $21 billion at the end of the second quarter. Automotive revenue rose $100 million from a year ago, while third-quarter sales fell 2.5% to $30.9 billion as Ford boosted North American production by 18% during the period. The average estimate for total revenue was for $28.5 billion, according to 8 analysts surveyed by Bloomberg. Ford will end the year with $18.2 billion in automotive cash, said Barclays Capital auto analyst Brian Johnson, who upgraded the shares Oct 20 to equal weight from underweight. With improving performance, we continue to expect Ford to meet its minimum cash need through 2011, wrote Johnson, who is based in Chicago. Ford posts profit on cost cuts, clunkers The Hindu Business Line Ford posts profit in third quarter Mint Ford reports surprise $1 billion profit in Q3 Reuters See this story in: The Economic Times Detroit: Toyota Motor Corp expects industry-wide US light vehicle sales to range between 10.3 million and 10.4 million units on an annualized basis in 2009, and top 11 million in 2010, the automaker's US brand chief said on Monday. Speaking at the annual Reuters Autos Summit, Bob Carter also said he expected October U.S. industry-wide vehicle sales to come in between 10.3 million and 10.5 million units on an annualized basis. Toyota's overall sales for the month are pacing down slightly from a year earlier, with its retail sales down "a few single-digit percentages," he said. Automakers are expected to release October U.S. sales figures on Tuesday, when analysts expect to see the strongest results of the year with the exception of July and August, when vehicle sales received a short-lived boost from the U.S. government's "cash for clunkers" trade-in incentives. Auto sales, a key measure of consumer demand, have been hurt in the past year as customers tightened purse strings amid a weak economy. The economic meltdown came on the heels of already-weakening vehicle demand amid record-high gasoline prices last year. "We are seeing some mild but steady progressions," Carter said of demand for U.S. vehicles. "In the month of August, with the government stimulus and 'cash for clunkers,' that gave the industry a shot in the arm." This, he added, created inventory shortages across the industry. "In the month of September and closing out October, we see ourselves back on the slow and steady improvement track." Carter said Toyota has slowly built its inventory, from 73,000 units in August -- its lowest levels since 1992 to about 150,000 units at present. He said the automaker would move close to 200,000 units by year-end and would continue building its stock next year. He said an optimal dealer inventory range would be 220,000 to 225,000 units as the automaker heads into the winter season. The Hindu Business Line Tokyo: Japan's domestic sales of new cars, trucks and buses rose 12.6 per cent on year in October, marking the third straight monthly increase, an industry body said on Monday. Sales in October totaled 263,506 vehicles, the Japan Automobile Dealers' Association said. The 12.6 per cent increase in October marks a big jump, compared with a 3.5% growth in September and a 2.3% rise in August, as government subsidies and tax breaks provided to spur fuel-economy cars continue to boost domestic sales. Auto sales, as measured by registrations of vehicles with the government, are closely monitored by economists as they are the first consumer spending numbers released each month. The figures don't include sales of mini-cars or mini-trucks. See this story in: Yahoo India Japanese tyre maker Bridgestone Corp said on Monday it would quit Formula One next year, dealing a further blow to the sport after the recent withdrawal of other high-profile firms due to the global downturn. Bridgestone said it would end its contract as the official tyre supplier to the FIA, raising questions over who would replace it after French rival Michelin pulled out in 2006 and US maker Goodyear left in 1998. "Bridgestone has announced that it will not enter into a new tyre supply contract with the FIA Formula One World Championship series," the Tokyo-based tyre and rubber industry giant said in a statement. The move comes after Toyota Motor pulled out of hosting the Japanese Grand Prix, while Honda has sold its team as the companies struggled to fight off the global recession. There have also been casualties in other motor sports. Bridgestone has supplied tyres to F1 for 13 years and has been the exclusive supplier to the series since 2007. Its current contract expires at the end of the 2010 season. Bridgestone, battered by a global auto industry slump amid the economic downturn, said it was "addressing the impact of the continuing evolution of the business environment." Bridgestone, which vies with Michelin to be the world's top tyremaker, posted a net loss of USD 420 million for January-June, a turnaround from a year-earlier profit of 37.24 billion yen. Last month Bridgestone said it would shed nearly 900 jobs in Australia and New Zealand as it closes plants amid the worldwide slump in demand for cars. Toyota Motor in July pulled out of hosting the Japanese Grand Prix at its Fuji Speedway circuit from next year. Honda has sold its Formula One team while Suzuki and Subaru have withdrawn from the world rally championship. Motorcycle maker Kawasaki has exited the MotoGP and Mitsubishi is quitting the Dakar Rally. The Japanese tyremaker, which also makes industrial rubber and chemical products and sporting goods, said it would redirect its resources toward new technologies and strategic products. "The business environment is changing greatly," company spokesman Makoto Shiomi said. "We need to concentrate our management resources on strategic areas and technological innovation," he said, adding that one of the priorities would be development of more environmentally friendly products. Shiomi said that Bridgestone was "not in a position to judge" which company would be the next official tyre supplier for Formula One. Bridgestone says on its website that in 2009 it made about 40,000 Formula One tyres for 10 racing teams in its factory in Kodaira, a western suburb of Tokyo. It also says online that its F1 exposure has boosted its brand recognition over the years. "In 1996, Bridgestone's brand recognition in Europe's five largest countries was 13 per cent, but by 2003 it had risen to 34 per cent," the company says. "In recent years the arrival of Bahrain and China to the F1 championship has enabled Bridgestone to increase its activity in the Middle East and Far East." | ||||
| ECONOMY The Hindu Business Line Mangalore: The Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, has expressed the hope that the countrys growth will be 7-8 per cent in 2010-11. Delivering the convocation address at Manipal University at Manipal on Monday, Mr Ahluwalia said that in the first year of the crisis, Indias growth slowed down to 6.7 per cent in 2008-09. In the current year 2009-10, we are battling the combined effect of the continuing global slowdown and a truly unusual drought. We expect the growth in the current year to be around 6.5 per cent, he said. While this growth is distinctly lower than in the pre-crisis years, it is actually better than what the country experienced in 10 years from 1992 to 2002. In fact, the country has performed much better than most other countries. Indeed India is the second fastest growing country in the world after China. We hope to do much better in 2010-11 when the world will be on a path to recovery and we will have the beneficial impact of a normal monsoon. Our growth rate should be back somewhere between 7 and 8 per cent in 2010-11, he said. India is well poised to achieve steady growth at around 9 per cent or so per year for an extended period of time. Highlighting the implications of the 9 per cent growth, Mr Ahluwalia said if GDP grows at 9 per cent and population grows at 1.5 per cent then per capita GDP will grow by 7.5 per year. Change in per capita income brings with it all manner of structural change. New demands are generated and new products come into play and with them new technologies. Growth in per capita income is more important than mere GDP growth, he said. He urged the students to devote at least some of their working life to serve in the government sector. As the country develops, the role of the Government will also increase though in a very different way from the role it performed in the past. To perform its increasingly complex task, the Government whether at the Centre or the State will need skilled personnel with a diversity of experience, he added. | ||||
Sunday, December 13, 2009
Indian Auto Industry Update November 03, 2009
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