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| HEADLINES Thursday November 12, 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Festival, lower rates push car sales to three-year high Auto sales zoom in Oct Auto sales fuel hopes Automakers get rail freight sop till Jan Bengal ideal for auto sector: CII INTERVIEWS/FEATURES COMPONENTS Bajaj may supply 80% of parts for low-cost car JV ALLIED INDUSTRIES Apollo Tyres to up capacity by 50% FINANCE & INSURANCE Mahindra co, Syndicate Bank tie up to offer pre-owned car loans at 9% OIL, LUBRICANTS & ALTERNATIVE FUELS Ethanol-laced petrol plan hits roadblock | CARS, SUVs, MUVs Car sales zoom 34% in October Honda looks to India, China; no plan for Nano rival COMMERCIAL VEHICLES Truck rentals on the upswing Delhi ponders bullet-proof buses for 2010 guests CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS Bullet classic thumps in! INTERNATIONAL NEWS Ford Europe sales rise 13 pc in October ECONOMY & FINANCE Rupee ends up | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 INDUSTRYThe Economic Times (Web & Print Edition) New Delhi: Vehicle makers are high on an October fest that saw car sales clocking a three-year best during the month while commercial vehicles managed a 54% jump on-year, thanks to an extended festival season and an uptick in cargo transfers brought about by steadily rising factory output. Car sales clocked a 34% jump on-year to sell 132,615 units while 42,562 light and heavy trucks rolled out of showrooms, according to data released by industry body the Society of Indian Automobile Manufacturers (SIAM). Truck sales, which had been in the red for most part of the year, had started showing signs of growth in July, but the October performance has brought fresh cheer to policy makers who count it as a key indicator for improved industrial activity. Customers across rural and urban markets came out in large numbers to buy cars. We witnessed unprecedented demand for all models in October which is expected to flow for the next few months, a senior Maruti executive office said. Indias largest car maker Maruti Suzuki posted a 21% rise in sales to 63,365 vehicles over October 2008, while South Korean car maker Hyundai Motor car sales rose 41% to 28,301 units. Tata Motors sales went up 24.52% to 17,557 units last month from 14,100 units in October last year. October is also the ninth straight month of growth in car sales. Car sales has been on the high double digit growth trajectory posting 21% increase in September, 26% in August and 31% in July. As a result, 12 of the 16 car makers in India posted higher sales last month over October last year. Analysts tracking the industry say demand is expected to continue to show up in sales in the next few months. There has been strong indicators of demand from all the major segments of vehicles. While car sales are expected to remain firm for the rest of the fiscal, the demand for trucks and buses are also firming up which is expected to catapult the industry into a high growth trajectory, Vaishali Jajoo, auto analyst with Mumbai-based brokerage firm Angel Broking said. India is the second fastest growing car market that holds out hope for global automakers. Car sales grew 17.4% to 8.21 lakh units in the April-October period even as major global markets like the US, Europe and Japan remains flat or have seen decline in sales in the same period. On Sunday, Carlos Ghosn, chief executive of the Renault-Nissan alliance, had projected that the Indian car market is likely to triple in the next 10 years from the 2 million units at the end of the current fiscal year ending March10. As per the SIAM data, motorcycle sales in October rose by 14% to 6.1 lakh units last month from 5.35 lakh units in October 2008. In the same period the total vehicle sales across commercial vehicles, cars and two wheelers grew 16% to 10 lakh units. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Business Standard (Web & Print Edition) New Delhi: big surge in the sales of passenger cars and medium and heavy commercial vehicles (M&HCVs) raised domestic vehicle sales in October to 1,000,760 units 15.62 per cent higher than the 865,566 units sold in the same month last year. According to the Society of Indian Automobile Manufacturers (Siam), this was a continuation of the double-digit sales growth posted by the industry since April this year. The only exception was the month of September, when overall sales growth slowed to 7.67 per cent. Octobers healthy sales growth for the overall automobile industry came on the back of record double-digit growth of 33 per cent for passenger cars and 11 per cent in the sales of two-wheelers. A positive sales growth notched up by the M&HCV segment (large trucks in the goods carrier segment) for the third continuous month also helped the industry. This segment, which posted a positive growth of 1 and 3 per cent in August and September respectively this year, grew by a whopping 64.14 per cent in October after the industry sold a record 16,048 vehicles last month. Total sales of commercial vehicles, including light CVs (LCVs) in the goods and passenger segment, grew 52 per cent to 42,562 units last month. The increase in infrastructure spending by the government also helped sales. Siam Senior Director Sugato Sen said the growth would be maintained in the coming months, especially when the new emission norms are enforced in April 2010. Vehicle sales for October were also aided by the sales of large buses, whose year-on-year sales since May this year had been declining. October sales of large buses grew 64 per cent to 3,294 units. Industry analysts put down the higher bus sales a record 3,294 units in October to the JNNURM scheme introduced by the government with the aim of providing better public transportation in cities. Of the 15,000 buses allocated under the scheme, orders have been placed for 12,000, with 1,500 buses delivered so far. The overall sales for the automobile industry, apart from other factors, has come primarily from good sentiments in the domestic market and overall economic growth, research agency IDFC-SSKIs Vice-President S Ramnath said. Domestic sales of cars and utility vehicles for October grew 33 per cent, after the industry sold 168,043 units the highest sales figure posted since this April. This is also a continuation of the double digit-growth posted by car manufacturers since July. The growth for October comes primarily on the back of festival demand, Maruti Suzuki Chief General Manager (Marketing) Shashank Srivastava said. October sales of two-wheelers grew by 10.6 per cent to 750,229 units. According to industry executives, the October growth looked subdued, since, at least in two-wheelers, last year constituted a high base. Sales of three-wheelers for October grew 21 per cent to 39,925 units of both goods and passenger three-wheelers. Going forward, industry executives said growth could slow down on two counts. To make recovery sustainable, the fiscal stimulus has to be continued beyond this financial year, Sen said. Also, vehicles sales could get impacted if the shortage of tyres is not addressed. There is an acute shortage of tyres in the country. Vehicle OEMs (original equipment manufacturers) are forced to cut back on production, another executive said. October car sales the highest in two years The Financial Express (Web & Print Edition) http://www.financialexpress.com/news/october-car-sales-the-highest-in-two-years/540289/ Vehicle sales increase 15% in October The Hindu Business Line (Web & Print Edition) http://www.thehindubusinessline.com/2009/11/12/stories/2009111251920200.htm Motown cruises on festive demand, discounts Daily News & Analysis (Web Edition) http://www.dnaindia.com/money/report_motown-cruises-on-festive-demand-discounts_1310415 October car sales the highest in two years Yahoo India (Web Edition) http://in.biz.yahoo.com/091111/50/bauk2h.html October car sales zoom by 34%, the highest in 2 years Hindustan Times (Web & Print Edition) http://www.hindustantimes.com/News-Feed/auto/October-car-sales-zoom-by-34-the-highest-in-2-years/Article1-475391.aspx Domestic car sales jump 34 pct in Oct The Indian Express (Web Edition) http://www.indianexpress.com/news/domestic-car-sales-jump-34-pct-in-oct/540102/ Car sales in top gear Jump 34 per cent in Oct The Tribune (Web Edition) http://www.tribuneindia.com/2009/20091112/biz.htm#4 The Telegraph (Web Edition) New Delhi: New models and the festival season have jacked up car sales by 34 per cent in October, indicating strong recovery. Commercial vehicle sales, too, shot up 52 per cent According to data of the Society of Indian Automobile Manufacturers (Siam), car sales stood at 1,32,615 units in October, the seventh consecutive month of growth, compared with 99,052 units in the same month a year ago. Motorcycle sales in the month rose 14.22 per cent to 6,11,828 units from 5,35,642 units in October 2008. The upward march began in July after 11 months of slump. Sales of commercial vehicles jumped 51.90 per cent to 42,562 units in October this year from 28,019 units in the year-ago period. Experts say demand is expected to be strong in India, Asias third largest market, as delivery orders are pending, despite companies operating at optimal capacities. There are clear signs of robust demand by customers as delivery orders are pending for weeks. Continuation of excise duty benefits will always be a great help for the industry but even without that the industry will sell good numbers, said auto analyst Murad Ali Baig. Maruti Suzuki India, the countrys largest car maker, has a waiting period of six-eight weeks for its sedan Dzire and hatchback Swift. The waiting period for Honda sedans Civic and City is five weeks and six weeks, respectively. Last October, car sales in India declined 6.5 per cent year-on-year. Auto makers report sales based on units shipped to dealers. Ashutosh Kumar Daily News & Analysis (Web Edition) New Delhi: The Railways has decided to exempt automobile freight from busy-season and terminal charges till January 2010. The move is aimed at bringing back the automakers that had started using non-railways modes to transport products. The exemptions will be applicable on both passenger vehicles as well as two-wheelers carried by the railways. "With the withdrawal of the exemptions, there was a marked decline in the traffic as the cost for the customer rose. Automakers then started moving to alternative modes of transport like road. The continuation of exemption is aimed at bringing back the consumers," said an official close to the development. Busy season charge of 7% is levied for nine months, from October to July. Terminal charges, used to finance upgrade of terminal infrastructure, account for another 20% of the total freight cost. The discounted rates for auto traffic were first introduced by the Railways in August 2008 as a pilot project for a year or until new-design rakes are inducted. However, as per ministry officials, new rakes have not yet been inducted. Amongst the concessions provided was a 25% concession on freight rates for a year and exemption from charges and surcharges for the first six months. With the slowdown gripping the auto segment, in February 2009, the exemption from charges was extended for another six more months, till August 19 this year, when the concessions were withdrawn. Rail freight is calculated using a dynamic pricing policy, a system of arriving at freight rates as per market forces and revenue target. The Railways uses modified double-decker wagons to transport automobile traffic. The Hindu Business Line (Delhi Print Edition) Kolkata: Study conducted by the Confederation of India Industry (CII) and PricwaterhouseCoopers has suggested that West Bengal, with support from Centre and the State Government in attracting investment to the tune of $6-7 billion (Rs 30,000-35,000 crore), may capture 10 per cent of the countrys automotive sector business in 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The Hindu Business Line (Web & Print Edition) Bangalore: That the economy is inching towards positive growth and stability is reflected not only in the continuous upswing in truck rentals in October, but also in the rise in truck sales. Trucking trade has been seeing an improvement since April when agriculture commodities helped in the recovery of rentals, while, the manufacturing sector, which hit the double figure in the last month, after inching in single figure since the economic slowdown last September, helped it neutralise the impact of lower agri-commodities movement. According to the monthly report of the India Foundation of Transport Research and Training (IFTRT), rentals on major trunk routes rose 4-5 per cent during October 8 to November 7, while truck sales itself hit a positive growth at 59 per cent, on a lower base of 12,335 during the period in 2008. Growing demand from the manufacturing sector which provides 70 per cent of the freight load to the trucking industry has pushed up the rentals from a minimum of Rs 1,200 a round-trip to Rs 23,500 a round trip to a maximum of Rs 3,400 a round trip to Rs 67,000. However, agriculture commodities fruits, vegetables and pulses played spoil sport this time due to depressed monsoon resulting in lower production and hoarding. Good arrivals of summer fruits and vegetables and wheat procurement in April led to the surge in truck rentals on an average by five to six per cent. A drop in the truck fleet also aided the increase in rentals during the period. However, the current increasing trend is attributed to the steady demand growth for movement of freight from manufacturers. . The increase in truck sales owes itself to the improvement in the infrastructure sector and mandate for a countrywide adherence to the emission norm of Euro III from April, 2010. Also, lower interest rate which was a five per cent reduction to 11.5 per cent in the last three months fuelled the growth in sales of commercial vehicles, said IFTRT. New Delhi: The Delhi Government is pulling out all stops to ensure that all security measures are in place in the run-up to as well as during the mega-sporting event in the Capital next year. Jittery about providing security to the sportspersons and delegates of the 2010 Commonwealth Games, Delhi Government is now seriously considering purchasing or leasing bullet-proof luxury buses to make them travel across the city, safe and secure. A high level meeting was held at Chief Secretary Rakesh Mehta's office on Wednesday on this issue. Interestingly, India does not have bullet proof buses. It would be pertinent to mention that Delhi Police had earlier written Delhi Government and Ministry of Home Affairs to purchase bullet proof luxury buses or rent them from the other countries to provide foolproof security to players and delegates coming during the 2010 Commonwealth Games. The request was turned down by the Government. Insiders say that several Commonwealth countries that include Australia, Britain and Canada have reportedly requested New Delhi to provide bullet proof buses to their players and delegates. Now, keeping in view of increasing incidents of terrorism across the world, the Delhi Government is also considering reviving the proposal. After the meeting, Chief Secretary Rakesh Mehta has directed DTC Managing Director Naresh Kumar to explore whether Tata Motors could provide bullet proof luxury buses for 2010 Commonwealth Games. The dilemma of Delhi Government is that they don't have manufacturers in the country of bullet-proof buses and if they decide to purchase such buses, their expenditure will shoot up. Sources said that the Government is also working on to get such buses on lease from other countries during the Games. According to sources, the Government can not purchase such buses from any manufacturers of the world. After the Asian Games of 1982, Delhi will host its biggest sporting event. For the Commonwealth Games in the Capital there are 23 sporting, 32 training and seven non-sporting venues. Each venue will have its own security parameters. There can be no comparison between the Jawaharlal Nehru Stadium and the Thyagaraja Stadium on the level of security required. The Commonwealth Games Village near the Akshardham Temple will have a capacity to accommodate 8,000 sportspersons and officials. To keep each venue well fortified, the Electronics Corporation of India Limited, a Government body, is installing electronic surveillance like CCTV, door frame metal detectors and hand-held metal detectors. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sopan Sharma The Economic Times, Zigwheels Royal Enfield has launched its retro thumper, the Bullet Classic. The bike that harks back to Enfield's classic British motorcycle design has been launched with two engine options. The Bullet Classic 350 will come fitted with the same engine that was seen on the Thunderbird TwinSpark, with unit construction and a carburetor. The variant will cost Rs 98,000 ex-showroom Delhi. Accompanying it will be the Bullet Classic 500, which will come fitted with RE's internationally available 500cc fuel-injected unit construction engine. The Bullet Classic 500 has been priced at Rs 1.24 Lakh, ex-showroom Delhi. The design of the bike will be its obvious USP, with its simple and sensuous lines, and that smartly upswept exhaust. Vintage bike cues abound on the Classic, with its spring loaded split seat, thigh pads, headlamp hood and old Royal Enfield graphics on the tank. Modern elements that will add to the practicality of the bike are present too, like the gascharged shock absorbers. A shift from 19-inch wheel to 18-inchers will also allow riders to choose from a larger variety of aftermarket tyres. The once sprawling Royal Enfield product portfolio has grown really lean over recent times, with just three key models - each with a very specific USP - using which the company is covering most classes of buyers with a fair bit of efficiency. The Standard 350 takes care of RE's rural fanfollowing, the Electra 5S offers a more reliable and user-friendly urban option and most recent Thunderbird Twinspark caters to the more affluent and style-aware market. The new Bullet Classic will occupy a pretty special place in the portfolio - at the top. And it helps that the Classic is no sticker-paint-facelift job - it is a properly new motorcycle not only in terms of its design, but also its technology and most importantly, its appeal. It must be mentioned that the bike marks a spiritual return of the England-born Chennai-based firm to the classic and upright Brit-bike design. After the company's pursuit and capture of the stretched-out cruiser market first with the Thunderbird and then the revamped Thunderbird TwinSpark, the stance of the Classic will definitely appeal to oldschoolers, retro-lovers, if not the cruiser appreciating baby-boomers. After garnering appreciation for the modern 350cc dual-spark plug engine used on the Thunderbird Twinspark, the new Bullet Classic goes one step further and offers the same unit-construction advantages in a more powerful and torquier 500cc package, with the added bragging rights of electronic fuel injection. We'll know more about how well the modern engine manages to retain the Enfield old-school charm once we test the bike, but for now it will be the only 500cc motorcycle in India. Royal Enfield has brought the Bullet Classic before a crowd already fraught with a loyal fan following. In terms of product development, the move is bold because the bike brings with itself the same levels of quality that international markets have been enjoying all this while. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" The Economic Times, Zigwheels Boot Camp. Two words that cause you think about a hard day of running around with a very strict sergeant yelling orders. Fun, would not be a word associated with Boot Camp, however if you happen to be Harley-Davidson, then the entire subject takes a sharp U-turn and what you have is an event that is educational and fun. Held recently in Delhi, the first Harley-Davidson India Boot Camp was an insight to the 2010 range of Harley-Davidson bikes that are destined for the country next year. The Auto Expo will be the platform for the US bike manufacturer to announce their range as well and the much awaited pricing of these bikes, but that is still a couple months away and here at the Boot Camp, I was itching to get on a Harley-Davidson for the first time in my life! The educational program walked the group through the different Harley families, namely the CVO, Touring, VRSC, Softail, Dyna, and Sportster models. Each bike is a unique statement towards style, beauty, form and function. If you have ever laid your eyes on a Harley-Davidson, you'll know exactly what I'm talking about. It's that swelling up feeling that builds from deep inside you, the desire to just be able to pilot one of these machines, and of course to be part of a cult that has over a million followers! Incidentally Harley-Davidson has over 31 models that belong to one of these families, however in India we will see a smaller range initially and hopefully as the popularity of these bikes grow, the entire range should be made available. With the bike 'gyan' session over, it was time to don those leathers and get on a bike! For many who attended, this was the first time on a Harley-Davidson, and the bikes can instill a little fear in your heart, especially if you are a new biker and have relatively no experience on big bikes whatsoever. Such was not the case with me, with helmet firmly on, I walked right up to the bike that I think will be Harley's bestseller in India from the Dyna range, I speak of the FX Super Glide. This bike is probably the most popular Harley-Davidson model amongst bikers, including outlaw bikers! Its got a neat cruiser-sport stance, wide handlebars, a nice V-twin snuggly fitted in, sits low and gives out the vintage 'potato, potato, potato' exhaust note. The large engine is mated to a 6-speed gearbox and if you wanted to feel like a true rockstar, this bike will do that for you. A gentle press on the start button and the engine roars to life. Just the sound of the motor is good enough to get the adrenaline pumping and soon I was off following the convoy around a neat route through South Delhi streets. Despite being a big bike, it was surprisingly easy to handle, what made it even better was the fact that cars actually get out of your way when they spot you-a nice change in scenario as compared to regular bikes! Power delivery is smooth and gear changes are refined. The bike settles into a steady drone and I was soon in cruising heaven. Unfortunately the ride was short and though I didn't want to part with the bike, the time had come to get out of my leathers and return the keys. The first Boot Camp had come to an end and though more are scheduled in the future, the ultimate take away from the entire experience is the fact that these bikes are extremely easy to ride. They might look intimidating, but one ride is good enough to dispel those thoughts. India is ready and while America gets to enjoy mangoes, its time for us to indulge in some real biking magic. Bring it on! Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nandini Sen Gupta The Economic Times New Delhi: A joint venture between Nissan-Renault and Bajaj Auto, which plans to launch a low-cost car to compete with the Tata Nano, will have 70-80% of its parts in common with those used in the Pune-based companys scooters, motorcycles and three-wheelers. This will result in the project cost for the new car being pared down from Rs 1,500 crore to around Rs 200-300 crore. In May 2008, Bajaj, Nissan and Renault had announced plans to manufacture 4,00,000 ultra low cost (ULC) cars per year at a new plant, which would have cost Rs 1,500 crore. Nearly all aspects of that earlier agreement have now changed. I dont have a number as yet but my estimate is that it would be closer to around 20% of the earlier investment figure due to common product aggregates and common facilities, Bajaj Auto MD Rajiv Bajaj told ET. Bajaj Auto has a 50% stake in the JV while Nissan and Renault have 25% each. There is excess capacity in the global car market. Our thinking was that if the ULC is a standalone project, it will be vulnerable to business cycles. We decided to derisk the project by leaning on our motorcycle and three-wheelers for its platform and aggregates. Around 70-80% of the internal components should be common, said Mr Bajaj. Announced in 2007, the project experienced turbulence over branding and product detail. This summer, Rajiv Bajaj went on record to say he had asked for all the work done on the project to be scrapped. He wanted major modifications on design, positioning and other details. The new concept that his team came up with has now met with Carlos Ghosns approval, following which an announcement was made on a fresh agreement between the partners. Mr Bajaj said the proposed car will not be branded Bajaj. The equity holdings in the company making the low-cost car may also change. We did not revisit that figure, so as of now the 50:25:25 JV is valid, but when we sign the contract that may change, Mr Bajaj said. Mr Ghosn, the CEO of Nissan-Renault, had on Tuesday announced that the ULC will not be branded Bajaj. That prompted Rahul Bajaj, chairman, Bajaj Auto, to say: I will do what I want in my company. Mr Ghosn does not have any stake in my company. Rajiv Bajaj explained that his father was referring to the freedom that the agreement offers Bajaj Auto to crank out its own products from the ULC platform. "There is nothing in the discussion or the agreement that stops us from using those same aggregates to make two, three or four wheelers of our choice," Mr Bajaj said. "But it's not in our interest to make an overlap product. I would want a four wheeler for commercial applications." A four-wheeler or light truck will in fact roll out in the market a little earlier the ULC's planned 2012 launch. As for the ULC, it will compete head on with the Nano. Offering details of the project, Mr Bajaj said: "The mileage will be way over 20 km per litre.we will target 30 km per litre. To target a two wheeler upgrader, you have to attack monthly cost of ownership." Motorcycles cost only Rs 2500/month while cars cost Rs 9000-10,000 per month. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRIES APOLLO TYRES TO UP CAPACITY BY 50% PTI See this story in: Business Standard New Delhi: Apollo Tyres said it would increase production capacity in the country by over 50 per cent as it looked to enter the top-10 global tyre makers club in the next five years. In line with its plans, the company is also looking to almost double its exports in the next year. Our aim over next five years is to reach among the top 10 tyre companies in the world....Our production capacity will go up by over 50 per cent to around 1,600 tonnes a day after the Chennai plant reaches terminal capacity by first quarter of next year, Apollo Tyres Managing Director Neeraj R S Kanwar told reporters here. The company has a total production capacity of 950-1,000 tonne a day in its three plants in Gujarat and Kerala and is also undertaking minor expansion at other plants in the country, he added. Kanwar said the Rs 2,000- crore Chennai plant would go on stream from the beginning of next month. It will have an installed capacity of 400 tonnes a day, which will translate into 14,000 units of radial tyres, including 8,000 units of passenger car and 6,000 units of truck and bus radials. Apollo Tyres is also looking at increasing its supply of car radials to original equipment manufacturers (OEMs). It plans to supply 50 per cent of the upcoming Chennai plants output to OEMs and the rest in the after-market, he said. Kanwar said Apollo Tyres was also firming up plans to nearly double its exports by next year. Currently exports constitute 10-12 per cent of our Indian production. Our aim is to increase the share to 20 per cent by next fiscal. He added that the company would start export of the Apollo brand of tyres to Europe from next year with the Hawkz range in April. Besides, the tyre maker is also planning to begin imports from its Netherlands-based subsidiary, Vredestein Bandan, from the first quarter of 2010-11. Vredestein mostly caters to a niche market for tyres above 15 inches in the sports utility vehicles segment. We are going to start its Indian sales in a small way, Kanwar said. Apollo Tyres acquired the Dutch company that has a plant with an annual production capacity of 5.5 million units, in May this year. Kanwar said Apollo Tyres has also tied up with German car maker Volkswagen to supply tyres for the upcoming small car Polo, to be launched in India early next year. Asked about the impact of rising commodity prices and likelihood of price increase by the company, he said: Price of natural rubber is increasing steadily and we are studying the market...Price hike will happen, maybe by end of the fiscal. Apollo Tyres to raise output 60% in next fiscal The Hindu Business Line | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vinson Kurian The Hindu Business Line Thiruvananthapuram: Mahindra FirstChoice Wheels, a multi-brand pre-owned car company from Mahindra and Mahindra, has tied up with Syndicate Bank to provide finance at an industry-first 9 per cent. In the unorganised sector, pre-owned car loans command an interest of 16-17 per cent, according to Mr Rajeev Dubey, President (HR, After-Market and Corporate Service) and Mr Shubhabrata Saha, CEO, Mahindra FirstChoice. Organised Sector Only 10 per cent of the pre-owned market is in the organised sector and this small base allows us to work our way around with this sub-10 per cent loan scheme. This is an entirely new ball game, they told Business Line. The projected demand is also very high. This gives Mahindra FirstChoice the confidence to drive the ultra low-interest loan campaign with Syndicate Bank. The ownership ratio of fresh-minted to pre-owned cars is currently 1:1 in the country. This ranges from 1:2 to 1:2.5 in the US and other western countries. And this is where India too is driving itself to. The abysmally low ownership for every thousand people and gains from demographic dividends combine to build a huge pent-up demand. Monthly sales of pre-owned cars in the country average 10,500 units. Of this, Thiruvananthapuram alone accounts for 1,600. This is precisely why we are here, Mr Dubey said. Biz model The intention is to grow this market like it has never been able to before. We are fortunate to have a partner in Syndicate Bank, which is convinced of the business model based on stringent valuation, right pricing and unwavering focus on quality, Mr Saha said. Banks set great store by the valuation, pricing and the quality aspects. The company buys only 20 per cent of the cars it evaluates, and goes on to refurbish and certify them through a 118-point check system. It also offers registration, insurance and documentation services on the spot. Roadside assistance 24/7 is another highlight. Thiruvananthapuram is the 102nd showroom of the company. It plans to ramp up this number to 300 across the country in three years. We are a long-term player and have targeted sales of 1 lakh cars by year 2015. This is where the real volume play begins, Mr Dubey said. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Times of India New Delhi: The Cabinet is to revisit on Thursday the proposal to introduce 10% ethanol -- petrol doped with alcohol -- but is unlikely to make it mandatory immediately owing to shortage of adequate supplies of SDS (special denatured spirit), a byproduct of sugar industry, and pricing issues. The ethanol programme has been introduced since November 2006 in 16 cities of sugarcane-growing states. But even in these cities the programme is suffering from inadequate SDS availability. Even UP and Uttarakhand, the two sugarcane-growing states where there was enough SDS till sometime back, are facing shortages. Till the period to 2009, some 180 crore litres of SDS was required. The state-run oilmarketing firms have been able to procure only 54 crore litres so far and contract about 140 crore litres. While even the programme for 5% blending has not stabilised, making 10% doping mandatory will have the risk of causing disruption in fuel supply in case of SDS shortage. Oilmarketing companies are also failing to attract enough suppliers in their tenders due to the price set by the oil ministry -- Rs 21.50 a litre across the country. Since SDS is widely used in various industries, manufacturers get better returns from selling to industrial consumers. Importing SDS is against the tenet of the programme -- save foreign exchange on reduced crude imports and help local sugracane farmers and sugar industry earn better returns. "There is no alternative to increasing sugarcane productivity throughout the country. Tamil Nadu, which is rain deficient, has higher yield than rain-sufficient states like UP or Bihar,'' one oil ministry official said. Other issues hampering availability are the taxes levied by some state governments on SDS and its movement across their borders. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" Agencies See this story in: The Hindu Business Line Mumbai: Oil rose above $79 a barrel on Wednesday, after dipping a day earlier, as signs of robust economic growth in China offset mildly bearish US industry data showing surprise builds in crude and distillate stockpiles. US crude for December delivery rose 11 cents to $79.16 a barrel by 0220 GMT, after settling down 38 cents at $79.05 on Tuesday. London Brent crude was up 11 cents to $77.61. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reuters See this story in: The Economic Times Detroit: Ford Motor Co posted its best October sales and market share in a dozen years in its main 19 European markets on Wednesday, but warned that European countries and the EU needed to take further action to bolster auto demand in the region next year. Ford said sales rose 12.8 per cent in October for its main 19 European markets, outstripping a 6.8 per cent gain for the industry overall that has been supported by programs that provide incentives to trade older vehicles for newer cars. The so-called scrappage programs across several European countries are similar to the US government's "cash for clunkers" program that boosted US sales in July and August and are winding down. Automakers are watching closely to see the impact on sales after the programs conclude because of the potential for a steep drop-off in demand. Ford has forecast 2010 industry sales in its main 19 European markets of 13 million to 14.5 million vehicles, or down about 2 million from this year. The automaker's full 2009 sales forecast for the region is 15.7 million vehicles. The automaker, which posted a third-quarter profit of nearly $1 billion that surprised Wall Street analysts last week, said sales rose 12.8 per cent to 121,000 vehicles in October for its main 19 nation European region. Ford's share of the region rose 0.5 percentage points to 8.8 per cent. Ford shares were up 9 cents at $8.33 at midday on the New York Stock Exchange. Reuters See this story in: The Economic Times Seguin: General Motors Co GM.UL Chairman Ed Whitacre on Tuesday urged the Obama administration to give the automaker less restrictive pay caps and said it was too early to discuss the timing for the automaker to become a public company again. Ed Whitacre, who became chairman of a reconstituted 13-member GM board when the automaker emerged from bankruptcy in July, also defended the decision earlier this month for GM to keep its European Opel and Vauxhall brands. "It's been a confusing decision, but I don't think it was handled badly," Whitacre told reporters. "The circumstances changed from the time this started. The financial part of the business got better. Conditions have changed." Whitacre said GM Chief Executive Fritz Henderson and his team have the backing of the board and an understanding of the priority of paying down government debt after the company took $50 billion in U.S. government funding. "Mr. Henderson and his team have the support of the board," Whitacre told reporters. "They understand -- we all understand -- what we have to do." Whitacre said it was too early to set the timing for a public offering of GM stock. "It depends on how quickly we become profitable," Whitacre said. "I think we can see that on the horizon, but I can't promise a date." Whitacre's view represented a more cautious take on the timing of an IPO than Henderson and other GM executives who have floated the prospect of a listing of the restructured automaker as soon as the second half of 2010. The comments by Whitacre, which came at an appearance at Texas Lutheran University, were the most detailed he has made since becoming GM chairman in July. Whitacre, who arrived in a red Camaro, said GM would face difficulties in hiring senior executives under pay caps set by the Obama administration. One of the first tests of that policy has been GM's search for a new chief financial officer. GM's financial management was criticized by the Obama administration's autos task force headed by former investment banker Steve Rattner. In early September the GM board endorsed plans for Chief Financial Officer Ray Young to step aside, people familiar with the deliberations have said, but search for a replacement and an announcement on Young's next move have stalled since then. GM boss calls for leeway in salary cap to retain talent The Financial Express http://www.financialexpress.com/news/gm-boss-calls-for-leeway-in-salary-cap-to-retain-talent/540286/ Bloomberg See this story in: Business Standard Berlin: Volkswagen AG will consider the purchase of assets from insolvent automaker Wilhelm Karmann at a board meeting, three people familiar with the situation said. The supervisory board will meet to discuss a proposal to buy Karmann property including assembly halls, manufacturing facilities and a paint shop in Osnabrueck, Germany, about 170 kilometers (106 miles) west of VWs base in Wolfsburg, said the people, who declined to be identified because the talks are confidential. Negotiators have yet to bridge the gap between the minimum 55 million euros ($82 million) that Karmann is seeking and the 35 million euros that Volkswagen has may be willing to pay, according to two of the people. Karmann filed for bankruptcy protection in April as the worst slump in auto markets for decades left it unable to pay employees. Bloomberg See this story in: The Financial Express Renault SA plans to bring in US partner Better Place to run its future electric-car charging network in its home market of France, chief operating officer Patrick Pelata said. Besides recharging stations planned by Electricite de France SA, the country needs the California startups battery- swapping service to maximise demand for electric vehicles, Pelata said in an interview on Tuesday at Renaults headquarters in the Paris suburb of Boulogne-Billancourt. Were working on having it in France, Pelata said. Nobody else is working with this business model, so its probably going to be with Better Place. Starting in 2012, drivers of electric Renault cars in Israel and Denmark will use Better Places roadside stations to switch depleted batteries for recharged units in three minutes, extending their effective range beyond a single charge. In France, the government has appointed state-owned EDF to roll out a recharging network that may be open to rival power suppliers and operators. Renault and Japanese affiliate Nissan Motor Co are committed to investing $6 billion in the electric vehicles and batteries that they plan to begin introducing in 2012. Bloomberg See this story in: Business Standard Toyota Motor Corp may shoulder almost all the costs to shut a California joint-venture plant as the owner of the former General Motors Corps 50 per cent stake doesnt plan to fund expenses including worker severance pay. Motors Liquidation is not contributing at all to Nummis closure costs, said Tim Yost, a spokesman for Detroit-based Motors Liquidation Corp, which took over discarded assets from GM as part of the carmakers bankruptcy reorganization. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY The Hindu Business Line Mumbai: The rupee ended up against the US dollar on Wednesday as the greenback weakened against the euro. The rupee ended at 46.30/31 a dollar compared with 46.50/51 on Tuesday. It had moved in the range of 46.28 and 46.60 a dollar. PTI See this story in: The Hindu Business Line Mumbai: The BSE benchmark Sensex surged by 409 points on heavy buying by funds in fundamentally strong stocks led by software exporting companies on expectations of an early recovery from the global economic recession. The Bombay Stock Exchange index Sensex, which commenced the day higher, rose further to record a gain of 409.04 points to close at 16,849.60 with the IT stocks such as Infosys, Wipro and Tata Consultancy Services trading higher. Metal, IT, Teck, Realty, Consumer Goods, Oil&Gas, Banking and Consumer Durables posted gains between 2 and 4 per cent on the BSE. The wide-based National Stock Exchange index Nifty rose by 122.25 points to end at 5,003.95. Marketmen said the upsurge was led by IT stocks after Nasscom yesterday said the country's software exporting business would regain double-digit growth from April 2010 leaving behind the prolonged recession. Next year, starting from April, we will see double digit growth coming back,'' Nasscom President Som Mitta had said. Traders added that the rising trend was also supported by metal sector stocks after base-metal prices gained substantial ground in the overseas markets. PTI See this story in: The Hindu Business Line New Delhi: The most appropriate'' timing for a gradual rollback of the fiscal stimulus package would be the next financial year, Chairman of the Prime Minister's Economic Advisory Council Dr C Rangarajan said on Wednesday. It will be a calibrated one and I think the process can be started next year,'' Dr Rangarajan told reporters on the sidelines of the Skoch Summit--a meeting of financial leaders-- here. He said, however, the roll-back of tax incentives would also depend on the way the economy evolves. Dr Rangarajan said with expectations of a normal monsoon, the economy is likely to grow by 7-8 per cent in the next fiscal. The GDP grew by 6.1 per cent in the first quarter of 2009-10 and the year may end with 6.5 per cent. On monetary policy, he said if inflationary pressure builds up, the RBI may begin tightening rates even earlier. If the inflationary pressure develops, then authorities (RBI) may take action even earlier... RBI will have to wait and see how price situation evolves during the period of November-December,'' former RBI governor said. Inflation, which was at 0.1 per cent for the week ended October 24, is expected to rise to around 5 per cent by March next year while food inflation is already hovering around 15 per cent, burning a hole in the pocket of the common man. Last Financial closing
Metals
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Sunday, December 13, 2009
Indian Auto Industry Update November 12, 2009
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