| INDUSTRY Go To Top Niranjana Ramesh The Economic Times (Web Edition)
Chennai: When the 'mini car' was launched earlier this year, credit rating agency Crisil estimated Nano could expand the Indian car market by 65% and increase car sales by 20% over previous year. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/
The Telegraph (Web Edition)
Calcutta: Tata Motors has paid Rs 1 crore to renew the lease for the Singur land for a year. Tata officials submitted the money to the WBIDC yesterday for the 647-acre plot. It is learnt that 15-16 vendors have also renewed leases for another year. Industry observers said Tata Motors could use the Singur infrastructure for making the Nano in the future. http://www.telegraphindia.com/1090422/jsp/business/story_10857537.jsp
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| INTERVIEWS/FEATURES Go To Top Hyundai Motor India Ltd (HMIL), the second largest car manufacturer and the largest passenger car exporter in India, has posted a marginal dip of 1.8% in cumulative sales for March, 2009. While the domestic sales slumped by 15.8%, exports grew by 21.6%. The company is keeping its chin up and expects the Indian car market to bounce back sooner than later. Within the Hyundai family, HMIL has been designated a small car hub, which means that all the compact cars starting from the popular Santro (Atoz), i10 to i20 will only be manufactured at Hyundais facility in Sriperumbedur and exported globally. In addition to these models HMIL also exports the Accent. In this interview to Aseem Thapliyal of FE, Arvind Saxena, senior vice-president, marketing and sales, HMIL, talks about how the company is gearing up to face the challenges ahead. Excerpts.
Surely automakers in India would like to forget the year 2008. How has the economic slowdown affected the performance and production of HMIL?
The current economic crisis has affected all the players, both in the domestic as well as the overseas market and Hyundai is no different. We too have been affected by the slowdown and our production has been brought down from a three-shift operation to two-shift operations in both our factories in Chennai. Our retail sales too have been affected by the liquidity crunch as well as the higher rates and more stringent disbursement norms of car loans.
HMIL, which is the largest passenger car exporter from India, accounts for over 70% of the car exports from the country. The company has been conferred the Top Exporter of the Year Award for 2006-07 in the category of large enterprises at a time when the auto market globally is shrinking. Impressive.
Hyundai is the largest exporter of passenger cars from India. As you must be aware the international market too is affected by the downturn. Most of the overseas markets are in the grip of recession and most exporters from India spread across different categories are facing a very challenging market situation. As for Hyundai we have so far managed to keep our exports positive and in the first quarter of 2009 we registered a growth of over 20% as compared to the first quarter of 2008. The market situation still looks challenging but we hope to keep this momentum going.
The major factors that have helped us tackle this situation is our line-up of products like the i10, which has already established itself as a strong player in its segment and the introduction of the i20, which has been received very well and added to the momentum.
Do you expect any more relief from the government especially when it has asked the car companies first to reduce the prices of their models in proportion to the excise duty cut and then expect more relief ?
Yes, relief in the form of export incentives would certainly be helpful in boosting our exports and helping the industry in difficult times like these. The government has done its bit with the stimulus packages that it had announced, but they were mainly for the domestic market. What we would like to see is some more incentives to help us meet some of the challenges of the overseas market such as currency fluctuations.
Where does India fit in your global plans?
As for as the Indian operations of Hyundai Motor Company is concerned it has been designated as the global production hub for small cars and this is also in line with the Indian governments plan of making India a small car hub as envisaged in the Automotive Mission Plan. Consequently, all the compacts starting from Santro, i10, Getz and the i20 will be only produced here in Chennai and exported to all parts of the world. This in itself means that the Indian operations are very important, more so as there is a large-scale demand for compact cars here in India as well. The Auto Mission Plan formulated by the government also envisages India as a hub for small car exports.
Looking at the early consumer reaction to the Nano, do you see the Tata car as a threat or an opportunity?
We feel that Nano will only grow the four-wheeler market and indirectly contribute to the growth of cars above its segment. If anything it will only help the Indian automotive industry to grow. Besides, our product line-up is quite different from the customer profile of a Nano customer.
The automobile industry slowed down considerably last year. What are your plans for achieving the target the company has set this year?
This year we expect the growth to be almost flat but in the long term we are confident that the Indian automotive industry will bounce back and register double-digit growth as it had done in the past. We have a very strong product line up, starting from the small compact Santro to the full-blown premium cars like the Sonata and the SUV (sport utility vehicle), Tucson. We are sure we will cater to the needs of our customers across all segments.
Do you have any plans to bring an eco-friendly car in India, especially, when companies worldwide are gung-ho about this genre? Look at the advantagesHybrids typically consume up to a quarter less fuel than non-hybrid models.
Keeping in mind the environmental requisites we have already introduced bi-fuel variants powered by CNG and LPG in different models. These variants are not only eco-friendly but also are economical and fuel-efficient.
Yes, we do have eco-friendly cars in our global portfolio but the price of such cars is very high and in the future if the government offers some concessions in the form of lower import duties etc we will certainly look at bringing them in to India.
Do you think the future of Indian car market lies in small cars?
Yes, not only in India but even some of the overseas markets are becoming increasingly inclined towards small compacts. India of course is essentially a small car market and we feel that the compact car segment will continue to grow, more so, as parking space comes at a premium and environment issues come to the forefront.
You have experimented a lot with the Sonata in recent years. Does it indicate that the model has not been able to gain traction in the car market?
We have recently launched the facelift Sonata Transform keeping to our philosophy of offering the best and the latest to our customers. The Sonata Transform is available in both petrol and diesel variants and with an automatic gearbox.
The luxury car segment is very small. The number of units we sold is not large, but we have received a very good response for the new Transform and you will see the numbers getting much better in the coming months.
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| CARS, SUVs, MUVs Go To Top Swaraj Baggonkar & Surajeet Das Gupta Business Standard (Web & Print Edition)
Mumbai/New Delhi: Swifts two versions, i20, Xylo have long waiting periods. The passenger vehicle market may be slowing, but Maruti Suzukis Swift Dzire sedan and Swift hatchback, Mahindra & Mahindras (M&Ms) utility vehicle Xylo and Hyundais i20 have long waiting lists that have their manufacturers struggling to increase production.
Xylo, the multi-utility vehicle (MUV) (base model is priced Rs 6.48 lakh ex-showroom, Delhi) that was launched in January this year, has a waiting period of over two months. Despite M&M raising pricesby Rs 10,000 to Rs 12,000 about a month ago, sales have not been dented, say company executives. The company had initially set a production target of 120 units a day; unprecedented demand has forced it to raise this to 130 to 135 units per day.
The top-end variant is seeing the maximum surge in demand, said Pawan Goenka, president (automotive sector), M&M. Xylo has even eaten into the share of M&Ms sports- utility vehicles Scorpio and MUV Bolero. About a quarter of buyers who had planned to buy Scorpio or Bolero booked Xylo, said the company.
Maruti Suzukis Dzire, the sedan version of the popular Swift hatchback that was launched in March last year, has a waiting period of three to four months for both versions (the diesel variant costs Rs 5.47 lakh and petrol Rs 4.61 lakh, ex-showroom Delhi).
Initially, there were some constraints on availability of engines. Those are over and we are raising capacity. But demand has also increased, said RC Bhargava, chairman of Maruti Suzuki, adding, It is difficult to say if we will have spare capacity to increase production further.
The company initially produced 3,000 Swift DZires a month but had to quickly scale up to 7,000 as demand grew. Bookings, however, crossed 10,000 vehicles a month.
We have continuously scaled up production for Swift DZire but the demand is still far ahead. The car, which is promoted as a vehicle that meets all aspirational needs, will continue to see healthy growth in demand even in such a downturn, said Mayank Pareek, executive officer (sales and marketing), Maruti Suzuki.
About 65 per cent demand for Swift DZire is for the diesel variant. Marutis Swift hatchback has a waiting period of over three months in most markets, with the diesel variant being the most in demand. Company executives said they were producing over 9,000 units a month but were booking about 11,000. The petrol version costs Rs 3.99 lakh and diesel Rs 4.67 lakh (ex-showroom, Delhi).
Hyundai had priced the i20 at a steep Rs 4.79 lakh (ex-showroom, Delhi) when it launched it in December last year and did not expect to sell more than 1,000 units a month. Bookings however, have ranged from 2,000 to 2,200 cars every month. Initially we had a waiting list of 60 days but this has come down to 45 days after we increased production. However, we had not anticipated this response for a car that was considered expensive in its category, said a company spokesperson.
Hyundai says that it has been able to increase production to around 1,500 a month which is around 7 per cent of monthly production by juggling the production of different models.
RENAULT PUTS ON HOLD INDIA CAR LAUNCH PLANS INDEFINITELY PTI See this story in: The Hindu Business Line (Web Edition), The Statesman (Web Edition), The Tribune (Web Edition), Hindustan Times (Web & Print Edition), The Indian Express (Web & Print Edition), Yahoo India (Web Edition), The Financial Express (Web & Print Edition), Business Standard (Delhi Print Edition)
New Delhi: French auto major Renault has put on hold indefinitely its plans to introduce its cars in the Indian market from the upcoming Chennai plant on account of global slowdown, which has affected the firm's worldwide operations.
We have indefinitely put on hold our product plans...it is because of slowdown that has affected us globally, a senior Renault India official said.
The company, which had already stopped hiring for production activities in its upcoming Chennai facility, is waiting for market conditions to improve. When contacted, a Renault India spokesperson said, The construction of the plant is going on, but we have frozen our product plans due to downturn in the global economy.
However, we have left our product plan at such a stage that whenever we want to defreeze it, without loss of any time we can do (that) and ramp up the production. While investment for construction of the plant was going on, it has been put on hold on product plans, he added.
Renault India had last year announced plans to invest Rs 4,500 crore over a period of seven years to produce four lakh cars annually from the Chennai plant in alliance with Japanese firm Nissan. http://www.thehindubusinessline.com/blnus/02211420.htm http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=251860 http://www.tribuneindia.com/2009/20090422/biz.htm#7 http://www.hindustantimes.com/redir.aspx?ID=0eea6d2d-966e-417a-a64a-6755f5bd6e37 http://www.indianexpress.com/news/us-to-give-chrysler-500-mn-gm-up-to-5-bn/449459/ http://in.biz.yahoo.com/090421/50/batgw1.html http://www.financialexpress.com/news/renault-shelves-india-car-plans/449767/
NEW PLANT TO REFLECT REVAS NATURE-FRIENDLY AGENDA Poornima Mohandas/ Sandeep Bhatnagar Mint (Web & Print Edition)
Bangalore: Indias first manufacturer of zero-polluting electric vehicles, Reva Electric Car Co. Pvt. Ltd (RECC), is taking the green pledge a step further. Its second plant coming up in Bommasandra, on the outskirts of Bangalore, will harvest rainwater, use lots of natural light and tap solar power
Revas group philosophy talks about zero pollution and I think we have been able to achieve that in our product, says Chetan Maini, deputy chairman of Bangalore-based RECC, on the philosophy behind the move. It was important now to reflect this in every aspect of the product. While the plant wont reach zero-pollution levels, the company is making efforts to reduce energy and emissions.
The electric car maker will invest Rs30 crore in the new plant, which has the capacity to manufacture 30,000 cars a year. Around 20% of the investment, or Rs6 crore, would go towards green initiatives, including energy-efficient structural materials, ventilation spots on the roof, solar panels and rainwater harvesting facilities.
The factory walls are made of polycarbon honeycomb, a tough plastic with cavities inside to let in diffused natural light and keep out the heat. A high ceiling will mean ample ventilation and fewer fans. The roof will have ventilation spots that will allow air and light in, but wont let water drip.
The factory will have the capacity to harvest as much as 21,500 litres of rainwater in 15 minutes and store as much as 65,000 litres. The water will be used through the year to wash vehicles and for horticulture. Solar panels will be used to charge the electric vehicles and waste will also be segregated, recycled and composted to nurture the plants at the site.
Reva is working on options to find an alternative to diesel generators, which are a crucial part of any manufacturing set-up in power-hungry countries such as India. This is an area where solutions are fairly limited, says Maini. Ultimately, Reva aims to depend on the sun and battery power instead of diesel generators. Due to these measures, Maini expects the companys energy and water bills to shrink by around 30%.
Reva was set up in 1994 and seven years of research and 10 patents later, the electric car was commercially produced in 2001. The second plant will cater to both the domestic as well as the export market and is set to be completed later this year.
The new plant is already vying for a Leadership in Energy and Environment Design (LEED) rating, a nationally and internationally accepted benchmark for design, construction and operation of energy-saving, green buildings.
Green rating for factories being developed In India, the CII-Sohrabji Godrej Green Business Centre formed the Indian Green Building Council, a council of architects, builders and other stakeholders in the construction industry, in 2004. It evaluates and grants the Leadership in Energy and Environment Design (LEED) rating.
Wipro Technologies Ltds 175,000 sq. ft set-up in Gurgaon, and ITC Ltds 170,000 sq. ft Green Centre, also in Gurgaon, are two LEED-rated buildings. According to the CII-Indian Green Building Council report titled Energy Efficiency in Building Design and Construction, Wipro clocked in energy savings worth Rs1.02 crore a year and ITC, Rs90 lakh. Around 195 projects, including offices, banks, airports, hotels, with a built-up area of at least 110 million sq. ft, have registered for ratings. So far, 19 buildings have got the LEED rating in India.
There is a lot of demand from factories to go green, says S. Raghupathy, senior director and head, CII-Sohrabji Godrej Green Business Centre. So much so that the council is developing a factory-specific India Green Factory rating system with 10 factories on a pilot basis. Reva, however, has applied for the LEED rating, not the new green factory rating. http://www.livemint.com/2009/04/21205452/New-plant-to-reflect-Reva821.html?h=B
DV Maheshwari Daily News & Analysis (Web Edition)
Bhuj: In what is one more 'first' from Mundra Port and Special Economic Zone Ltd (MPSEZL), the port on Saturday loaded the country's first consignment of Nissan Motor's Pixo model on a special car carrier, 'Euro Sprit', for several European countries. The countries where this consignment would reach by early next month include the UK, the Netherlands and Denmark.
Flagging off the consignment at a function last week, Keisuke Sekine, manager of Nissan Motor Car Carrier Co Ltd, said that they were happy at the loading of the cargo into the ship by well-trained drivers who drove in each car safely into the car rakes of the ship. "I must say, MPSEZL's Auto Terminal met our quality criteria," he said.
Describing this to be a moment of great pride and pleasure for them, Surendra Sadhnani, senior vice president (finance) of MPSEZL said that they were determined to play a key role in providing in development of logistic infrastructure in the country by their various ambitious projects.
The car consignment had reached Mundra from Manesar by a special double-decker container train of Adani Logistics Ltd. The Adani group's Auto Terminal has already exported 20,000 cars of various makes from Adani port since the commissioning of the car terminal in January this year. It loads 100 cars an hour which is believed to be high compared to any best car auto terminal in the world. Nissan Motors plans to export 36,000 cars per annum from Mundra, says MPSEZL general manager (corporate affairs) Niranjan Engineer. http://www.dnaindia.com/report.asp?newsid=1249363
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| COMMERCIAL VEHICLES Go To Top Lijee Philip The Economic Times (Web Edition)
Mumbai: Tata Motors is understood to be working full throttle on the global launch of its high-profile world truck by the end of May 2009. The countrys largest CV maker is expected to gradually phase out its existing heavy and medium-range trucks, replacing them with the world truck, two officials close to the development said. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/News/News-By-Industry/Auto/
VECTRA, RUSSIAN CO KAMAZ IN HEAVY-DUTY TRUCK JV The Economic Times (Web Edition) See similar story in: The Hindu Business Line (Web & Print Edition), The Hindu (Web & Print Edition), Deccan Herald (Web Edition), Business Standard (Delhi Print Edition)
Bangalore: The $800-million Vectra Group, which makes the Tatra range of trucks, has formed a joint venture with Russian truck maker Kamaz to manufacture the latters range of heavy duty trucks in India at an initial investment of $13 million (around Rs 65 crore). Vectra had picked up majority stake in Czech Republic-based Tatra in 2007.
http://www.thehindubusinessline.com/2009/04/22/stories/2009042251490200.htm http://www.hindu.com/2009/04/22/stories/2009042255061400.htm http://deccanherald.com/Content/Apr222009/business20090421131616.asp
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| CONSTRUCTION & AGRI MACHINERY Go To Top
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| 2/3 WHEELERS Go To Top The Economic Times See this story in: Daily News & Analysis, The Financial Express, Business Standard, The Tribune, The Indian Express, The Hindu, The Times of India, The Hindu Business Line, mint, Hindustan Times, The Pioneer
New Delhi: Hero Honda Motors, the worlds largest two-wheeler maker by volumes, posted a better-than-expected 35% jump in net profit to Rs 402 crore for the fiscal fourth quarter to March, and said it hoped to sustain growth momentum in the coming six months. Robust demand from rural and semiurban areas helped the company post 12% higher sales to over 37,00,000 units in the financial year 2008-9. It expects annual sales to grow by 7% this fiscal to cross 40,00,000 units. Hero Honda plans to invest Rs 350 crore in the fiscal to ramp up production at its plant in Haridwar to over a million units per year and modernise its Gurgaon and Daruhera plants. It will set up a new paint shop at its Haridwar plant and a gas-based power plant at its Gurgaon unit. The company said it has cash reserves of Rs 2,500 crore at the end of the last fiscal. Financial discipline in our core activitiessourcing, production, marketingduring the fiscal year helped increase margins. Softening of prices of key inputs such as steel, nickel and aluminium eased our raw material costs, said Hero Honda managing director Pawan Munjal. Analysts said Hero Hondas performance was better than expected, with profit surpassing all estimates. Hero Hondas ratio of material cost to sales has improved, which is reflected in better margins and higher realisation from two-wheeler sales. The company has increased profits by pushing high-margin premium models like the Hunk and CBZ Xtreme, said Vaishali Jajoo, an analyst with Angel Broking. We are maintaining a neutral outlook for the company as its share is already trading at an all-time high. But a robust growth in sales in the coming quarters could further improve its market position, she said. The companys net profit in financial year 2009 increased 32% to Rs 1,282 crore, compared with Rs 968 crore last fiscal. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://www.dnaindia.com/report.asp?newsid=1249612 http://www.financialexpress.com/news/hero-honda-registers-35-jump-in-q4-profit/449730/2 http://www.tribuneindia.com/2009/20090422/biz.htm http://www.indianexpress.com/news/hero-honda-q4-net-up-34.4-pct/449584/ http://www.hindu.com/2009/04/22/stories/2009042255111400.htm http://www.thehindubusinessline.com/2009/04/22/stories/2009042251400200.htm http://www.livemint.com/2009/04/21153940/Hero-Honda-Motors-Q4-net-up-34.html http://www.dailypioneer.com/171091/Snapshots.html
PTI See this story in: The Economic Times
Mumbai: Honda Motorcycle and Scooter on Tuesday launched the new Activa here with enhanced features. "The new Activa will be the first scooter in the Indian market to have the combi-brake feature. This technology enables shorter braking distance and stable braking," Honda Motor Cycle India President and CEO Shinji Aoyama told reporters here.
TIGHT FINANCING IMPACTING 2-WHEELER SALES: HONDA CEO The Hindu Business Line
Mumbai: More than high interest rates, stringent conditions laid down by financiers are hitting the two-wheeler industry, said Mr Shinji Aoyama, CEO and President, Honda Motorcycle & Scooter India (HMSI).
However, for HMSI, our problem is relatively smaller than others, he added at a function here to launch the new Activa gearless scooter.
HMSI has tie-ups with SBI, HDFC, Shriram Transport Finance and regional cooperative banks to finance customers for its product range.
Since January 2007, we have been seeing a drastic withdrawal of financing by banks. However, this has been offset by customer demand for two-wheelers, said Mr N.K. Rattan, Operation Head, Sales & Marketing, HMSI.
He said that nearly 80 per cent of HMSI buyers paid by cash with the rest opting for financing.
HMSI sold 1.07 million two-wheelers last fiscal against 9.07 lakh units in 2007-08, an increase of 18 per cent.
Scooters accounted for 6.6 lakh units with lakh motorcycles taking up the balance. The company has targeted 1.25 million this year, of which scooters will comprise 7.4 lakh and motorcycles 5.1 lakh units.
The new 110cc Activa offers 15 per cent more mileage at 50-55 km/litre, which is almost on a par with motorcycles. It sports an on-road (Mumbai) price of Rs 47,152. http://www.thehindubusinessline.com/2009/04/22/stories/2009042251430200.htm
HERO HONDA: BEATING THE DOWNTURN Shobhana Subramanian Business Standard (The Compass)
Mumbai: Despite a tough environment, Hero Honda did exceptionally well in 2008-09 ending the year with a market share in motorcycles of 57 per cent. The March quarter saw an increase in revenues of 22 per cent y-o-y and easing commodity prices helped the firm post an operating profit margin of 14.16 per cent.
The motorcycle market is becoming increasingly more competitive with peer Bajaj Auto rolling out several models and Honda Motorcycles and Scooters India (HMSI) entering the 100cc space. So its possible Hero Honda could lose some market share, though not anything very significant.
The company commands a strong presence in rural areas and despite the downturn in the economy, a strong product portfolio across the entry, executive and premium segments, should help it grow two wheeler volumes by about 8 per cent in the current year. On a slightly smaller base last year, volumes were up 12 per cent. Hero Honda depends less on financing schemes to sell its bikes.
Moreover, the company has demonstrated that it has pricing power it hasnt always passed on the benefits of lower excise duties or lower raw material prices to customers. So its possible revenues this year could grow by about 7-8 per cent over the Rs 12,319 crore earned in 2008-09. With prices of steel easing, operating margins should sustain at current levels of 14 per cent.
And with the company planning to scale up production at its Hardwar plant, the effective tax rate should be lower. That means the earnings per share (EPS) could grow at around 20 per cent this year over the Rs 64.19 posted last year. The Hero Honda stock was one of the top performers of 2008 and since January, this year, has rallied smartly. At 1,100, the stock trades at around 14 times estimated 2009-10 earnings and is attractively valued. http://www.business-standard.com/india/news/hero-honda-beatingdownturn/355837/
HERO HONDA MOTORS RESULTS IN LINE WITH EXPECTATIONS Manas Chakravarty and Mobis Philipose Mint
Hero Honda Motors Ltd has already started benefiting from the drop in commodity prices. All of its gain in margins in the March quarter came from a drop in raw material costs, unlike the preceding three quarters where savings on raw material costs were modest.
Last quarter, operating revenues rose by 22% and operating profit increased by 30%. In the first three quarters of the year, operating profit had risen by 25%. Apart from the savings on raw material costs, Hero Honda also gained from higher realizations. Average realizations (net of excise) rose by 8.4%, thanks in part to the excise waiver the company enjoys at its new plant at Haridwar in Uttarakhand. According to an analyst, unlike Bajaj Auto Ltd, Hero Honda hasnt passed on the excise benefit to customers. The gains from the excise waiver, therefore, are reflected in the firms net sales and profit.
It started operations at Haridwar in the first quarter of the previous fiscal year and has been steadily increasing production. Apart from the excise waiver for 10 years, there are various other incentives such as exemption on income tax for a specified period and subsidy on capital investment. As a result, an increase in output at Haridwar results in higher profitability for the firm. A recent report by Motilal Oswal Research states that Hero Hondas earnings in this fiscal year largely depend on the extent to which its able to raise output at Haridwar, rather than growth in volumes.
Production at the new unit picked up in the March quarter and this is reflected in the high operating margin of 16% (15.1% in the year-ago period). On a per vehicle basis, operating profit rose by 15% to Rs5,503.
Volumes, too, grew at a healthy pace of about 13% last quarter, despite the fact that the industry grew in single digits. While the slowdown in two-wheeler financing had impacted most manufacturers, Hero Honda has managed the crisis better thanks to its focus on the rural segment. Rural consumers seldom borrow from organized players, and hence demand from that segment hasnt slowed down for the lack of financing options. Besides, the firm has been able to increase the proportion of cash sales consistently.
These factors have given it an edge over competition in the past year and should continue to work in its favour. Nevertheless, two-wheeler sales are expected to slow down this year because of the economic slowdown and Hero Honda may register only a single-digit growth. But the outlook is bright as far as profits are concerned, thanks to the drop in commodity prices and the expected increase in output at Haridwar. Still, with valuations already above 17 times trailing earnings, the markets seem to have priced in most of these positives. http://www.livemint.com/2009/04/22002209/Hero-Honda-Motors-results-in-l.html?h=B
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| ALLIED INDUSTRY Go To Top The Financial Express
Kochi: Tyre imports from China, often using unfair means, are seen increasingly capturing the replacement market in India, officials of Automotive Tyre Manufacturers Association (ATMA) said.
The imports are seen growing by leaps and bounds and now account for almost 12-15% of the replacement market , Rajiv Budhraja, director general of Atma said.
The astounding growth of the Chinese imports can be gauged by the fact that in the year 2001-02, only 80,000 tyres , mostly truck and bus tyres were imported into the nation. China accounts for 85-90% of tyre imports into the nation. This numbers increased to 73,000 tyres per month in the year 2006-07 and , 11,000 units per month by the year 2007-08. According to the latest figures available for the last fiscal, the imports have grown to 1, 36,000 units per month (April-October 2008-09). The replacement market is extremely price sensitive and the Chinese tyres are sold at a discount of 25-30% when compared to the domestically produced tyres, he said.
The price difference is a huge motivation for the truck manufacturers to go in for the cheaper Chinese tyres. If the tyres are imported fairly then the price difference works out to be 10-15%, he added.
Budhraja confided that the imports are done by a large number of small importers who often circumvent the rules to get the tyres at a discount. The duty for import of tyres from China is 8.5% as per a trade agreement while the duty for import of natural rubber is fixed at an unfair 20%. Budhraja added that consistency was a concern regarding quality of imported tyres.
Bloomberg See this story in: Business Standard
Natural rubber fell to the lowest in almost three weeks as a sell-off in global stocks and commodities heightened investor concerns that the recession will slash demand for the commodity used in car tyres.
Futures in Tokyo lost as much as 5.3 per cent to the lowest since April 2 after plunging the most in eight days yesterday.
Asian stocks slumped as higher loan-loss reserves at Bank of America Corporation derailed optimism that the global economy might be recovering.
The Reuters/Jefferies CRB Index of raw materials tumbled 3.9 per cent yesterday, the biggest loss since March 2. The slump in equity markets signifies that a recovery in economies may still be far away, Shuji Sugata, research manager at Mitsubishi Corp Futures & Securities, said. A lack of recovery will likely cap prices of industrial commodities for a while.
Rubber for September delivery, the most-active contract, lost 4.5 per cent to settle at 158.1 yen a kilogram ($1,610 a metric ton) on the Tokyo Commodity Exchange. Prices reached a five-month peak of 179.7 yen on April 13. Michael Coleman, who helps manage a commodity fund that returned 24 per cent last year, and Felix Yeo, trading manager at the Singapore unit of Marubeni Corp, said this month that rubber prices may weaken as much as 35 per cent.
Tyre makers, the biggest consumers of rubber, may report a 6.8 per cent sales slump in 2009 on weak auto demand, according to the government-funded International Rubber Study Group in Singapore. Supplies from Thailand, the top exporter, will increase after a seasonal drop, producers say.
Auto output in Japan by Toyota Motor Corp, the largest Japanese car maker, may fall below 3 million vehicles for the first time in 31 years as the global recession cripples US and domestic automobile demand.
Domestic output may fall to about 2.8 million units this financial year, the Yomiuri newspaper said. Keisuke Kirimoto, a Toyota spokesman, declined to confirm or deny the report.
September-delivery rubber on the Shanghai Futures Exchange, the most-active contract, fell by the daily limit of 4.1 per cent to 14,495 yuan ($2,122) a tonne.
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| FINANCE & INSURANCE Go To Top Prabhakar Sinha The Economic Times See similar story in: The Times of India
New Delhi: Your EMIs are set to drop further as is the interest you receive from bank deposits after the Reserve Bank of India on Tuesday cut key rates by 25 basis points, sending out a strong signal to banks to follow suit. http://timesofindia.indiatimes.com/Business/Home-car-loans-to-get-cheaper-/articleshow/4428914.cms
CORPBANK TO FINANCE TVS
Corporation Bank has signed a Memorandum of Understanding with TVS Motor Company for financing TVS King (passenger auto rickshaw). http://deccanherald.com/Content/Apr222009/business20090421131618.asp
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| LUBRICANTS & ALTERNATIVE FUELS Go To Top Reuters See this story in: The Times of India
Singapore: Oil steadied above $45 a barrel on Tuesday, pausing after an almost 9% fall a day earlier as traders awaited further cues on demand from US economic, corporate and oil inventory data. http://timesofindia.indiatimes.com/Business/International-Business/Oil-steady-
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| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times
Tokyo: Honda Motor Co's operating profit for the last financial year will likely beat the company's estimate thanks to a weaker yen and better than-expected sales in China, a newspaper reported on Wednesday.
US GOVT PLANS FRESH AID TO CHRYSLER, GM Reuters See this story in: The Economic Times, The Pioneer, The Telegraph, The Indian Express http://www.dailypioneer.com/171091/Snapshots.html http://www.telegraphindia.com/1090422/jsp/business/story_10857537.jsp http://www.indianexpress.com/news/us-to-give-chrysler-500-mn-gm-up-to-5-bn/449459/
CHRYSLER FINANCIAL REJECTS $750-MILLION US GOVT LOAN PTI
Washington: Chrysler Financial, lender to ailing automaker Chryslers dealers and customers, refused a $750 million government loan and opted for an expensive alternate financing, as it was reluctant to implement executive pay curbs, a media report has said. The government had offered the loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, the Washington Post reported.
In forgoing the loan, Chrysler Financial opted to use more expensive or higher interest rate loans from the private banks, the report added.
The company officials, however, maintain that the loan was turned down because it no longer needed it and it was not because of executives refusing to accept curbs on their pay, the Washington Post said.
Chrysler Financial has determined that it has adequate private capital funding to cover the short-term needs of our dealers and customers and as such no additional Tarp funding is necessary at this time, it quoted Chrysler as saying in a statement. The daily further said that the companys statement differed from a report being released by the Treasurys special inspector general Neil M Barofsky for the federal bailout, where the executives refusal has been said to have led to the Treasury withdrawing the loan offer. It was certainly a deal-breaker from Treasurys perspective, the report quoted Barofsky as having told the bailout programmes chief compliance officer last week.
According to the special inspector generals report, the Washington Post said, the treasury had asked Chrysler Financial on April 7 to have its top 25 executives sign waivers regarding their compensation.
Those waivers would have barred the executives from suing the treasury or Chrysler Financial over new pay restrictions. As part of the economic stimulus package, Congress approved compensation limits, and the treasury is working on clarifying what the firms must do to comply with the rules. Within a week, Chrysler Financial responded that it was unable to obtain waivers from all 25 executives, the report said. By last week, the report added, the request for additional funding was denied. http://www.financialexpress.com/news/chrysler-financial-rejects-750million-us-govt-loan/449699/
FIAT FOCUSED ON GETTING CHRYSLER DEAL: SOURCE Reuters See this story in: The Economic Times
Milan: Fiat is "totally focused" on clinching a deal with US car maker Chrysler LLC, a source close to the Italian industrial group said, even though top executives have said there are alternatives. http://economictimes.indiatimes.com/News/International-Business/Fiat-focused-on-getting-Chrysler-deal-Source/articleshow/4432341.cms
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee was choppy as it tracked the domestic equity market and other Asian currencies. It opened weaker at 50.60 because the dollar was strong against other Asian currencies. This was followed by inflows as exporters sold dollars, which pushed the rupee to the days high of 50.24 in intra-day trade. The rupee finally ended at 50.47, about 17 paise weaker from the previous close of 50.30/31. The dollar was stronger against other currencies in the overseas market. I n the forward premia market, the six-month closed at 2.7 per cent and the one-year at 2.14 per cent. The sentiment has become positive on the rupee and equity so there could be further dollar selling, which could help the rupee strengthen to the 48 levels, said a rupee dealer with a public sector bank. http://www.thehindubusinessline.com/2009/04/22/stories/2009042251560600.htm
SENSEX DOWN 81 POINTS IN VOLATILE TRADE DESPITE RATE CUTS PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange 30-share Sensex on Tuesday ended 81 points lower in choppy trade amid the Reserve Bank's rate cuts and mixed global trends. The RBI this afternoon lowered the repo rate to 4.75 per cent and reverse repo to 3.25 per cent with immediate effect to give relief to the home, auto and corporate borrowers. Moving in a range of 305 points, the BSE barometer later ended the day at 10,898.11, a net loss of 81.39 points or 0.74 per cent from its previous close. The National Stock Exchange's 50-share Nifty also dropped by 11.80 points or 0.35 per cent to close at 3,365.30 from its last close.
Brokers said the market recovered from its intra-day low of 10,764.08 on the back of the RBI's rate cuts. The RBI pegged the economic growth rate forecast for the current fiscal at 6.0 per cent against an estimate of 6.5-6.7 per cent for 2008-09 in the f ace of the ongoing global economic slowdown.
They attributed the continued volatility in the market to investors' cautious approach as also the uncertain political situation because of no clear indication as to who will form the next government.
The banking sector index fell the most, by 2.86 per cent, to 5,316.70 after 14 bank shares in the index fell and four gained. Traders were concerned that the RBI's interest rate cuts might help only people trapped in the mortgage crisis.
The auto sector index fell by 2.52 per cent to 3,364.41 followed by capital goods, or the heavy machinery company segment, by 2.39 per cent to 7,791.31. The metal index fell by 1.80 per cent to 6,836.88 as stocks of Tata Steel, Sterlite, Sesa Goa and Jin dal Steel fell due to weak trends in base metals on the London Metal Exchange.
The IT sector index fell by 1.60 per cent to 2,420.98, consumer durable index by 0.93 per cent to 1,846.25, power index by 0.74 per cent to 2,104.43, PSU index by 0.61 per cent to 5,902.90 and oil and gas index by 0.30 per cent to 7,851.33.
On the other hand, the realty sector index gained 2.27 per cent at 2,249.31, the FMCG index 1.57 per cent at 2,104.30, the healthcare index 1.31 per cent at 3,051.39 and the teck index by 0.34 per cent at 2,045.31. http://www.thehindubusinessline.com/blnus/05211901.htm
ECONOMY TO GROW 6% IN 2009-10: RBI The Times of India
New Delhi: Indian economy will grow at 6% in 2009-10, according to RBI, making it the weakest GDP growth projection in seven years. However, on the inflation front, governor D Subbarao projected a moderate price rise of 4% by March 2010 based on wholesale price index.
Subbarao said the lower GDP growth projection was mainly because of the recessionary global economic condition, which has affected India's export badly. However, on the domestic front, the fiscal and monetary stimulus measures initiated during 2008-09, coupled with lower commodity prices, would cushion the downturn, he added. http://timesofindia.indiatimes.com/Business/Economy-to-grow-6-in-2009-10-RBI/articleshow/4431818.cms
Last Financial closing
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Wednesday, April 22, 2009
India Auto Industry News - 21.04.09
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