| INDUSTRY Go To Top The Hindu Business Line (Web & Print Edition) See similar story in: The Financial Express (Web & Print Edition), Business Standard (Web & Print Edition), The Economic Times (Web & Print Edition), The Statesman (Web Edition), The Telegraph (Web Edition), The Pioneer (Web Edition), The Tribune (Web Edition), Hindustan Times (Web & Print Edition), Yahoo India (Web Edition), Deccan Herald (Web Edition), The Times of India (Web & Print Edition), mint (Web Edition),
The booking window was open from April 9 to 25. The release states that 6.10 lakh booking forms were sold through dealerships, Westside/Croma outlets and banks. Of the total bookings, 70 per cent were financed while the rest of the applicants paid up wholly in cash.
Nearly 50 per cent of the bookings, involving down payment of Rs 1.4 lakh, were for the top-end Nano LX costing Rs 1.9 lakh (ex-showroom Mumbai), followed by 30 per cent for the mid-end Nano CX (Rs 1.2 lakh for a Rs 1.63 lakh car). Only 20 per cent opted for the Rs 1.34 lakh Nano Standard, paying Rs 95,000 upfront.
The total number of bookings caught industry circles by surprise since they expected nearly three times as much for the worlds least expensive car. Yet, the fact remains that the down-payment did not come in cheap and took up over 70 per cent of the price of the car. Corresponding amounts for other compact cars from the Maruti and Hyundai stables are a lot lower though they are priced more. Had the Nano down-payment been fixed at a level of Rs 40,000-50,000, the total number of bookings would have exceeded six lakh. The bottomline is that Tata Motors has received Rs 2,500 crore while sales of forms fetched an additional Rs 18 crore, sources said.
Customers could have also been deterred by the prospects of waiting for months on end to get their cars. After all, the interim plant at Pantnagar can only produce 50,000 Nanos annually and big numbers can only be envisaged once the Sanand facility in Gujarat is commissioned next yearAccording to the present arrangement, the first one lakh allottees will be chosen through a computerised random selection procedure. Their names will be announced within 60 days of closure of the booking (June 25). Applicants who do not mind waiting will be paid interest while those keen on cancelling their bookings will be refunded in full. Deliveries will begin in July and are expected to be completed in the last quarter of 2010. http://www.thehindubusinessline.com/2009/05/05/stories/2009050551820100.htm http://www.financialexpress.com/news/tata-mops-up-rs-2.5k-cr-on-2-lakh-nanos/454571/ http://www.business-standard.com/india/news/tata-finally-got-203000-nano-bookings/357113/ http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=253279 http://www.telegraphindia.com/1090505/jsp/business/story_10917810.jsp http://www.dailypioneer.com/173882/Nano-receives-over-203-lakh-bookings-rakes-in-Rs-2500-cr.html http://www.tribuneindia.com/2009/20090505/biz.htm#9 http://in.biz.yahoo.com/090504/50/bativf.html http://deccanherald.com/Content/May52009/business20090504134281.asp http://timesofindia.indiatimes.com/Business/Nano-bookings-below-expectations/articleshow/4483641.cms http://www.livemint.com/2009/05/05003616/Nano-bookings-fetch-Tata-Motor.html?h=B
TATA MOTORS SEES MIXED APRIL; M&M TRACTOR SALES UP 35% Business Standard (Web Edition)
Sales of the compact Indica rose by 16.2 per cent to 8,633 units on the back of the demand for Indica Vista, for which theres a waiting period of two weeks. However, sales for the mid-size sedan, the Indigo, dipped 31.7 per cent to 2,569 units. In the utility vehicle segment comprising the Sumo and the Safari, sales dipped 40 per cent.
In the companys commercial vehicles portfolio, on the back of good demand for its light commercial vehicles (LCV) models like the Tata Ace and Winger, sales rose 52 per cent.
Auto major, Mahindra & Mahindra (M&M), has reported a 35 per cent jump in tractor sales for April 2009 at 11,640 units. Total sales (domestic plus exports) for the month were 11,640 units as compared to 8,645 units for the same period last year, an increase of 35 per cent, the company said in a press release.
M&Ms Farm Equipment Sector (FES) sold 11,282 units in India, which saw sales shoot up by 39 per cent compared to 8,125 units a year ago, it said.
Exports, however, declined in April against the year-ago period. "Exports during the same month were 358 units as against 520 units for the same period last year," the company said. http://www.business-standard.com/india/news/tata-motors-sees-mixed-april-mm-tractor-sales35/357116/
FIAN WITHDRAWS ALL ALLEGATIONS CONCERNING TATA GROUP PTI
FIAN's September 2008 report titled 'Governments, Corporations and Human Rights in India - The house of Tata' contained a number of allegations concerning the Tata Group.
In an apology posted on its website FIAN said: These allegations have been challenged by the Tata Group and FIAN formally withdraws all such allegations relating to the Tata Group.
FIAN further said that it apologises unreservedly to the Tata group for publishing the allegations in the report and for any damage which the Tata Group has suffered as a result of the publications of the report.
The report had documented three recent cases of Tata's industrial expansion- one car factory and two steel plants - in three states of Central and Eastern India, Chhattisgarh, Orissa and West Bengal.
FIAN has withdrawn the said report from publication and has undertaken not to repeat the offending allegations. All parties to whom the report was distributed or by whom it was downloaded are requested to remove from their own publications the report an d any allegations defamatory of Tata Group derived from it, FIAN said. http://www.thehindubusinessline.com/businessline/blnus/14041621.htm
TCS HITS CHRYSLER CHAPTER 11 FIREWALL Pankaj Mishra The Economic Times (Delhi Print Edition)
In a year when US automakers such as Chrysler and GM are seeking to undergo a massive restructuring of their business, Indian outsourcing vendors such as TCS, Wipro, Satyam will have to cope with lower demand for services and pressure on the billing rates. American senators, including Chuck Grassley, are also questioning offshoring by troubled US companies at a time when US job losses have hit an all-time high. With a new Chrysler set to emerge in few months, of which over 50% will be owned by the employees, there could be resistance against any offshoring of services. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| INTERVIEWS/FEATURES Go To Top |
| MARUTI DEFIES SLUMP, PLANS TO DOUBLE EXPORTS See this story in: The Financial Express (Web & Print Edition), Yahoo India (Web Edition), Hindustan Times (Web & Print Edition)
In spite of the European economy passing through a bad phase, some countries are offering incentives for replacement of older cars. Consequently, there has been an additional order from Nissan for A-Star, says Shinzo Nakanishi, managing director of Maruti Suzuki India (MSI).
According to Nakanishi, as demand for smaller vehicles continues to grow, the company aims to export 1,00,000 units of A-star in 2009-10. While 60,000 units would be exported to Europe, 10,000 would be exported to non-European countries and the remaining 30,000 units would be sold to Nissan as part of the company's agreement with the latter. The company has earmarked another 40,000 units of A-star for the domestic market.
Maruti, which is all set to launch Ritz in India, is also eyeing up to 5% growth in the domestic market in 2009-10 on the back of increased demand from rural India. The Society of Indian Automobile Manufacturers (Siam) had projected the industry to grow by 3-5% in the current fiscal. I'm sure MSI should also grow between 3% and 5%, but our hope is to do better than that, said Nakanishi. But the double-digit growth is certainly tough to attain this year, he feels. Rural contribution to the company's overall sales has gone up to 8.5% in the last fiscal from 2.5% in 2007-08.
Ritz, which was showcased at the auto expo in January 2008, would be launched in India this month. The car that would be available in 1.2-litre petrol and 1.3-litre diesel options would be positioned as a premium compact car in the country and will be rolled out from the company's Gurgaon plant.
As per Siam, Maruti registered a 1.45% jump in sales in 2008-09 at 7,22,144 units as against the 1.31% growth in the passenger car industry at 12,19,473 units vis--vis 12,03,733 units. The overall automobile industry, however, remained flat at 97,23,391 units as compared with 96,54,435 units in 2007-08.
The company is also planning to make fresh investments, after the earlier announced Rs 9,000-crore capex comes to an end in 2010, in non-production activities such as research & development and marketing initiatives.
Setting up stockyards for both, finished products and spare parts, at regional level is high on the agenda so as to reduce the delivery time to our customers, Nakanishi said, adding that the company is in advanced stages of negotiation and its first stockyard will come up in South India by the middle of this year.
With increased focus on automation, while the company has frozen hiring at other levels, it will continue to increase workforce at its sales division as well as strengthen the R&D division. Maruti will add another 1,000 dealer sales executives in 2009-10 and increase the R&D workforce from 740 to 1,000 by 2010, he added. http://in.biz.yahoo.com/090504/50/bativ8.html
MARUTI SUZUKI EXPECTS SALES TO INCREASE UP TO 5 PC IN FY'10 Agencies See this story in: The Indian Express (Web Edition), The Hindu (Web & Print Edition) , The Hindu Business Line (Web Edition), mint (Delhi Print Edition)
"The Society of Indian Automobile Manufacturers (SIAM) had projected the industry to grow by 3-5 per cent in the current financial year. I'm sure MSI should also grow between three and five per cent but our hope is to do better than that," MSI Managing Director Shinzo Nakanishi told reporters here.
He, however, said it would be very difficult to attain a double-digit growth rate in FY'10.
"Last year, we had very good demand from rural areas and to push our sales, we will recruit more rural dealerships sales executives (RDSEs)," Nakanishi said, adding that the company currently has a strength of 2,500 RDSEs. MSI would also induct 1,000 dealer sales executives (DSEs) in its 680 outlets across the country, he added. These outlets have a present strength of 15,000 people.
Nakanishi said the company would export over one lakh units in the current fiscal of its four models -- A-Star, Alto, M800 and Zen Estilo -- from 50,000 units in the last fiscal.
Asked about the sales of the company, Nakanishi said, "I am very happy with the April sales but don't know about May and June. However, signs are very good for the coming two months." On commodity prices going down, he said the company expected some recovery in its profitability but not to last year's levels. http://www.indianexpress.com/news/maruti-suzuki-expects-sales-to-increase-up-to-5-pc-in-fy10/454345/ http://www.hindu.com/2009/05/05/stories/2009050556031600.htm http://www.thehindubusinessline.com/blnus/02041620.htm
MARUTI SCALES DOWN BIG CAR AMBITIONS PTI See this story in: The Economic Times (Web Edition), The Statesman (Web Edition)
http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=253283
MARUTI TO FOCUS ON SMALL CAR MARKET Chanchal Pal Chauhan
The Telegraph (Web Edition)
Indias No. 1 car maker is targeting 1 lakh export of the A-star against 70,000 for all models last year. A-star export stood at 20,000 in 2008-09. Production target for the car is 1.4 lakh for this fiscal, with the forecast for local sales being 40,000 units.
In export, Europe will account for the largest share at 60,000 units. Last year, the company exported 70,000 vehicles, comprising the A-stars and 50,000 units of the Maruti 800, Alto, Zen Estilo and Gypsies. We are confident of exporting one lakh units of the A-star, but exports of other models can be a little lower than last year, said Shinzo Nakanishi, managing director of Maruti Suzuki.
Marutis domestic sales are expected to benefit from a good demand in rural areas. The Society of Indian Automobile Manufacturers has projected the industry will grow 3-5 per cent in the current financial year. Our hope is to do better than that, said Nakanishi.
To push sales, Maruti will set up stockyards. Maruti will also induct 1,000 sales executives in its 680 outlets in the country, he said.
These outlets have a present strength of 15,000 people. He said the firm's first stockyard will come up by the middle of this year in South India, but declined to comment on details such as time-frame, investment, location and size of the stockyard.
"We are in advanced stages of negotiations," he said, adding the company is not going through government channels, but directly negotiating with land owners for acquiring land.
Maruti however said it would be very difficult to attain a double-digit growth rate in fiscal 2009-10.
"Last year, we saw very good demand from rural areas and to push our sales, we will recruit more rural dealerships sales executives (RDSEs)," said Nakanishi adding that the company currently has a strength of 2,500 RDSEs.
As for companys export target, Maruti aims to export about one lakh units of A-Star to Nissan and some European and non-European countries. In addition, it hopes to export a little lower than 50,000 units of models like M800, Alto and Zen Estilo.
But Maruti has tried to beat the slowdown through new product launches that helped it post a fourth straight month of higher sales in April.
Nakanishi said Maruti was planning to launch a new hatchback, Ritz, later this month, which would be positioned in the same category as its popular Swift model. He also reiterated the company had no plans for ultra low-cost cars to compete with Tata Motor's Rs one lakh Nano.
Maruti plans to spend Rs 1,800 crore in the current fiscal. This is part of the Rs 9,000 crore investment spread over 2007-2011 the company announced earlier. However, Nakanishi said more investment may be needed in future, but did not disclose details.
Last year, our profitability was not satisfactory ... some recovery will be shown (in the June quarter)," he said. http://www.telegraphindia.com/1090505/jsp/business/story_10917808.jsp
MARUTI SUZUKI PLANS TO LAUNCH 660 CC CAR Business Standard (Web & Print Edition)
Meanwhile, the company also plans to upgrade the Omni engine to make it compliant with the latest emission norms and launch an executive sedan to compete with the Toyota Corolla and the Honda Civic.
Talking to reporters here on the car companys roadmap for the future, Shinzo Nakanishi, managing director of Maruti Suzuki, said: The Suzuki 660 cc car is a good car for the Indian market, but it will take some years to launch it here.
He said several issues needed to be addressed before the 660 cc car was launched. One is the large investment Maruti has made on commissioning a plant for the K-series engine, which runs the A Star and soon-to-be-launched Ritz. We have to recover this investment first. Once that happens, well focus on the 660 cc car, said Nakanishi.
Maruti invested Rs 1,800 crore in 2008-09, and plans to invest another Rs 1,600 crore this year. A large portion of this money has been set aside for the development of the K-Series engine and a new plant in Gurgaon.
Second, to launch the 660 cc car in the domestic market, Marutis assembly lines in Manesar and Gurgaon will have to be recalibrated, which was not possible given the waiting period for models like the Swift and Dzire.
Thirdly, the 660 cc engine needs to be upgraded to meet Bharat 4 norms, which push up the cost of the car, said Nakanishi.
Nakanishi also made it clear that, contrary to earlier reports, the Omni will not be phased out when the Bharat 4 emission norms come into effect next year in around 11 cities.
Every month, we sell about 7,000 units of the Omni on an average. Thats a good number and we would not like to let go of it. Our engineers are working to upgrade the Omnis engine to meet the new emission norms, so the Omni will not be phased out, he said.
The company had also begun work to upgrade the Maruti 800 engine so that it could become Bharat 4 compliant, but Nakanishi said, We have had no progress on the Maruti 800.
Maruti had earlier indicated that the upgrade of the car to the new emission norms would make it expensive. Instead, Nakanishi hinted that the company was working on ways to reduce the cost of the Alto.
On the executive sedan, Nakanishi said the plan is to introduce the concept car Kizashi, which was displayed at the Toyota Motor Show, after it is launched in Japan.
With the current slowdown afflicting the Japanese and US economies, its difficult to say when we will start the production of this concept car, he added.
Meanwhile, the company is considering a chain of warehouses across the country. We are looking at land around the factory for Gurgaon and in south India to set up warehouses ranging from 50 to 100 acres. These will store our cars and spare parts that will ensure quicker delivery and reduce dealer inventory, he said. http://www.business-standard.com/india/news/maruti-suzuki-plans-to-launch-660-cc-car/357136/
MARUTI SEES RECOVERY IN PROFITABILITY IN JUNE QUARTER Reuters See this story in: The Economic Times (Web Edition)
http://economictimes.indiatimes.com/articleshow/4482142.cms
MARUTI PLANS MORE INVESTMENTS IN DISTRIBUTION NETWORK, MAKETING PTI See this story in: The Economic Times (Web Edition), The Hindu Business Line (Web Edition)
http://www.thehindubusinessline.com/blnus/02041921.htm
MARUTI BETS ON RITZ TO DRIVE DOMESTIC SALES The Hindu Business Line (Web & Print Edition)
I cannot tell the exact number. But we hope to do as many units as Swift, the Maruti Suzuki Managing Director, Mr Shinzo Nakanishi, told journalists.
Mr Nakanishi admitted that there could be cannibalisation between Swift and Ritz, but he explained, The Ritz will be positioned more as a family car. The Swift is more of a sporty car. The Ritz, which is known as Splash globally, will be launched in India this month powered by a 1.2 litre engine. It will be launched both in the petrol and diesel variants at the same time.
In its sales forecast for the domestic market, the company hopes to post a better growth than the industry average of 3-5 per cent. May be the first quarter looks good, seeing April sales, he said.
Even amid recession in Europe, the company expects A-star exports to increase over one lakh this fiscal. Maruti Suzuki will export about 10,000 units in non-European countries, 60,000 to Europe and 30,000 units for Nissan.
In spite of crises in Europe, some countries introduced incentives for replacing old cars to new cars. Suzuki is ready to make additional orders in May and June. Nissan is also ordering more, said Mr Nakanishi.
The A-star is replacing Marutis combined exports of Maruti 800, Alto and Estilo for last year. Against an export of 50,000 units for the three models last year, the A-star alone will double the companys export this fiscal. At the same time, it feels the demand of its other models in the overseas market may not be at last years level.
On the marketing front, Maruti is keen to expand its workforce and set up stock yards this year. Last year we hired up to 1,000 for sales. This year we will add a similar number as our dealer sales executives, said Mr Nakanishi. Maruti, which has about 2,500 rural dealer sales executives, will also expand its sales force in this segment.
On phasing out M-800 completely, the company said that while with the new emission norms, it will get automatically phased out in 11 cities, it will continue selling it as long as the demand existed in other cities.
We will continue to sell as long as there is demand. I have told my engineers to try to upgrade it to BS4 norms from BS3. If we fail, we will have to give up, Mr Nakanishi stated. http://www.thehindubusinessline.com/2009/05/05/stories/2009050551250200.htm
FORD INDIA TO LAUNCH SMALL CAR IN A YEAR Vinay Umarji Business Standard (Web & Print Edition)
Asked if it is looking at the Maruti 800 and the Chevrolet Spark segment, Nigel E Wark, executive director, marketing, sales and service, Ford India, said: Yes, we will be launching the small car in this segment broadly, but there are sub-segments in the category, and this is where we will differentiate ourselves. We will be basically competing in the largest volume segment. India and China are the two markets in the world where small cars are in huge demand and we will be focusing on these countries a lot. He did not give more details.
Early last year, Ford India had invested $500 million to expand its vehicle and engine manufacturing capacity. Wark said the small car operations would be funded from this investment alone as of now.
The automobile firm is expanding its yearly vehicle manufacturing capacity to 200,000 units and 250,000 engines. We are looking at increasing the share of exports (from India) once the capacity is expanded. Plus, we will export the small car in the region, apart from petrol and diesel engines, said Wark.
On customer service, Ford India is planning to expand Quick Service centres. At present, it runs Quick Service centres at 23 locations, which it intends to take to 45 by December. Through the expanded number of Quick Service centres, we intend to reach out to 70-75 per cent of our customers in the country, said Jesus Metelo Arias, general manager, customer service operations. http://www.business-standard.com/india/news/ford-india-to-launch-small-car-inyear/357111/
500 HYUNDAI EMPLOYEES GO ON SUDDEN INDEFINITE FAST PTI See this story in: The Economic Times (Web Edition), Business Standard (Delhi Print Edition)
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| CAR COS PUSH FOR LOANS ON VEHICLES FOR COMMERCIAL USE Priyanka Vyas The Hindu Business Line (Web & Print Edition)
Industry sources say that lending for vehicles used for commercial purpose was mainly done by private banks. But as many private banks stepped back, public sector banks such as Bank of Baroda and Corporation Bank have started lending under the department of small and medium enterprises.
Mahindra & Mahindra, for example, has inked agreements with Corporation Bank and Bank of Baroda to finance its vehicles. One of the agreements is to finance its vehicles to be sold for private purposes. The other agreement is for lending on vehicles that will be used either by a small fleet operators or small enterprises.
Few of the public sector banks have begun extending finance on vehicles for commercial purpose as part of their lending portfolio for small and medium enterprises. This covers financing for about 2-4 vehicles for small businessmen, Mr Arun Malhotra, Senior Vice-President (Sales), Automotive Sector, Mahindra & Mahindra, told Business Line.
Apart from public sector banks, companies are also resorting to their financing subsidiaries such as Tata Motors Finance, Tata Capital and Mahindra Finance.
Because of a slowdown in particular sectors, delays are bound to happen in equated monthly instalments. But we are not taking a view of not lending to such segments completely as one has to go through the lending cycle, said Mr Ramesh Iyer, Managing Director, Mahindra Finance.
Flexible norms An official with Tata Motors Finance also said that despite an interest rate difference of 2-3 per cent between non-banking finance companies and banks, borrowers still prefer them. This is due to an easier documentation procedure and flexible eligibility norms.
The moment a customer reveals at the dealership his intention to buy a vehicle for a commercial purpose, he is denied a loan. So even if its at a higher interest rate, borrowers seek loans, said an executive with Tata Motors Finance.
Separate agreement The companies felt the need for a separate agreement to finance vehicles for commercial purposes due to its considerable share in their overall sales.
In the case of Mahindra, about 40-45 per cent of Bolero sales were for commercial purposes a year ago. This has dropped to about 25 per cent of its new car sales. For General Motors, too, sales of its sports utility vehicle Tavera have fallen.
Fleet operations account for about 60 per cent of Tavera sales, said Mr P. Balendran, Vice-President (Corporate Affaires) of General Motors. Sales of the Tavera and Captiva have fallen to 15,603 units from 21,278 units in the previous fiscal. http://www.thehindubusinessline.com/2009/05/05/stories/2009050551350200.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top The Hindu Business Line (Web Edition)
http://www.thehindubusinessline.com/2009/05/05/stories/2009050551370201.htm
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| STREETBIKES FROM BAJAJ-KTM TO BE UNVEILED AT AUTO EXPO 2010 Swaraj Baggonkar Business Standard
KTM is a Austrian company that manufactures motorcycles having engines ranging from 50cc to 1,200cc. Pune-based Bajaj Auto, Indias second-largest two-wheeler maker, has 31.72 per cent stake in it.
The two companies have been working on the development of 125cc and 250cc motorcycles following an agreement in November 2007. Both bikes will be powered by liquid-cooled four-stroke engines.
KTM plans to showcase these high-performance products at the international bike fair, EICMA, to be held in Milan, Italy, this November, and subsequently at the Auto Expo in New Delhi in January.
Mass production of the two bikes is expected at the Chakan facility of Bajaj Auto near Pune next year. Pricing details of the two motorcycles were not available. Market experts expect a premium over competitors.
We will not be able to share the pricing details of the two bikes (Bajaj-KTM bikes) at this moment. Any further guidance relating to the bikes design and engineering will be given at the time of the launch next year, said a senior executive of Bajaj Auto.
Currently, as many as 10 models are sold in the 125cc category, including those of Hero Honda, Yamaha, TVS Motors, Honda, Suzuki and Bajaj Auto. No Indian manufacturer sells bikes in the 250cc segment.
Bajaj Auto is revamping its entire product range, sold under the Pulsar brand, with modifications in the exterior body and the engine. The company is also launching a completely new product later this year.
Bajaj and KTM had also planned to launch a few big bikes of KTM, including the 690 Supermoto, street bike 690 Duke, 990 Adventure, 250 EXC-F and the 990 Superduke in India last year.
While some of the bikes will be assembled at Chakan and later sold through Bajaj's probiking showrooms in key markets across the country, others will be imported.
These models were to be launched during the second half of last year. However, due to adverse market conditions, the companies postponed the launches. These are now expected to be launched later this year.
The economic slowdown has eaten into the profits of KTM, with the company plunging into the red in the first half of financial year 2008-09. Income from operations dipped 22.6 per cent to 222.9 million, while a loss of 44.4 million was reported in the first six months of the financial year, which began in September. The company had to trim working hours at its factory as a part of optimisation and cost-cutting measures, although there were no lay-offs.
Meanwhile, senior Bajaj officials confirmed that Bajaj Auto had so far utilised Rs 700 crore out of Rs 1,500 crore given to it by holding company Bajaj Holding and Investment (BHIL) as part of the demerger. Bajaj Auto used the funds to buy shares from the open market in the Vienna Stock Exchange-listed KTM. Rajiv Bajaj, managing director, Bajaj Auto, is now on the board of KTM.
WILL HERO HONDA REMAIN THE LEADER? Shobhana Subramanian Business Standard
If ever a company had the ability to continuously surprise investors, it's Hero Honda.
Doubts have also been voiced over its ability to access technology from its joint venture partner Honda Motors. And the ability to compete with the Japanese major.
In an extremely tough 2008-09, Hero Honda managed to sell higher volumes up 12 per cent in the process growing its net profit by 32 per cent. In 2008, the stock made it to the list of the top three Sensex scrips, together with Hindustan Unilever and Glaxo. http://business.rediff.com/slide-show/2009/may/04/slide-show-1-will-hero-honda-remain-the-leader.htm
SUZUKI MOTORCYCLE APRIL SALES UP BY 33% PTI See this story in: The Economic Times
SUZUKI MOTORCYCLE APRIL SALES UP PTI
The increase in sales is attributed to the tremendous response for the new product GS 150R, Suzuki said. Suzuki Motorcycle India Pvt Ltd is a subsidiary of Japanese auto major Suzuki Motor Corporation. http://www.thehindubusinessline.com/blnus/02041720.htm
SUZUKI MOTORCYCLE INDIA APRIL SALES INCREASE 33% PTI See this story in: mint
New Delhi: Suzuki Motorcycle India Monday reported 33 per cent jump in its sales for the month of April, at 13,548 units. The company had sold 10,208 units in April last year, Suzuki said in a statement.
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| COMPONENTS Go To Top Raghuvir Badrinath Business Standard
Robert Bosch Engineering Centre in India has been growing despite the global credit crunch. How are you able to grow in such a situation?
What about plans for expanding India operations?
The global auto industry is caught in mire and may take years to come out of it. How is Robert Bosch innovating for smart cars and better energy management which is the core focus of global auto majors?
In addition to the software centre, you also house a shared services centre? What are the plans to take that business forward?
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| ALLIED INDUSTRY Go To Top George Joseph Business Standard
This will obviously lead to a sharp increase in the import of natural rubber in the current year. The fall in the supply of rubber, mainly because of heavy stocking by growers also lead the tyre majors to opt for the import route. According to Automotive Tyre Manufacturers Association (ATMA), it is likely that the import would be doubled this fiscal thanks to the cheaper availability of the commodity in foreign markets. According to sources at ATMA the import would be more than 160,000 tonne this year. In the last financial year, total import touched 79,927 tonne against 86,394 tonne in 2007-08.
In April June period (first quarter of the current financial year), the import is likely to touch 50,000 tonne as a major chunk of the heavy orders already put up by the tyre companies would be delivered from May onwards. During Q1 of 2008-09, total import had been 20,233 tonne which was lower by 8.5 per cent than the 24,190 tonne in the same period of the previous financial year. It is not the price alone that makes the tyre industry to opt for imports, but the non-availability of the main input used in tyre making in the local markets.
Though the Rubber Board figures say that the total stock by 31st March, 2009 is 2,05,000 tonne, rubber is not available in Kottayam and Kochi, the two major markets of the commodity.
The industry sources say that if there is such a large stock in the country, why is rubber scarce in the local markets? Why are the growers and stockists reluctant to release their stock at a time when the local prices are higher by Rs 22 a kg than the global prices. Where is the huge stock being hidden? So the boards estimates are not reliable at all when compared to the ground reality in the domestic market.
The latest estimates of the stockists and the industry clearly indicate that the stock would be lower than 1,50,000 tonne. ATMA also raised serious apprehension over the stock and the availability of natural rubber. It also raised a demand for the Rubber Board to physically verificy the stock in the country in order to ascertain the correct figures. Though they have not raised the demand officially, they have already intimated the issue to the office bearers of the board.
Meanwhile, export from the country has suffered seriously in the recent months. The total export was 45,538 tonne in 2008-09 and this is likely to fall below 20,000 tonne this year. During the first quarter of 2009-10, export would be meager as against 13,136 tonne in the first quarter of the last financial year. http://www.business-standard.com/india/news/natural-rubber-imports-might-double/357081/
KESORAM TO PAY RS 3.25 DIVIDEND The Hindu Business Line See similar story in: The Telegraph
Despite production suspension at its OEM tyre unit at Balasore for 41 days, owing to lack of demand and inventory pile up and continuing suspension of work at the companys spun pipes and foundries unit from May 2, 2008, the company reported higher net sales at Rs 4,292.07 crore (Rs 3,440.32 crore) and Rs 1,175.78 crore (Rs 999.39 crore) in Q4 to March 31, 2009.
Q4 net profit RISES Sequentially, the quarters sales number was better than the Q3 number of Rs 1,044.63 crore. The yearly net profit, however, declined to Rs 378.74 crore (Rs 383.35 crore). The quarterly net profit grew to Rs 159.23 crore (Rs 105.79 crore).
The company adjusted foreign exchange loss of Rs 26.92 crore to the cost of depreciable capital assets acquired out of the related foreign currency loans. Its mark-to-market/actual loss in respect of certain derivative contracts remaining outstanding at the end of the financial year was Rs 18.54 crore. http://www.thehindubusinessline.com/2009/05/05/stories/2009050551230200.htm http://www.telegraphindia.com/1090505/jsp/business/story_10917809.jsp
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| FINANCE & INSURANCE Go To Top The Economic Times
Mumbai: Tata AIG General Insurance has received approval from IRDA (the insurance regulatory body) for launching 8 add-on covers as part of its motor portfolio. These new covers will be added to strengthen the offering of its Motor Insurance product Auto Secure. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| LUBRICANTS & ALTERNATIVE FUELS Go To Top Reuters See this story in: The Hindu Business Line
London: Crude oil rose to a five-week high as the number of Americans signing contracts to buy previously owned homes jumped along with spending on US construction projects, signaling energy demand may improve with the economy. Crude oil for June delivery rose 62 cents to $ 53.82 a barrel at 10: 13 am on NYMEX.
DELHI MAY IMPOSE SPECIAL CESS ON OIL TO RAISE MONEY FOR METRO Rajat Guha & Rajeev Jayaswal
for expanding the Metro rail network in the Capital ahead of next years Commonwealth Games. The state government and central urban development ministry have accepted a proposal by the Delhi Metro Rail Corp (DMRC) to make consumers pay an extra Rs 2 and Re 1 per litre on petrol and diesel, respectively, from this June. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| INTERNATIONAL NEWS Go To Top Nicole Winfield, Hindustan Times
The new auto manufacturer would have $105 billion in annual revenue, Fiat said in a statement.
Fiat said it is evaluating the possible spinoff of its auto business to form the core of the new company. Fiat Group Automobiles includes the Fiat, Alfa Romeo and Ferrari brands. The statement was issued on the eve of a meeting in Berlin between Fiat Group CEO Sergio Marchionne and the German economy and foreign ministers to discuss Fiat's offer for GM's German unit, Opel.
GM Europe also includes the British company Vauxhall and the Swedish carmaker Saab.
GM has been trying to find investors for its noncore and unprofitable assets as part of a restructuring in which it has sought billions of dollars in aid from the U.S. government to avert collapse.
Opel has said it needs $4.3 billion to get through the economic crisis. The German government has said it doesn't foresee giving direct state aid. Chancellor Angela Merkel has suggested the government could help an Opel investor with loan guarantees. Fiat said that over the next few weeks, Marchionne will be looking "to assess the viability of a merger of the activities of Fiat Group Automobiles (including the interest in Chrysler) and General Motors Europe into a new company."
"As part of this process, the group would evaluate several corporate structures, including the potential spinoff of Fiat Group Automobiles and the subsequent listing of a new company which combines those activities with the activities of General Motors Europe."
In an interview Sunday with Corriere della Sera, Fiat Chairman Luca Cordero di Montezemolo called GM's Opel an "ideal partner" and a possible takeover by Fiat an "extraordinary opportunity." Fiat is not the only suitor for Opel, however.
Last week, Canadian car parts maker Magna International Inc. presented German Economy Minister Karl-Theodor zu Guttenberg
Fiat, meanwhile, has pressed ahead with a takeover of Chrysler. Chrysler filed a motion Saturday to sell substantially all of its assets to Italian automaker Fiat, but the ailing automaker must still deal with creditors who refused to come to a deal to erase the company's debt.
In addition to Fiat Group Automobiles, the Fiat Group also includes its agricultural vehicles branch CNH and its Iveco trucking unit, as well as a media arm. http://www.telegraphindia.com/1090505/jsp/business/story_10917806.jsp
ENOUGH SUITORS FOR SATURN, SAYS GM Reuters
Concessionary deals http://deccanherald.com/Content/May52009/business20090504134268.asp
EUROPE AUTO SHAKE-UP LOOMS, PORSCHE SALE DEBATED Reuters See this story in: The Economic Times
"Industrial logic-wise, Opel makes a lot more sense than Chrysler
. The big hurdle we can see is social cost," Nomura International analyst Michael Tyndall said.
JLR CHIEF QUESTIONS DARLING'S SCRAPPAGE SCHEME: REPORT PTI
The boss of Jaguar Land Rover (JLR) has questioned the Chancellor Mr Alistair Darling's scrappage scheme for the motor industry, claiming it will have a minimal impact and merely distort a fundamentally struggling market, Mr David Smith said in an inte rview to the Daily Telegraph.
Mr Smith's comments has come at a crucial time for JLR as it is seeking a 500 million package of loans and refinancing from Government-backed banks Royal Bank of Scotland and Lloyds Banking Group, the report added.
Under the scrappage scheme, consumers would be offered a 2,000 pound discount on new cars if they scrap a vehicle older than 10 years in a bid to stimulate car sales in the UK, which are down 30 per cent so far this year.
The industry had strongly lobbied for a scrappage scheme, warning that hundreds of thousands of jobs were at risk. http://www.thehindubusinessline.com/businessline/blnus/10041621.htm
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