Indian Auto Industry News: 8/2/09

New Delhi: The government has asked carmakers to consider manufacturing at least one or two models meant for physically challenged persons, Parliament was informed on Thursday.

"The government has been advising the car manufacturers to consider manufacturing at least one or two models of their cars suitable to be driven by the physically challenged persons," Minister of State for Heavy Industries and Public Enterprises Arun Yadav said in a reply in the Lok Sabha.

The government is also providing excise duty concessions on vehicles meant for physically challenged people, he said.

Yadav said as per Society of Indian Automobile Manufacturers (SIAM), the Indian carmakers, who were earlier providing vehicles with automatic transmission for physically challenged persons, had to discontinue the same since the demand for such vehicles is rare and making them available "off the shelf" is not economically viable.

He, however, said that SIAM has also informed that the Indian automobile industry is committed to manufacturing such vehicles, on specific order, to suit the disability of person.

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Govt-wants-carmakers-to-manufacture-models-for-handicap-/articleshow/4864184.cms

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HINDUSTAN MOTORS UPGRADING VEHICLES FOR BHARAT STAGE IV

The Hindu Business Line (Web & Print Edition)

Mumbai: Hindustan Motors is working on upgrading its vehicles for Bharat Stage IV compliance. Mr Ravi Santhanam, Managing Director, Hindustan Motors Ltd, said the newly launched mini-truck Winner is BS IV-compliant.

He was speaking on the sidelines of the flagging off of Mitsubishi-sponsored The Great Driving Challenge.

He said that BS IV compliance of CNG version of the Ambassador is currently being verified. Major cities will move to the emission standard BS IV in 2010.

Mr Santhanam said the CNG version of the one-tonne truck Winner will soon be commercially launched in Delhi. Winner has been launched in seven cities.

It will take a few months for Winner to establish itself. Once Winner establishes in the market, we will launch another mini truck. This may take 18-24 months, he said.

To launch new car Mr Santhanam said the company will launch a high performance car from Mitsubishi within six to eight months. Hindustan Motors assembles and markets Mitsubishi Motors cars in India.

The car will initially be launched as a completely built unit, he said. The upcoming model is rumoured to be Evo X, a sporty compact from Mitsubishi. Mr Santhanam said that ancillary units in Chennai offer huge scope for localisation of Mitsubishi models.

http://www.thehindubusinessline.com/2009/08/07/stories/2009080750550200.htm

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AMBASSADOR BETS ON GAMES TO REGAIN LOST GLORY

Shweta Bhanot

The Financial Express (Web & Print Edition)

Mumbai: The legendary Hindustan Motors (HM) Ambassador car is likely to ferry officials and representatives at the Commonwealth Games, scheduled for October next year.

Talking to FE, Hindustan Motors Limited managing director R Santhanam said he hoped to see the car named as the official vehicle for the Games. We are in talks with the government.

The Ambassador is an ambassador for the country, he said. The company has already readied the legend for the Euro-IV emission norms that kick in next year in 11 cities, including Mumbai, New Delhi, Kolkata, Bangalore, Chennai, Surat, Kanpur, Hyderabad, Pune, Agra and Ahmedabad. The car is priced in the range of Rs 3.5 lakh - 5.5 lakh.

Santhanam had earlier talked about the revival of demand for Ambassador as a staff car in the government departments. He had also highlighted the preference Ambassador gets over other cars when foreign tourists visit Rajasthan and Kerala.

The car has been in the market since 1949 and continues to be a preferred by the government officials as well. According to industry experts, the reason why Ambassador is chosen over any other car by departments to ferry politicians and VIPs is that it can be easily armoured.

Santhanam was speaking on the sidelines of flagging off of The Great Driving Challenge in Mumbai wherein Hindustan-Mitsubishi Cedias would be driven by selected three teams covering 3,000 kilometre in over 12 days.

Asked about the companys launch plans, Santhanam said, We will be launching a niche high-performance car from the Mitsubishi stable by the end of this financial year. He did not divulge more details, except that the car would be priced way above Cedia. The new car will be made available as a completely built unit in the country.

From the Hindustan Motors stable, the company would launch a new one-tonne mini truck in another 18-24 months.

The company recently launched HM Winner. Talking about the companys forging and casting business, he said there are plans to leverage the business as separate. We are making the business outward from inward.

Santhanam, however, refuted any plans of the business being hived off as a separate company and stressed on making the contribution of this business significant enough to the overall revenues of the company.

http://www.financialexpress.com/news/ambassador-bets-on-games-to-regain-lost-glory/499002/
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MARUTI'S ROYALTY FEES TO PARENT RISES WITH ITS SALES

Danny Goodman

Business Standard (Web & Print Edition)

New Delhi: Maruti Suzuki, the car maker with the highest domestic sales, is expected to pay a higher royalty fee to its Japanese parent, Suzuki Motor Corporation, for the financial year ending March 2010.

After selling 792,167 vehicles in 200809, the companys royalty outgo was Rs 672 crore, a 34 per cent growth over the previous financial year. As a percentage to net sales, royalty fees were 3.3 per cent, expected to rise to 3.6 per cent for the current financial

year.

Royalty fees are a price paid for using proprietary material such as design and technology of a car which has been developed and owned by another company. In Marutis case the royalty fee paid per vehicle is about 5 per cent of its net price. The royalty is paid for the first 11 years of a models life in the domestic market. Which means it no longer pays royalty fees on the M-800, which has run for an admirable 25 years and continues to do so, and the Omni.

A company official said he expects the royalty fee to rise mainly on account of the increase in contribution from newer royalty paying models like the A-Star and the Ritz to the total sales mix.

The royalty fee of our models is calculated on three basic premises. Which are the basic selling price of the vehicle, import content of a model, and standard bought outs (common car parts like tyres and batteries which are locally sourced and hence attract no royalty fee). By calculating each of these aspects, which are in different proportions for each model, net royalty fee even for an older model like the Alto comes to around 5 per cent. The other component the official highlighted was on the value of the Japanese yen against the Indian rupee. Should the yen appreciate against the rupee, the greater is the royalty outgo.

The third factor controlling royalty fee outgo for Maruti Suzuki are the imported contents in its cars. New models like the Ritz have an import content of around 15 per cent, which the company is trying to reduce thorough localisation.

http://www.business-standard.com/india/news/maruti/s-royalty-fees-to-parent-risesits-sales/366234/

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AUTO COS STILL CAUTIOUS DESPITE SALES SURGE

Swaraj Baggonkar

Business Standard (Web & Print Edition)

Mumbai: Arvind Saxena, senior V-P (sales and marketing) at Hyundai Motor, is happy with the sense of optimism in the market, but is not joining the motown party over surging sales not yet anyway.

When you compare last years July or Junes sales with that of this year, it had a much lower base. Enquiry levels are still high, but conversion rate is still on the lower side due to the customers inability to make a decision, Saxena says.

That sums up the mood in auto companies. While last months impressive performance has pushed the monthly sales tally to well beyond 110,000 units and almost all manufacturers posted double-digit growth rates, the mood remains cautious. Thats because many feel the recent uptrend was more on account of last years very low base and less because of a full revival in demand.

Thats the reason why all leading manufacturers, such as Maruti Suzuki, Hyundai Motor India and Tata Motors, are hesitant in predicting even a low double-digit increase in sales next month.

Maruti Suzuki, Indias biggest car maker, had predicted a 5 per cent growth at the beginning of the year. Despite the surging sales in July, the company is now saying it would rather do a month-on-month assessment instead of sticking to its earlier target. Experts said the change in stance has been prompted by the realisation that, while new models such as Ritz and A-Star are showing good results, the old models are still to see much pull. The company saw domestic sales jump 27 per cent last month to 67,528 units.

Tata Motors, Indias third-largest car maker, was able to post impressive sales, but thats more because of the Nano. Excluding the ultra low-cost car, the company has posted an increase of just under 1 per cent. Total passenger cars sold by Tata Motors in July, excluding Nano, stood at 12,062 units, compared with 12,012 units sold in the same month a year ago.

Meanwhile, Mahindra & Mahindra, Indias biggest utility vehicle player, has stated that the increase seen by the company last month was directly related to the spurt in demand for its models such as the Xylo and Bolero.

Rajesh Jejurikar, chief of operations, Mahindra & Mahindra, said: Xylo has accounted for most of the sales in the April-July period, although Scorpio and Bolero have also done well. It will not be possible to maintain such a high growth, but we are hopeful of a double-digit growth for the year.

The company reported a growth of 56 per cent in utility vehicle sales at 16,688 units in July, against 106,672 units reported in the same month a year ago.

Whatever the concern, the fact is auto sales have zoomed. For some, this is enough to up production. Hyundai reported a growth of 54 per cent in domestic sales last month, selling 23,193 units. The approaching festive season has prompted the company to operate its plants in three shifts instead of two shifts earlier, thereby jacking up its production by 20 per cent.

However, auto experts say that improving economic conditions have built a growth momentum, but a sustained double-digit growth is still way off.

Kapil Arora, partner (automotive practice), Ernst & Young, said: The recent spurt in vehicle sales is encouraging and can be attributed to a combination of factors, including improved customer confidence, easing of the liquidity crunch for vehicle financing by banks and moderate interest rates. The industry expects domestic passenger vehicle sales to grow around 5 per cent in volume terms in FY10.

http://www.business-standard.com/india/news/auto-cos-still-cautious-despite-sales-surge/366232/

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VOLVO PLANS LUXURY SEDAN S60 LAUNCH IN INDIA SOON

PTI

See this story in: The Hindu Business Line (Web & Print Edition), The Statesman (Web Edition), Yahoo India (Web Edition), Deccan Herald (Web Edition), The Indian Express (Web Edition), mint (Web Edition)

New Delhi: Swedish luxury car maker Volvo Car is expected to launch its luxury sedan S60 in India by 2010, once the car is reintroduced in the European markets in the middle of next year.

The company will also consider setting up an assembly facility in the country as soon as Volvo Car India, the Indian subsidiary of the Ford Group company, starts selling at least 2,000 units a year.

We will be launching the S60 in the Indian market after it is rolled out in Europe in the middle of next year. We hope to have it in India before the end of 2010, Volvo Car India Managing Director, Mr Paul de Voijs, told PTI.

The S60 was phased out since May this year and the new car would be an advanced version, he added. Volvo Car India, which sells its vehicles as completely built unit here, would bring in the S60 from its parent facility in Belgium.

http://www.thehindubusinessline.com/blnus/02061062.htm

http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=263750

http://in.biz.yahoo.com/090806/50/bau04o.html

http://www.deccanherald.com/content/18179/volvo-plans-launch-s60-india.html

http://www.indianexpress.com/news/volvo-to-launch-luxury-sedan-s60-in-india-in-2010/498717/

http://www.livemint.com/2009/08/06110459/Volvo-plans-to-launch-luxury-s.html

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IFC TO SPEND 135 MILLION IN VW PUNE PLANT

PTI

See this story in: Business Standard (Web & Print Edition), The Financial Express (Delhi Print Edition), The Economic Times (Delhi Print Edition), The Indian Express (Delhi Print Edition), The Hindu (Delhi Print Edition)

New Delhi: The World Banks private sector lending arm International Finance Corp (IFC) said it would invest 135 million in Volkswagen Indias plant in Pune to help generate jobs.

IFC ... has agreed to invest 135 million in Volkswagen India Pvt Ltd to help the company set up an integrated car manufacturing plant in Pune, India, that will help create jobs locally, it said in a statement.

The construction of the Indian manufacturing unit of Europes largest car maker, Volkswagen AG started in 2007 and the parent German auto maker has already invested about 245 million in the project. The plant will have an initial capacity of 110,000 units a year, and Volkswagen India will target the local small- to compact-car segments, IFC said.

This investment demonstrates the important counter-cyclical role IFC plays in supporting a vital project with significant job-creating potential during challenging times, said Dimitris Tsitsiragos, IFC director for global manufacturing and services.

The European Investment Bank and German development bank KfW are considering investing to meet the projects remaining financing needs, the World Bank Group member said.

IFC said 60 million will be paid from its own account and a syndicated loan of 75 million will be arranged from Societe Generale, Bank of Mitsubishi, DBS Bank and Fortis Bank.

The investment will also support the development of Indias car manufacturing sector and sends a strong signal to other investors in the country, Tsitsiragos added.

http://www.business-standard.com/india/news/ifc-to-spend-135-million-in-vw-pune-plant/366233/
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TVS MOTOR: STUCK IN SECOND GEAR

Shobhana Subramanian

Business Standard (The Compass)

Mumbai: Even on a low base, TVS Motors revenues for the June quarter were up just a shade over 7 per cent year-on-year to Rs 976 crore, driven by a 5 per cent increase in volumes. Thats probably because it was mainly scooters that drove up sales. On the back of lower raw material prices, the company, however, posted its highest Ebitda (earnings before interest, tax, depreciation and amortisation) of 5.3 per cent in almost three years.

Unless the cost of inputs remains stable, which seems unlikely, the company is unlikely to be able to sustain margins at the current level. Of course, a sharp increase in sales of motorcycles could help but despite a couple of new launches variants of Apache and Flame sales of motorcycles remain muted.

In the current year so far, they are down around 10 per cent. Besides, the ramp-up in volumes for three-wheelers has been somewhat disappointing though the TVS Scooty Streak has done well. TVS is expected to post revenues of around Rs 4,100 crore this year while net profit should come in at around Rs 65 crore. At the current price of Rs 57, the stock trades at a multiple of close to 21 times estimated 2009-10 earnings and is expensive.

http://www.business-standard.com/india/news/tvs-motor-stuck-in-second-gear/366181/
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SAINT-GOBAIN REALIGNS INDIA GYPSUM ARM

PTI

See this story in: The Hindu Business Line, The Hindu, Rediff India, mint

New Delhi: France-based building materials maker Saint-Gobain is undertaking a realignment of its gypsum business in the country, giving the Indian subsidiary a new name, as it aims to achieve a turnover of Rs 600 crore in the domestic market.

India Gypsum will henceforth be known as Saint-Gobain Gyproc India. This is a part of our new realignment and integration process with the global parent,'' Saint-Gobain Gyproc India Managing Director Mr Venkat Subramanian told PTI.

He said the integration will help the Indian gypsum making subsidiary tap the parent's resources and technology to increase foothold in the estimated Rs 500 crore gypsum market.

The market for gypsum and gypsum products is growing fast with a boom in construction. Our target is to double our turnover to around Rs 600 crore by 2012-13, from last year's Rs 300 crore,'' Mr Subramanian said.

He said the company is looking to tap the commercial interior construction market with new products like dry walls, besides, continuing to grow in existing segments like plaster boards, ceiling tiles and acoustical solutions.

Saint-Gobain had acquired India Gypsum when it took over British Plasters globally in 2006. Saint-Gobain Gyproc has four facilities in India with a total capacity of 40 million sq metre of gypsum annually.

http://www.thehindubusinessline.com/blnus/02061393.htm

http://www.hindu.com/2009/08/07/stories/2009080751341500.htm

http://business.rediff.com/report/2009/aug/06/saint-gobain-eyes-rs-600-cr-sales-in-india.htm

http://www.livemint.com/2009/08/06140126/SaintGobain-realigns-India-gy.html
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OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top

OIL FALLS TO NEAR $71 AS US INVENTORIES RISE

See this story in: The Times of India

Singapore: Oil prices fell to near $71 a barrel Thursday in Asia as investors eyed rising US crude inventories and signs of a weak economy. Benchmark crude for September delivery was down 58 cents to $71.39 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract gained 55 cents to settle at $71.97.

Crude has traded near $71 a barrel for the last couple days after shooting up from below $62 last week as investors try to gauge whether a weak US economy justifies a further rally.

The Energy Department's Energy Information Administration on Wednesday said crude inventories increased by nearly 2 million barrels last week, adding to the 5 million barrels put into storage the previous week.

The Institute for Supply Management reported that the services sector contracted more sharply than expected in July. The ISM showed that retailers, financial services, transportation and health care sectors, which account for 80 percent of US economic activity, fell for a tenth straight month.

In other Nymex trading, gasoline for August delivery fell 0.62 cents to $2.05 a gallon and heating oil dropped 1.74 cents to $1.94. Natural gas for August delivery slid 1.3 cents to $4.03 per 1,000 cubic feet.

In London, Brent prices fell 64 cents to $74.87 a barrel on the ICE Futures exchange.

http://timesofindia.indiatimes.com/news/business/international-business/Oil-falls-to-near-71-as-US-inventories-rise/articleshow/4862215.cms
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GM TO LAUNCH BUICK PLUG-IN SUV IN 2011

Reuters

See this story in: The Economic Times

General Motors Co unveiled plans to launch a plug-in SUV for its Buick brand in 2011, its latest move away from gas-guzzling vehicles in response to higher fuel-economy standards.

The new five-passenger Buick crossover is expected to be the first commercially available plug-in hybrid sport-utility vehicle by a major automaker, and would follow GM's heavily touted Chevrolet Volt plug-in car into the market.

The Chevy Volt, slated for showrooms in late 2010, and other electric vehicles including the Buick plug-in are key to GM's effort to reinvent itself and win back consumer trust after the automaker emerged from bankruptcy in July.

GM Vice Chairman Tom Stephens, announcing plans for the Buick hybrid at an industry conference in Traverse City, Michigan, on Thursday, said the company's "robust" balance sheet following its bankruptcy restructuring gives it flexibility to focus on product development.

"We've been given the opportunity of a lifetime and we know the hard part is just beginning. We have to convince consumers to give us a chance," Stephens said.

Major automakers, including GM and Toyota Motor Corp, have been ramping up plans for a range of electric vehicles to meet higher U.S. fuel-economy standards and increased consumer demand for fuel-efficient vehicles.

GM Chairman Ed Whitacre said on Wednesday the automaker would use some of the funding left from its bankruptcy reorganization to accelerate key vehicle launches, after delaying projects since late last year in order to shore up cash.

The Buick plug-in will use some of the same technology GM is developing for the Chevrolet Volt. It will be powered by next-generation lithium-ion batteries to be built by South Korea's LG Chem and its Compact Power unit, based in Troy, Michigan.

LG Chem is also supplying lithium-ion batteries for the Volt, one of the most eagerly awaited GM vehicles.

Stephens said GM is running a fleet of about 80 pre-production Volts, which are meeting initial targets. The automaker is designing the Volt to run 40 miles on a battery pack that can be recharged at a standard electric outlet.

"They are undergoing rigorous tests as we speak, and we're getting very positive results," he said.

Unlike traditional hybrids such as Toyota's Prius, which are powered by a battery or by the gas engine depending on driving conditions, plug-ins such as the Volt are designed to be powered by electricity at all times.

The Volt also carries an onboard gas engine, which will kick in on longer trips to generate power for the battery.

Last year GM said it would launch a plug-in version of its Saturn Vue SUV, but dropped that plan earlier this year when it decided to sell the Saturn brand. That sale is pending.

The automaker had said the vehicle that would replace the now-scrapped Saturn would be an SUV from one of the four brands it plans to retain after it completes its restructuring: Chevy, Cadillac, Buick and GMC.

http://economictimes.indiatimes.com/News/International-Business/GM-to-launch-Buick-plug-in-SUV-in-2011/articleshow/4865408.cms

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FORD SEES 90 PC PRODUCT RENEWAL BY 2012: CFO

Reuters

See this story in: The Economic Times

Traverse City: Ford Motor Co plans to renew up to 90 percent of its vehicle lineups in its three biggest business regions by 2012 to maintain a focus on product development while it also works to reduce debt, a top executive said on Thursday.

Ford, which expects to be at least break-even in 2011, also is on pace to reduce structural costs by $14 billion to $15 billion by the end of 2009, from 2005, Chief Financial Officer Lewis Booth said during an appearance at an industry conference.

The product replacement program would replace or refresh 70 percent to 90 percent of the lineups in the three regions: North America, Europe and Asia Pacific, and Africa, he said at the Center For Automotive Research annual conference.

"It is significantly faster," Booth told reporters. "Part of that is the competitive environment that results in shorter life cycles, but within that we are going to be more competitive than we have been in the past."

Booth said protecting Ford's vehicle pipeline was a critical priority for the automaker, which is also committed to addressing a high level of debt on its balance sheet.

The only large U.S. automaker not to undergo a government guided restructuring this year, Ford reduced debt in its automotive business by $10.1 billion in the first half of the year through cash buybacks and debt-for-equity swaps.

Ford also raised $1.6 billion in an equity offering in May and received Energy Department approval for up to $5.9 billion of loans through 2011 to support retooling of factories to build more fuel efficient vehicles.

Booth acknowledged that General Motors and Chrysler emerged from bankruptcies with comparatively cleaner balance sheets than Ford has, but said the automaker has other edges on its rival, including goodwill of customers, uninterrupted product plans and management continuity.

"I think that is going to show as we go forward as you see us continue to introduce these great cars at an increasingly faster rate because we haven't been interrupted by things other than our business," Booth said.

Ford has aimed to reduce the number of vehicle platforms it uses globally and the complexity of its offerings to trim costs. The automaker has launched a Fiesta global car and is adopting the same strategy with its Focus compact.

The Fiesta already is being sold in Europe and Asia and will be sold in North America beginning in the first half of 2010. The next generation of the Focus is due to be produced in North America later in 2010.

http://economictimes.indiatimes.com/International-Business/Ford-sees-90-product-renewal-by-12/articleshow/4865416.cms

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FORD IN TALKS TO SELL VOLVO CARS TO CHINA'S GEELY: REPORT

Agencies

See this story in: The Economic Times

Stockholm: US giant Ford is in talks to sell a majority stake in loss-making Swedish automaker Volvo Cars to China's Geely Automobile, a newspaper report said on Thursday.

"Geely is finalising a plan for the group to buy the majority of shares in Volvo Cars" in August, the Swedish business daily Dagens Industri reported, without identifying its source.

The paper said the deal would value Volvo Cars at between "20 (billion) and 25 billion Swedish kronor (1.9-2.4 billion euros)."

Contacted by AFP, Ford spokesman John Gardiner said: "We're still expecting the process to take some time to unfold."

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Automobiles/
Ford-in-talks-to-sell-Volvo-Cars-to-Chinas-Geely-Report/articleshow/4864005.cms

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HONDA EXECUTIVE DENIES INSIGHT IS PRIUS LOOK-ALIKE

Agencies

See this story in: The Economic Times, mint

Wako: A Honda design executive on Thursday rejected claims his company's Insight was a copycat of Toyota's Prius, the world's best-selling hybrid car.

``We don't think it looks like the Prius at all,'' said Nobuki Ebisawa, managing director at Honda R&D Co., Honda Motor Co.'s research unit. ``There may be some similarities in the roof line, but it is clearly different.''

Ebisawa's remarks were in response to the observation frequently made in the Japanese and overseas media that Honda's new Insight gas-electric hybrid bears a resemblance to Japanese rival Toyota's remodeled Prius.

Both went on sale at about the same time earlier this year. They are both selling well, especially the Prius in Japan, where it has been the top-selling model for three straight months _ the first time a hybrid has taken that spot. In July, Toyota sold 27,712 Prius cars in Japan while Honda sold 10,210 Insights.

Healthy hybrid sales have been a bright spot in the dismal auto industry, slammed by the global financial crisis. Government cash-for-clunkers incentives have helped lift their sales in Japan and abroad.

Ebisawa acknowledged considerations for maximizing aerodynamics and placing the hybrid system of electric motor and gas engine may make for similar styling in hybrids.

But he said the design approach at Japan's No. 2 automaker has roots in the origins of his company in 1960, which he called ``design DNA.''

Tokyo-based Honda has always tried to balance the desire for a dynamic look with a vehicle's uses, said Ebisawa, arguing there was continuity in Honda designs, including the Insight.

The same way of thinking and framework for design can be seen in Honda's Clarity fuel-cell vehicle, now available in limited numbers through leasing, as well as more common gas-engine models like the Civic and Odyssey, Ebisawa said, showing a clay model of the Insight to drive home his points.

Any similarities between the Prius and Insight are coincidence, he said at the Honda design facility in this Tokyo suburb.

Toyota Motor Corp.'s hybrid system is more complex than Honda's so it needs a higher roof, and that makes for a distinguishing feature that should be easy to spot, he told reporters.

Ebisawa also said not all design proposals have to be expensive, and some simple ideas can offer fun for drivers to help make products more attractive.

He gave as an example the image of a leaf-shaped bud that pops up on the dashboard of the Insight, which grows bigger if one drives the hybrid to maximize mileage.

A hybrid switches between a gas engine and an electric motor, and is greener than regular cars.

``Our idea is that the person comes first,'' Ebisawa said. ``Design and concept are there to connect the human being with technology and styling.''

http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Honda-executive-denies-Insight-is-Prius-lookalike/articleshow/4864084.cms

http://www.livemint.com/2009/08/06125438/Honda-executive-denies-Insight.html
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RUPEE DECLINES BY 15 PAISE AGAINST DOLLAR

PTI

See this story in: The Times of India

Mumbai: In thin trading owing to a two-day ongoing nationwide strike by public sector bank employees, the Indian rupee ended lower by 15 paise against the dollar.

A steep fall in the benchmark Sensex, following heavy capital outflows, was the main cause of concern, which affected rupee sentiment.

Foreign institutional investors (FIIs) turned net sellers on August 5 and expectations of more capital outflows on weak stock markets put pressure on the rupee. The Indian benchmark Sensex on Thursday plunged by 389.80 points or 2.45%.

The dollar, however, remained steady near its nine-month low against the pound while being up against the euro in overseas markets.

In lacklustre activity at the Inter bank Foreign Exchange market on Thursday, the rupee resumed lower at 47.68/69 per dollar and moved in a range of 47.56 and 47.77 before concluding the day at 47.67/69. on Wednesday it was up by 22 paise.

Dealers said activity in the exchange market was at a low ebb due to a nationwide strike by employees of public sector banks starting Thursday to press for wage hikes and other demands. Global crude oil prices were trading above $71 a barrel in Asian trade.

http://timesofindia.indiatimes.com/news/business/india-business/Rupee-declines-by-
15-paise-against-dollar/articleshow/4864181.cms

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LATE-HOUR SELLING SENDS SENSEX DOWN 390 POINTS

The Hindu Business Line

Mumbai: The stock market saw a huge fall in the penultimate hour of trade on Thursday, after media reports raised fresh fears over the monsoon.

As reports trickled in that rainfall for the week to August 5 was 66 per cent below normal, the Sensex fell 520 points from its intra-day high of 15,969 to its days low of 15,443. By the end of the day, it had tanked more than 380 points, shedding 2.5 per cent from its previous close. The broader Nifty fell 2.3 per cent.

There is concern and fear in the market that the Government might take a stand over the deficit rainfall and, in all possibility, declare a drought, said Mr Arun Kejriwal of Kejriwal Research Information Services. This could trigger a chain of events, ranging from demands for more funds to be pumped into agriculture to even a fall in GDP targets, he said.

Some, like Mr Gopal Agrawal, Head of Equity at Mirae Asset, said a fall in the market was overdue as it had been a one-way rally all the way from 13,300 to 16,000. (Over the week ended Wednesday, the Sensex had gained nearly 5 per cent.) The fall was accentuated by concerns over the monsoon, he said.

FIIs net sellers

Foreign institutional investors were net sellers for Rs 371 crore while domestic institutions were net buyers for Rs 257 crore, NSE data showed. According to brokers, there was basket selling of Nifty stocks by some FIIs, contributing to the fall in stock prices. There are concerns over the Chinese market as it seems overheated, indicating that the FIIs might want to exit China and other Asian markets, said some analysts.

We had a selective approach in buying, as we picked stocks that are expected to go up in the future and have the right valuations, such as mid-cap IT stocks and oil and gas stocks, said a fund manager.

To some extent there was profit-booking by investors wanting to subscribe to the NHPC IPO, said brokers. There was huge pressure on the Nifty as Nifty futures were trading at a premium for most of the day but slipped later to a discount, indicating pressure on them, explained a broker.

Retail investors hit

Retail investors were caught offguard as the market, which had shown an upward trend after opening at a lower gap, fell sharply, said a broker. Mr Pankaj Shah, who had bought futures of Reliance and Nifty at Thursdays high, was one of them. He said he would wait for a possible recovery tomorrow to minimise his losses.

Retail investors were trapped as they had bought when the market was going up and found that it suddenly tanked, said Mr Kejirwal.

The retail investor generally does not have the courage to book losses, so in a fall like this he is stuck, said a broker who was trying hard to sell shares at the best price he could get for his client. All the sectoral indices ended in the red on Thursday.

http://www.thehindubusinessline.com/2009/08/07/stories/2009080751510100.htm

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INFLATION DECLINES 1.58%

The Hindu Business Line

New Delhi: The annual Wholesale Price Index-based inflation declined 1.58 per cent in the week to July 25 after falling 1.54 per cent on an annual basis in the previous week, the Government said on Thursday. The year-on-year inflation rate was recorded at 12.53 per cent during the corresponding week of the previous year.

The official WPI for All Commodities for the latest reported week rose by 0.04 per cent to 236.9 points from 236.8 points for the previous week. On a disaggregated basis, the primary articles group index rose 0.4 per cent as the index for food articles group rose by 0.8 per cent due to higher inflation in items such as fish-marine (eight per cent), arhar (four per cent), urad ( two per cent) and fruits and vegetables, moong, mutton, wheat, masoor and condiments and spices (one per cent each).

However, the prices of eggs (two per cent) declined.

Non-food articles

The index for non-food articles group declined by 0.4 per cent due to lower inflation in raw wool (11 per cent), soyabean (five per cent) and niger seed (one per cent).

However, raw silk (four per cent) and raw rubber (one per cent) moved up.

The fuel and power index remained unchanged at its previous weeks level of 338.2 points.

Manufactured products

The manufactured products group index declined by 0.1 per cent as the index for food products group declined by 0.3 per cent due to lower inflation in oil cakes (three per cent) and imported edible oil (one per cent).

However, the prices of cotton seed oil, groundnut oil and sugar (one per cent each) moved up. The index for textiles group rose by 0.1 per cent due to higher prices of cotton yarn-cones (four per cent) and cotton yarn-hanks (one per cent). However, the prices of synthetic yarn and hessian cloth (four per cent each) and texturised yarn and polyester staple fibre (three per cent each) declined.

Paper, paper products

The index for paper and paper products group declined by 0.2 per cent due to lower prices of newsprint and printing paper white (one per cent each). The index for basic metals alloys and metal products group rose marginally due to higher prices of zinc ingots (three per cent) and steel ingots, zinc and lead ingots (two per cent each).

For the week ended May 30, the final WPI for All Commodities stood at 234.4 points compared to 232.6 points and annual rate of inflation based on final index, calculated on point to point basis, stood at 0.90 per cent as compared to the provisional estimate of 0.13 per cent points.

http://www.thehindubusinessline.com/2009/08/07/stories/2009080750370700.htm

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Last Financial closing

Sensex	15,514.03
US$ spot	Rs.47.73
US$	Y.
US$ 6 months	Rs.48.38
Yen	Rs.0.50
Euro spot	Rs.68.65
LIBOR 6 months	%
Call	%
GOI sec. 10 years	- - - -

Aluminium (per kg)	Rs.
Aluminium Ingot	Rs.
Copper (per kg)	Rs.
Gold (10gm)	Rs.14,945
Lead (per kg)	Rs.
Mild Steel Ingots (Mumbai)	Rs.
Nickel (per kg)	Rs.
Nickel Cathode	Rs.
Silver (1kg)	Rs.23400
Sponge Iron (per tonne)	Rs.14180.00
Steel Flat (per tonne )	Rs.30590.00
Steel Long GVD (per tonne)	Rs.
Steel Long BVN (per tonne)	Rs.22030.00
Tin (per kg)	Rs.
Zinc (per kg)	Rs.
Zinc Ingot	Rs.- - - -

Crude Oil (WTI)	$- - - -
Crude Oil (Brent)	$75.13

Automobile

Scip on BSE	Face Value (Rs)	Last traded Value (Rs)
Apollo Tyres	1	41.95
Asahi Ind	1	53.45
Amara Raja B	2	116
Ashok Leyland	1	33.75
Bajaj Auto	10	1265.20
Bharat Forge	2	233.60
Denso	10	70.30
Eicher Ltd	10	- - - -
Eicher Motor	10	414.40
Escorts	10	72
Exide Ind	1	83.80
Force Motors	10	136.10
Gabriel India	1	17.25
Hero Honda	2	1519.35
Hind Motors	10	23.15
Hi-Tech Gear	10	96.25
Jay. Bh. Maruti	5	45.90
Jamna Auto	10	41.80
JK Tyres & Inds	10	94.85
Kinetic Motors	10	18.05
Kinetic Engg	10	51.95
KOEL	2	111.15
Kirloskar Br:	2	192.25
LML Ltd	10	9.80
L&T	2	1486.20
Lumax Ind	10	132.15
Lumax Tech	10	39.05
M&M	10	881.90
Maruti Suzuki	5	1364
Motherson SS	1	79.15
Minda Inds	10	158.85
MRF	10	4628.70
MICO	10	- - - -
Omax Auto	10	40.90
Perfect Circle	- - - - - -	- - - -
Rico Auto	1	29
Sona Koyo St	2	12.90
SKF Bearing	10	- - - -
SRF	10	138.65
Swaraj Mazda	10	215
Tata Motors	10	418.30
TVS Motor	1	56.90

Metals

Scrip on BSE	Face Value(Rs)	Last traded Value (Rs)
Bhushan Steel	10	796.50
Essar Steel	10	- - - -
Hindalco	1	103.65
Hind Zinc	10	726.75
Ispat Inds	10	23
Jindal Iron	10	- - - -
Jindal Stain	2	- - - -
JSW Steel	10	718.60
Jindal Steel	5	2825.90
National Aluminium	10	318.85
SAIL	10	171.35
TISCO	10	454.80
Visa Steel	1	29.40

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Thursday, August 6, 2009

Indian Auto Industry Update August 07, 2009

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Thursday, August 6, 2009

Indian Auto Industry Update August 07, 2009

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