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| INDUSTRY Carnation is a bold new experiment in Indian automobile industry Tata Motors readies 8k-cr capex Vehicle stock in Delhi to quadruple by 2020 INTERVIEWS/FEATURES Bajaj yet to finalize low-cost car plan In three months, Volkswagen's iconic Bug to bite desi roads Audi plans showroom in Kolkata COMMERCIAL VEHICLES 2/3 WHEELERS COMPONENTS
| ALLIED INDUSTRIES OIL, LUBRICANTS & ALTERNATIVE FUELS Crude jumps to $74 on global eco recovery INTERNATIONAL NEWS Nod for GMs takeover of Delphi Ford to boost production of Focus, Escape Volkswagen, Porsche seal merger deal: Companies Toyota to make more fuel-efficient hybrid: report ECONOMY & FINANCE Soaring food prices belie falling headline inflation
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| INDUSTRY Go To Top Neha Rishi Daily News & Analysis (Web Edition)
Mumbai: Deficient rains are set to affect agriculture output significantly in the country, but its impact on auto demand will be limited, experts feel. "During FY03 (the last period of significantly below normal monsoon) negative agricultural GDP growth had a limited impact on auto demand," an analyst with a leading research firm said.
He said agriculture is not a key driver of rural consumption growth anymore with agri realisations, National Rural Employment Guarantee Programme (NREGA) and spending on rural infrastructure also boosting incomes.
The effect will be a mixed bag for the auto firms with players heavily catering to rural region, such as tractor makers, likely to face some volume loss than those with low exposure to the hinterland.
Auto companies are also betting that preponing of festival season from October to September would support the second-quarter figures.
India's top two-wheeler maker, Hero Honda, where over 40% of sales come from the rural sector, sees less rains impacting rural sales but hopes that festival season will make up for volumes lost due to lack of rains.
A Hero Honda spokesperson said, "We have a few launches during the festive season that will help in boosting sales. However, in the medium term, a fluctuating monsoon is a matter of concern. While schemes such as NREGA will partially mitigate the impact of a deficient monsoon, it is still likely to have some impact on growth in these markets." Bajaj Auto and Maruti Suzuki, which have a relatively low exposure to rural areas, are pinning hopes on decent volumes in the second quarter.
Milind Bade, general manager (marketing), Bajaj Auto, said, "There will be a marginal to negative impact on us. We define rural segment as the lower end of the market where our penetration is less than 20%. So far our base was limited in this segment as we had only Platina to offer, now with Discover 100cc we will only improve our sales. The impact on the industry will only be to the extent of 200-300 bps."
Maruti Suzuki, where only 12% of sales come from rural areas, will have marginal impact of weak monsoon, according to industry experts.
"Maruti's products are still largely for the urban market. By the end of the year the urban market will start picking up and Maruti will stand to gain volumes there," said Ashish Nigam, analyst, Antique Stockbroking.
Mayank Pareek, executive officer (marketing and sales), Maruti Suzuki India, said, "Last few months have been good and we clocked double-digit growth. Low monsoon in some parts this year is a worry. However, some improvement in sales in our top 10 cities in July '09 is encouraging."
Nigam said, "M&M is the most vulnerable, followed by Hero Honda. Maruti will be less affected. The impact of the weak monsoon could only be visible in the subsequent quarters."
Tractor sales may disappoint
"Given the weak outlook on monsoon, tractor demand growth can be disappointing," said an industry expert. M&M, which has a 43% market share of domestic tractor industry in Q1FY10, might be exposed to the potential weakness in tractor demand, he said.
Anjani Kumar Choudhari, president (farm equipment sector), M&M said if the monsoon did not improve in the next 4-6 weeks there will be a bearish sentiment in the market and affect third and fourth quarters.
However, he said, a few factors will help the industry. "Firstly, close to half the rural economy is not dependent on agriculture-related income. Secondly, there are a lot of people from the villages who are working in cities, send money back home, thirdly, this year the festivals season has advanced to September which will help us gain good volumes in the second quarter," he said.
"Lastly the increased government expenditure help mitigate the risk of bad monsoon," he said, adding the overall market will grow by 6-10% year on year due to these factors. http://www.dnaindia.com/money/report_auto-cos-bet-q2-sales-won-t-be-dry_1282266
CARNATION IS A BOLD NEW EXPERIMENT IN INDIAN AUTOMOBILE INDUSTRY Vikas Kumar The Economic Times (Web & Print Edition)
Its been 19 months since Jagdish Khattars term at Maruti-Suzuki ended. But the founder of Carnation Auto India bristles at the fact that nearly everyone, including colleagues, still refers to him as the former managing director of Maruti. It's a tag hes in a hurry to get rid of. As he proudly shows us around his new headquarters off the Noida expressway near Delhi, it's hard to tell if Khattar has indeed moved on. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
TATA MOTORS READIES 8K-CR CAPEX Nandini Sen Gupta The Economic Times (Delhi Print Edition)
Tata Motors plans to spend around Rs 8,000 crore over the next three to four years on capital expenditure and product development, taking advantage of easing credit conditions and reviving sales to breathe life into an ageing portfolio. The proposed plans notably cover its car divisions future products such as the new Indigo sedan due by 2009-end, the Indicruz crossovera vehicle that derives from a car platform while borrowing features from a sports utility vehicle (SUV)set to debut in 2010, and next-generation versions of its utility vehicles such as the Sumo and Safari. The Rs 8,000-crore plan will also cover any future models from the World Truck programme that was launched in May this year. However, these replacements are a couple of years away, said a company official who asked not to be named. Although a company spokesman confirmed the plan to spend on capex and product development in general terms, he did not give details. At any point of time, Tata Motors works on several innovations on its product portfolio, in the light of long-term needs of its customers both on a domestic and global scale. We cannot share any specific information on our future plans, the spokesman said. The spokesman also clarified that the spending plans do not include Jaguar-Land Rover, the British luxury brands that Tata acquired from Ford Motors for $2.3 billion last year. The truck and car maker has been stepping on the gas and its vehicle sales are picking up, but industry experts say the company sorely needs to refresh its product range. Most of Tata Motors successful models were launched years ago and have undergone some face-lifts and refreshes. Its best-selling Indica was launched in the late 1990s and Indigo in 2002. Utility vehicles Sumo and Safari are more than 10-year-old platforms. Dealers and vendors for the company say Tata Motors is working on a sub-Ace light truck and could go in for fresh capacity at Pantnagar in Uttarakhand because of the huge demand for LCVs Ace and Magic, which are manufactured in that plant. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
VEHICLE STOCK IN DELHI TO QUADRUPLE BY 2020 PTI See this story in: The Hindu Business Line (Web Edition)
New Delhi: Delhi has more cars than the total number in Maharashtra, Tamil Nadu, Gujarat and West Bengal. In fact, over 17 per cent of the private cars in India run in the national capital alone, says a government report.
Hence, the vehicular emission load is likely to rise in the near future as the Union government's environment report predicts the "vehicle stock in Delhi is expected to almost quadruple by the year 2020.''
The increase in private vehicles is being attributed to poor public transport system in the national capital, as per the report 'State of Environment of India 2009', released recently by Environment Minister, Mr Jairam Ramesh.
It points out the state government has failed to do sufficient to give impetus to public transport system, despite starting Metro rail service and taking steps to introduce Bus Rapid Transit system. "Following the trend of Delhi's urbanisation and the la ck of appropriate mass transport system, people buying more vehicles for personal use have perpetuated an increase in vehicles,'' the findings say.
The number of registered vehicles in the national capital has increased fifty-one times in the past thirty years, says the report prepared by an NGO, Development Alternatives on behalf of the environment ministry. http://www.thehindubusinessline.com/blnus/27131865.htm
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| CARS, SUVs, MUVs Go To Top S. Hamsini Amritha The Hindu Business Line (Web & Print Edition)
Car exports, a major driver of sales volumes for passenger carmakers during recent months, could be under pressure if European governments decide to push ahead with a review of their scrappage incentive schemes.
Car exports from India have grown strongly in recent months because of the expanding market for small cars in Europe, Asia, West Asia and Latin American markets.
Cars such as the i10 and i20 manufactured by Hyundai Motor India and A-Star by Maruti Suzuki have propped up the total sales volumes for these companies since January. Exports made up almost 14 per cent of Maruti Suzukis total sales volumes and close to 50 per cent of total cars dispatched by Hyundai Motors in July 2009.
The bangers for cash or the scrappage incentives introduced by the European nations such as UK, France, Germany and Spain, have been the major propellers for exports. The 600 million-pound program which took effect from May is expected to run through February 2010. As a result of this incentive, the UK car market saw a 2.4 per cent year-on-year increase in new car registrations in July 2009.
However, according to data released by the Society of Motor Manufacturers and Traders, UK, sale of new cars is still down by 19 per cent (year-on-year) when scrappage scheme sales are excluded.
Import threat Statistics such as these and worries that the scrappage scheme is not benefiting local manufacturers appear to be prompting a review of these schemes at this point.
A glut of cars being imported from countries such as Japan, Thailand and India has affected the sales of domestic car makers such as Peugeot, Citroen and Renault in France. These companies are said to be lobbying with the French government to phase out the scrappage incentive. The trend to buy imports has been abetted by a steady increase in fuel prices, which has already prompted European buyers to make a conscious decision to shift to fuel-efficient small cars.
Industry statistics published in a British newspaper revealed that just four of the top ten car scrappage sellers (Ford, Toyota, Vauxhall and Nissan) have manufacturing capabilities in the UK.
The other major beneficiaries of the incentive Hyundai and Suzuki, dont have production units in Europe.
Maruti Suzukis hatchback, A-star, is sold under the brand name, Suzuki Alto and with some minor changes, is also being contract manufactured for Nissan, which sells it under the label Pixo. i10, i20 and i30 are Hyundais offerings to the European markets, with i10 and i20 manufactured by Hyundai Motor India.
The scrappage incentive in the UK is limited to 300,000 cars. The country has already seen more than 150,000 cars exchanged through this programme. If more European cars makers such as Volkswagen and BMW join the lobby opposing the bangers for cash deal, it would certainly be a threat to exporters. Nevertheless it is still early to conclude if Indian auto makers will see slippage in sales volumes given that the governments in Europe are yet to review their policy. Moreover, it cannot be disputed that the incentive is quite a hit and has lifted up buyer sentiments. http://www.thehindubusinessline.com/2009/08/14/stories/2009081451961000.htm
BAJAJ YET TO FINALIZE LOW-COST CAR PLAN
The Times of India (Web & Print Edition)
New Delhi: Bajaj Auto is yet to freeze plans on its proposed ultra low-cost car that the company plans to build in partnership with French auto major Renault and Japan's Nissan. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
IN THREE MONTHS, VOLKSWAGEN'S ICONIC BUG TO BITE DESI ROADS Chanchal Pal Chauhan The Economic Times (Web & Print Edition)
New Delhi: On sale - A slice of history for Rs 20 lakh apiece. The Volkswagen Beetle, the worlds longest running and most-produced car of a single design, will be available in India in three months, offering a Nano-sized ride with the frills of a top-notch SUV.
The Indian unit of Volkswagen said pricing the Beetle competitively was a big challenge for the company and blamed taxes and logistics for the high price. But we are working very aggressively on Beetles debut in India, said Neeraj Garg, Volkswagen Indias director for passenger cars.
Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved"
AUDI PLANS SHOWROOM IN KOLKATA Business Standard (Web & Print Edition) See similar story in: The Hindu Business Line (Delhi Print Edition)
Kolkata: Finally Kolkata will have an Audi showroom! The German luxury car manufacturer has announced the appointment of a new dealership in Kolkata, pitted to be among the largest luxury car showrooms in the city.
Audi Kolkata (Mohan Motors) dealership will have a separate modern Audi workshop to service all its models. The dealership, however, has already started operating from its sales offices.
Audis dealership network now expands to 12 locations across India. Audi has received an overwhelming response in India. Our sales growth in the first six months of this year has been over 75 per cent. The announcement of the dealership is the commitment to a great future for the brand in the eastern part of India, said Benoit Tiers, managing director of Audi in India.
We are expanding to 12 exclusive and luxurious Audi dealerships in India. This will give customers the possibility to experience our models, the Audi world and premium service, he added.
The showrooms will be designed to give the customer a complete Audi experience-the whole Audi model range with different equipments and the Audi world with the international standards of Audi Corporate Identity.
In addition to Kolkata, the entire Audi model range comprising the Audi Q5, the new Audi A6, Audi A8, Audi A7, Audi A4, Audi TT and the super sports car Audi R8, is available at 11 other dealerships across the country.
After its group brands Volkswagen and Skoda, opened dealerships in Kolkata, the Audi dealership got stuck in financial hurdles. The showroom was planned at Tagore Park on the Eastern Metropolitan By-pass earlier. http://www.business-standard.com/india/news/audi-plans-showroom-in-kolkata/366945/
The Hindu (Web & Print Edition)
Mumbai: Fiat India Automobiles Limited (FIAL) said it intended to increase its focus on exports under which it had already exported the recently launched Fiat Linea to South Africa. As part of this strategy, Fiat has begun testing new growth opportunities overseas with sharp focus on SAARC countries like Nepal, Bhutan and Sri Lanka as well as other right-hand drive countries. FIAL targets to export 7,000 units of Fiats India manufactured cars this year. As a first step, it exported a batch of Fiat Linea to South Africa, a batch similar to the one driven on Indian roads. Fiats products have been well received in South Africa in the past with supplies coming from Fiats Brazil and European plants. Fiat India expects to receive a good response to the Linea 1.4 emotion pack in this market. In the last 12 months, FIAL has exported Palio to South Africa.
FIAL is a 50:50 industrial joint venture between Fiat Group Automobiles SpA and Tata Motors. The company has about 2,200 employees and the unit is located at Ranjangaon in Pune. The board of directors of FIAL comprises five nominees each from Fiat and Tata. http://www.hindu.com/2009/08/14/stories/2009081455911500.htm
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| CONSTRUCTION & AGRI MACHINERY Go To Top Manu P. Toms The Hindu Business Line
Mumbai: The tractor sector, which has had a good run this fiscal, is now getting the heebie-jeebies with the monsoon playing truant. The fear now is that sales could be impacted in the third and fourth quarters.
The low rainfall, thus far, will have a negative impact even while the second quarter could see growth of six-eight per cent. If rains are going to be bad in August, there will be a lag effect which will hit the third and fourth quarters, said Mr Anjani Kumar Chaudhari, President, Farm Equipment Sector, Mahindra & Mahindra.
Over the last six years, the tractor market grew 89 per cent and clocked a little over three lakh unit sales in 2008-09 mainly on the back of good rains.
The first quarter of this fiscal saw 13 per cent growth at 85,289 units, as increased income in the agriculture sector coupled with the Centres spending in rural India translated into better sales for tractor companies.
A bad monsoon does impact sales. However, this could be minimised if financial institutions and the Government relax retail financing norms for tractor buyers, said Mr L.D. Mittal, Chairman of Sonalika Group.
According to him, families in need of loans suffer simply because they live in a locality characterised by high default rates.
Loans to farmers This is worse in the case of larger families where lenders attach a higher risk to their repayment abilities. A genuine borrower is denied a loan which only makes things difficult, Mr Mittal said.
Even while weather conditions are going to be trying in the coming months, Mr Chaudhari said that nobody was going to overextend the credit.
To tide over the crisis, some companies will look at tractor applications beyond farms and also explore other global markets to make up for the possible setbacks here. Despite a bad monsoon, we see 30 per cent growth this fiscal, thanks to exports which are up 150 per cent thus far, said Mr Mittal. Sonalika expects to sell 40,000 tractors this year. Finally, it remains to be seen if there is some late revival of the rains which could change the fortunes of the tractor sector.
The risk from agriculture has increased and anybody operating in those markets will be hurt. July and August are crucial months when it comes to rainfall. It is clear that the impact is going to be negative but to understand the magnitude, one has to wait, said Mr D.K. Joshi, Principal Economist, Crisil. http://www.thehindubusinessline.com/2009/08/14/stories/2009081452171700.htm
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| 2/3 WHEELERS Go To Top Murali Gopalan The Hindu Business Line
Mumbai: Bajaj Auto has redrafted its bike strategy for this fiscal that will see the Pulsar and Discover act as the key growth drivers. If the script goes according to plan, we have set ourselves a target of 200,000 units from both brands by March 2010, Mr Rajiv Bajaj, Managing Director, told Business Line. Ideally, this would translate into an equal number of Discover and Pulsar motorcycles for the month.
All this is part of a renewed thrust by the company to focus on two key requirements of the market which, over the years, have pretty much remained constant for either fuel-efficient commuter bikes or sporty, powerful products. The Discover has now been positioned to fulfil the former need in a segment where Hero Honda reigns supreme while the Pulsar has established itself in the sporty slot, with monthly sales of over 40,000 units.
Pricing is key The Platina and XCD will also be key elements of Bajaj Autos bike portfolio but will remain in the realm of products, which could therefore be discounted, and not brands which draw buyers irrespective of price.
We changed our strategy two years ago from a product to a brand-led company. The product game will not go anywhere and it is only brands that will make all the difference, Mr Bajaj said. This becomes especially significant in a competitive bike market such as India, where pricing holds the key to building a customer base.
From any manufacturers point of view, there is an optimal level he can achieve in cost reduction because material and labour costs cannot be dramatically altered. However, what can make a difference are advertising and promotion costs which sometimes go through the roof. This has seldom been the case with established brands but cannot be said for regular run-of-the-mill products where the ad spends have been astronomical at times and the returns not as attractive.
As for Bajaj Auto, its top priority is to build a huge critical mass on the road where the brand is ideally doing the buying. The Pulsar has held its own over the years in the power and performance segment, while the Discover will now be the pivot in the commuting category.
Hero Honda is the clear leader in the executive segment with its Splendor and Passion models, which do combined sales of nearly 250,000 units each month. It is here that Bajaj Auto has found it difficult to make a breakthrough and is banking on the new 100cc Discover to do the trick.
Banking on Discover The bike, which rolled out of the Chakan plan last month, has had a good response in the market with 10,000 units sold within the first fortnight and the order book looking buoyant this month.
The company believes the Discover brand alone would account for 50,000 bikes in August and, if the momentum is sustained, reach twice the figure by the end of this fiscal. With the new bike added to the portfolio, there are now three Discover brands: the 100cc Discover DTS-Si, the Discover 135 for the domestic market and the one for exports.
This month will see the new 100cc Discover doing over 30,000 units. Customers have been excited by what they see in terms of the product and performance, Mr Bajaj said. According to him, the market does not perceive it as just another 100cc bike simply because it has a host of features to offer in terms of DTS-Si technology and five-speed gearbox. The differentiator is at the brand, where it is a new motorcycle, and product in terms of power and performance, he added. http://www.thehindubusinessline.com/2009/08/14/stories/2009081451390200.htm
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| SOUTH AUTO PARTS UNITS SEE 7.2% RISE IN NET SALES Business Standard
Chennai: The auto ancillary sector in southern region registered a 7.2 per cent increase in net sales between April 2008 and March 2009, as compared with the national level of 5.3 per cent, according to Confederation of Indian Industrys southern region quarterly industry and economic update for the automotive and auto components sector.
However, net profit of these units declined by about 40.8 per cent, compared with 2007-08. The investment climate is intact in southern states like Tamil Nadu, as committed projects in the automotive segment are on track. There are about 142 projects that are coming up in the southern region, which accounts for one third of the auto industries in India, the report pointed out.
Major automobile and auto component production clusters in the region are located at Chennai, Bangalore and Hosur.
There are 46 registered original equipment manufacturers in India, of which 15 are located in the southern states. In the organised sector, 27 per cent of the companies are located in the southern region, of which most are in Tamil Nadu due to the concentration of the auto companies in that region.
According to the study, in 2008-09 listed companies in the automotive sector with registered offices in the southern region reported an 11 per cent decline in operating income to Rs 10,073 crore. Though growth was at 17 per cent in the first quarter of FY2009, it declined to 12 per cent in the second quarter, as the early signs of recession became evident.
Auto component suppliers were affected by high raw resource costs from their suppliers and price reduction demands from their customers. As a result, they faced added hardships of reduced orders as vehicle production was cut by automakers starting roughly in September 2008. Industry analysts suggest that suppliers need to run at least 80 per cent capacity to make profit but expect suppliers to be running at only 50-60 per cent capacity in 2009. http://www.business-standard.com/india/news/south-auto-parts-units-see-72-rise-in-net-sales/366882/
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| FINANCE & INSURANCE Go To Top PTI See this story in: The Tribune, The Pioneer
New Delhi: Following State Bank of India's footsteps, Punjab National Bank slashed home and car loans by 50 basis points. The bank has launched 'PNB Festival Season Bonanza Offer 2009' that offers attractive rates to people during the festival season. PNB's campaign comes a week after SBI's three-month-long home loan campaign, offering loans at 8 per cent.
"Under the offer, housing loans up to Rs 30 lakh will be available at discounted rate of interest of 8.50 per cent under fixed interest rate option (fixed for three years) across all repayment tenors, besides full waiver of processing (upfront) fee and documentation charges", PNB said in a statement.
On car loans, a rebate of 0.5 per cent is offered to prospective borrowers under fixed option. The offer will be valid from tomorrow till October 31, it added. At present, the fixed rate of interest offered by bank is 9 per cent. http://www.tribuneindia.com/2009/20090814/biz.htm#7 http://www.dailypioneer.com/195606/PNB-reduces-home-and-car-loan-by-50bps.html
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top PTI See this story in: Business Standard, The Hindu Business Line, Hindustan Times New Delhi: Reliance Industries' (RIL) Bay of Bengal gas fields will fire automobiles and kitchens in the national capital from next week after Indraprastha Gas signed agreements to buy the fuel.
RIL and IGL -- the sole retailer of CNG to automobiles and piped gas to industries and households -- signed the Gas Sales and Purchase Agreement (GSPA) for 0.308 million cubic metres per day of gas from KG-D6 fields, IGL Managing Director Rajesh Vedvyas said here.
The KG-D6 gas will replace the costly imported LNG that IGL buys to meet CNG and piped natural gas demand in Delhi. "The delivered cost of KG-D6 gas will be about Rs 12 per cubic metre as against Rs 13.40 per cubic metre of LNG," he said.
He said the supplies will start in a week and the volume will increase to 0.5 million standard cubic metres a day (mmscmd) by March 2010 and in five years the KG gas requirement would be 2.1 mmscmd.
The delivered price of RIL gas, after including taxes and transportation charges including those paid to GAIL, will be $6.7-6.8 per million British thermal unit as against the liquefied natural gas (LNG) price of $7.25 per mmBtu.
IGL is the first city gas company to sign the GSPA with RIL. It also signed a gas transportation agreement (GTA) with Reliance Gas Transportation Infrastructure. http://www.business-standard.com/india/news/ril-signs-gas-purchase-dealindraprastha-gas/70759/on http://www.thehindubusinessline.com/2009/08/14/stories/2009081451380200.htm
Kalpana Pathak Business Standard
Mumbai: State-run Indian Oil Corporation is planning to take the number of its auto LPG outlets to 300 by the year-end. The company has over 230 auto LPG dispensing stations across 124 cities.
It plans to invest around Rs 60 crore in new outlets set up under the AutoGas brand. We are looking at several markets in the urban and peripheral areas. We dont have the mandate to put up standalone LPG outlets and getting a licence is an area of concern which needs to be addressed, said N Srikumar, executive director, branding and advertising.
Auto LPG is a clean and eco-friendly fuel. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10 per cent reduction of CO2 emission as compared to petrol.
With original equipment manufacturers now coming up with auto LPG vehicles, the demand for this fuel is set to grow, said Srikumar.
The consumption of auto LPG is approximately 10 per cent more as compared to petrol for running the same number of kilometers. However, the price per litre is around 40 per cent less than petrol (for Mumbai).
In comparison to compressed natural gas (CNG) that sells at Rs 24.65 a kg in Mumbai, auto LPG is costlier by about 19 per cent at Rs 29.26 a kg. http://www.business-standard.com/india/news/ioc-to-boost-auto-lpg-outlets/366964/
CRUDE JUMPS TO $74 ON GLOBAL ECO RECOVERY
See this story in: The Times of IndiaThe Pioneer
London: Oil prices rallied on Thursday on increased signs of economic recovery in US and Europe which could eventually boost weak energy demand, analysts said. Brent North Sea crude for delivery in September was 61 cents higher at $73.5 a barrel in the afternoon London trade after spiking above $74 earlier in the day. http://timesofindia.indiatimes.com/news/business/international-business/Crude- http://www.dailypioneer.com/195612/Snapshots.html
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| INTERNATIONAL NEWS Go To Top Agencies See this story in: The Economic Times
Brownstown Township (Michigan): General Motors Co chief Fritz Henderson says a new $43 million plant in Michigan will assemble battery packs for the company's upcoming rechargeable electric car , as the automaker continues relying on suppliers for key elements of the batteries.
NOD FOR GMS TAKEOVER OF DELPHI AFP See this story in: The Hindu Business Line
Brussels: The European Unions competition watchdog gave approval on Thursday for the US auto giant General Motors to take over its former auto parts arm Delphi, saying it would not significantly hurt competition in the sector. The deal is part of the restructuring plan for Delphi which has gone into bankruptcy. The approved takeover is for Delphi Steering Business and four US sites of Delphi Corporation (Delphi), a US manufacturer of automotive components.
FORD TO BOOST PRODUCTION OF FOCUS, ESCAPE Agencies See this story in: The Economic Times, mint
Dearborn: Ford said on Thursday it will build more of its popular Focus and Escape models and boost total vehicle production later this year to help dealers restock depleted showrooms. http://www.livemint.com/2009/08/13194029/Ford-increases-production-as-d.html
VOLKSWAGEN, PORSCHE SEAL MERGER DEAL: COMPANIES Agencies See this story in: The Economic Times, The Times of India
Frankfurt: The supervisory boards of Europe's biggest auto giant Volkswagen and luxury car maker Porsche said on Thursday they had approved a plan to merge their two companies by 2011.
TOYOTA TO MAKE MORE FUEL-EFFICIENT HYBRID: REPORT AFP See this story in: Hindustan Times Tokyo: Toyota Motor Corp. will start selling a new hybrid car in 2011 that is more fuel efficient than its Prius, in a bid to keep pole position in environmentally friendly vehicles, a report said on Thursday.
The new hybrid, based on Toyotas Vitz compact car, will have a fuel economy of more than 40 kilometres per litre, against 38 kilometres for the third-generation Prius, the Yomiuri newspaper reported, without citing sources.
It will have a price tag of about 1.5 million yen (15,600 dollars), cheaper than Toyotas existing hybrids, and is expected to be sold in Japan, Europe and the United States, the report said. A Toyota spokeswoman declined to comment.
Toyota has sold more than 1.25 million Prius vehicles since its launch in 1997, making it the worlds most popular hybrid, but rival automakers such as Honda and General Motors are seeking to challenge its lead.
Automakers hope that the popularity of fuel-efficient vehicles, helped by government tax breaks, will re-energise the flagging auto market, which has been battered by the global economic downturn.
The Prius has been Japans top-selling car in recent months as government subsidies spur strong demand for fuel-efficient vehicles. http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=NLetter&id=ce9c7308-a99e-4a7d-82e0-96265a857b49&Headline=Toyota-to-make-more-fuel-efficient-hybrid-report
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| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The rupee gained by 25 paise against the dollar on Thursday as capital inflows into the country improved market sentiments. The domestic currency opened at 48.18 and strengthened to touch an intra-day high of 48.06. It closed at 48.11, as against the previous close of 48.35. The rupee opened with a positive gap of 20 paise expecting domestic equity indices to open in the green, said a dealer with a private bank. The dollars weakness against other international curre ncies also propped up the rupee, added the dealer. In the forward premia market, the six-month ended higher at 2.82 per cent (2.73 per cent) and the one-year was at 2.53 per cent (2.47 per cent). http://www.thehindubusinessline.com/2009/08/14/stories/2009081451830600.htm PTI See this story in: The Hindu Business Line
Mumbai: The Bombay Stock Exchange benchmark recovered sharply by gaining over 455 points on Thursday on emergence of buying at lower levels triggered by an attractive industrial data and firming global trend.
At 3.30 pm, the Sensex was quoted at 15,518.49 points, surged by 498.33 points. Similarly, wide-based national stock exchange index Nifty shot up 147.501 points at 4,605.00 points at the same time.
Marketmen said a better-than-expected industrial data released yesterday, mainly influenced the trading sentiment. They said a better trend in Asia and as well as US stock markets further boosted the trend.
Sectors such as realty, metal, banking, capital goods, FMCG and auto scored gains between 3 per cent and 6.80 per cent. http://www.thehindubusinessline.com/blnus/05131901.htm
SOARING FOOD PRICES BELIE FALLING HEADLINE INFLATION Anil Sasi, Debabrata Das The Hindu Business Line
New Delhi: Inflation in essential items such as vegetables, cereals, pulses, sugar and manufactured food products continued to skyrocket even as the Wholesale Price Index-based aggregate inflation crashed to a record low of minus 1.74 per cent for the week ended August 1.
Belying the fall in the headline inflation rate, annual inflation in categories such as vegetables surged 43 per cent, cereals shot up 12 per cent, malt liquor by 42 per cent and manufactured food products by nine per cent during the latest reported week.
Year-on-year inflation in medicines, sugar and pulses, despite exhibiting a marginal moderation compared with the corresponding week of the previous year, continued to stay in high double digits. Sequentially too, items such as fruits, vegetables, pulses, liquor and cement slate and graphite showed noticeable jumps on a week-on-week comparison (See Table).
Lowest in three decades The decline in the annual inflation was the lowest in three decades the biggest dip since June 1978, when inflation dropped 1.9 per cent, according to the RBIs monthly data. The dip in the latest inflation number was on account of the high base, with inflation recorded at a 16-year high of 12.91 per cent during the corresponding week a year ago.
The anomaly is because the WPI is not done properly The relative weightages of important food items are not correct and hence do not reflect what happens in the market, Mr Narayanan Ramaswamy, Executive Director, KPMG, said. Food inflation will face further pressure due to poor rainfall, said Mr D.K. Joshi, an economist at Crisil Ltd. http://www.thehindubusinessline.com/2009/08/14/stories/2009081452330100.htm
Last Financial closing
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