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Monday, December 14, 2009
Sunday, December 13, 2009
Indian Auto Industry Update November 13, 2009
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| HEADLINES Friday November 13, 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY CII-PwC study sees 10 % auto market for Bengal by '22 INTERVIEWS/FEATURES COMPONENTS TN clears M&M's 1800 cr auto project near Chennai ALLIED INDUSTRIES Steel Strips to study feasibility of wheel rim plant in Morocco FINANCE & INSURANCE TMFLs asset quality OIL, LUBRICANTS & ALTERNATIVE FUELS Govt wants 5% blending of ethanol with petrol implemented | CARS, SUVs, MUVs Car buyers now face longer waiting periods Kerala is a major pit stop for Mahindra FirstChoice Peugeot raises 2009 forecastCOMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS Bajaj puts in place new growth strategy for bikes ECONOMY & FINANCE Rupee ends down | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 INDUSTRYBusiness Standard (Web Edition) Kolkata: Although West Bengal's present contribution to the Indian automobile sector is negligible, the state could capture about 10 per cent of the projected size of the domestic industry by 2022, a study undertaken by CII and PricewaterhouseCoopers (PwC) has suggested. With India's automotive sector expected to grow to $220-260 billion by 2022, West Bengal could augment the existing state clusters by garnering direct investments in the range of $6-7 billion. However, the state government would need to introduce a clear policy as well as a set of initiatives for the automotive sector. Reworking the land acquisition process, which has been a contentious issue in Bengal, as well as investment support would be required, the study stated. Moreover, establishing industrial parks, for providing world-class facilities and enable the pooling of resources, along with promoting PPP projects would be necessary, the report recommended. The automotive industry is one of the key sectors of any economy. The sector offers tremendous potential for providing employment, which is a key challenge for Indias policymakers, CII Eastern Region Chairman Mukul Somany said. The automotive sector will also have a huge impact on the inflow of foreign direct investment in West Bengal, roughly by $ 4.2 billion, and will create an additional 2,50,000 direct jobs and an estimated 7 million indirect jobs across the automotive value chain in the state by 2022, PwC Executive Director (Performance Improvement) Partha Kundu added. Madhuri Saripalle The Hindu Business Line (Web & Print Edition) Despite being a late comer to industrialisation, Indias story is remarkable in terms of it becoming a global hub for small car production and the worlds ninth largest producer of automobiles (Organisation Internationale des Constructeurs dAutomobiles OICA statistics, 2008). After achieving this status, the industry has registered a slowdown (negative growth) for the first time since 2000-01, as if pausing for retrospection. Is the global automotive crisis a regular trough in the business cycle or a permanent deviation from the growth path? The GERPISA permanent group for study on automotive industry and its employees held its annual conference this year in Paris the first major auto meet after the global economic crisis. The conference veered unanimously to the question: Are we at the verge of the second automobile revolution? While the first automobile revolution was characterised by the adoption of the standard internal combustion engine sustained by liquid fossil fuel, the second one seems to be tending towards alternative fuels, hybrids and more greener solutions, in short. Fundamental problem Attending the conference on global automotive crisis as an outsider to academics and an insider to industry, I was searching more for solutions to the crisis, rather than asking the right questions. As I sat through listening to the various models followed by different countries and carmakers, I realised that the fundamental problem revolves around choice. Which model do we follow? The model followed by global automakers tended towards structural overproduction based on consumer credit boom, increasing profits of automotive shareholders, squeeze in supplier margins and worsening income distribution. From an environmental perspective, it has resulted in global warming, traffic congestions and worsening pollution levels across the world, causing high incidences of mortality. As Mr Al Gore put it rightly, We are borrowing money from China to buy oil from the Persian Gulf to burn it in ways that destroys the planet. Every bit of thats got to change. (Al Gore, July 2008) There are alternatives that countries such as Brazil have to offer cars based on flexi engines that use a combination of petrol and ethanol. A recent study on greenhouse gas emissions has shown that there are lower emissions and more energy saved from ethanol production. While there is a high potential for replicating this model in India, government regulations with regard to the liquor industry are a major obstacle. There is a need to study the trade-offs involved in producing ethanol from molasses rather than liquor for distilleries. Another model that China has adopted is towards electric hybrid vehicles. Its BYD has emerged as the worlds second largest battery manufacturer in just seven years and has now integrated forward to manufacture electric vehicles. Electricity may be a cleaner fuel, but it still requires the power grid. But China has other designs. It intends to change from a playfield of the global automobile industry into a global player. And this is very much possible with the heavy handed approach of the government. What it means to us But why do we need to worry about all this? After all, the crisis has given opportunity to small car manufacturers as the export market increasingly gets skewed with more incentives for purchasing small, fuel-efficient cars. So, India has emerged as a global hub at the right time. And India is a home to the extremes driven by an extremely price sensitive market at one end to a rising class of high net worth individuals on the other. We can make anything: the Rs 1 lakh car or the Rs 2 lakh bicycle! Herein lies the crisis. The fundamental problem of choice: the choice may not be as fundamental as guns versus butter. But the lesson the crisis offers is the choice between growth and sustainable growth. What choices do we make to ensure the future generations a better quality of life? Do we need cheap cars that can fill up our roads or do we need infrastructure and more lung space to breathe? I foresee a day in the near future when the roads will serve entirely as parking spaces and people will buy cars for parking at the nearest available space, to walk down to a store or to their workplace; car pools will be the order of the day and we would be wishing for another automotive revolution. We will be asking the same questions that the West is facing. PTI See this story in: The Hindu Business Line (Web Edition) Washington: Tata Motors has no immediate plan to export the Nano, the worlds cheapest car, as it is currently concentrating on meeting the domestic demand, the Tata Group Director, Mr Jamshed J. Irani, has said. We have huge pending orders even now and we dont think we will be able to deliver them the car very soon, he said. We are testing the waters, but we have no immediate plan to go abroad, Mr Irani told The Washington Post in an interview published on Thursday. We think our domestic market is inexhaustible. If you look at our population, we are 1.3 billion and not even 1 per cent own a car. However, our middle class is 300-million strong and quite a few of them would graduate from two-wheelers to four-wheelers , Mr Irani told the paper, adding the only restrictive factor is the roads. We have to make more roads. According to Mr Irani, the companys current focus is on the domestic market, as we hope quite a few people would buy the Nano as a second or third car. No plan to take Nano abroad: Irani The Indian Express (Web Edition) The Hindu (Web & Print Edition) New Delhi: Tata Motors on Thursday said there were no cancellations of bookings of its low-cost small car Nano in view of recent reports of technical snags. It also said work at its upcoming Nano plant in Gujarat was going according to schedule and trial production of the worlds cheapest car would begin early next year. There have been no undue cancellations of the booking of Nano. Whatever cancellations are happening is normal, and it happens in the industry when there is long waiting period, said Tata Motors President (Passenger Cars) Rajiv Dube. A few incidents of short circuits in Nano were reported recently, which the company said termed it as a minor technical glitch and ordered pre-delivery audit. We have not recalled any of Nano car. We have sorted out the issue, Mr. Dube added. There are already over 800 Nano running on Indian roads, while the company is producing 2,500 to 3,000 Nano cars a month at its Pantnagar plant in Uttarkhand. Tata Motors plans to start trial production of Nano at its upcoming plant at Sanand (Gujarat) in the last quarter of the current fiscal. The company plans to ramp up production in mid-2010 to meet the demand for Nano. It will have initial production capacity of 2.5-lakh units, scalable to five-lakh units. Mr. Dube also unveiled the companys latest offering Indigo Manza the premium sedan. Indigo Manza is built on its new car platform and come in diesel and petrol variants, while the company is also planning to introduce its CNG and LPG models. The car is priced between Rs. 4.80 lakh and Rs. 6.75 lakh. Tata Motors The Statesman (Web Edition) The Hindu Business Line (Web & Print Edition) See this story in: Business Standard New Delhi: Tata Motors said on Thursday that all issues on compensation with the component vendors for the Nano have been resolved. Most vendors are expected to shift their facilities to the vendor park in Sanand, Gujarat, by March. The Sanand plant, with an installed capacity of 3.5 lakh units a year, will start operations by the first quarter of the next fiscal. There were previously some issues regarding the fresh investment some vendors would have to make at the Sanand facility, especially when many had invested at the previous site in Singur, West Bengal. In October last year, Tata Motors had announced the shift of the Rs 1,500-crore plant for the Nano from Singur to a greenfield factory in Sanand, after protests over land acquisition for the project. When asked if Tata Motors would share the burden of fresh investments by the vendors, a company official replied, A mutual agreement with the vendors has been reached. Vendors are in line to set up their facility in Sanand, said Mr Rajiv Dubey, President, Passenger Cars Divison, Tata Motors. A senior official added that many vendors have set up their facilities, while some plan to supply the parts from their factories elsewhere. The Hindu Business Line (Web Edition) Mumbai: Mahindra & Mahindra Ltd has informed BSE that the company has pursuant to the approval of the remuneration/compensation committee and the board of directors of the company, on November 12, 2009, allotted 10,00,000 ordinary (equity) shares of Rs 1 0 each to the trustees of Mahindra & Mahindra Employees Stock Option Trust at a premium of Rs 714 per share, making in the aggregate a total price of Rs 724 per share, under Mahindra & Mahindra Employees Stock Option Scheme. This is in line with the approval of the shareholders at the 54th Annual General Meeting held on July 31, 2000 and the 58th Annual General Meeting held on July 28, 2004 respectively. The aforesaid shares rank pari passu in all respects with the existing ordinary (equity) shares of the company. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Murali Gopalan The Hindu Business Line Mumbai: Bajaj Auto is putting together a new motorcycle growth strategy for 2010-11 which is intended to kick off with the production of 300,000 units a month from April next year. As a run-up to that plan, the company will launch a new Pulsar and Discover by the end of this fiscal. These two brands have played a big role in reshaping Bajaj Autos comeback in the motorcycle market. With the new Pulsar and Discover motorcycles that are scheduled to be launched in the coming months, we feel we are on course to producing 300,000 bikes a month from the next fiscal, Mr Rajiv Bajaj, Managing Director, Bajaj Auto, told Business Line. Of this, the Pulsar and Discover alone will account for 200,000 units, while the Platina will take up another 40,000 units. The Boxer, which is only meant for the export markets, largely Africa, would make up the balance. In fact, the global markets have been a key focus area for Bajaj Auto. Vehicle exports in September and October hit new highs at 81,000 and 84,000 units respectively. November will be even better than those two months, Mr Bajaj said. The comeback trail For a company which seemed to have lost its way in the bike market in 2008, this has been a welcome comeback script where the key performers have been the Pulsar and Discover brands. From our point of view, people either want to commute or have fun on their bikes. The Discover and Pulsar meet each of these needs, he said. While the Pulsar continues to be the leader in the sporty bike category with monthly sales of 65,000 units, it is the new 100cc Discover that has been the best piece of news for the company. It has been generating good numbers in the executive segment where Hero Hondas Splendor and Passion models are the clear leaders. The Discover brand alone (which includes the 135cc version) notches up around 95,000 units each month. According to Mr Bajaj, the key to growth now lay in putting strategy ahead of creativity. Success lies in sticking to our strategy. And if something is working well, there is no point in tampering with it, he added. This is precisely the reason why the company will pay special focus to the Pulsar and Discover brands because they have established a niche for themselves in customers minds. Leveraging brands For every position, there should be a brand. From our perspective, it is more about Pulsar and Discover than Bajaj. The same holds good for a Sony or Kawasaki where specific brand points such as a Walkman or Ninja are more powerful from the recall point of view, Mr Bajaj said. The company also believes that the revised strategy is working because the results are there for all to see. Leveraging brands is also a huge benefit from the costing point of view because they seldom need a big spend on advertising and the like. Mr Bajaj reiterated that the success mantra also revolved around a specific product strategy in being different and, more specifically, opposite from what competitors had on offer. He cited the case of his own companys Chetak geared scooter which lost out to the motorcycle wave in the late 1980s and 1990s largely on account of the fact that every new feature on offer (in a bike) was distinctly different whether it was mileage, storage, style or comfort. At the end of the day though, just being opposite is not good enough because your product will have to be value-driven too if it has to succeed, Mr Bajaj quipped. The Economic Times Bangalore: Boot Camp. Two words that cause you think about a hard day of running around with a very strict sergeant yelling orders. Fun, would not be a word associated with Boot Camp. However, if you happen to be Harley-Davidson, then the entire subject takes a sharp U- turn and what you have is an event that is educational and fun. Held recently in Delhi, the first Harley-Davidson India Boot Camp was an insight to the 2010 range of Harley-Davidson bikes that are destined for the country next year. The Auto Expo will be the platform for the US bike manufacturer to announce their range as well and the much awaited pricing of these bikes, but that is still a couple months away and here at the Boot Camp, I was itching to get on a Harley-Davidson for the first time in my life! The educational programme walked the group through the different Harley families, namely the CVO, Touring, VRSC, Softail, Dyna, and Sportster models. Each bike is a unique statement towards style, beauty, form and function. If you have ever laid your eyes on a Harley-Davidson , you'll know exactly what I'm talking about. It's that swelling up feeling that builds from deep inside you, the desire to just be able to pilot one of these machines, and of course to be part of a cult that has over a million followers! Incidentally, Harley-Davidson has over 31 models that belong to one of these families. However, in India, we will see a smaller range initially and hopefully as the popularity of these bikes grow, the entire range should be made available. With the bike 'gyan' session over, it was time to don those leathers and get on a bike! For many who attended, this was the first time on a Harley-Davidson , and the bikes can instill a little fear in your heart, especially if you are a new biker and have relatively no experience on big bikes whatsoever. Such was not the case with me. With helmet firmly on, I walked right up to the bike that I think will be Harley's bestseller in India from the Dyna range. I speak of the FX Super Glide. This bike is probably the most popular Harley-Davidson model amongst bikers, including outlaw bikers! It has got a neat cruiser-sport stance, wide handlebars, a nice V-twin snuggly fitted in, sits low and gives out the vintage 'potato , potato, potato' exhaust note. The large engine is mated to a 6-speed gearbox and if you wanted to feel like a true rockstar, this bike will do that for you. A gentle press on the start button and the engine roars to life. Just the sound of the motor is good enough to get the adrenaline pumping and soon I was off following the convoy around a neat route through South Delhi streets. Despite being a big bike, it was surprisingly easy to handle, what made it even better was the fact that cars actually get out of your way when they spot you-a nice change in scenario as compared to regular bikes! Power delivery is smooth and gear changes are refined. The bike settles into a steady drone and I was soon in cruising heaven. Unfortunately, the ride was short and though I didn't want to part with the bike, the time had come to get out of my leathers and return the keys. The first Boot Camp had come to an end and though more are scheduled in the future, the ultimate take away from the entire experience is the fact that these bikes are extremely easy to ride. They might look intimidating, but one ride is good enough to dispel those thoughts. India is ready and while America gets to enjoy mangoes, its time for us to indulge in some real biking magic. Bring it on! Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Economic Times Chennai: Tamil Nadu Cabinet on Thursday cleared the proposal of Mahindra & Mahindra to set up an automobile project at Cheyyar near Chennai with an investment tag of Rs 1800 crore. The Government has already allotted 200 acres of the total 450 acres required for the project which will have a capacity of 1.5 lakh that will primarily manufacture tractors, SUVs and commercial vehicles besides auto parts. It will have the flexiability to make cars if the company desired so. The investment will also cover a dedicated test track so that the company will have an integrated operation. Besides this facility, M & M will utilise its existing landbank of 100 odd acres at Mahindra world city at Maraimalainagar to set up one of the worlds largest R & D and vehicle design centres. The MoU for the project is expected to be inked in about two months. Official sources said the investment will generate direct jobs for 2500 people and several thousand jobs indirectly. The multiplier effect of the project will mean an additional investment of over Rs 5000 crore, they said. "By default, it would have gone to Maharashra where M & M has huge land bank. But, it is a hard won project for Tamil Nadu considering the slow down in the global market. It is expected to make it an undisputed leader in the auto space which will be difficult to be challenged by other States", the sources. It is also a striking victory for the State considering the series of labour unrest and disputes the State had witnessed in the last couple of months. The sources said the State has already signed MoUs and cleared projects for creating a capacity of 13.5 lakh cars per annum. "Given the global slow down, the M & M investment is a big victory for the State. It will reinforce its leadership position in the auto sector", they said. M & M clinching the deal in TN also comes close on the heels of its strained relationship with Renault ( Over the failure of Logan car) and the three way venture between Renault-Nissan and Bajaj for the small car project finally taking shape. M & Ms mega investment near Chennai will also herald the entry of Indians numero uno tractor major into the State, which already has the second largest tractor manufacturer, Tafe and Deutsche-Same. It also signals Mahindras big bang return to the Detroit of India after it had exited the JV with Ford Motors which was floated to set up the greenfield project near Chennai. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved" The Hindu Business Line Pune: Pune-based Kirloskar Oil Engines Ltd (KOEL) is selling its entire stake in six JV companies, including its shareholding in Toyota Kirloskar Motor Pvt Limited, (TKM) to group company Kirloskar Systems Ltd. The total consideration for the sale is about Rs 250 crore. Following the sale, KOEL will exit Toyota Kirloskar Motor Pvt Ltd in which it holds 11 per cent stake, Toyota Kirloskar Auto Parts Pvt Ltd (10 per cent), TG Kirloskar Automotive Pvt Ltd (26 per cent), Toyota Tsusho India Pvt Ltd (4.6 per cent), Kirloskar Toyoda Textile Machinery Pvt Ltd (3.82 per cent) and Denso Kirloskar Industries Pvt Ltd (10.99 per cent). Kirloskar Oil The Statesman Kirloskar Oil to sell JV stakes for Rs250 crore Mint Kirloskar Oil to exit six JVs; earn Rs 250 cr The Indian Express KOEL to exit JVx with Toyota for RS 250 cr The Economic Times | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIED INDUSTRIES STEEL STRIPS TO STUDY FEASIBILITY OF WHEEL RIM PLANT IN MOROCCO The Hindu Business Line Chennai: Steel Strips Wheels Ltd, which has bagged an order to supply the full requirement of wheel rims for French car-maker Renaults greenfield plant in Morocco, will study the feasibility of setting up a plant in the North African country, according to reliable sources. The company hopes to begin the feasibility study some time next year and if it decides to go ahead with the Morocco plant, begin the construction in early 2013. The company anticipates an investment of 20 million (about Rs 140 crore) in the Morocco plant. In an announcement to the stock exchanges on Thursday, the Chandigarh-headquartered Steel Strips Wheels said that Renault had nominated it for 100 per cent supply of steel wheel rims to its greenfield plant in Morocco. Steel Strips Wheels would start supplying for this project from the last quarter of 2011 from its Chennai plant. The company expects to supply more than three million wheel rims in five years to Renault, which would lead to foreign exchange earnings of about 28 million (Rs 200 crore). When contacted, Mr Dheeraj Garg, Managing Director, Steel Strips Wheels, told Business Line over the telephone that the company had expanded its relationship with Renault ever since it started supplying wheel rims for the Logan in India. It had been nominated to supply to Renault in Romania and Brazil. In an announcement on Tuesday, the company informed the stock exchanges that it had received an open export order from Renault for supplying about 1.80 lakh steel wheel rims a year, valued at about Rs 8 crore. The companys plant in Jamshedpur, with a capacity of one million wheel rims for trucks, would begin production in April, Mr Garg said. Its Chennai plant, with a capacity of three million rims a year, would shortly reach full capacity. The plant in Punjab had a capacity of 7.5 million wheel rims a year. Steel Strips Wheels reported a net profit of Rs 4.34 crore on sales of Rs 97 crore for the second-quarter of this financial year. In 2008-09, it posted a profit of Rs 7.79 crore on sales of Rs 317 crore. Steel Strips gets 28 million euros order from Renault Daily News & Analysis Steel Strips Wheels bags order from Renault The Economic Times Steel Strips gets 28 mn order from Renault Mint The Hindu Business Line Kolkata: Exide Industries aims at garnering a 25 per cent market share in the tractor battery segment in the next two years. The company plans to offer personalised services by way of doorstep marketing in order to scale up its presence in the rural markets, according to Mr Mukul Kandwal, Chief Business Manager Project Kisan, Exide Industries Ltd. We have assigned our dealers at various nodal markets or mandis to provide services to the customers. We plan to move to the hub and spoke model as we have reached a critical mass in these areas, Mr Kandwal said while speaking to newspersons on the sidelines of a seminar on rural marketing organised by the Confederation of Indian Industries here. The companys market share currently stands at about 14 per cent in the tractor battery market; he said and added that the annual turnover from the vertical was close to Rs 100 crore. Exide Industries, Mr Kandwal said, has set a target of selling 2, 50,000 tractor batteries, against 1, 70,000 last year. Business Standard Kolkata: Ruia group company Falcon Tyres on Thursday recommended a dividend of 15 per cent on its extended capital. In August 2009, the company had declared an interim dividend of 25% to its shareholders. Since then, the tyre maker has split the face value of its Rs 10 shares into two shares of Rs 5 each as well as issuing bonus in the ration of two shares of every one held. The current financial year will see some of the major expansion programmes completed, the groups chairman Pawan Ruia said. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tata Motors Finance Ltds (TMFLs) asset quality, according to Crisil, has significantly weakened by the poor performance of its portfolio. Delinquencies in the 90+ days past due (dpd) and 180+ dpd buckets increased significantly to 20.9% and 13.6%, respectively, as on September 30, 2009, from 10.5% and 6.5%, respectively, as on March 31, 2008. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Hindu Business Line New Delhi: The Government has directed the Petroleum Ministry and the oil marketing companies (OMCs) to ensure implementation of mandatory blending of five per cent ethanol with petrol. Speaking to newspersons after the Cabinet Committee on Economic Affairs (CCEA) meeting, the Home Minister, Mr P. Chidambaram, said, The CCEA has reiterated its earlier decision of mandatory five per cent blending of ethanol with petrol. The Minister said that the Petroleum and Natural Gas Ministry and the public sector OMCs have been instructed to implement the decision. He said groups will be set up by the Ministries concerned to ensure that there are no supply dislocations and also ensure that the programme is implemented without any hitch. To review the current implementation of ethanol-blended petrol programme, the Petroleum Minister, Mr Murli Deora, has called a meeting of the public sector oil marketing companies on Friday. At present, the programme is being implemented in 14 States and three Union Territories. The OMCs have finalised tenders for ethanol in these States. As against a requirement of about 180 crore litres of ethanol for three years, the OMCs have contracted for 146.6 crore litres. So far, 58.42 crore litres of ethanol have been procured as on October 15. For the purpose, the landed cost of ethanol is compared with benchmark price of landed cost of petrol at a particular location, including transportation, all taxes and duties paid. At present, the OMCs are procuring ethanol at a basic price of Rs 21,500 per kilo litre (Rs 21.50 per litre). The Petroleum Ministry in September 2006 had directed the OMCs to sell five per cent ethanol blended petrol subject to commercial viability as per Bureau of Indian Standards specifications in entire country except North-East, Jammu & Kashmir, Andaman & Nicobar Islands and Lakshadweep with effect from November 1, 2006. Agencies See this story in: The Hindu Business Line Mumbai: Oil prices were steady above $79 a barrel on Thursday, as the market awaits US Government oil inventory data and watches the dollar, which is flirting with 15-month lows against a basket of currencies. US crude futures inched up 18 cents to $79.46 a barrel by 0335 GMT, after closing 23 cents higher on Wednesday. Brent crude futures gained 20 cents to $78.15 a barrel. http://www.thehindubusinessline.com/blnus/05121001.htm | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PTI See this story in: The Hindu Business Line Berlin: US automaker General Motors chief executive has apologised for the companys handling of the failed sale of its subsidiary Opel to Canadian manufacturer Magna and Russian investment bank Sperbank. Mr Fritz Henderson expressed deep regret for shocking the nation and provoking outrage among government leaders, trade unions and Opel workers by an unexpected announcement last week to cancel the deal and instead to keep Germanys second largest car manufacturer under its fold. It was not our intention to surprise anybody, although now we know that we have done that. We deeply regret it, he said in a German television interview. His comments came after the German Chancellor Ms Angela Merkel sharply criticised the company for cancelling the sale, which was supported by Germanys government as the best option for saving a major part of around 25,000 jobs in the country. For months, the General Motors was not in a position even to nearly fulfil its responsibility towards Opel, Merkel said in her first comment on the aborted deal on Wednesday in the Bundestag, the lower house of parliament. I extremely regret the decision by General Motors, the Chancellor said. The proposed sale of Opel to Magna was preferred by the German Government because Magna had promised to keep all four production locations in this country and to lay off a maximum of only 2,600 German workers. GM chief apologises for the handling of Opel, Magna deal The Times of India GM chief apologises for handling of Opel deal Rediff India http://business.rediff.com/report/2009/nov/12/auto-gm-chief-apologises-for-handling-of-opel-deal.htm Agencies See this story in: The Economic Times Detroit: The company set up to get rid of General Motors Co's unwanted assets says it has lost $100 million since GM emerged from bankruptcy protection in July. Motors Liquidation Co also says it has assets valued at $1.5 billion and liabilities of $35 billion. The disclosures were made in a filing on Thursday with the US Securities and Exchange Commission. Motors Liquidation was formed as part of GM's Chapter 11 bankruptcy filing to dispose of closed factories and other assets. The new GM kept profitable assets and is trying to make a comeback. Motors Liquidation reports only $60,000 in revenue from disposal of assets through the end of September. See this story in: The Indian Express Shanghai: Hyundai Motor Co expects its global sales in 2010 to be better than last year, its president and CEO said on Thursday. The South Korean car manufacturer was seeing improvements in several markets, Steve Yang told reporters on the sidelines of an industry forum in Shanghai. Bloomberg See this story in: Business Standard Bayerische Motoren Werke AG, the worlds largest maker of luxury cars, plans to build a new China factory to meet rising demand for premium products in an economy thats poised to surpass Japan in size. The 5 billion yuan ($732 million) plant will have an initial capacity of 100,000 vehicles a year by 2012, eventually rising to 300,000, BMWs Chief Financial Officer Friedrich Eichiner said in Beijing. Capacity at BMWs existing plant in northeastern Chinas Shenyang will more than double to 75,000 by the end of 2010, he said. BMW wants to make more 3-Series and 5-Series sedans in China as demand for top marques catches up with this years expected 28 percent growth in vehicle sales, enough for China to surpass the US as the worlds largest vehicle market. Bloomberg See this story in: Business Standard PSA Peugeot Citroen, Europes second-biggest carmaker, raised its full-year profit forecast on a faster-than-expected auto-market recovery in the region. Peugeot will break even in the second half at the recurring operating-profit level, the Paris-based company said in a statement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY The Hindu Business Line Mumbai: The rupee ended down against the dollar on Thursday due to fall in stock markets and the greenback's rise against major currencies. The rupee closed at 46.65/66 a dollar compared with 46.28/29 on Wednesday. Intraday, the rupee moved between 46.35 and 46.66 a dollar range. PTI See this story in: The Hindu Business Line Mumbai: In volatile trading, the Bombay Stock Exchange benchmark Sensex on Thursday fell by over 153 points on profit-selling sparked by rising food inflation amid weak global trends. The Sensex fell by 153.57 points to close the day at 16,696.03. Brokers said profit-booking in fundamentally strong stocks in realty, metal and banking shares pulled down the barometer. Markets had gained 409 points in the previous session. The key index swung between a high of 16,896.62 and low of 16,605.01 points. As many as 11 stocks advanced, while 19 recorded small to notable losses. The National Stock Exchange index Nifty also declined by 51.30 to 4,952.65. Market sentiment turned bearish after reports of a further rise in food inflation. Investors, however, ignored an impressive IIP data, brokers said. They said a weak opening in Europe and a falling trend in Asian markets further dampened the sentiment. Sensex heaviest RIL fell 0.37 per cent to Rs 2,100.20. It blue-chip Infosys however, rose by 0.61 per cent to Rs 2,322.70. The realty sector suffered the most at 3.05 per cent at 3,937.46, followed by metal index at 2.63 per cent. Banking index also dro pped 2.53 per cent. The Hindu Business Line New Delhi: Doubling of potato prices and onions becoming costlier by 42.58 per cent on an annual basis led to the food inflation climbing to 13.68 per cent for the week ended October 31, from 13.39 per cent in the previous week. The rise in food prices in turn resulted in primary articles inflation jumping to 9.16 per cent for the week ended October 31 from 8.94 per cent a week earlier, according to the data released by the Commerce and Industry Ministry on Thursday. The food items that experienced a double-digit rise included pulses (22.73 per cent), rice (16.63 per cent) and milk (10.3 per cent). However, prices of non-food articles declined by 0.17 per cent. The index of fuel, power, light and lubricants also fell by 1.71 per cent in the week ended October 31 against 6.20 per cent previous week and 7.26 per cent in the corresponding week last year. Crisil Principal Economist, Mr D.K. Joshi, told Business Line that, The overall shortage of rainfall, which was 23 per cent during the recent monsoon, was the worst since 1980s. The kharif output was poor. Besides, there are unconfirmed reports of hoarding by some people who are taking advantage of the situation. Though the Government is trying to distribute cheaper food to poor people, the effectiveness of this programme is an issue. Mr Joshi said a good Rabi crop can ease the situation a bit, adding, however, that the inflationary pressure will persist due to an increase in demand and it is bound to touch around 6.5-7 per cent by March 2010. RBI, last month, had upped its projection of WPI-based inflation to 6.5 per cent with an upside bias by March-end 2010, from the earlier 5 per cent. Monthly data on Nov 14 The Government would bring out on November 14 the aggregate monthly data on wholesale prices-based inflation, which will include manufactured goods that has 63.7 per cent weightage in the overall Wholesale Price Index (WPI). Currently, the weekly release of WPI has been restricted to primary articles, non-food articles and the index on fuel, power, light and lubricants. Prices of light diesel oil dropped by three per cent, while furnace oil and naphtha slipped by two per cent each. Fish-marine prices also declined by three per cent during the week. But fodder prices rose by seven per cent, while bajra (three per cent) as well as fruit and vegetables (two per cent) saw an increase. Last Financial closing
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