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Thursday, March 11, 2010
Indian Auto Industry Update March 10, 2010
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| INDUSTRY Daimler confirms sale of Tata Motors stake INTERVIEWS/FEATURES Industry cant absorb excise rollback: Rajiv Dube, President, Passenger cars, Tata Motors COMPONENTS Bosch declares lock-out at Bangalore plant ALLIED INDUSTRIES Tyre cos hold prices despite hike in input costs FINANCE & INSURANCE OIL, LUBRICANTS & ALTERNATIVE FUELS Taxes make 50 pct of petrol price | CARS, SUVs, MUVs Figo drives into India with a tag of Rs 3.49 lakh Steady growth in Delhis two-wheeler registrations ECONOMY & FINANCE Rupee weakens in range-bound market | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 INDUSTRYDAIMLER CONFIRMS SALE OF TATA MOTORS STAKE Vidya Ram The Hindu Business Line (Web & Print Edition) London: Daimler, the German maker has finally confirmed it had sold all of its 5.34 per cent ordinary shares of Tata Motors to various investors, bringing it in a tidy cash inflow of 300 million. The German firm has established itself firmly in the Indian market, making the need for Tata as a partner effectively redundant. Daimler said that in the first two months of 2010 sales of Mercedes Benz in India nearly doubled and that it intended to grow at a double digit rate for the year as a whole. Daimler's truck division Daimler India Commercial Vehicles Ltd - is also building a plant in Chennai which is expected to begin production in 2012. Daimler is in an excellent position to capitalise on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there, said the company in a statement, adding that as a result having an equity stake in Tata was no longer necessary. Relations between the two companies are excellent and will not be adversely affected by the sale. Some believe that Daimler's involvement in Tata had failed to deliver the opportunities they had hoped for when they first took on the stake. Over the years they had the stake, they haven't really made any progress regarding any of the projects; so from Daimler's perspective it was essentially dead capital, said a Munich based analyst. Last month, Daimler surprised the market with a 2.6 billon net loss for 2009, and scrapped its dividend, sending its shares plummeting. However, others see it in a much more positive light. Pulling out of Tata in our opinion is a very good sign for Daimler, signalling that it is planning to move more aggressively in India than they would together with Tata, says Mr Christoph Stuermer, a director in the automotive group of IHS Global Insight in Frankfurt. They are putting a lot of money into India and therefore getting some revenue out of India to finance investment due there is also a very good idea. He added that Daimler was also beginning to see Tata - with signs of a recovery at Jaguar Land Rover, and the appointment of Carl Peter Foster - as more of a competitor. Why keep money in a competitor when they don't even have technical cooperation any more? After 52 years, Daimler sells stake in Tata Motors The Times of India (Web & Print Edition) Daimler sells residual stake in Indian firm: Tata Motors shares crash The Statesman (Web Edition) Citi buys part of Daimler stake in Tata Asian Age (Delhi Print Edition) Daimler sells entire Tata Motors stake The Indian Express (Delhi Print Edition) Tata dips as Daimler exits Hindustan Times (Delhi Print Edition) Tata Sons, Citi arm buy stake of Daimler The Times of India (Delhi Print Edition) The Hindu Business Line (Web & Print Edition) Chennai: The Tata Motors stock slipped 2.5 per cent on Tuesday following the exit of Daimler AG. After touching a low of Rs 777.85, the stock closed at Rs 776.05 against Monday's close of 797.65. Daimler sold its entire 5.34 per cent stake in Tata Motors, at a time when the stock was ruling near a 52-week high of Rs 842 on the BSE. The 2.56 crore shares were sold at a weighted average traded price of Rs 751.67 a share, according to the Bombay stock exchange's website. Tata Sons Ltd and Citigroup Global Markets Mauritius Pvt. Ltd bought Tata Motors shares from Daimler, according to Bombay stock exchange data. As of December 2009, Tata Sons was holding 33.8 per cent stake in the company. Recently, Tata Sons bought 36.9 lakh shares in Tata Motors from Tata Steel, which held 3.79 crores or 7.9 per cent in the auto major. Stock Rise Tata Motors stock has been on the rise in the last 10 days, after the company announced that its Jaguar Land Rover unit returned to profit. According to a CLSA report, Tata Motors' 3Q consolidated results surprised positively with JLR's PAT at 55 million coming in almost 3x our estimates. The pace of improvement in JLR's volumes and profitability in 3Q was much higher than what we were expecting and we expect this to sustain in FY-11. CLSA upgraded the stock to Buy' with a price target of Rs 910. The strong improvement in JLR's performance has been better than expected. Consequently, a further improvement in the JLR volumes on the back of a global recovery and improvement in the profitability on higher scale of operations and reduced cost is likely to improve the consolidated performance of the company, said a Sharekhan report. Daimler exit hits Tata Motors stock The Indian Express (Web Edition) Daimler exits Tata Motors Deccan Herald (Web Edition) Daimler exits Tata Motors, sells 5.34% for Rs 1,863 cr The Economic Times (Web & Print Edition) Daimler sheds entire stake in Tata Motors for Rs 1.9k cr Yahoo India (Web Edition) Daimler sheds entire stake in Tata Motors for Rs 1.9k cr The Financial Express (Web & Print Edition) Business Standard (Web & Print Edition) Mumbai: Tata Motors largest promoter, Tata Sons, bought four million shares of the former from Daimler for Rs 300 crore, thus raising its stake in the commercial and passenger vehicle giant by nearly one per cent. From the limited data released by the Bombay Stock Exchange (BSE), Daimler AG, owner of the luxury brand, Mercedes, and also the worlds largest truck maker, completed the sale of its entire stake in Tata Motors, Indias biggest automobile company, for Rs 1,924 crore (300 million). The sale of all the 25.59 million shares held by it was done by the German company to various group of investors through the BSE, at an average price of Rs 751.67. Tata Motors was consulted by Daimler before the transaction, according to a statement sent by the latter. Apart from Tata Sons, which bought the shares at Rs 750, Citigroup Global Markets (Mauritius) Private Ltd bought a little over 4.65 million shares for Rs 350 crore. The senior management at Tata Motors had clarified yesterday that the company promoters did not wish to participate in buying any shares from Daimler. Despite the positive move by the promoters, Tata Motors scrip plunged to an intra-day low of Rs 750 per share on the BSE, a fall of 5.86 per cent from the previous days close. The stock closed 3.24 per cent lower as against yesterdays closing price. The promoters holding in Tata Motors had shrunk to 38.08 per cent prior to todays buy-out of 0.83 per cent, well below the majority mark of 51 per cent which would help ward off any hostile takeover bids. The primary idea behind Daimler selling its four-decade stake in Tata Motors was to raise capital and thereby boost its commercial vehicle plans in India, for which a manufacturing facility at Chennai is under development. Both companies are already competing against each other in the area of luxury cars. While Tata Motors imports and sells the Jaguar range of high-end cars, Daimler retails the Mercedes-Benz range of luxury cars, a majority of which are now made in the country. Daimler is in an excellent position to capitalise on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is no longer necessary. This has been done in full consultation with Tata Motors, stated a release from Daimler. Last year, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles, which is building the new plant in Chennai. Starting in 2012, this will initially produce light, medium and heavy-duty commercial vehicles for the Indian market under a new brand name. The production of trucks for export to other emerging markets will follow at a later date. Daimler launched its (Mitsubishi) Fuso CV in India at the beginning of this year. The first Fuso vehicle was sold in January. Tata Sons, Citi arm buy stake of Daimler The Times of India (Web & Print Edition) The Tribune (Web Edition) Citi buys 1% of Daimler stake in Tata Motors Rediff India (Web Edition) Reuters See this story in: The Economic Times (Web Edition) Brussels: The European Investment Bank said on Tuesday it had agreed a 340 million pound ($510 million) loan to the Jaguar and Land Rover brand of Tata Motors. The bank, the European Union's financing arm, said the loan would be used partly for work on hybrid vehicles, as well as research into reducing vehicle weight to improve energy efficiency. Tata's Jaguar Land Rover gets 340 mln pound EU loan Yahoo India (Web Edition) Jaguar gets EU green loan Hindustan Times JLR receives 340 m EU loan N. Ramakrishnan The Hindu Business Line (Web & Print Edition) Geneva: One was large and crowded, held in the Delhi winter and reinforced India's growing importance in the global automobile industry. The other, probably a little bit more prestigious, was held in Geneva, and is used by automobile manufacturers as a launch pad for the large European market. In terms of size, the Delhi Auto Expo, held once in two years at Pragati Maidan, is just a little bit bigger than the annual Geneva Motor Show, held at the Palexpo arena. The Delhi show featured global premieres of a few concept cars and a few launches, and the Geneva one too had its share of concepts and global launches, the most important of which was Nissan's new Micra, which will go into production in India in May. And, think of it, Switzerland does not produce any cars. But there ends the comparison between the biennial Delhi show and the Geneva Motor Show. Things work like clockwork at the Geneva Motor Show hardly surprising, given that the Swiss are world leaders in watches, especially of the premium variety. Each company is allotted a time slot when they can have their press conference, usually of 15 minutes duration. It is one cavernous hall and you can move seamlessly from one company's stall to another. The signages as you enter the hall are clear, including to the toilets. At the Pragati Maidan in Delhi, where the auto expo this year was spread over 1.25 lakh sq m, the signages are plenty often in Hindi, and those who do not read or understand Hindi, will have to go looking for one in English, if you are to move from one hall to another. Ask anybody for direction, it is a general wave of the hand in a particular direction, as this correspondent often found out at the Delhi expo. If you manage to locate a signboard in English, it takes quite a bit of effort to figure out the directions. At least this time around, automobile manufacturers were heard complaining about the facilities, or the lack of them, at Pragati Maidan, and of the need to shift the next edition of the expo, due in 2012, to a venue with international standard facilities. The traffic jam on the roads leading to Pragati Maidan will have to be seen to be believed. The Palexpo is spread over 102,000 sq m, all of it covered and in one huge hall. Information on the Internet says that the covered exhibition area is 102,000 sq m with another 21,000 sq m of open-air space. There are 2,700 slots to park cars, which can be increased to 4,000 or even 10,600 for very large events. The media hall is huge with a bank of computers and sockets to plug in your laptops and work. It can comfortably seat over a 100, which itself is inadequate given the number of international journalists that converges on Geneva for the event. In Pragati Maidan, the only place that did not need any direction was the toilets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shweta Bhanot The Financial Express (Web & Print Edition) Tata Motors completes 11 years as a passenger vehicles maker this month. Though this is much less than the years it has spent as a commercial vehicles maker, the decade has seen the company expand its reach and products, says Rajiv Dube, president passenger cars. In a candid conversation with Shweta Bhanot, Dube walks through the journey of the company in its evolution as a global automaker. Excerpts: What were the key products in the passenger vehicles segment during the last 11 years and what lies ahead? I think it has been a tremendous journey. If you look at the history of any automaker around the world, I think none have had a first decade so exciting like Tata Motors. From nowhere, we have created a car business that is Rs 10,000 crore or more. Indica gave us the start and despite some glitches, it has been a success for us. Indica gave us the courage to make Nano. In these years, the company has taken some significant steps. We joined hands with Italian carmaker Fiat and acquired the British brands Jaguar and Land Rover (JLR). Can you throw some light on new platforms under development and the launches you have lined up this year? In the last 24-25 months, we have launched 13 models from the Fiat and Tata stables. And seven models of JLR. We have been launching a model virtually every two months. By the middle of this year, we will be launching Aria, an eight-seater vehicle and start booking of Jaguar XJ. In terms of new platforms, we have launched Indica Vista and Indigo Manza; Nano from another. The to-be-launched Aria is from a completely new platform. We also launched one new platform from Fiat. Other than these, we have new platforms under various stages of development. Do you see any impact on sales due to the increase in prices owing to excise duty roll-back? Are you in a position to absorb the cost? The industry is not in a position to absorb the cost. We are looking at higher incidence of raw material costs and we have already passed it on. There will be some impact on sales in March due to the price increase, but until liquidity remains in the system, there is not much of worry. There is no trade secret that there will be price hikes in April once the new emission norms set in as increasing raw material prices remains a concern. When do we see Pr1ma, the concept sedan, commercially available in the market? The company has not taken a decision on it. It is a concept and currently we are gauging customer reaction to it, which is promising. Is the Sanand plant ready for commercial production and how many Nanos are being produced at Pantnagar currently? It will be commencing operations soon. There are 25,000 Nanos running on the road. Pantnagar from July last year of 2,000-2,500 Nanos has reached 4,000 units last month. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The Hindu Business Line Mumbai: Honda Motorcycle & Scooter India will set up its second plant near Bhiwadi, Rajasthan at an investment of Rs 470 crore. It is less than 50 km from its existing unit in Manesar, Haryana. HMSI will kick off production here in the second half of calendar 2011 with an initial annual capacity of 6,00,000 units. Sources say this could be enhanced to over 1.5 million units should the need arise. The present Manesar plant is capable of producing 1.6 million bikes and scooters. Consolidated presence To be housed within the Tapukara Industrial Area, the new HMSI facility will be practically next to the Honda Siel Cars India (HSCI) unit whose commissioning was put on hold following the global slowdown. To that extent, there will be a consolidated Honda presence in one area rolling out cars and bikes, sources said. It is still not clear when HSCI will begin production of cars in this new plant (the Greater Noida facility is meeting this requirement) though reports have been doing the rounds that this could happen in end-2011 when the new small car hits the roads. This will also help vendors plan their units nearby which, in turn, will benefit Honda's two-wheeler business too. HMSI makes scooters and motorcycles at Manesar and the second plant will go a long way in easing out capacity constraints. Indications are that it will largely cater to motorcycles while Manesar will end up focusing on scooters. The idea, though, is to ensure flexibility between the two plants so that production schedules are kept at an optimal level. HMSI is the clear leader in the gearless scooter segment led by its Activa model and is now pulling out all stops to grow its motorcycle business too. Its sibling, Hero Honda, is the leader in the bike segment with a market share of over 50 per cent. HMSI has changed its focus to target youth for its motorcycle range which explains the radical styling for models like the Twister and Stunner. This is quite a departure from the time it launched the 150cc Unicorn which did not quite grab the eye of the market. This was largely because it did not have too much to offer on style though the bike's performance was never an issue. HMSI now wants to position itself as a manufacturer of sporty bikes while Hero Honda will focus on the commuter segment. Honda bike unit to set up second plant The Economic Times HMSI lines up Rs 470 cr for 2nd unit The Statesman http://www.thestatesman.net/index.php?option=com_content&view=article&id=321866&catid=40 HMSI to pump Rs 470 cr into Rajasthan plant The Financial Express HMSI to pump Rs 470 cr into Rajasthan plant Mint Honda India bike unit to set up second plant Daily News & Analysis HMSI bets big on its second unit Asian Age Honda Motorcycles eyes 2nd India unit The Economic Times Bangalore: A team from the Karnataka government led by chief minister BS Yeddyurappa met the top officials of Hero Honda Motors to impress upon the two-wheeler maker to set up their manufacturing plant in the state. At the meeting in New Delhi on Tuesday, Hero Honda Motors team was led by chairman Brijmohan Lall Munjal and MD Pawan Munjal. The firm has shortlisted Karnataka as one of the states for setting up its fourth manufacturing plant. A team from Hero Honda has already visited Karnataka and looked at a site in Hubli, though a final decision is likely to be taken next month after they make their second visit. During the meeting, the Hero Honda officials raised certain concerns regarding fiscal incentives that would be possible if they are looking at Karnataka as their destination for the manufacturing plant. The state government conveyed the message that they could be given refund on value added tax (VAT) and other concessions if the investments are above Rs 250 crore. Hero Honda has proposed an investment of Rs 2,000 crore for the plant and the state government has shown them two sites 500 acres in Hubli and 1,000 acres near Dharwad. The Karnataka government is keen on locating Hero Hondas project in the Hubli-Dharwad area as it wants to turn this region into a automobile hub. Dharwad already houses Tata Marcopolo Motors, which manufactures buses, and Telcon Construction Equipment company. Copyright 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved" The Pioneer New Delhi: Improved public transport in Delhi has stabilised the growth rate of two- wheelers in the national Capital. The Delhi Statistical Hand Book 2009 released by Finance Minister Dr Ashok Kumar Walia on Tuesday, clearly shows stabilised growth rate of two-wheelers motor cycles and scooters in the Capital. As per statistic, 37,97,943 motorcycles and scooters were registered in 2008-2009 while 35,78,199 two-wheelers were registered in 2007-2008. In other words, only 1, 19,722 more two wheelers were registered in 2008-09 as compared to 2007-2008. Similarly, 60,11,737 vehicles that include cars, jeeps, motorcycles, auto-rickshaws, buses and goods vehicles were registered with the Transport Department till March 2009. The total number of registered vehicles was 56,27,384 in 2007-2008 in the national capital. In other words, over 3,84,347 vehicles registered more in 2009 as compared to the last year. The statistic book which is based on 2008-09 data, shows that 18,59,370 cars and jeeps, 83,948 auto-rickshaws, 40,072 taxis, 55,148 buses and 1,75,250 goods vehicles were registered with the Transport Department till March 31, 2009. In 2002, the total vehicle registered with transport department was 39,40,409 in 2002-2003; 42,02,455 in 2003-2004; 45,08,026 in 2004-2005; 48,09,010 in 2005-2006 and 51,85,410 in 2006-2007. The data released by the Government seems to be not upgraded by the Transport Department. The statistics provided by the department has several deficiencies. For instance, there are only 55,000 auto-rickshaws plying in the Capital following the orders of the Supreme Court. But the statistic shows there are 83,948 auto-rickshaws registered with the department. Similarly, it is estimated 20,000 buses are plying on the road but the statistic shows 55,148 buses are on the road. Besides, there are 2,190 rickshaws, 242 tonga, 42 rehras, 316 hand-carts, 137 bullock-carts and 1,04,303 trolley-rickshaws in the Capital. The Hand Book has 22 chapters covering important information on population related data and its projections, estimates on State Domestic Product, Per Capita Income and poverty, vital statistics relating to birth & death rates. There are also certain important indicators such as hike in per capita income, decrease in birth, death & infant mortality rates, increase in number of consumers of electricity in Delhi. The statistic also indicated that there has been increase of Rs 8,452 in per capita income in the Capital. It was Rs 70,238 in 2006-07 and Rs 78,690 in 2007-08 at current prices against national figure of Rs 33,283. Infant mortality rate has also shown improvement from 25.44 per thousand live births in 2007 to 18.38 in 2008. There has been increase in total number of consumers of electricity from 33,47,535 in 2007-08 to 34,28,920 in 2008-09. Collection from registered dealers under Local Act and Central Act was 8,744.39 crore in 2007-08, which went up to 9,959.12 in 2008-09. There were 33,68,557 students in schools in 2006-07 whereas the number increased to 35,02,730. There were 695 allopathic Hospitals including Nursing Homes in Delhi with 36,507 beds as on December 31, 2008. Per capita consumption of water increased from 48 gallons in 2007-08 to 50 in 2008-09. The Statistical Hand Book, 2009 serves as a reference book as it covers historical data on climate and rainfall, prices, crime and accidents etc. The important aspects like data on trade and finance, electricity sector, industry, labour and employment are also covered. http://www.dailypioneer.com/241030/Steady-growth-in-citys-two-wheeler-registrations.html | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Business Standard Bangalore: Bosch Ltd, an automobile component maker, has declared lock-out at its Naganathapura Plant near here with effect from last night, after talks with workers over wage revision failed. The decision has been taken considering the safety of employees, machineries and installations, as a result of workmen associates of the plant resorting to physical intimidation of managers and officers of the plant during their Go Slow strike and the subsequent Tool Down strike, the company said in a statement. The company claimed while the negotiations were in the initial stages, the Mico Karmikara Sangha Naganathapura (MKS-N), the recognised union of the plant, declared a Go Slow strike with effect from February 13, which continued till March 6. The workmen associates have been negotiating their Long Term Wage Settlement with the company since the expiry of the last settlement on December 31, 2008. The MKS-N submitted the new charter of demands on July 29, 2009. Since then, the company management and the union representatives have had 14 sessions of negotiations on the issue. MKS-N, among others, has demanded substantial increase in wages and enhanced medical facilities for the family members of employees. During the negotiations, Bosch claimed to have offered a substantial revision of wages, equal to what was offered in the last negotiations and substantial improvements in respect of hospitalisation facilities. Further, the company offered to transfer around 45 indirect workmen to direct production areas. As a result of these strikes, the company claims to have lost Rs 6 crore in February, while suffering under-utilisation of capacity. The average cost to company (CTC) of a workman associate at the Naganathapura plant is Rs 37,000 per month, the company said. Bosch manufactures starter motors, spark plugs, alternators and start-stop systems among others at its Naganathapura facility. The company employs 715 shopfloor workers and 287 supervisors at this facility. Bosch declares lock-out' at Naganathpura plant The Hindu Business Line Bosch shuts Bangalore plant Lockout in Boschs City plant Deccan Herald Bosch declares lockout at Bangalore plant Daily News & Analysis Lock-out declared at Bosch plant The Statesman http://www.thestatesman.net/index.php?option=com_content&view=article&id=321864&catid=40 Bosch declares lockout at Bangalore plant Mint Jaishankar Jayaramiah The Financial Express Bangalore: Bosch, one of the countrys largest auto component manufacturers and a subsidiary of Germany-based auto component giant Robert Bosch, declared a lockout at its Naganathpura production plant near Bangalore. The company has shut operations after the workmen resorted to a flash strike and assaulted an officer over wage revision. The immediate impact of the lockout is on a Rs 30-crore order from Maruti Suzuki, which the company has lost while orders from OEMs like Tata, Hyundai, Ford and M&M are also under threat. The company has decided to shut down considering the safety of employees, machinery and other installations, said N Umesh, vice president of Boschs Naganathapura plant. The impact of the lock out could also affect the company's main auto component manufacturing plant in the same city at Adugodi. Umesh said workers are in a `go slow' mode in Adugodi plant too since February 12. Wage negotiations are on at the Adugodi plant, that employs about 4,500 workers. It manufactures common rail injection system, fuel injection pump, power tools and elements for auto industry. Vaishali Jajoo, an analyst attached to Mumbai-based broking from Angel Securities told FE that she did not expect the lock out to continue for a longer time. "The company may incur losses of Rs 1-Rs 1.5 crore per day if they continue with the lock out," she warned. Moreover the company may not have sufficient inventory as they have already resorted to production cuts last year due to recession. The Naganathapura plant was set up in 1989 and since then it has witnessed four strikes, but however this is the first time the company has decided to go in for a lock-out. Industry watchers feel that the lock-out may lead to governmental intervention as Bosch is one of the oldest companies in Bangalore. It was was earlier called Mico Bosch. Already the matter has been escalated to the labour commissioner's office. Bosch Ltd has five auto component manufacturing units in India. Other than the two in Bangalore, it has one each in Goa, Jaipur and Nagpur. The company's roll call includes more than 10,000 employees. The Naganathapura plant was prey to employee agitation for the past one month. The company manufactures starters, generators, spark plugs and alternators at its Naganathapura plant for OEMs and the aftermarket sector. The plant has 900 employees including 715 workers serving at the shop floor, who have initiated negotations around wage revision. Bosch shuts down Bangalore unit; loses Maruti order Yahoo India The Hindu Business Line Pune: Italian auto component manufacturer Brembo has unveiled Bybre, a new global brand of components dedicated to the braking systems of motorcycles and scooters under 600 cc that will be manufactured exclusively in India as of now. The range of products, engineered in Italy, will be produced at the manufacturing facility of its wholly owned subsidiary Brembo Brakes India Ltd, at Chakan. The plant will cater to the domestic market as well as overseas requirements. The company also launched the first Bybre product, a caliper exclusively designed and developed for use by Bajaj Auto on its motorcycles being built in collaboration with KTM, Austria. Mr Nicola Frambosi, Director, Motorcycle sales, Brembo group, said, There is a worldwide market for the Bybre brand, and we are dedicating the Indian operations to it. More products will be unveiled over the next 8-12 months, he said, adding that the company would develop specific products for other OEMs also. Brembo Brakes has an installed capacity to make over a million units a year per annum, and is already producing unbranded braking systems for two-wheelers. With nearly full capacity utilisation, the company is investing Rs 15 crore during 2010 to ramp-up capacity by 30 per cent, Mr S.N. Pangarkar, Executive Director and CEO, said. The company had a turnover of Rs 128 crore during 2009, and expects to grow 10 per cent during this year. The Brembo Group has five business units, including the motorcycle unit that develops and makes braking systems for bikes, scooters and ATVs. The group has operations in 14 countries and 35 production sites and sales offices. Italian braking systems co Brembo unveils ByBre The Economic Times | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reuters See this story in: The Financial Express Mumbai: Top tyre firms in the country are reluctantly holding prices, risking a hit on profit margins, despite a recent surge in input costs as they wait for prices of natural rubber to stabilise from a current record high. The price of the most traded RSS-4 (ribbed smoked sheet) rubber hit a record high of Rs 14,425 per 100 kg on Saturday on demand from tyremakers as well as a poor crop this season. We need to increase prices but the market situation is not conducive to price increase. We need to see the market this month and then take a view, said AS Mehta, director-marketing at JK Tyre & Industries Ltd. When input costs are higher and the market does not permit the selling price increase there will certainly be an impact on margins, he added. Indian tyre makers have witnessed a surge in volumes following a boom in the auto industry and have already raised prices by 3-5% in January, while in February they passed on a 2% excise duty increase in the federal budget. Apollo Tyres chief financial officer Sunam Sarkar said the company was considering raising tyre prices in the near term, but has not yet decided the quantum, while Ceat Ltd may review prices in April, said Arnab Banerjee, executive director, sales marketing and outsourcing Natural rubber production in the country dropped 4.3% in the first eleven months of 2009-10, pushing prices to a record high and forcing tyre makers to double imports. Erratic monsoon has badly affected rubber plantation this year. Tapping and production is unlikely to rise in next 3-4 months. It would remain at last years level, said a senior official at Rubber Board. A rally in rubber prices in overseas markets like Thailand and Japan during the period also underpinned sentiment. This limits their ability to pass on the burden of higher prices also to consumers, say analysts. So margins for the quarter to March 31 are expected to narrow, say analysts. They have taken several rounds of price increases last year and earlier this year, so their margins have been well protected till now, said an analyst from a Mumbai brokerage. Tyre cos hold prices despite rubber rally, hits margins The Economic Times | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| See this story in: The Indian Express New Delhi: More than half of the Rs 47.43 a litre retail price of petrol in Delhi is made up of taxes, after Finance Minister Pranab Mukherjee raised excise and customs duty on auto fuels in the Budget 2010-11. Mukherjee last month raised excise duty on petrol and diesel by Re one per litre and import duty from 2.5 per cent to 7.5 per cent, resulting in a 12.7 per cent increase in tax component in the retail selling price. Minister of State for Petroleum and Natural Gas Jitin Prasada informed Rajya Sabha that central and state taxes make up for Rs 24.41 or 51.5 per cent of the retail selling price of Rs 47.43 a litre of petrol in the national capital. Prior to the February 26 proposal, customs and excise duties and state taxes totalled to Rs 21.65 in the retail selling price of Rs 44.72 per litre. In case of diesel, taxes comprise Rs 10.73 or 30.25 per cent of Rs 35.47 a litre retail selling price in Delhi. Earlier, one-fourth (Rs 8.11) was the tax component in retail price of Rs 32.92 per litre. The Budget proposals led to a Rs 2.71 a litre increase in petrol prices and Rs 2.55 per litre hike in diesel rates. Prasada said customs duty contributed Rs 1.73 in the retail price of petrol, excise duty Rs 14.78 and state taxes Rs 7.90. In case of diesel, Rs 1.80 was because of import duty, Rs 4.74 due to excise and Rs 4.19 resulting from state taxes. Agencies See this story in: The Hindu Business Line Mumbai: Oil fell on Tuesday as estimates for rising US crude inventories hit the bullish sentiment about the global economic recovery. US crude for April fell 45 cents to $81.42 per barrel. London ICE Brent for April dipped 47 cents to $80. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Agencies See this story in: The Economic Times Los Angeles/Detroit: US safety regulators and Toyota Motor Corp dispatched investigators to San Diego on Tuesday to inspect a Prius that sped out of control on a California freeway a day earlier. US Transportation Secretary Ray LaHood said two investigators from the National Highway Traffic Safety Administration were sent to join a team from the California Highway Patrol "to be part of the investigation." "Two investigators are flying out to California to examine the car and look for potential causes," NHTSA spokeswoman Olivia Alair said in a statement. "NHTSA is reminding owners of all recalled vehicles to contact their dealers immediately if they are experiencing problems," Alair said. Toyota said its own inspectors were also working on Tuesday to try to find out what caused the 2008 Prius to surge uncontrollably to over 90 miles per hour as it was being driven by owner James Sikes, 61. The high-speed incident, which involved a dramatic pursuit by a highway patrol car, has raised new questions about the automaker's damaging string of recent recalls and whether Toyota has done enough to address consumer complaints about unintended acceleration that have damaged its reputation and sales. California Highway Patrol spokesman Brian Pennings said police has no reason to doubt Sikes' account of the incident and every reason to believe him, based on officers' own observations and evidence of heavy brake use on the car at the time. "There was heavy brake dust on the inside of the wheels and the brakes were smoking when the officer finally caught up to him," Pennings told Reuters on Tuesday. Pennings said Sikes also appeared genuinely shaken by the incident and complained of chest pains, prompting police to call paramedics, who evaluated him at the scene. Sikes ultimately calmed down and was not taken to a hospital, he said. Because there was no crash, and no damage or injuries, the highway patrol did not conduct its own mechanical inspection of the car, Pennings said. The Prius was taken to a Toyota dealership in El Cajon, California, where Toyota investigators were examining the car, Toyota spokeswoman Celeste Migliore said. The Prius has been a "halo" car for the world's top automaker and dominates the market for fuel-efficient hybrid vehicles. Sikes said he had received a recall notice to take his car into a Toyota dealership; but when he did, he was told that his car was not on recall lists, he told reporters. The automaker has recalled the 2004-2009 Prius hybrids due to concerns that loose floor mats could entrap accelerator pedals, causing unintended acceleration. On Monday afternoon, Sikes was passing another car on a highway near San Diego when the Prius accelerated out of control, the highway patrol said. For the next 20 minutes, Sikes sped 30 miles along the freeway, he said. "I pushed the gas pedal to pass a car and it did something kind of funny," Sikes told reporters. "It jumped and it just stuck there. As it was going, I was trying the brakes ... It wasn't stopping." Sikes called the local 911 emergency service, and the highway patrol dispatched an officer who pulled alongside the Prius. The trooper used a loudspeaker to tell Sikes to use the emergency and regular brakes and to turn off the car's engine. Once the Prius slowed to around 50 mph, Sikes turned off the engine of the car and it rolled to a stop with the trooper's car in front of it. A California Highway Patrol spokesperson in San Diego said the cause of the runaway car incident remains under investigation. "We do not have any initial findings at this point," she said. Toyota has recalled more than 8 million vehicles worldwide for mechanical problems that can cause the accelerator to stick and for the risk that floor mats could trap an accelerator. Shares of Toyota were down 1.9 percent to $76.50 in U.S. trading on Tuesday. The stock has lost about 15 percent since Jan. 21, when the company announced a recall of 2.3 million vehicles to fix sticky accelerator pedals. Unintended acceleration in the company's Toyota and Lexus vehicles has been linked to at least five U.S. crash deaths since 2007. Authorities are investigating 47 other Toyota crash deaths over the past decade. Monday's incident, which attracted widespread media coverage, happened in the same Southern California county as a fatal crash in August 2009 that prompted new scrutiny of Toyota's safety record. In that case, Mark Saylor, an off-duty California Highway Patrol trooper, and three family members were killed when a Lexus ES 350 they were driving sped out of control. Toyota has said repeatedly that it believes that there is no problem with its electronic throttle control system. A spokesman for the automaker said on Monday that it believed the steps it had taken should address the problems with reported unintended acceleration if repairs were completed properly. Agencies See this story in: The Economic Times Erlanger, Kentucky: A high-ranking Toyota executive says the automaker's North American sales spiked around 50 percent the first eight days of March as incentives helped lure customers after a series of embarrassing safety recalls. Don Esmond, senior vice president of automotive operation for Toyota Motor Sales, says that the early numbers surpassed the company's expectations. Esmond says there is pent-up demand from buyers who didn't shop for cars during last year's economic downturn. He also credits new sales incentives enacted this month, including 0 per cent financing offers for eight Toyota models. Earlier Tuesday, he addressed about 800 officials from Toyota supply companies attending an annual business meeting. See this story in: The Indian Express Tokyo: Toyota Motor Corp said it had found no flaw with its throttle controls as it seeks to dismiss an external study critical of its electronic safety systems. The conclusions, announced at a news conference on Monday, marked an attempt by the automaker to reassure consumers it has safety issues under control. Toyota is working to win back sales seven weeks into a recall crisis that has tarnished its reputation. But in developments that underscored the continuing pressure on Toyota, a Michigan judge ordered the automaker's top two US executives to appear for a deposition and a congressional panel told it to surrender a 2006 memo from employees in Japan warning of risks to quality controls. Toyota called its news conference to discredit what it said were mistaken conclusions being drawn from a study of its accelerator controls by David Gilbert, an auto engineering expert at Southern Illinois University. Toyota has recalled more than 8 million vehicles worldwide for mechanical problems with its accelerator assembly that can cause sticking and for the risk that floormats could trap an accelerator. Unintended acceleration in Toyota and Lexus vehicles has been linked to at least five US crash deaths since 2007. Authorities are investigating 47 other crash deaths over the past decade. The US National Highway Traffic Safety Administration has also said it is looking into more recent complaints from drivers who say they suffered acceleration problems even after their vehicles were fixed in the recent recall effort. Those complaints have been seen by some as further evidence that Toyota could face a problem with vehicle electronics or software that could go beyond the mechanical fixes it has announced under its recalls. But Toyota spokesman Mike Michels said the automaker had found that post-recall accelerator complaints appeared to reflect a small number of cases where repairs at dealerships had not been performed correctly. "We're confident in our electronic throttle control systems," Michels said. Toyota: No evidence of flaw Gilbert told a congressional panel in late February that he had found a way to simulate a flaw in Toyota's accelerator controls so that the vehicle could surge forward without a fault code being generated for an onboard computer Toyota has designed as a safeguard. But Toyota said an outside review of Gilbert's findings by a Stanford University expert and engineering consulting company Exponent had not found evidence that conditions described by Gilbert could occur in real-world driving. Chris Gerdes, a professor of mechanical engineering at Stanford and director of the university's Center for Automotive Research, said Gilbert had essentially "rewired" Toyota's accelerator system to generate his results. "Fundamentally, you cannot rewire a circuit and expect it to behave as designed," Gerdes told reporters. Gilbert said he planned to visit Exponent's test facilities next week and expected to complete a review of the information it had presented in the next few weeks. "I am pleased that further examination of these safety and acceleration issues is taking place, and I look forward to participating in this process," he said in an email. Judge orders Toyota testimony Toyota is facing dozens of lawsuits stemming from its recalls and both sides in that litigation have been working to line up expert witnesses. Gilbert has received some funding from the Safety Research and Strategies, a safety advocacy that has in turn taken funding from trial lawyers with cases pending against Toyota. For its part, Toyota has hired Exponent and has provided financial assistance to Stanford's auto safety center. Toyota and Exponent said they were continuing to test other explanations for unintended acceleration that would go beyond the problems it has identified. Separately on Monday, a Flint, Michigan area judge ordered Toyota's top two US executives -- Yoshimi Inaba and Jim Lentz -- to appear for questioning for lawyers for the family of a woman who was killed in a Camry crash in 2008. Guadalope Alberto died when her 2005 Camry surged out of control. Her family is suing Toyota. Lawyers for Toyota had argued that lower-level executives should be allowed to answer questions from Alberto's lawyer, but the judge ordered Lentz and Inaba to appear, said Hike Heiskell, a lawyer for the Alberto family. Also on Monday, Rep. Edolphus Towns, a New York Democrat who chairs the House Oversight and Government Reform Committee, asked Toyota to turn over a letter Toyota employees in Japan sent to management in 2006 detailing safety concerns. Towns made the request in a letter sent on Monday. The October 2006 letter, addressed to then-president Katsuaki Watanabe from a splinter union called the All Toyota Labor Union in the wake of a recall scandal in Japan, had warned that a failure to address quality concerns could ultimately threaten the company's survival. Among the causes of the quality slippage, the group blamed the fall in the number of experienced staff in favor of contract workers, the longer working hours and the aggressive pursuit of cost reductions. The letter appeared on the 20-member union's website. Toyota had no immediate comment. Reuters See this story in: The Financial Express Toyota Motor Corp said it had found no flaw with its throttle controls as it seeks to dismiss an external study critical of its electronic safety systems. The conclusions, announced at a news conference on Monday, marked an attempt by the automaker to reassure consumers it has safety issues under control. Toyota is working to win back sales seven weeks into a recall crisis that has tarnished its reputation. But in developments that underscored the continuing pressure on Toyota, a Michigan judge ordered the automakers top two US executives to appear for a deposition and a congressional panel told it to surrender a 2006 memo from employees in Japan warning of risks to quality controls. Toyota called its news conference to discredit what it said were mistaken conclusions being drawn from a study of its accelerator controls by David Gilbert, an auto engineering expert at Southern Illinois University. Toyota has recalled more than 8 million vehicles worldwide for mechanical problems with its accelerator assembly that can cause sticking and for the risk that floormats could trap an accelerator. Unintended acceleration in Toyota and Lexus vehicles has been linked to at least five US crash deaths since 2007. Authorities are investigating 47 other crash deaths over the past decade. The US National Highway Traffic Safety Administration has also said it is looking into more recent complaints from drivers who say they suffered acceleration problems even after their vehicles were fixed in the recent recall effort. Those complaints have been seen by some as further evidence that Toyota could face a problem with vehicle electronics or software that could go beyond the mechanical fixes it has announced under its recalls. But Toyota spokesperson Mike Michels said the automaker had found that post-recall accelerator complaints appeared to reflect a small number of cases where repairs at dealerships had not been performed correctly. Reuters See this story in: Daily News & Analysis Tokyo: Japanese carmakers are considering following Toyota Motor's lead in adopting a brake override system that would potentially address all sources of unintended acceleration, including driver error. Under fire after recalling more than 8 million vehicles globally for problems of uncontrollable acceleration, Toyota said last month it would add the function to all future vehicles worldwide. The system cuts engine power when the accelerator and brake pedals are applied at the same time. Nissan Motor, held 44 percent by France's Renault, is the only Japanese carmaker that has a function on nearly all of its cars that prioritises the brakes when both pedals are depressed. This excludes 660cc minivehicles sold in Japan under the Nissan badge and cars produced by other automakers on an original equipment manufacturing (OEM) basis. Among Japan''s eight carmakers, Mazda Motor said it would add the system to all future models "as soon as possible" starting this year. "We decided to do this because it's the right thing to do," Mazda spokesman Garett Carr said on Tuesday. He added that Mazda currently has the feature on some diesel cars sold in Europe. Morgan Stanley auto analyst Noriaki Hirakata wrote in a recent report that the cost of installing a brake override system was about $50 a vehicle, adding that it could come down if more brands adopt it. Honda Motor, Suzuki Motor, Mitsubishi Motors, Subaru-maker Fuji Heavy Industries and Toyota unit Daihatsu Motor all said they were considering adopting the system. The timing and scope of the roll-out were still under study, they said. "I think (it) could eventually become a standard feature, just like airbags or anti-lock brake systems," said Daihatsu spokesman Haruki Mori. Unintended acceleration in Toyota and Lexus vehicles -- at the heart of the automaker's recalls -- has been linked with at least five US crash deaths since 2007. The causes of many cases of unintended acceleration are unknown, and are often blamed on driver error. The US transportation secretary Ray LaHood has said that safety regulators may require all new cars to have braking systems that tell the engine to return to idle when both accelerator and brake pedals are depressed. Toyota estimates that about one-fifth of vehicles sold in the United States have brake override systems. That includes vehicles sold by Mercedes-Benz Reuters See this story in: The Economic Times Frankfurt: German luxury carmaker BMW sees a "definite" upturn in almost all car markets after its automobile and motorcycle sales increased 14 percent in February compared with the same month last year. "In key sales markets such as the US, the automotive sector is showing encouraging signs of a gradual recovery," the company said on Tuesday. Deliveries of BMW brand cars rose nearly 14 percent in February, while it sold 16 percent more Mini cars in the month, BMW said. Separately, peer Audi said on Tuesday it delivered the bulk of earnings and cash to Volkswagen's group results in 2009 and forecast better results this year. Bloomberg See this story in: The Economic Times London: Hyundai Motor said its German sales may tumble 38% this year and Netherlands-based Ceva Group, the largest car-parts transporter, said shipments suggest there wont be a strong rebound in the European economy. Hyundai, South Koreas largest automaker is braced for sales in Germany as low as 56,000 in 2010 compared with 91,000 a year earlier, according to Werner Frey, managing director for the country. Clients of Ceva, which include Volkswagen and Fiat, are generally predicting very low single digit percentage growth, chief executive officer John Pattullo said. The forecasts add to gloom surrounding European auto markets after Deutsche Bank last week cut its estimate for full-year sales by 100,000 units to 12.1 million. A 10% gain in the first two months was propelled by orders under cash-for-clunkers programmes and demand is likely to drop 14% in the remaining 10 months as incentives end, the bank said. Im still not bullish, Ceva CEO Pattullo said in a telephone interview. It will be pretty buoyant in a number of developing economies, particularly China, but I think in developed economies such as Europe and North America, it will be a very slow and steady recovery. West European car sales rose 0.5% to 13.6 million last year, according to figures from the Brussels-based European Automobile Manufacturers Association. Deutsche Bank envisages an 11% drop for the whole of 2010. There is a high probability that February was the last month with positive year-on-year growth, analysts including Gaetan Toulemonde said in a research note on March 5. In Germany, deliveries of cars and SUVs may fall to about 3 million this year from 3.8 million in 2009 after scrapping payments ceased last September, Hyundais Frey said in an interview in Berlin on March 5. Were committed to further growth, but 2010 will be difficult for us after trade-in incentives expired, he said. Seoul-based Hyundai aims to keep its share of registrations in Europes largest economy above 2% this year, compared with 2.4% in 2009, the executive said. Sales should increase about 10% to 100,000 by 2015, boosting its market share to 3%, he said. Ceva, based in Hoofddorp, west of Amsterdam, had a net loss of e104 million ($142 million) in 2009 as revenue fell 13% to e5.5 billion. Earnings began to revive in the second quarter of last year, when the company posted an operating profit of e69 million, compared with a e30 million loss in the previous three months, Pattullo said. Contracts won by the Dutch company in 2009 included logistics services for the Iveco trucks unit of Turin, Italy-based Fiat, Cevas biggest auto-industry client, and for Office Depot, the second-largest office-supplies retailer in the US, the executive said in the interview on March 4. Whats important for us now is to try and get to the next level and move our business from the stable trading conditions that we are currently in to a higher level, he said. Ceva, the biggest global logistics specialist following its sale by TNT to private-equity firm Apollo Management in 2006, has accelerated the implementation of the kaizen efficiency and cost-reduction system, training 1,800 supervisors last year in the methodology best known for its application at Toyota Motor. Reuters See this story in: The Economic Times Germany: German luxury carmaker Audi contributed the bulk of Volkswagen's cash and earnings in 2009 and forecast better results this year as it launches a dozen new models, including the A1 subcompact. Although BMW has yet to publish its accounts, it is almost certain that Audi surpassed its Bavarian rival, Daimler's Mercedes-Benz and even future sibling Porsche as the most profitable premium carmaker in the world -- underlining its importance to parent VW. "Times have changed. We are no longer the hunter, we are the hunted," Chief Executive Rupert Stadler told its annual earnings press conference, referring to his reaffirmation of Audi's goal to be the number one luxury carmaker in the world in the next five years. With China overtaking the U.S. market as the world's largest last year, Audi was in a good position to profit at the expense of its other rivals that rely far more on demand from overstretched car buyers in California and Florida. While Audi is tempering estimates for its own U.S. sales in 2015 -- preferring not to push volume at any cost into a fatigued market -- it expects to double sales in China to over 200,000 vehicles this year versus 2007. "China could become our most important market (in terms of vehicle sales) this year already, even before Germany," said Peter Schwarzenbauer, head of sales at Audi. Volkswagen wants to topple Toyota from the industry throne before the decade is out and, thanks to Audi, it has most of the funds needed to finance a massive acquisition spree that included buying half of Porsche in December. VW's entire warchest of 10.6 billion euros ($14.42 billion) at the end of 2009 would have effectively been zero were it not for Audi, whose constant stream of cash bolsters debt ratings at its larger parent and lowers financing costs as companies increasingly compete with governments for investor capital. Despite a severe slump in car markets that particularly hurt premium carmakers last year, Audi slimmed down its inventories to help boost net cash flow by 21 percent to 2.32 billion euros. Although operating profit slumped by 42 percent last year, income from interest on its huge cash pile as well as financial currency hedges lifted its earnings to 1.93 billion euros before tax -- exceeding even that of parent VW by nearly 670 million. "Audi is definitely benefiting from being a part of the Volkswagen group and it is definitely doing a great job but these numbers almost seem to be too good to be true," Credit Suisse analyst Arndt Ellinghorst said. By comparison, Daimler's luxury arm Mercedes posted an operating loss of half a billion euros last year and BMW has said only it was profitable although all three brands sold roughly the same number of cars. Unlike its two independent rivals that are struggling to gain economies of scale, development and production costs for Audi's fleet can be shared with the more than 5 million other vehicles built elsewhere within the massive Volkswagen empire. Audi sees clear rise in 2010 revenue Daily News & Analysis Reuters See this story in: Daily News & Analysis Shanghai: China's passenger car sales in February rose 55 percent from a year earlier, the official industry association said on Tuesday, as policy incentives continued to lure buyers into showrooms during the holidays. Buoyant consumer spending in China, the world's largest auto market, has helped global car manufacturers combat a downturn in their traditional markets. Top automaker SAIC Motors said its vehicle sales rose nearly 46 percent in February to more than 248,000 units, in line with the increase in nationwide vehicle sales, which also include buses and trucks. February industry sales of 942,900 passenger cars, however, paled in comparison with the 1.32 million cars sold in January as consumers bought big-ticket items before the week-long Lunar New Year holiday, which began on Feb. 14 this year. "February sales are still pretty solid given the circumstances. It's unrealistic to expect a doubling of sales every month," said John Zeng, an analyst with IHS Global Insight. "However, growth will be slower especially in the second half given the explosive sales in latter part of last year." Chinese automakers' vehicle sales in the first two months of the year are skewed by the timing of the Lunar New Year, which came in January last year, making the single-month figures volatile. SAIC's February sales growth was only half that of January, similar to the nationwide figures. SAIC shares fell 0.2 percent in a Shanghai market that rose 0.5 percent. China's No. 3 automaker, Dongfeng Motor Group Co, a China partner of Honda Motor, Nissan Motor and PSA Peugeot-Citroen, reported a similar pattern of strong but slowing sales growth. It sold 119,082 vehicles last month, up 51 percent, company data showed on Tuesday. Strong but more sustainable China overtook the United States as the world's largest auto market last year and has continued to be a leading bright spot for the battered global industry this year due to Beijing's stimulus steps, including subsidies for vehicle buyers in rural areas and tax incentives for small cars. Those measures, which helped send General Motors' China vehicle sales to fresh monthly records in 2009, are continuing to boost the market this year. GM, which make cars, minivans and light commercial vehicles with SAIC and FAW Group, sold 174,306 vehicles in the country in February, up 51 percent on a year earlier. Rival Ford Motor's China venture, with Chongqing Changan Automobile Co and Mazda Motor, sold 18,193 Ford brand passenger cars last month, marking 37.5 percent growth from the year-ago level. Toyota Motor, which saw a 8.7 percent fall in vehicles in the United States due to the safety crisis in February, saw a roughly 30 percent increase in sales in China to 45,500 units, company data showed. Analysts expect auto sales will return to a slower but more sustainable growth rate of roughly 10 percent in 2010 after explosive growth in 2009, buoyed by continued policy support from the government although renewed tax incentives for small cars were not as aggressive as anticipated. Industry executives, including SAIC President Chen Hong, remain sanguine about the outlook for 2010, citing pent-up demand in smaller cities where cars are no longer a luxury item as wealth grows.The Shanghai-based automaker aims to sell 3 million vehicles this year, its chairman Hu Maoyuan has said, marking over 10 percent growth compared with 2009. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| The Hindu Business Line Mumbai: The rupee weakened by 10 paise against the dollar in a range-bound market. It opened at 45.53 and closed at 45.63, against the previous close of 45.53. According to a dealer with a private bank, there were dollar inflows in the initial part of the day, which helped the rupee gain to 45.47 during the day. But it fell later tracking the negative domestic stock market and the falling euro in the overseas market. The rupee has been gaining over the last few trading sessions. So, there was profit taking. The inflows were related to the NMDC public issue,'' the dealer said. In the overseas market the dollar was strong against the euro and pound, but weakened against the yen. In the forward premia market the six-month closed at 2.91 per cent (2.90 per cent), while the one-year was unchanged at 2.80 per cent. The Hindu Business Line Mumbai: The Bombay Stock Exchange benchmark Sensex ended the session on Tuesday with a fall of 50.06 points at 17,052.54 on profit-booking by funds and retail investors amid mixed trend in the Asian bourses. The wide-based National Stock Exchange index Nifty ended down by 22.5 points at 5,101.50. Volume toppers during the session were Tata Motors, SBI, RIL, ICICI Bank and TCS. Major Sensex losers were RIL, SBI, Tata Motors, L&T, Tata Steel, Jaiprakash Associates and Hindalco Industries. Infosys, HDFC Bank and HDFC were the major gainers. Among the sectoral indices, IT was up 0.85%, telecom 0.41% and consumer durables 0.08%. Metal was down by 1.56%, PSU 1.43%, oil & gas 1.25% and realty 1.09%. The Sensex shed over 41 points in the opening trade on Tuesday snapping the two-session winning streak. The 30-share index, which gained about 130 points in the past two sessions, fell by 41.31 points, or 0.24 per cent, to 17,061.29 points in the opening trade. The wide-based National Stock Exchange index Nifty dipped by 17.75 points, or 0.34 per cent, to 5,106.25 points. Brokers said a cautious approach adopted by major players, after the Sensex surged about 5 per cent in the past few sessions cast its shadow on the sentiments.
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