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| INDUSTRY Auto cos post record annual sales INTERVIEWS/FEATURES Devolving Volvo COMPONENTS Sakthi Auto plans to raise Erode plant capacity by 50% ALLIED INDUSTRIES FINANCE & INSURANCE Ashok Leyland financial arm gets RBI nod OIL, LUBRICANTS & ALTERNATIVE FUELS | CARS, SUVs, MUVs Maruti Suzuki hikes car prices by up to Rs 10,000 ECONOMY & FINANCE Forex reserves fall $1.2 b | |||
| The Economic Times (Web Edition) Mumbai: Sales of cars and two-wheelers continued to rise in March despite recent price hikes and partial rollback of stimulus package, helping market leaders Maruti Suzuki and Hero Honda to record sales in 2009-10. Hyundai Motors, Tata Motors, Mahindra & Mahindra, General Motors, Ford, Fiat and TVS Motor too reported record annual sales and a surprising two-digit growth in March on Thursday, thanks to aggressive marketing and discounts. Aggressive dealer push and discount offers plus the attraction of higher depreciation benefits ensured strong sales in March despite a 2% jump in excise duty, fuel price hike and rising interest rates, auto financiers say. This may have pushed the total car sales in Asias third-largest market to 2 million in 2009-10, the best year so far for the countrys car industry. In the first 11 months till February end, passenger car sales in the country stood at 1.75 million. A line of new vehicles in the market including Tata Nano, Hyundai i20, Maruti Suzuki Ritz and K-series Estilo, Fiat Punto and Honda Jazz, availability of cheap loans and the excise duty cut ensured huge demand for cars throughout the year. Most auto companies also stretched their dealership networks to non-urban markets during the year to ride the surge in rural demand. The strong performance is largely due to new products, said Pawan Goenka, president (automotive and farm equipment), Mahindra & Mahindra, which reported its highest monthly sales in March. Higher exports indicate that there is a revival of markets globally too, he added. Maruti-Suzuki posted a rather subdued 8% increase in domestic sales in March, while its total sales in the fiscal year rose 21% to 8.7 lakh units. Fords first compact car, Figo, has got a rousing welcome in the market, helping the US carmaker to record a 203% year-on-year jump in its March sales with 9,478 units. The launch (of Figo) has transformed Ford in India, said Michael Boneham, president and MD, Ford India. As we remain committed to redefining the Ford brand in India, we expect this momentum to continue, he added. General Motors India, which recently rolled out Beat compact and Cruze sedan, too saw its sales more than double in March. Company vice-president P Balendran attributed the impressive sales to increased distribution network and Chevrolet cashless ownership offer. Tata Motors too recorded its highest ever sales in 2009-10 by selling a total of 6.42 lakh units including commercial vehicles, the company said in a statement. The sale of its passenger vehicles increased 17% during the year. Hyundai Motor India, the second largest carmaker reported its highest domestic sales in March with 31,501 units, it said in a statement. Its super hatch i20 has proved a big success for the Korean carmaker. With more new cars, including Volkwagens Polo compact hitting the Indian roads, vehicle sales are expected to stay healthy in the coming months. Most automakers are investing or planning to invest in new production lines because their existing plants are running in full capacity. Copyright 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved"  Pallavi Pengonda Daily News & Analysis (Web Edition) Mumbai: Automakers are expected to deliver a good set of financial results for the quarter ended March, 2010. Growth would be backed by strong sales volumes. Last years March quarter had seen the industry bear the brunt of the global financial crisis as demand for vehicles was hit badly on account of tight liquidity and higher interest rates. However, with liquidity improving, sales volumes have picked up during the year and the March quarter sales volumes have surged 40% in the latest March quarter. Volumes got a boost from better demand environment and pre-budget buying, as people expected an excise duty hike in Union Budget 2010. Analysts expect auto companies to post about 40% growth in revenues and net profit for the quarter. Compared with the December quarter, operating profit margins are expected to contract, due largely to higher raw material costs. Prices of steel, natural rubber and aluminium have gone up, whereas volume growth is flattish sequentially. On a year-on-year basis, margins are set to improve. Maruti Suzuki India is expected to post a revenue growth of about 30% year on year. Margins are expected to drop sequentially on account of higher raw material costs. Increasing competition in the small car segment bodes ill for Maruti, the largest player in the space. The entry of global auto majors too is a concern. Sequential net profit is expected to be hit due to higher depreciation costs. The revenues of Tata Motors, the largest car company in the country, are expected to grow 65% and net profit by 45%, according to K R Choksey. Margins are expected to remain stable sequentially, led by better operating performance and higher sales. Net profit margins are expected to improve sequentially, as higher provision was made in the last two quarters. Bajaj Auto is expected to post a growth of about 78% in revenues and its net profit is expected to treble. Growth would be supported by strong sales volume growth. However, operating margins are expected to dip sequentially due to higher raw material costs. The margins of Hero Honda too are expected to decline sequentially. Asian Age (Web & Print Edition) Hyderabad: Three months into 2010 and popular cars have become costlier by up to Rs 55,000 as compared to last year prices. Car makers like Maruti Suzuki, Hyundai, Tata Motors and General Motors on Friday have decided to raise the prices of their cars due to the application of Bharat Stage IV emission norms. Maruti increased the prices of by up to Rs 10,000 across all the models except Alto with immediate effect. Among others, General Motors will be hiking prices by up to 1.5 per cent across all the models. Tata Motors too confirmed a price hike but declined to give details. Sources said, Hyundai, too, is a contemplating a price hike of one per cent across all the models. This means prices of popular car models will once again be jacked up making them dearer to the customers. For example, Maruti Swift would cost Rs 50,000 more as compared to its price in 2009. Similarly, A-star would be costlier by Rs 10,500, Hyundai Santro by Rs 25,000, i10 by Rs 32,000 and Hyundai Verna by Rs 55,000. A Maruti spokesperson said, Due to sharp increase in the input costs and also introduction of BS IV norms in some models, Maruti Suzuki India has decided to pass on part of this cost impact to customers. The introductory prices for MUV Eeco have also been withdrawn, making it costlier by Rs 10,000. Prices have also been revised on the BS-III compliant cars like Maruti 800 and Omni (LPG) by Rs 3,000 and Gypsy by Rs 10,000. A top Maruti official said that engine upgradation to BS IV norms needs an investment of Rs 5,000 to Rs 30,000, varying from model to model. This would be the third round of price hike in this calendar year. The first round of price hike was in January due to rising raw material costs. This followed another raise after the finance minister, Mr Pranab Mukherjee, increased excise duty by two per cent in his Budget proposals for the FY11. Business Standard (Web Edition) Chennai: Tamil Nadu government has allotted 300 acres land for National Automotive Testing Research and Development Infrastructure Project (NATRIP) at Oragadam, near Chennai. The new facility will be set up by the Union government with an investment of around Rs 450 crore. The government also said it is formulating a new automobile policy to boost investment in the automobile sector. After inaugurating Renault Nissan Automobile India new facility, which is being set up by French car major Renault and Japanese car manufacturer Nissan at a cost of Rs 4,500 crore, M Karunanidhi, chief minister, Tamil Nadu said that this project aims at facilitating introduction of world-class automotive safety, emission and performance standards in India and also ensuring seamless integration of automotive industry with the global industry. He added, considering the multiplier-benefit arising out of automobile projects, the government would continue to attract more automobile projects in the state to make Chennai as one of the top Ten centres for automobile manufacturing in the world. Chennai had become the home of seven auto majors out of top 20 global automobile manufacturers, adding to the existing facilities by Daimler, Ford, BMW, Hyundai and Mitsubishi. Chennai is emerging as Asias automobile capital. Establishment of these automobile projects in Chennai bears ample testimony to the favourable investment climate prevailing in Tamil Nadu, he said, adding, with its investor-friendly policies, Tamil Nadu has been a forerunner in attracting a large number of domestic and foreign investors. Quoting Oxford Analytica, an international independent consulting firm, Karunanidhi said Tamil Nadu was ranked as the most attractive investment destination among 28 States and two Union Territories. During the last three and half years and despite the recent economic downturn, several industrialists have constantly come forward to make investments in the state. Karunanidhi said his government had signed 25 MoUs and issued orders for another 12 industries since May 2006. Total investments in these 37 industries will be about Rs 46,091 crore and they will create employment potential for 222,000 people directly and indirectly. He said despite, Chennai emerging as the largest automobile hub of India, it was lacking vehicle testing facilities, forcing the auto manufacturers to send their vehicles to Pune for testing and certification. Shishir Prashant Business Standard (Web & Print Edition) New Delhi/ Dehra Dun: In less than a year after it hit the market, Nano, the ultra low-cost car of Tata Motors, is now whizzing past steep zigzag roads in the hills of Uttarakhand. Inquiries from local dealers revealed that performance of Nano is commendable especially in the rugged Himalayan region where its popularity graph is growing. The small car is now giving a mileage of 21.5 km per litter with hardly any complaints, said the dealers. In less than a year, Nano is now being seen in all the hilly areas like Chamoli, Rudrapryag, Uttarkashi, Tehri, Pauri and the hill resort of Mussoorie. We have customers who are driving down from the hills to the plains once or twice a week now, said Rakesh Oberai, a dealer of Tata Motors. Similarly, Nano is also being sold in other mountainous areas of Jammu and Kashmir and Himachal Pradesh also. The hilly region of Pauri in Uttarakhand tops the chart with 7 customers buying Nano. Similarly, 5 people have so far bought the car in Tehri district. The number may be small but the list is growing gradually. The small car is also being liked in rural areas also. People donning dhoti-kurta and driving Nano are also being seen in areas like Sahaspur and Vikasnagar where road conditions are bad. Rajendra Singh (65), who hails from Sahaspur, was among the first persons, who came to book a Nano car at a Tata Motors showroom last year. The enthusiasm in Uttarakhand seems to be high in view of the small car being rolled out from the Pantnagar plant of Tata Motors with a capacity of producing 50,000 cars. The company has told the state government that it would continue the production of Nano from Pantnagar. | ||||
| The Financial Express, Motobahn It took more than a decade for Ford to create what it called its Premier Auto Group around a bunch of classy European brands-starting in 1987 with its purchase of Aston Martin, followed by the acquisitions of Jaguar, Volvo and then Land Rover. It all proved a terribly expensive distraction. Now, it has taken Ford three years of tricky negotiations to dismantle the group, selling the European marques at a considerable loss. Aston Martin went to a British-led consortium in 2007, Jaguar Land Rover (JLR) was snapped up by Tata of India in 2008 and, on March 28th, a deal was signed to sell Volvo to Geely, a small but vastly ambitious Chinese carmaker. The sticker price is $1.8 billion, a fraction of the $6.45 billion that Ford paid for Volvo in 1999. The cost to Ford is worse even than those figures suggest: it has had to support the Swedish carmaker through years of losses and even now it faces further expenses associated with the sale to Geely that will eat up much of the meagre sum it is getting for Volvo. Unstitching Ford and Volvo will take years Over the years Volvos design and production have been closely integrated with Fords, so much so that it will take years to unstitch them. The sale agreement, which both sides hope to finalise in the third quarter of this year, includes a promise from Ford to continue providing Volvo with such things as engine and powertrain technology for the time being, just as it promised Tata that it would continue to support JLR. When Geelys interest in Volvo was made public in the middle of last year, there were some doubts about whether Ford would want to take the risk of letting its technology and other intellectual property leak out to a fast-growing Chinese firm that could one day be a serious rival. The announcement of Volvos sale says safeguards have been agreed to stop this happening. But it also says Volvo will be able to sublicense some of Fords technology to others, including Geely. Although Volvo represents only a small part of Fords output, swallowing it will be a big challenge for Geely: last year it sold just 3,30,000 cars-most of them in China-which is about the same as Volvo sold worldwide. Unlike most big Chinese carmakers, Geely is privately owned and, in recent weeks there had been some doubts about whether it would get the financing needed for the purchase. However, those doubts were dispelled when Chinese state banks (and hence, it is assumed, the government in Beijing) said they would back it. Geelys chairman and founder, Li Shufu, calls himself the Henry Ford of China. He and his managers like to talk big, promising to increase output to two million vehicles by 2015. However, Lis talk about entering the European market in 2007 and breaking into North America by the following year proved to have little substance. The harsh truth is that most cross-border takeovers of carmakers have been disappointments (to name but a few, Daimler and Chrysler, BMW and Rover, and indeed Fords purchase of Volvo and the other European marques). It will be a remarkable achievement for Geely if it bucks that trend. But for Volvo the deal has several attractions: it will gain access to Chinas rapidly growing car market; and, if Geely keeps its promises, it will retain its current management and its factories in Sweden and Belgium. Volvo, having lost so much money under Fords wing, might do better under a more focused and autonomous management. If so, Geely will get a good return on its investment and a jump-start on entering the international market, as well as gaining an attractive range of premium-priced cars to sell at home. Fords focus For Ford, its failed attempt to build a European-led range of premier marques has been a drain of both cash and management time. This is still true of Volvo, even though it is no longer doing as badly as it was in the depths of the economic downturn. Having struggled through the financial crisis without a government bail-out, Ford has the moral high ground over its archrivals, GM and Chrysler. But its noble abjuring of handouts has left it with a weaker balance-sheet than perhaps any of the worlds top ten carmakers. The meagre proceeds from the Volvo sale will be little help in themselves, although at least Ford will earn profits from selling key parts to Volvo for the next few years, while being spared from having to pump investment into the Swedish firm. And at least it can say it has been more successful in its European divestments than GM, which struggled to offload Saab and decided in the end not to sell Opel. Fords management can now devote more time to greater priorities: rebuilding their core American market; and making progress on a strategy called One Ford, under which all the companys models worldwide will be built on a small number of common platforms. Success on this is vital if Ford is to adapt to consumers shift in tastes away from big gas-guzzlers toward smaller cars on which the profit margins are slender. Unfortunately, the deal does little to solve the motor industrys biggest problem: growing overcapacity, especially in mature markets. Indeed, as with the JLR sale, Ford is handing production capacity to an ambitious emerging-market rival with plans to grow big in Fords core rich-country markets. That said, neither Volvo nor JLR is big enough to matter much either way in denting Europes overcapacity. Perhaps a bigger worry for Ford should be the risk of intellectual property leaking out to Volvos Chinese buyers. But this risk already exists in the joint ventures Ford has entered into in China with Changan, another Chinese manufacturer. Privately, Western motor-industry bosses assume that whatever safeguards have been agreed on paper, some of their technology will leak out to their Chinese business partners. But they see this as a part of the price for doing business in, and with, China. Given the vast growth potential of its market, it is assumed to be a price worth paying. The Financial Express, Motobahn How fuel efficient is the car? is the eternal query from the Indian customer when it comes to purchasing a vehicle, or even enquiring about one. This is because, high fuel efficiency translates into lower running costs, and cost has always been the most important factor for the average Indian customer when it comes to purchasing a car. Indians are also aware of the fact that vehicles with automatic transmissions are not only less fuel efficient, but are also more expensive than their manual transmission siblings; and thus the failure of the auto-box in India. Automatic transmission has always failed to impress Indians. Also, automatic transmissions provided in India have always been offered by international car manufacturers operating in India, and not the domestic ones. Their transmissions are designed for universal use, that is, for use in good traffic and road conditions found in developed countries where traffic moves at a brisk pace and frequent downshifts are not required. Hence the car remains in higher gears, thereby providing good fuel economy. In India, the roads are poor and traffic moves at a slow pace, especially during peak hours, because of which frequent downshifts are required. An automatic transmission keeps shifting to lower gears to provide ample pulling power, thereby resulting in poor fuel economy. So then why should we move to automatic transmission? It is common knowledge that the purchasing power of the Indian middle class has risen substantially over the last decade. But with growth in purchasing power, congestion on Indian roads has increased as well. The fuel efficiency advantage of manual transmissions is also negated by traffic jams and constant gear shifts. Under such circumstances, an automatic transmission makes driving in rush hour traffic much easier. It also reduces engine and transmission wear by keeping the car running in an appropriate gear, which also results in reasonable fuel economy. Thus its wiser to opt for a car with automatic transmission. This view is reiterated by a study by Frost & Sullivan, which reveals that 37% of Indian vehicle owners intend choosing automatic transmission for their next vehicle and dont mind paying extra for it. An added advantage of moving to vehicles with automatic transmissions will be that it will encourage more women to take up driving, since women are generally uncomfortable with manual transmissions. The same is true for the elderly. In todays scenario, a small car or a hatchback with all the creature comforts and automatic transmission makes for a perfect city car. For those who like to go on weekend drives on open roads and prefer changing gears manually, modern automatic transmissions come with a manual mode, which allows the driver to change gears manually using the shift lever. A small button on the lever replaces the clutch pedal in this case. In fact, some premium cars come with a paddle shift feature, making gear shifts much easier. The convenience of automatic transmissions comes at a price, but the smoother ride, reduced fatigue and longer engine and transmission life make it worth it. | ||||
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| Business Standard (Web & Print Edition) New Delhi: Truck sales (five-tonne to 49-tonne) rose 99.3 per cent in March to 33,619 units, compared with 16,868 units during the same month last year, on the back of a low base effect of last year and an offer of 50 per cent depreciation allowance on fleet renewal before March 31, 2010, according to a report by the Indian Foundation of Transport Research and Training (IFTRT). Cumulative sales for the last financial year went up 37.6 per cent to 2,40,840 units, against 1,74,953 units in 2008-09. The further huge push to truck sales came from preponed purchases of BS-II compliant trucks to ward off the hike in vehicle prices that would come with BS-III and BS-IV compliant vehicles, IFTRT said. According to IFTRT, while the surge in the manufacturing sector and increased cargo offering may keep the truck sales buoyant in 2010-11, the June quarter may witness some timidity in sales, after the government the deferred introduction of BS-III compliant emission norms to October 2010 for the entire country, except 13 cities where BS-IV norms were introduced yesterday. Total sales of light commercial vehicles rose 50.1 per cent at 39,445 units, compared with 26,277 units in 2008-09, while intermediate commercial vehicle sales went up by 57.5 per cent at 43,640 units, against 27,716 in the comparable period. Sales of medium commercial vehicles grew by 11.2 per cent at 47,454 units, compared with 42,657 units in the preceding financial year. Multi-axle vehicles registered a growth of 35.2 per cent at 92,332 units, compared with 68,281 units in the comparable period, while the tractor trailer sales jumped by 75 per cent at 17,569 units from 10,022 units in 2008-09. Truck sales double in March The Hindu Business Line (Web & Print Edition) | ||||
| PTI See this story in: Business Standard New Delhi: The countrys second largest two-wheeler maker, Bajaj Auto Ltd (BAL), reported a 85.12 per cent jump in its motorcycle sales at 244,828 units in March. The company had sold 132,253 units in March last year, BAL said in a statement. During the entire 2009-10 financial year, the company sold 2,506,749 units in the motorcycle segment, a jump of 31.39 per cent over 1,907,853 units in the year-ago period, it added. BAL attributed the growth to robust sales of Pulsar and Discover range of bikes. In March, total two-wheeler sales jumped by 84.57 per cent to 244,889 units compared with 132,683 units in the same period a year ago, the statement said. BALs exports went up 38.96 per cent to 65,134 units in March from 46,874 units in March 2009. The company reported a rise of 36.76 per cent in three-wheeler sales during last month at 29,344 units against 21,456 units during the same month last year. Total vehicle sales of the company last month stood at 274,233 units compared with 154,139 units in the same period a year ago, a growth of 77.91 per cent, the statement said. For 2009-10, the total vehicle sales of the company rose 30.01 per cent to 2,852,536 units from 2,194,154 units in FY09. The company said its two-wheeler sales jumped by 30.83 per cent at 2,511,600 units compared with 1,919,625 units. Exports during the last financial year grew 15.33 per cent at 891,002 units against 772,519 units in the previous financial year. Bajaj motorcycle sales jump 85 percent in March The Economic Times Bajaj Auto plans to make 4 million units this fiscal Yahoo India Bajaj March motorcycle sales up 85% Deccan Herald Bajaj motorcycle sales jump 85% in March The Hindu Business Line Bajaj Auto plans to make 4 million units this fiscal The Financial Express Bajaj posts record growth Asian Age Bajaj motorcycle sales jumps 85% Hindustan Times Bajaj motorcycle sales jump 85.12% in March mint Bajaj motorcycle sales jump 85 pc in March WE HOPE EVERY INDIAN BIKER WILL FIND THEIR RIDE IN OUR VAST RANGE: MD, HARLEY-DAVIDSON INDIA Malabika Sarkar The Financial Express, Motobahn The countdown has begun for iconic bike maker Harley-Davidson to open its first dealerships in India this April. Talking to FEs Malabika Sarkar, Anoop Prakash, managing director, Harley-Davidson India, talks about the motorcycle culture in India and how the company is going to hard sell its bikes here. Excerpts: You are all set to start bookings in India this April. How many bookings are you expecting in the first six months of this financial year? We are excited to open bookings beginning April 20 through our initial dealerships in Mumbai, Delhi, Chandigarh, Bengaluru and Hyderabad. As for what we expect, I can tell you that ever since we have been engaging riders and enthusiasts, the feedback across all model families has been tremendous. The racetrack-inspired Sportster family resonates with enthusiasts looking for sleek lines and maneuverability. The Dynas resonate with those looking for classic chrome styling and is a bike suited both for city traffic and open highways. The Night Rod Special appeals to those with a speed streak in them. The Softail family, with the legendary Fatboy and Heritage Softail Classic, allow for a timeless look and touring essentials. Finally, our Touring family offers extraordinary comfort, power and durability for any terrain or climate. With that broad a selection, and an equally broad price range, we hope every rider will find their ride. India is one of the largest two-wheeler markets in the world. What potential do you see in leisure biking here? The motorcycle culture is very strong here, with many people starting to ride from an early age. We will initiate a new chapter in motorcycling we call leisure ridingriding what you want, where you want, when you want and with who you want! The motorcycle market in India is like no other, with millions of young riders craving relevant global experiences. And with vast highways and variations in terrain, the potential for leisure riding is endless. I believe India will soon be known the world over as an ideal riding destination. How many dealerships are you planning to open in India and in which cities? Our first dealerships will open in Bengaluru, Chandigarh, Hyderabad, Mumbai and New Delhi. Our vision for our dealerships is to provide owners and enthusiasts a full Harley-Davidson experience. What are your plans for promoting accessories and apparel? Do you plan to set up manufacturing base for accessories in the country? In addition to our 2010 motorcycle line-up, each of our showrooms will offer a range of genuine Harley-Davidson riding gear, apparel, parts and accessories to customise their bikes. We have more than 5,000 parts and accessories, all available either in our dealership or on order, for customers to design the bike of your dreams. A broad selection of riding and casual apparel from our MotorClothes collection will also be available so riders can be safe and define their look and style for the road. Harley-Davidson clothing, accessories and licenced products are currently produced in various countries of origin, both in the US and elsewhere, based on the primary factors of quality, capability, cost and delivery. As of now, we will continue to source our accessories from the best providers, wherever they might be. What would be the nature of the finance options that you are planning to provide to Indian customers? Would you have a tie-up with any bank in India? We made an early commitment to make our bikes accessible to as many enthusiasts as possible. We have done this by offering a broad range of models, with an equally broad price range (starting at Rs 6.95 lakh ex-showroom Delhi). We will further support our customers by partnering with ICICI Bank to provide loans starting at 11% interest so all riders can take home the bike they truly love. You participated in the Auto Expo 2010 by displaying the entire range of Harley bikes. The boot camp you conducted was also a success. You also formed a core management team in India. Whats next from Harley-Davidson India? The greatest experiences we have had so far are riding with our customers. This has given us the opportunity to create a bond with them and understand their needs further to improve on the best riding experience in the world. The boot camps were a unique opportunity that allowed us to engage with enthusiasts who gave us direct inputs as to which motorcycles they would want to see in India, and we responded at the AutoExpo. Regarding our team, I am very excited by the calibre of leadership we have assembled, each having demonstrated skills in delivering premium customer experiences in India at their previous companies. We are now working hard on opening our dealerships, building our distribution capabilities and begin bookings in April. Once the bikes hit the road, the real fun will begin! How many Harley Davidson bikes were sold in 2009 worldwide and how many are you expecting this year? The company does not formulate forward-looking sales targets by country or region. How many units from each Harley Davidson family are you planning to bring in India? We have introduced an unprecedented range of premium motorcycles in the market and we are looking forward to delivering them to our customers, as promised. The feedback across all models has been great and we will have to wait and see where we are once we start bookings in April. The good news for customers is that because we are a wholly-owned subsidiary of Harley-Davidson, we can and will fulfill our commitments and bring products to the market quickly and reliably. Harley-Davidson is a culture in the US, which you keep active through clubs, events and museums involving hundreds and thousands of barreling motorcycles and their enthusiastic owners. Do you think you will be able to build a Harley-Davidson loyal brand community in India as well? The founder rides we held in Mumbai, New Delhi and Bengaluru celebrated the passion of existing Harley-Davidson owners and torchbearers in India that was cultivated before our formal entry. Our riders across the world are bonded by a sense of camaraderie that has kept us riding together for over a century. In India, we have been thrilled by the enthusiasm for our brand and what we stand for, and we will honour that enthusiasm by creating unique opportunities for riders to congregate, ride and experience the full power of the brand. What is it that has made the company to come out of its traditional culture and foray into India, where there isnt any distinct biking culture? On the contrary, we have brought the pure Harley-Davidson culture and commitment to Indias already-rich biking heritage, and the combination has been explosive for enthusiasts and riders craving a better riding experience. We have heard directly from thousands of riders and enthusiasts across India over the past several months and we know they want riding experiences that provide style, comfort and durability, allow them to confidently explore each and every corner of this great country, and enjoy every minute from start to end. | ||||
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| S Sujatha, The Economic Times Coimbatore: The auto market is in revival mode. And with global biggies showing their interest in Chennai, Sakthi Auto Components (SACL) has decided to ramp up capacity. A 100% subsidiary of Sakthi Sugars, the Rs 360 crore SACL is planning to raise production by 50% at its plant in Erode. The plant has a capacity to produce 48,000 tonnes annually, which will be scaled up to 72,000 tonnes by 2010-end. We anticipate a growth of 30% as all auto majors project a much better growth. Also, nearly 1.5 million cars are sold in the country per annum and it is expected to go up to 3 million cars per annum by 2012. So, we also need to increase our capacity to meet the growing demand, SACL CMD M Manickam told ET. The company, he said, has already got extra machinery in place and will spend around Rs 15 crore to boost plant output. We are currently clocking a turnover of Rs 30 crore per month and it will reach Rs 40 crore per month by 2010-end, he added. SACL caters to OEMs like Toyota, Volkswagen, Renault Nissan, GM, Ford and Honda, apart from Maruti. It produces more than 400 auto components. Copyright 2010, Bennett, Coleman & Co. Ltd. All Rights Reserved" | ||||
| Business Standard Hinduja Leyland Finance Ltd (HILF), promoted by Hinduja Group flagship Ashok Leyland, has received the certificate of registration from the Reserve Bank of India. The new finance company will have an initial capital of Rs.100 crore and will focus on financing of commercial vehicles and allied vehicle financing. The Hindu Business Line Kolkata: Allahabad Bank on Thursday signed an MoU with Rasandik Engineering Industries Ltd, New Delhi, a three-wheeler manufacturing company, for providing finance under the bank's commercial vehicle finance scheme, according to a release issued by the bank. The MoU provides that Allahabad Bank will be the preferred financier to Rasandik Engineering Industries Ltd. The three-wheeler loans would be provided at the bank's branches and also at the company's dealers for which the company would help the bank access the dealers. Mr J.P. Dua,Chairman and Managing Director of the bank, Mr D. Sarkar and Mr M.R. Nayak, Executive Directors, were present during the signing of the MoU, the release adds. | ||||
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| Reuters See this story in: Business Standard Frankfurt: Mercedes-Benz sales are expected to have risen more than 10 per cent in the first quarter thanks to strong demand for its flagship E-class and S-class limousines as the economy recovers, a German magazine reported. "We are probably going to reach a plus of more than 10 per cent in global vehicle sales in the first quarter," Mercedes-Benz Cars Sales Chief Joachim Schmidt told the online edition of Auto Motor und Sport on the sidelines of the New York Auto Show. Demand for E-class and S-class limousines of Mercedes-Benz -- Daimler's passenger car division -- was especially strong in the United States and China, Schmidt said. Data showed on Thursday that US sales of Mercedes-Benz passenger cars and light truck vehicles rose 25.9 per cent in March. The brand is, however, still struggling in its home market Germany, Schmidt said, adding that sales had still been "restrained" in the first two months of the year after falling 13.9 per cent last year. Schmidt aims to reach a similar sales level as last year in 2010 in Germany, Schmidt said. While mass market brands like Volkswagen enjoyed a buoyant year thanks to a host of government-funded scrapping subsidies around the world, premium carmakers like Mercedes and BMW suffered the full brunt of the recession. Since they rely on larger, more powerful and above all more expensive models that are often registered to fleet owners, scrapping programmes directed at private consumption were of little help. Now that economies have rebounded fuelled by massive public sector debt, demand is starting to pick up once again for premium carmakers. Reuters See this story in: Business Standard Detroit: US auto sales jumped to a seven-month high in March led by a 41 per cent surge at Toyota Motor Corp after the Japanese automaker offered the steepest discounts in its history to win back sales lost during its recent safety crisis. Overall, US auto sales jumped 24 per cent in March, the best showing since August 2009 when the US governments cash for clunkers incentives caused sales to spike. Boosted by consumer response to zero-percent financing offers and rebates on most of its lineup in March, Toyota snapped two months of sales declines driven by recalls and a production and sales halt in its largest market. General Motors sales rose nearly 21 per cent from a year earlier. Toyota was second in total sales, while Ford Motor Co ranked third after a nearly 40 per cent sales increase. US sales topped the 1 million vehicle mark in March, which was the strongest monthly result since September 2008 excluding last August. The strength in the United States was also reflected in sales in Europe and Asia, as temporary government scrapping schemes boosted demand. Despite the industrys rebound in March, sales remain sharply below recent highs. The US auto industry averaged a sales rate of over 16 million units in the five years to 2008. Nissan Motor Co US sales rose 43 per cent in March from the prior year, putting it ahead of Chrysler in terms of market share for the second time in three months. Industry executives attributed the US sales rebound in part to incentives, pent-up demand from February when snow storms hit many areas and signs of broader economic stability. The US sales increase contrasts with March 2009 when the industry was mired in a deep US sales downturn ahead of bankruptcies by GM and Chrysler. Only Chrysler among the largest automakers posted a US sales decline in March. Chrysler said sales fell 8 per cent in March from a year earlier and it planned incentives. Retail sales were really artificially inflated by huge incentives going on in the marketplace and did not reflect true demand, Edmunds.com analyst Jessica Caldwell said, adding that April would be a better indicator. Toyota traditionally has spurned deep discounts, but launched unprecedented incentives in March to try to win back customers, including zero-percent financing for five years on top-selling models such as the Camry sedan. Don Esmond, Toyota US senior vice president for sales, said on a conference call that incentives would be extended beyond April 5, but offered no specifics. We need a little bit of a kickstart to kind of get the market in our direction and well continue, Esmond said. Were not going to walk away from our customers. Incentives are closely watched by analysts because they are an indication of the pressure on automakers to move inventory by sacrificing profit margins. Toyotas March incentives increased 46 per cent from a year ago, to $2,310 per vehicle, according to industry watcher Autodata. GMs March incentives of $3,174 per vehicle were down 19 per cent, and Fords incentives of $3,035 were down 2 per cent from March 2009, Autodata said. Ford said March sales rose almost 40 per cent to 183,783 vehicles and said it had gained US retail market share for the 17th time in the past 18 months. GMs US sales rose nearly 21 per cent overall to 188,546 vehicles in March including brands that are being discontinued, pushing it slightly ahead of Toyotas 186,863 in sales. GM Vice President of Marketing Susan Docherty said GM incentives for all of its brands averaged $2,800 in March, falling below the industry average for the first time. Docherty, who has said GMs new sales team is held to tough targets on profitability, said the automaker was not interested in buying market share. We have been down that road before and know its a dead end, Docherty said. Chrysler, now under the management control of Italys Fiat SpA, extended sales incentives for most of its 2010 model vehicles through May 3 that were set to expire on Thursday including zero-percent financing. Still, Chrysler incentive spending was down sharply from March 2009, when it had heaped discounts on its vehicles to drive sales in the run-up to bankruptcy. According to Autodata, Chrysler led the industry with $3,567 per vehicle incentives, but that is down 23 per cent from March 2009. Hyundai Motor Cos US sales rose 15 per cent in March from a year earlier, in line with a forecast the automaker gave earlier this week. The seasonally adjusted sales rate was nearly 11.8 million, according to Autodata. US auto sales ran at a 10.8 million vehicle rate in January and 10.4 million rate in February. Influential tracking service JD Power and Associates has raised its outlook for full-year US auto industry sales to 11.7 million vehicles, from 11.5 million vehicles. Toyota estimates US auto industry light vehicle sales of about 11.5 million for the year, while other automakers expect sales of 11.5 million to 12.5 million. In other markets, auto sales in France and Japan also rose in March, as government incentives boosted demand, while South Koreas Hyundai Motor racked up impressive sales growth despite the end of subsidies in its home market. Reuters See this story in: Deccan Herald Detroit: Toyota Motor Corps US March sales were 1,86,863, making it number two, behind General Motors Co, which sold 188,546 vehicles. Toyotas sales fell 9 per cent in February and 16 per cent in January against 2009. In February, Toyota was the only major automaker to experience a sales decline. The declines were particularly striking because the US economy and the auto industry were in their worst slump in decades in early 2009. The two-month slump for Toyota came as the rest of the industry showed signs that a gradual recovery for 2010 was under way. Its March sales rose 41 per cent in March versus a year ago. Incentive scheme Meanwhile, Toyota said it will extend US sales incentives in April as it recovers from a two-month sales dip linked to recalls and suspended sales. Toyota US Senior Vice-President Don Esmond, on Thursday, said incentives will be extended beyond April 5, but he declined to divulge further details. Toyota will unveil the specifics of its April sales incentives early next week. Current incentives including zero-per cent financing expire on Monday. See this story in: The Times of India Fremont: Toyota Motor Corp closed its joint manufacturing plant with General Motors Co in California after about 25 years of operation as a symbol of cooperation between the top US and Japanese automakers. The last Toyota Corolla passenger car came off the assembly line on Thursday at New United Motor Manufacturing Inc, a 50-50 joint venture better known as NUMMI, with workers and top officials witnessing the end of production. Toyota had manufactured the Corolla sedan and the Tacoma pickup truck at the factory in recent years. Toyota closes joint venture with GM after 25 yrs of operation Hindustan Times http://www.hindustantimes.com/business-news/auto/Toyota-closes-joint-venture-with-GM-after-25-yrs-of-operation/Article1-526143.aspx See this story in: The Indian Express New York: Automakers have to learn how to make cars greener -- and sexy too. A new generation of electric cars, hybrids and fuel-efficient small cars took centre stage at the New York International Auto Show. Pushed to the back were vehicles boasting big horsepower and glamorous styling, but with little fuel efficiency. Ford Motor Co touted its upcoming Fiesta small car as its most important launch this year, while the Chevy Volt plug-in hybrid by General Motors Co and Nissan Motor Co's Leaf electric car were focal points. "It's exciting technology, but the cars themselves are not that exciting to look at," said Jessica Caldwell, an analyst at auto industry tracking firm Edmunds.com. "Auto shows used to be about fantasy and glamour. It has been a cheap way to entertain," Caldwell said. "You don't want to look at small subcompacts here, you want to see what you don't see in the streets everyday." But compacts, crossovers and electric cars dominated the show's main hall at the Jacob Javitz Centre, while trucks and big SUVs were displayed to a much-smaller space two floors down. "There is a real push on getting the products people want, rather than feeding their fantasy with extravagance," said Dave Champion, director of auto testing at Consumer Reports. "Small cars are where the market is going." Don Romano, chief marketing officer for Mazda Motor Corp North America, said two clean cars by California start-ups -- the Fisker Karma luxury plug-in hybrid and the Tesla Roadster electric car -- show the auto industry could go green and stylish at the same time. But the vehicles do not play in the mainstream and it will take some time for carmakers to roll out vehicles that are not only environmentally friendly, but also fun to look at, Romano said. Koreans shine, Chrysler elusive Emerging from a savage economic downturn that pushed two of Detroit's automakers into bankruptcy last year, most automakers and analysts expressed guarded optimism the worst was behind the industry. They also agreed the mood was much more upbeat than a year ago in New York -- when GM and Chrysler scrambled to preserve every marketing dollar in the run-up to bankruptcy filings and other automakers scaled back spending dramatically to ride the worst industry downturn since the early 1980s. But survivors of last year's crash continued to exhibit financial frugality and vigilance, with products geared toward real consumer demand and low-key displays in muted colours, devoid of spectacular events or lavish refreshments. Toyota Motor Corp's expansive set up in the main hall featured a 36-strong fleet of its most popular cars in shades of sleet grey, silver and black. The display also included an interactive display highlighting some of the safety features on its vehicles. Hyundai Motor Co and its smaller affiliate Kia Motors Corp, the only major automakers to increase sales last year in a struggling US market, were more upbeat than rivals, unveiling new models they said should deliver continued gains in market share. Hyundai introduced its first hybrid car for US consumers, based on the flagship Sonata mid-size sedan, while Kia showcased the all-new Optima sedan. "To me, this is the first show of the year that feels like there is life again in the auto industry," said Scott Margason, director of product planning at Hyundai America on Thursday. But Chrysler, struggling to reverse a long-running slide in sales after emerging from bankruptcy in June under the management of Fiat SpA, remained largely elusive, not unveiling any new models at the show. The Fiat 500 small car, which Chrysler is counting on to revitalize its aging, truck-heavy lineup, again took the centre spot at the automaker's display area, presented by two brown-haired models in over-the-knee boots. "There are very nice girls out there, but that's about it," Consumer Reports' Champion said of Chrysler. Narayan Lakshman The Hindu See similar story in: Asian Age Washington DC: New standards for carbon dioxide emissions from automobiles have been announced by the Obama administration, even as President Barack Obama came in for criticism from environmental groups for authorising a major offshore oil-and-gas drilling expansion. At the announcement of the drilling project Mr. Obama said, After decades in which we have done little to increase auto efficiency, those new standards will be completed, which will reduce our dependence on oil while helping folks spend a little less at the pump. Canada joined the United States in mandating that cars and trucks deliver on average 56 km per gallon by 2016. According to a statement by the U.S. Environmental Protection Agency and the Department of Transport, the new emission standards could potentially save the average buyer of a 2016 model year car $3,000 over the life of the vehicle and, nationally, will conserve about 1.8 billion barrels of oil and reduce nearly a billion tons of greenhouse gas emissions over the lives of the vehicles covered. Significant step The new rules aim to boost the Corporate Average Fuel Economy (CAFE). The current economy limit is 40 km per gallon. This is a significant step towards cleaner air and energy efficiency, and an important example of how our economic and environmental priorities go hand-in-hand, said EPA Administrator Lisa Jackson. She added that by working together with industry and capitalising the U.S.'s capacity for innovation, they had developed a clean cars programme that was a win for automakers and drivers, a win for innovators and entrepreneurs, and a win for our planet. Combined with the mandated greenhouse gas requirements, the new rules would raise mileage standards closer to 56 kmpg more quickly than a 2007 law that would achieve this level only by 2020. According to reports, mileage standards for model year 2011 vehicles are 42 kmpg; however the new vehicle emissions standards will be phased in starting with the 2012 model year. As per the estimates of the EPA, the new programme would reduce carbon dioxide emissions by about 960 million metric tons over the lifetime of the vehicles regulated, equivalent to taking 50 million cars and light trucks off the road in 2030. | ||||
| BUSINESS MAGAZINES - - - - - | ||||
| The Hindu Business Line Mumbai: Foreign exchange reserves fell by $1.151 billion to $277.042 billion for the week ended March 26 on account of revaluation losses. This is the second consecutive week that the reserves have fallen. For the week ended March 19, foreign exchange reserves fell by $1.515 billion to $278.193 billion According to a Reserve Bank of India's weekly statistical supplement, in the week ended March 26, foreign currency assets fell by $1.090 billion to $252.755 billion. Foreign currency assets expressed in the dollar terms include the effect of appreciation or depreciation of non-US currencies. In the week under review, the dollar had gained against the other major currencies. Gold reserves remained unchanged at $17.920 billion. SDRs fell by $48 million to $4.991 billion. The Reserve position in the IMF was down $13 million to $1.376 billion. Business Standard New Delhi: Finance Minister Pranab Mukherjee expressed confidence that the measures announced in the Budget for 2010-11 would revive private investment and put the economy back on a 9 per cent growth trajectory. He said the economy would expand by 8.25-8.75 per cent in 2009-10. I am optimistic that the measures I have outlined in this years Budget will revive private investment and put the economy back on the growth path of 9 per cent, Mukherjee said at the foundation day function of the Small Industries Development bank of India (Sidbi) here. He said the economy in 2009-10 was expected to grow by 7.2 per cent, which was impressive by global standards. Indias gross domestic product (GDP) grew by a relatively modest rate of 6.7 per cent in 2008-09 due to the global slowdown after clocking 9 per cent growth for the previous three financial years. Mukherjee, in his special address, mentioned that the micro, small and medium enterprise (MSME) sector is the pillar of the Indian economy. He noted that finance is a highly effective tool for fighting poverty and promote inclusive growth. Though 2009-10 began with a difficult global scenario, good news was that the world economy was showing signs of recovery. Further, the fast growth displayed by the Indian economy was indicative of its inherent strength. The resilience and dynamism displayed by MSMEs have in these challenging times shown the critical role of this vibrant sector. Highlighting the central governments efforts towards promoting the MSME sector, Mukherjee stated various measures of the government, including enhancement in the limit for presumptive taxation, increasing the threshold for compulsory auditing of accounts of small businesses, extension of interest subvention for exports in certain sectors and exemption from the capital gains tax to facilitate conversion of small businesses to the limited liability partnership format. The MSME sector contributes 8 per cent of the countrys GDP, 45 per cent of the manufactured output and 40 per cent of our exports and above all, provides employment to nearly 60 million persons through 26 million enterprises. Timely availability of credit to MSMEs is extremely important to meet their growing needs and to help them keep their business lifeline vibrant and progressive, said the finance minister. He said the government would take up the recommendations of the Prime Ministers task force on MSMEs in a time-bound manner. | ||||
Friday, April 2, 2010
Indian Auto Industry Update April 03, 2010
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