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India
Automobile Industry Updates
In this issue:
Press Release Mahindra Posts Highest Ever Monthly Utility Vehicles Sales Mahindra in JV with Chinese firm M&M sees gains for tractors in farm loan push Specialized vehicles demand drives CV market: F&S survey Chinese biggies want to enter Indian car market
Mahindra gets order for 15,000 Xylo in three months M&M Ltd signs pact with SBBJ for vehicle finance
Huge idle capacities now haunt carmakers
Tata Motors still counting Nano booking numbers
Indian carmakers miss the highway to China
Ford to source engine blocks from domestic vendor Vectra, Russian co Kamaz in heavy-duty truck JV Maruti chalks out Rs 1,200-cr KB engine up gradation plan
Hema Engineering in JV with Verlicchi Group
Daimler Trucks buys out Indian JV partner Hero
Tata, Maruti looking for engineers at Auto Congress
Radial tyre brands ride ban on Chinese imports
Automobile Industry Updates
Issue No 2
April 2009
Press Release
Mahindra Posts Highest Ever Monthly Utility Vehicles Sales
Mahindra & Mahindra Ltd. (M&M Ltd.) announced domestic sales of 25748 units in
March 2009 - its highest ever automotive sales figures. These figures also denote the
highest ever monthly sales this year. The company sold a total of 26209 vehicles
(Domestic + Exports) in March 2009, as against 24682 vehicles (Domestic + Exports)
sold in March 2008.
More
Mahindra in JV with Chinese firm
Mahindra Group in association with China-based Jiangsu Yueda Yancheng has rolled
out its 125 HP tractor at Yancheng, China, recently. Mahindra Group Vice Chairman
and Managing Director Anand Mahindra and Yueda Group Chairman Hu Youlin
inaugurated the new JV company, Mahindra Yueda Yancheng Tractor Company,
(MYYTCL), Mahindra stated in a release here.
More
M&M sees gains for tractors in farm loan push
Mahindra & Mahindra (M&M), India's top tractor manufacturer by volumes, is
anticipating a revival in demand in FY10 on the back of wider disbursal of farm credit
by public sector banks, low interest rates and good monsoon. The company sees a 3-
5% growth for the domestic tractor market during the current fiscal as against flat
growth in the last fiscal
More
Specialized vehicles demand drives CV market: F&S survey
The commercial vehicles market in India is set to experience significant changes with
the hub and- spoke model of transportation. With burgeoning road infrastructure
development, commercial vehicle (CV) sales would be driven by a focus on
application specific CVs such as medium and heavy commercial vehicles (medium
and HCVs) for long distance transportation and light commercial vehicles (LCVs),
typically the sub-3.5-tonne vehicles, for last mile connectivity.
Firm natural rubber may spur imports Speculation’ stretches rubber to Rs 100/kg JK Tyre To Go Ahead With Rs.500 Crore Expansion Plans Tyre makers seek Govt help to check rubber prices Soaring rubber price worry Tyre companies
New Product Mahindra unveils Bolero Stinger at Autocar Performance Show news Mahindra-Renault looking at expanding beyond Logan Audi introduces new Audi A6 in India Honda to launch Jazz in June at Rs 5.5 lakh onwards
Tata’s' 'world truck' to roll out by May-end The Ritz' heart rolls out!
Industry Competition Toyota small car may sport Rs 5-7 lakh tag Leyland may review LCV JV with Nissan
MRF bags HAL order for helicopter tyres
Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09
Apollo Tyres offers to buy Dutch tyre maker
International Updates Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board
Volkswagen Golf bags World Car of the Year
Bridgestone to increase radial passenger tire production capacity in China
Bridgestone to pay fine over int'l price cartel
More
Chinese biggies want to enter Indian car market
The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery
Automobile and Great Wall Motors are planning to enter India soon through joint
ventures, senior company officials told TOI at Shanghai Motor Show. Chinese
carmakers are shifting focus from their main markets like US and Europe as volumes
there are shrinking due to the global slowdown. At the same time, India's rising status
as one of the fastest-growing car markets in the world, spells opportunities.
More
Mahindra gets order for 15,000 Xylo in three months
Auto major Mahindra and Mahindra (M&M) has received huge bookings for its multi-
utility vehicle Xylo in the last three months, a top official said here on Wednesday.
"In the last three months, 15,000 Xylo were booked. In the last month alone, we have
sold 2,954 units," Vivek Nayer, senior vice-president (marketing-automotive sector) of
M&M, told reporters.
More
M&M Ltd signs pact with SBBJ for vehicle finance
Auto maker Mahindra & Mahindra (M&M) on Tuesday said it has entered into an
agreement with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance. The
bank would finance the entire range of M&M vehicles including utility vehicles, pick-
ups and passenger cars.
More
Huge idle capacities now haunt carmakers
The failure of Indian car market to expand in size has left many car makers with huge
idle capacities. After a year of flat sales in the domestic market along with grim
exports, the huge expansion plans executed in the past three years, entailing a $5
billion investment, are heading for a tailspin. While all car makers are grappling with
idle capacities, the mid-rung companies like Honda Siel Cars, Ford Motor India,
General Motors and Mahindra Renault are hit hard, though market leader Maruti
Suzuki and others such as Hyundai Motor India also remained moderately unutilised.
More
Tata Motors still counting Nano booking numbers
The booking for the world's cheapest car Nano launched by the Tata has ended but
the numbers are still being counted, a Tata Motors spokesperson said. The market
estimates on the bookings vary from as few as a couple of lakhs to over one million.
Tata motors itself has not given any information so far. The spokesperson said the
company is still compiling the number and the exercise may take a few days.
More
Indian carmakers miss the highway to China
In the middle of the action, a major Chinese carmaker is holding a press conference
in a packed hall, full of mainly Chinese journalists.
The carmaker is outlining its plans for growth and a new venture with a western
company. The Chinese journalists clap at the end of the hour-long war-like speech in
Mandarin. The handful of western journalists looks bewildered. As does a senior
official of the Chinese carmaker‘s new western partner.
More
Ford to source engine blocks from domestic vendor
FORD India has identified a domestic vendor to produce engine blocks for its brands
like Fiesta, Ikon and the upcoming small car. This move would substantially reduce
its import dependence.
More
Vectra, Russian co Kamaz in heavy-duty truck JV
The $800-million Vectra Group, which makes the Tatra range of trucks, has formed a
joint venture with Russian truck maker Kamaz to manufacture the latter‘s range of
heavy duty trucks in India at an initial investment of $13 million (around Rs 65 crore).
Vectra had picked up majority stake in Czech Republic-based Tatra in 2007. Vectra
will produce 5,000 trucks over the next 2-3 years at its Hosur plant, which will be
partly modified to make the Kamaz range.
More
Maruti chalks out Rs 1,200-cr KB engine up gradation plan
Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200
crore to replace engines of existing models with a new light-weight fuel-efficient one
that will conform to a new national emission standard to come in place next year.
The new fuel-efficient engine will also help Maruti to compete with new cars like
Honda‘s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which will be launched in
the domestic market soon.
More
Daimler Trucks buys out Indian JV partner Hero
Daimler will pay 16 million euros ($21.2 million) for the remaining 40 per cent in its
Indian heavy truck joint venture after dwindling finances forced local partner Hero
Group to focus on its core business of motorcycles.
More
Tata, Maruti looking for engineers at Auto Congress
India's top two car manufacturers are scouting for auto engineers at the World
Congress of the Society of Auto Engineers (SAE) in Detroit next week. The SAE in a
media release on Thursday listed out Tata Motors and Maruti Suzuki as among the
ten companies which would be talking with prospective candidates at the SAE 2009
World Congress Career Fare in Detroit on April 20-21
More
Radial tyre brands ride ban on Chinese imports
The restriction on imports of radial tyres from China by the government has come as
blessing for the Indian tyre industry. Leading tyre manufacturers, such as Ceat Tyres
and JK Tyres, among others, have ramped up production during the fourth quarter
ended March 31, and are expecting more than 15 per cent growth in sales volume in
the truck tyre segment.
More
Firm natural rubber may spur imports
With natural rubber prices witnessing a sharp spiral, the tyre industry is planning to
import the commodity in a major way. Natural rubber prices have jumped 33 per cent
in just five weeks. The gap between the global and domestic prices has widened as
the current Indian price for the benchmark RSS-4 grade is higher by Rs 13-14 per kg
than the global one. So, import is an attractive option for tyre majors to expand
inventory in the light of an improvement in car and two-wheeler tyre sales.
More
Speculation’ stretches rubber to Rs 100/kg
As prices for RSS-4 (ribbed smoked sheet grade 4) rubber hit Rs 100 a kg during the
weekend, there was a unanimous opinion about the current run in the commodity.
That is, prices of natural rubber have been driven up 48 per cent in two months and
36 per cent in a month by sheer speculation.
More
JK Tyre to Go Ahead With Rs.500 Crore Expansion Plans
The fast growth of Indian economy and increasing disposable income among the
consumers has stimulated exceptional growth in the passenger car industry. India is
now Asia's fourth largest vehicle market which is doing much better than its global
peers.
More
Tyre makers seek Govt help to check rubber prices
Alarmed by the increase in speculative activity in natural rubber futures trading, the
Automotive Tyre Manufacturers Association (ATMA) has sought immediate
intervention of the Government.
More
Soaring rubber price worry Tyre companies
Natural rubber prices are soaring to Rs 100 a kg level again. And nobody knows why.
That is the most surprising factor as far as rubber prices are concerned. If you talk to
market analysts, the fundamentals are the same and the demand is also without
much change. Still natural rubber prices climbed up to Rs 100 a kg this week from Rs
70 in March first week.
More
New Product
Mahindra unveils Bolero Stinger at Autocar Performance Show news
Utility vehicle major Mahindra & Mahindra Ltd (M&M) today unveiled the Bolero
Stinger – a customised concept at the `Autocar Performance Show 2008' in Mumbai.
Built on the Bolero platform, the Bolero Stinger combines its striking exterior with
powerful performance. The vehicle is powered by a 97hp CRDe engine and is
available in the 2WD BS3 variant.
M&M also created a special 4x4 track at the show to demonstrate the superior
offloading capability of Mahindra's utility vehicles.
More
Mahindra-Renault looking at expanding beyond Logan
Renault and Indian auto major Mahindra and Mahindra, which jointly manufacture the
sedan Logan in India, will expand their product portfolio to better utilise the capacity
at their Nashik plant in Maharashtra.
"We are currently assessing the viability of four to five Renault cars to be
manufactured in the facility and will finalise the models with Mahindra," Ashish
Sinharoy, Renault India's senior vice president of corporate affairs, told IANS.
More
Audi introduces new Audi A6 in India
German luxury car-maker Audi on Thursday launched its business sedan Audi A6 in
the Indian market. Audi A6, with four engine variants, would be available at Audi
dealerships pan-India from May 4 onwards, the statement said.
More
Honda to launch Jazz in June at Rs 5.5 lakh onwards
After a decade long operations in India, the largest player in the mid-size cars, Honda
Siel Cars (HSCI) is entering the high volume hatchback category with its small car
Jazz, a top company executive said. The car will have a new 1.2 litre engine
developed exclusively for the Indian market, carrying highest fuel efficiency in its
segment.
More
Tata’s' 'world truck' to roll out by May-end
TATA Motors is understood to be working full throttle on the global launch of its high-
profile ‗world truck‘ by the end of May 2009. The
Country‘s largest CV maker is expected to gradually phase out its existing heavy and
medium-range trucks, replacing them with the world truck, two officials close to the
development said.
More
The Ritz' heart rolls out!
The Maruti-Suzuki Ritz may still be a short while away from being launched, but it's
power plant is live and kicking already. On April 14 2009, the Indian car maker
revealed the brand new K12M engine to the world. Manufactured within Maruti's
Gurgaon facility in a special new engine plant, the K12M is the second of a family of
modern engines. Its smaller sibling, the K10B was the first - and now does duty in the
ultra-compact A-Star small car.
More
Industry Competition
Toyota small car may sport Rs 5-7 lakh tag
Toyota Kirloskar Motor, the Indian subsidiary of the Japanese auto giant, has
revealed the pricing segment for the compact car it plans to launch next year.
In an exclusive chat with ET, the company, which is the Indian venture of Toyota
Motor, the world‘s biggest car manufacturer by volumes, also plans to jack up its
production to 5,000 units a month by July, and double sales and servicing manpower
by 2010.
More
Leyland may review LCV JV with Nissan
With the commercial vehicle segment showing very little signs of a revival, Ashok
Leyland, India‘s second largest truck maker, is ―reviewing‖ its collaboration with
Nissan Motor of Japan to manufacture light commercial vehicles.
Last year, Ashok Leyland struck a deal with Nissan to form three joint venture
companies to manufacture light commercial vehicles, power trains and for technology
development for a total investment of Rs 2,400 crore. The project was supposed to
have a debt-equity ratio of 1:1 with each partner bringing in about Rs 600 crore each.
Under the revised plan, which is currently at the works, the capital investments are
likely to be downsized sharply.
More
MRF bags HAL order for helicopter tyres
In a major boost to its technical capabilities, MRF is set to be the first Indian tyre
company to produce helicopter tyres for the Indian defence sector. The company has
secured orders from Hindustan Aeronautics (HAL), military aircraft manufacturer, to
make tyres for Chetak range of military helicopters.
More
Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09
Undeterred by an over 50 per cent fall in its net profit in the last fiscal, tyre maker
Apollo Tyres today said it will invest Rs 700 crore in 2009-10 mainly for completion of
its Chennai Greenfield facility.
More
Apollo Tyres offers to buy Dutch tyre maker
Delhi-based Apollo Tyres, the country's second-largest tyre producer, has offered to
acquire 100 per cent stake in Vredestein Banden B.V, a Netherland-headquartered
premium tyre making for an undisclosed sum.
More
International updates
Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board
Navistar continues to blaze new trails through the hybrid landscape, becoming the
first truck and bus manufacturer to receive total hybrid vehicle certification from the
California Air Resources Board (CARB) for improving fuel economy and overall
emissions.
The innovative integration of an optimized engine and hybrid system makes total
vehicle certification of the International Dura Star Hybrid box van and utility truck, and
the IC Bus CE Series hybrid bus a reality.
More
Volkswagen Golf bags World Car of the Year
During a ceremony at this year's New York Auto Show, an independent jury of 59
handed the prestigious World Car of the Year award to Volkswagen's new MK VI
Golf.
The VW Golf was first introduced back in 1975 as a compact family car. It has had an
illustrious life spanning 35 years so far, and has gone on to become the third largest
selling car in the world.
More
Bridgestone to increase radial passenger tyre production capacity in China
Bridgestone has announced that it will increase radial passenger tyre production
capacity at Bridgestone Wuxi Tire in China, in response to the expected medium-to-
long term increase in demand for radial passenger tires in the Chinese market.
More
Bridgestone to pay fine over int'l price cartel
Japan's top tire maker Bridgestone Corp. said Thursday it will pay a fine of 58.5
million euro‘s as ordered by the European Commission in January for forming a price
cartel to sell marine hoses used to transport oil.
More
Back to Top
Press Release
Mahindra Posts Highest Ever Monthly Utility Vehicles Sales
3 April 2009
ZIGWHEELS
Mahindra & Mahindra Ltd. (M&M Ltd.) announced domestic sales of 25748 units in
March 2009 - its highest ever automotive sales figures. These figures also denote the
highest ever monthly sales this year.
M&M automotive sector's total domestic volumes, not including the joint ventures, for
the month of March 2009 stand at 25748 units, as against 23128 units in March 2008.
This translates to a whopping 30 per cent jump in sales as compared to the same
period last year. This includes the highest ever monthly sales for the Scorpio, Bolero
and the Pik-Up which stood at 19973 units for March 2009 as against 15366 units for
the same period last year.
Apart from this, the newly launched XYLO has also showing a great response by
recording impressive sales of 3171 units for March 2009.
The company sold a total of 26209 vehicles (Domestic + Exports) in March 2009, as
against 24682 vehicles (Domestic + Exports) sold in March 2008.
M&M's YTD domestic volumes for the period up to March 2009 stand at 220215
units, as against 218977 units for the same period last year.
Back to Top
Mahindra in JV with Chinese firm
7 April 2009 The Economic Times
Mahindra Group in association with China-based Jiangsu Yueda Yancheng has rolled
out its 125 HP tractor at Yancheng, China, recently.
Mahindra Group Vice Chairman and Managing Director Anand Mahindra and Yueda
Group Chairman Hu Youlin inaugurated the new JV company, Mahindra Yueda
Yancheng Tractor Company, (MYYTCL), Mahindra stated in a release here.
"This JV between M&M and Yueda Groups will combine Indian entrepreneurial and
managerial skills with Chinese competitiveness and efficiency and will contribute
substantially towards realising our ambition to be the leading tractor manufacturer in
the global market," Mahindra said.
The JV has a plant with a capacity of manufacturing 38,000 tractors at Yancheng.
This is the second tractor venture of Mahindra in China, in addition to Mahindra's
current tractor business namely, Mahindra China Tractor Company Ltd (MCTCL).
With MCTCLs Feng Shou and MYYTCLs Jinma brands, Mahindra's tractor
operations in China position it well to exploit the fast growing market, the release
said.
Back to Top
M&M sees gains for tractors in farm loan push
8 April 2009
DNA
Mahindra & Mahindra (M&M), India's top tractor manufacturer by volumes, is
anticipating a revival in demand in FY10 on the back of wider disbursal of farm credit
by public sector banks, low interest rates and good monsoon.
The company sees a 3-5% growth for the domestic tractor market during the current
fiscal as against flat growth in the last fiscal.
Anjanikumar Choudhari, president, farm equipment sector, M&M, said, "The
availability of farm credit by public sector banks and low interest rates have given a
big stimulus to the tractor demand. The good monsoon is an added advantage. The
economic boom is also reflected in the rural economy. These factors have and will
lead to a decent growth this fiscal." Choudhari sees the domestic tractor market rising
at compound annual growth rate (CAGR) of 6-8% in the next five years.
He said rising labour costs in rural areas due to migration of labour to urban areas is
also pushing up demand for tractors, which are a substitute for labour.
A lot of alternative professions have come up in rural areas due to government-run
rural employment schemes, resulting in diversion of farm labour."Due to these
factors, tractors and other farm equipment will do well and see revival. Though there
are uncertainties due to elections it's only after June that we can see a change," he
said.
According to an analyst who did not want to be named, the demand for M&M's
tractors will rise in this fiscal as a lot of farmers had deferred purchase due to a lag in
the farm credit reaching them.
Choudhari said that the ownership of tractors in India is still low. "Less than 10% of
farmers own tractors and more than 35% of them hire them. The government is
spending a sizeable amount on farm mechanisation which will help in lifting demand,"
he said.
M&M enjoys a 42% market share after acquisition of Punjab Tractors Ltd. Its
standalone market share is around 20%. M&M operates only in the small tractor
market (up to 80 horsepower).
Despite an upbeat domestic front, M&M witnessed an 82% decline in exports in the
last fiscal due to the slowdown in the US, which is its major export market, Africa,
Middle-East, Turkey and SAARC countries. M&M has started tractor assembling
plants in African countries such as Gambia and Chad.
Continuing its focus on the Chinese market, M&M has entered into another joint
venture with YYueda Yancheng Tractor Company (MYYTCL). Its first Chinese joint
venture is Mahindra China Tractor Company Ltd. (MCTCL).
With MCTCL's Feng Shou and MYYTCL's Jinma brands, Mahindra's tractor
operations position it well to exploit the fast growing market.
MCTCL produces specialised low HP tractors, and now with MYYTCL, M&M will be
present in 16-125 HP segment as well.
Choudhari said, "The Chinese tractor industry (domestic and export) has grown from
about 56,000 tractors in 2003 to 2,22,000 tractors in 2008. The agriculture policy
introduced by the government in 2004 has played a major role in this growth with a
number of positive measures including abolition of tax on agriculture. The introduction
of subsidy for tractor purchase to support farmers has gradually increased to $ 10
billion in 2009 which will provide a major boost to the tractor industry."
Back to Top
Specialized vehicles demand drives CV market: F&S survey
30 April 2009
ENS Economic Bureau
The commercial vehicles market in India is set to experience significant changes with
the hub and- spoke model of transportation. With burgeoning road infrastructure
development, commercial vehicle (CV) sales would be driven by a focus on
application specific CVs such as medium and heavy commercial vehicles (medium
and HCVs) for long distance transportation and light commercial vehicles (LCVs),
typically the sub-3.5-tonne vehicles, for last mile connectivity.
The sub-3.5-tonne LCV segment is expected to capture a significant share of the
overall CV market and to witness intensifying competition with the entry of more
participants.
According to a Frost and Sullivan‘s ‗Commercial Vehicles Market in India‘ report, the
production of CVs in India stood at 417,126 units in 2008 with sales of 384,122 units
in the same year.
Production, domestic sales and exports dropped in 2008 due to the economic
slowdown. Primarily, the 1-tonne goods carrier sub-segment of the sub-3.5-tonne
LCV segment was driving growth.
―The rising demand for specialized vehicles, due to the creation of the hub-and-spoke
model is driving the CVs market in India,‖ said Frost and Sullivan industry analyst,
Sanjay Vasudevan.
―Growth in segments such as retail and intra-city goods transportation need has
contributed to the increase in demand for the sub 3.5-tonne LCVs.‖ The National
Highways Development Programme (NHDP) for improving road infrastructure and
national highways would also impel the demand for CVs with a significant rise in
goods and passenger transport by road, due to enhanced connectivity.
Consolidation and increasing maturity of the transportation sector in India, because of
improved infrastructure, has resulted in a shift in the segment sales of CVs. Truck
sales are on an upswing because of fleet replacement and the establishment of a
new segment of sub-1 tonne.
The contribution of LCVs to the total demand for CVs has been increasing due to the
rapidly expanding usage of smaller vehicles, intra-city transportation and the creation
of a new segment of small CVs, following the introduction of the ‗Tata Ace‘.
New product introduction, coupled with significant technology changes and features
would be observed in the LCV market.
LCV products for executive mass transport would occupy a niche segment with a
significant growth in demand expected.
Accordingly, the CV market is reorganizing its product portfolio in consonance with
the changing demand pattern. However, growth in the next three years is likely to be
moderate compared to the blistering growth witnessed in the last two to three years.
―Domestic companies, with a significant three-wheeled goods carrier portfolio are
expected to rush into the sub 3.5 tonne four-wheeler CVs, to keep abreast with the
market trend,‖ said Vasudevan.
Back to Top
Chinese biggies want to enter Indian car market
30 April 2009
TNN
The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery
Automobile and Great Wall Motors are planning to enter India soon through joint
ventures, senior company officials told TOI at Shanghai Motor Show. "We are looking
at a joint venture partner for India as it holds a good potential for car sales in the
coming time," Chery Automobile president Yin Tongyao said. He termed India as a
"very important" market and said the company was looking at "several proposals" for
finalising a local partner.
Chinese carmakers are shifting focus from their main markets like US and Europe as
volumes there are shrinking due to the global slowdown. At the same time, India's
rising status as one of the fastest-growing car markets in the world, spells
opportunities.
Chery was believed to be in talks with tractor maker Sonalika's car venture,
International Cars & Motors Ltd (ICML), around three years back to roll out its small
car in India. But the talks never fructified into a joint venture. Chery, famous for its
small car QQ, is eyeing sales of 4.19 lakh units in 2009, an 18% increase over 2008.
The QQ comes in two petrol engine sizes 0.8-litre and 1.1-litre.
Gavin Chen, marketing specialist with Chery's international division, said the
company plans to sell cars in India by 2010. "While initially we will look for a
distributor, the final plan is to build a factory in India." Chen said the company saw
India as a big market due to its huge population and thus wanted to develop some
specific models. "The plan is to make cars at good price with good quality," he added.
Great Wall Motor (GWM) listed on the Hong Kong Stock Exchange is China's largest
privately-owned car maker and specializes in SUV and utility models, while recently
expanding into the multi-purpose vehicle and hatchback segment. Chris Guan,
GWM's South Asian region GM, said the company wanted to launch at least one or
two models in India this year. "We are currently evaluating partnerships. Initially, we
are looking for a distributor for which we have been contacted by some companies,"
he said.
Back to Top
Mahindra gets order for 15,000 Xylo in three months
29 April 2009
IANS
Auto major Mahindra and Mahindra (M&M) has received huge bookings for its multi-
utility vehicle Xylo in the last three months, a top official said here on Wednesday. "In
the last three months, 15,000 Xylo were booked.
In the last month alone, we have sold 2,954 units," Vivek Nayer, senior vice-president
(marketing-automotive sector) of M&M, told reporters. He was here to unveil a
customised Scorpio, a sports utility vehicle (SUV) from the company, for soccer star
Bhaichung Bhutia. M&M sold 3,200 Scorpio vehicles last month, Nayer said.
Asked about the outlook for the current financial year, he said: "It's difficult to speak
about the outlook. We are looking at month-to-month performance. Current month is
going fine. Let's wait and watch how the situation unfolds."
Back to Top
M&M Ltd signs pact with SBBJ for vehicle finance
28 April 2009
PTI
Auto maker Mahindra & Mahindra (M&M) on Tuesday said it has entered into an
agreement with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.
M&M customers can avail of a loan up to 85 per cent of the on-road price of the
vehicle with repayment tenure of up to seven years. Interest rates of 12 per cent
would be charged on passenger vehicles and 11.75 per cent on commercial vehicles,
M&M said in a statement.
"Low interest rates and low processing fee are some of the benefits of opting for
State Bank of Bikaner and Jaipur as a preferred financier," M&M Senior Vice-
President K Chandrasekar said in a statement .The bank would finance the entire
range of M&M vehicles including utility vehicles, pick-ups and passenger cars.
M&M's Automotive Sector offers a range of vehicles including three-wheelers, light
commercial vehicles and multi-utility vehicles. It also manufactures the Logan
passenger car through a joint venture with Renault SA of France
Back to Top
Huge idle capacities now haunt carmakers
28 April 2009
The Economic Times
The failure of Indian car market to expand in size has left many car makers with huge
idle capacities. After a year of flat sales in the domestic market along with grim
exports, the huge expansion plans executed in the past three years, entailing a $5
billion investment, are heading for a tailspin. While all car makers are grappling with
idle capacities, the
mid-rung companies like Honda Siel Cars, Ford Motor India, General Motors and
Mahindra Renault are hit hard, though market leader Maruti Suzuki and others such
as Hyundai Motor India also remained moderately unutilised.
With only 60% of the total installed auto capacity utilised, the impeding slowdown in
the domestic market is forcing the makers to rethink on the future strategies. Indian
car market was expected to reach 2.5 million cars by 2009-10, but the economic
slowdown is likely to reduce that target by half-a-million units. In FY‘ 09 18.38 lakh
vehicles were produced against their 30-lakh units combined capacity.
The beleaguered American car major General Motors‘ fully owned Indian subsidiary
tops the chart for unutilised capacity. Its barely utilised a-fourth of its plant capacity in
FY ‗09. ―We have build-up capacities keeping in view the future demand. Our
capacities are split in two plants, the smaller Halol plant will be utilised for bigger
cars, while the bigger Talegaon factory is reserved for small cars.
We will launch two new cars, Cruze and a compact hatchback, to improve our
capacity utilisation,‖ said GM India CEO Karl Slym. While Maruti and Hyundai who
had good sales run in the domestic market by clocking their highest domestic sales
ever in FY09, many companies like Mahindra Renault failed to utilise their capacities
as they did not receive good market response.
Mahindra Renault‘s Nasik plant rolled out just 14,404 cars against the installed
capacity of 50,000 cars, while only 13,423 Logans were domestically rolled out. It‘s
CEO Nalin Mehta clarified: ―We are putting the idle capacity in use for other Mahindra
products such as XYLO and the Scorpio. The economic downturn has impacted us
like most of the auto industry and we are examining several possibilities to utilise the
capacity which we will share at an appropriate time‖.
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Tata Motors still counting Nano booking numbers
26 April 2009
PTI
The booking for the world's cheapest car Nano launched by the Tata has ended but
the numbers are still being counted, a Tata Motors spokesperson said.
The market estimates on the bookings vary from as few as a couple of lakhs to over
one million.
Tata motors itself has not given any information so far. The spokesperson said the
company is still compiling the number and the exercise may take a few days.
Enquiries with some of the banks with which the company has tied up for booking
and financing of the car also failed to reveal any information on the number of
bookings.
However, carwale.com, one of the websites which accepted online booking for Nano,
said it has done 10,000 bookings of Tata's Nano car. "We have secured 10,000
bookings of Nano across 500 cities," carwale.com Vice-President Tufail Khan told
PTI.
He said 50 per cent of the booking has been done through credit cards and the rest
through cheque payment. About 55 per cent of the bookings have been for the top-
end version of the Nano, 25 per cent for the middle version and the remaining 20 per
cent is for the base model.
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Indian carmakers miss the highway to China
26 April 2009
TNN
In the middle of the action, a major Chinese carmaker is holding a press conference
in a packed hall, full of mainly Chinese journalists.
The carmaker is outlining its plans for growth and a new venture with a western
company. The Chinese journalists clap at the end of the hour-long war-like speech in
Mandarin. The handful of western journalists looks bewildered. As does a senior
official of the Chinese carmaker‘s new western partner.
The scene illustrates all the difficulties of doing business in the Chinese market.
Language is a barrier. As are the seemingly-restrictive entry rules for foreign
companies, which require a local partner upfront and commitment to invest and
research and development.
Why is anyone but the Chinese excited? ―It‘s the only market that is growing globally,‖
says the official of the carmaker which has entered into a new western joint venture.
China, he says, is ―the last hope for carmakers in the face of shrinking demand and
volumes across developed markets of Europe and the US.‖ Welcome to the new
freeway of the global car industry. As sales crash across developed western markets,
the call of the dragon gets louder. The frenzy is at such a pitch that marketing wizards
are predicting that carmakers that are not in China must be ―prepared to stay off the
highway and watch the action from the fringes.‖
In contrast to China‘s ‗new-frontier‘ status, Indian companies seem all but absent
from China, one of the few countries in the world where the automobile market is
growing. This is at odds with Tata Motors‘ and Mahindra‘s proclaimed strategies of
expanding beyond India. Automakers from around the world — including ailing ones
such as General Motors and Chrysler — put 870 cars on display in Shanghai. Why
did the Indians stay away? Is there a China phobia because of all the stiff competition
that comes with a rapidly growing market? Or, are the Indians deterred by stiff entry
barriers? Or, are they failing to recognize the new world order for the car industry?
Pawan Goenka, automotive president of Mahindra & Mahindra, denies the Indians
are running scared. He points to Mahindra‘s impending entry into the tough US
market and blames China‘s ―difficult‖ market entry rules. ―They have very stringent
regulations for investment and branding. For Mahindra, we prefer to go in a small way
and then grow. This option is not there in China,‖ he says. But he insists ―we would
never say never.‖ At present, Mahindra has tractor operations in China.
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Ford to source engine blocks from domestic vendor
23 April 2009
The Economic Times
FORD India has identified a domestic vendor to produce engine blocks for its brands
like Fiesta, Ikon and the upcoming small car. This move would substantially reduce
its import dependence.
Ford India president and MD Michael Boneham told reporters on Wednesday that the
company would source the aluminium-cast engine blocks from Pune-based Jaya
Hind. ―We are the first company to localise by sourcing engine blocks from an
external vendor. This (such a use of technology) has never been done by a vendor in
India,‖ he said, adding the sourcing plans would be finalised in two months.
The objective is to make Ford‘s global operations perceive India as a country that has
a robust supplier choice. ―This will increase the localisation of our cars.
We would be using these engine blocks across the Ikon, Ford Fiesta and the small
car, which we are launching next year,‖ he added. Though he did not reveal the value
and quantity of sourcing, he said the volume of engine blocks would be
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Vectra, Russian co Kamaz in heavy-duty truck JV
22 April 2009
The Economic Times
The $800-million Vectra Group, which makes the Tatra range of trucks, has formed a
joint venture with Russian truck maker Kamaz to manufacture the latter‘s range of
heavy duty trucks in India at an initial investment of $13 million (around Rs 65 crore).
Vectra had picked up majority stake in Czech Republic-based Tatra in 2007.
Vectra will produce 5,000 trucks over the next 2-3 years at its Hosur plant, which will
be partly modified to make the Kamaz range. Trucks over 13 tonnes are classified in
the heavy-duty category, and include tippers, side board trucks, and tractors.
The Kamaz range will be multi-axle 6X4 and in the 8X4 class, which are not currently
made in India. With this alliance, the company makes an entry into the segment
between the trucks made by Tata Motors and Ashok Leyland on one hand, and Volvo
on the other. The company is targeting the $1-billion mark by 2011.
―We plan to sell around 1,000 of these trucks this fiscal,‖ said Akhat Urmanov, deputy
director-general, (sales and servicing), Kamaz. The JV plans to corner around 10% of
the Indian market in the next couple of years, he said.
Key to this is the pricing of their vehicles. ―We will price it between the existing Indian
players and Volvo,‖ he said. The group is going in for 30% localisation right from the
start. This localisation will include gearboxes and later, engines.
The JV company also plans to sell some of the multi-axle trucks to the armed forces,
which already are buyers of Tatra trucks made by Vectra. ―The offset policy has also
helped us get new orders from Israel, Russia and other countries,‖ said RK Rishi,
director, Vectra. The new JV will therefore not just target the Indian armed forces, but
those of the countries to which it will be exported.
―India will be a hub not just for neighbouring countries, but also for Africa,‖ said Denis
Trifonoff, regional director, Asia Pacific, Kamaz. ―The main competition will be
existing Indian players,‖ said Mr Rishi. Since Kamaz also makes CNG city, intercity
and suburban buses in Russia, talks are on to bring that into India as well. ―Maybe we
can finish negotiations by the year end,‖ said Urmanov.
This entry is not just another business, but an urgent need to generate more revenue
streams and comes as Russian auto firms face a tough environment back home.
―Conditions are certainly better in India than in Russia,‖ said Urmanov.
―We see the slowdown in India getting over by the end of the year,‖ said Urmanov,
adding that heavy-duty vehicle projects in emerging markets remain cornerstones for
the division‘s long-term growth targets. Not surprisingly, more investments are lined
up to take the production to around 15,000 units in the next five years. ―We are here
because here lie the sales,‖ he said.
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Maruti chalks out Rs 1,200-cr KB engine up gradation plan
19 April 2009
The Economic Times
Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200
crore to replace engines of existing models with a new light-weight fuel-efficient one
that will conform to a new national emission standard to come in place next year.
"While all our new launches will be on the new engines, in the long term, we plan to
gradually replace our existing series of engines with the fuel efficient KB series
engines," said Maruti Suzuki India MD & CEO Shinzo Nakanishi.
Maruti's popular models Alto, WagonR, Zen Estilo, Versa and Swift will be strapped
with new engines by April 2010 when new Bharat Stage IV (BS IV) emissions comes
into place. These five cars account for a bulk of Maruti's 7.22 lakh cars sold in India.
The new fuel-efficient engine will also help Maruti to compete with new cars like
Honda‘s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which will be launched in
the domestic market soon.
Maruti's small car A-Star is BS IV complaint as it is exported to Europe, while Korean
car maker Hyundai's cars such as Santro, i10 and i20 that are made in India are
already BS IV compliant. Santro came strapped with the new engine when Hyundai
relaunched it as Santro Xing.
The all-aluminium 1.0 litre engine may replace the current line of F-series engines
fitted in the Alto, while the bigger 1.2 litre engine is likely to power the WagonR and
Zen Estilo. This new engine may also power the Swift and the Versa, currently
running on the G13 series, in the near future. The installation of new engines could
also see prices of these select models going up.
"We are working on different combinations. We will continue to have both F and KB
series engines on different vehicles meeting the emission regulatory requirements.
The KB series engines are highly fuel efficient and carry a higher cost then the
current series of engines," MSI executive officer (R&D) IV Rao said.
The company will not change its popular multijet diesel engine in Swift and DZire and
the M-series engine in SX4, as both are capable of meeting BS IV emission norms.
The company has a staggered implementation plan to load the engines in different
cars to meet the April 2010 emission norms deadline.
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Hema Engineering in JV with Verlicchi Group
16 April 2009
TNN
Hema Engineering Industries Private Limited have signed a 50:50 Joint Venture with
Verlicchi Group, Italy to set up design and manufacturing facilities for two wheeler
frames, exhaust systems and fuel tanks in India.
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Daimler Trucks buys out Indian JV partner Hero
16 April 2009
REUTERS
Daimler will pay 16 million euros ($21.2 million) for the remaining 40 per cent in its
Indian heavy truck joint venture after dwindling finances forced local partner Hero
Group to focus on its core business of motorcycles.
Referring to the significance of India as "a key to a completely new generation of
products", Daimler Trucks said on Wednesday it would invest more than 700 million
euros over four years to enter and eventually use the subcontinent as a bridgehead
to other emerging markets. The two partners had originally planned to divide the
investment in proportion to the size of their stakes.
"I really regret the Hero Group's decision, but Daimler Trucks will nonetheless enter
the truck volume market in India," said Daimler Trucks chief Andreas Renschler in a
statement on Wednesday.
"Nothing has changed regarding our plans to manufacture trucks in Chennai. I'm
counting on continued good relations with the Hero Group, whose expertise regarding
the Indian market is very important for us."
Daimler, the world's largest commercial vehicle maker, had hoped its JV with Hero
would allow it to compete better against rivals like Volvo, which has a deal with
India's Eicher Motors, as well as Tata Motors Ltd, Ashok Leyland and Mahindra &
Mahindra.
Daimler agreed in December 2007 to locally produce light, medium and heavy-duty
commercial vehicles with the Hero Group, which controls 26 per cent of India's
leading motorcycle maker Hero Honda.
The German group had forecast market potential of 500,000 units by 2018,
translating to annual growth rates of 7 per cent on average versus 2006 -- almost
twice as much as the global truck market. Demand for heavy duty vehicles weighing
over 16 tonnes would rise by an even faster 10 per cent per year.
Daimler plans to use to low cost base to export a type of premium commercial
vehicles tailored for emerging markets.
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Tata, Maruti looking for engineers at Auto Congress
17 April 2009
PTI
India's top two car manufacturers are scouting for auto engineers at the World
Congress of the Society of Auto Engineers (SAE) in Detroit next week.
The SAE in a media release on Thursday listed out Tata Motors and Maruti Suzuki as
among the ten companies which would be talking with prospective candidates at the
SAE 2009 World Congress Career Fare in Detroit on April 20-21.
The Congress attracts hundreds of auto engineers from the US. At a time of
economic recession when a large number of them have lost their jobs, the SAE
career fair is expected to help them in their reemployment.
Reflecting a sense of the crisis the US auto industry is in right now, the mainstream
auto makers are missing from this job fair.
Besides Tata and Maruti, the other eight companies participating in it are Aerotek
Automotive, BAE Systems, Delta Staffing, GTA - Professional Staffing, Mercedes-
Benz Technology, NAVAIR Special Recruitment Branch, Northwood University, Pratt
& Whitney and Transonic Combustion.
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Radial tyre brands ride ban on Chinese imports
5 April 2009
Mydigitalfc.com
The restriction on imports of radial tyres from China by the government has come as
blessing for the Indian tyre industry. Leading tyre manufacturers, such as Ceat Tyres
and JK Tyres, among others, have ramped up production during the fourth quarter
ended March 31, and are expecting more than 15 per cent growth in sales volume in
the truck tyre segment.
Radial tyres imported from China are nearly 30 per cheaper than those manufactured
in India —had captured over 10 per cent market share. After the ban on import of
Chinese bus and truck radial tyres since November 2008, domestic sales have
improved. The present market price of a light truck radial tyre is over Rs 20,000 in
India.
―We are expecting over 15 per cent growth in sales volume on quarter-on-quarter
basis for truck tyres. Positive sales of passenger cars in past three months have also
helped us,‖ said Arnab Banerjee, vice president — marketing and sales, Ceat Tyres.
JK Tyres‘ director-marketing of AS Mehta said, ―Benefit of ban on import of Chinese
radial tyres started reflecting in our sales from March. But actual figures can only be
predicted by the month-end. We expect this to continue till the second quarter of
2009-10.‖
Mehta, however, was concerned about many traders still importing radial tyres under
bias and cross ply tyres. ―We (at the Automotive Tyre Manufacturers‘ Association)
had taken up the issue with the Centre, after which it had issued licenses to serious
importers of tyres from China,‖ he said. The government issued licenses to Tata
Motors, Ashok Leyland and Eicher to import radial tyres by paying anti-dumping duty.
However, analysts expect only a marginal change due to the ban on the bottom line
of tyre companies in fourth quarter ended March 31, 2009. Unless the demand for
commercial vehicles pick up in India, there will be hardly any change in the results of
these companies, they say. Demands for commercial vehicles (CVs) have fallen by
20-25 per cent in the past year, an analyst, who did not wish to be named, said.
Karvy Stock Broking vice-president Ambareesh Baliga expects demand for CVs to
pick up from the second quarter of financial year 2009-10, which would boost the
demand for radial tyres.
But as the prices raw materials such as rubber and crude oil have started moving
northwards, companies are wary about being able to sustain the momentum in next
quarter. Rubber prices have gone up from Rs 50-70 to Rs 85 a kg, while crude prices
have moved up to $51.83 per barrel from $41 in January.
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Firm natural rubber may spur imports
8 April 2009
Business Standard
With natural rubber prices witnessing a sharp spiral, the tyre industry is planning to
import the commodity in a major way. Natural rubber prices have jumped 33 per cent
in just five weeks. The gap between the global and domestic prices has widened as
the current Indian price for the benchmark RSS-4 grade is higher by Rs 13-14 per kg
than the global one. So, import is an attractive option for tyre majors to expand
inventory in the light of an improvement in car and two-wheeler tyre sales. According
to the Automotive Tyre Manufacturers Association (ATMA), natural rubber prices are
currently ruling around Rs 94 per kg from Rs 69 on March 1.
Globally, rubber prices are showing a stable trend, while Indian prices are
appreciating by almost Rs 2-3 on a daily basis and may hit the Rs 100 level soon. For
instance, in Thailand, the largest producer of natural rubber in the world, prices
moved up by only four per cent during March, from Rs 74 on March 1 to Rs 77 on
March 31. In India, however, the rise was a whopping 23 per cent during the same
period, from Rs 69 on March 1 to Rs 85 on March 31. Even the market experts are
not in a position to put up a convincing reason for the current trend. The RSS-4 grade
today quoted at Rs 94 in Kottayam, while the current global prices are ruling around
Rs 80-81.
According to some experts, the absence of farmers in a daily appreciating market is
the main reason for the present rally. Earlier, the growers waited for the prices to rise
to Rs 80 from Rs 65 in last December. But when the prices breached the Rs 85 level,
they waited for a price tag of Rs 90. A majority of growers are now holding their
stocks, awaiting the prices to cross Rs 100. ―Certain speculators in the futures
segment are causing a huge distortion in the market and even the availability of
natural rubber has become an issue. What is most unfortunate is that the rally in
rubber prices is devoid of any fundamental shift in actual demand or supply situation,‖
said Rajiv Budhraja, Director General of ATMA.
The rise in circuit limit in natural rubber trading on commodity exchanges has also
played a role. The circuit limit has been successively raised over the last few months
and, currently, it stands at four per cent from two per cent earlier. ATMA has urged an
immediate roll back of the circuit limit to two per cent. Dealers said that the flow of the
commodity to the terminal markets was too low, affecting bulk supplies to end users.
According to the Rubber Board estimates, as on February 28, the total stock in the
market was 224,600 tonnes as against 198,000 tonnes in the same period in 2008.
But even in this case of such a huge stock, it was very hard to mobilise 10,000
tonnes of rubber, they said. So, the availability of the commodity is a serious concern.
Another set of dealers have the opinion that a sudden spurt in demand by the tyre
manufacturers has contributed much in the rally. Increasing sale of passenger cars
has enthused the tyre manufacturing sector and major tyre companies are now trying
earnestly to expand the inventory.
Till February, the total import was 73,53,0 tonne as against 82,11,6 tonne in the same
period of 2007-08. In February 09, the import was 2,100 tonne and it is likely that
there would be a sharp increase in imports in March and April. Meanwhile, extreme
summer heat has affected the yield of rubber trees. The production is expected to
pick up by mid-May at the beginning of monsoon.
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Speculation’ stretches rubber to Rs 100/kg
13 April 2009
Business Line
As prices for RSS-4 (ribbed smoked sheet grade 4) rubber hit Rs 100 a kg during the
weekend, there was a unanimous opinion about the current run in the commodity.
That is, prices of natural rubber have been driven up 48 per cent in two months and
36 per cent in a month by sheer speculation. Revival of futures in the commodity is
also pointed out as another reason for the current run.
‗No reason for price rise‘
―There is no fundamental reason for rubber to hit Rs 100 a kg now. Compared with
last year, we have an exceptionally good production. On the other hand, consumption
is almost stagnant by tyre and non-tyre sectors. With ending stocks last fiscal nearly
double that the previous year, rubber is not worth the price the market quotes now,‖
said Mr Rajiv Buddhiraja, Director-General of the Automotive Tyre Manufacturers‘
Association (ATMA).
He represents the body that is seen as a voice for eight large tyre companies that
produce 90 per cent of the country‘s output. According to the Rubber Board, ending
stocks on March 31 were 2.05 lakh tonnes against 1.08 lakh tonnes a year ago.
Rubber production during 2008-09 is estimated at 8.65 lakh tonnes, up five per cent
over a year ago. Consumption was up at 8.65 lakh tonnes from 8.61 lakh tonnes a
year ago. Exports slipped 15 per cent to 45,430 tonnes but imports increased to
78,030 tonnes (68,826 tonnes). ―It is speculation by 10-15 dealers, who trade in
rubber and also take part in futures trading, that is driving up the prices. We don‘t
think this price is sustainable,‖ said Mr N. Radhakrishnan, President of the Cochin
Rubber Merchant Association.
Rubber makes up 41 per cent of the tyre companies‘ input costs. The manufacturers
consume 57 per cent of the rubber produced in the country. A Re 1 a kg rise in
rubber prices translates into an additional cost of Rs 450 crore for the tyre sector in
the country. ―This situation is not healthy for tyre companies as the economy is yet to
revive. Also, global prices are Rs 13 a kg lower than domestic prices. This means, we
have no option but to resort to imports,‖ Mr Buddhiraja said. Mr Radhakrishnan
agreed that the tyre companies had little option under these circumstances but to
resort to ―huge imports‖.
Tapping low
―But we have to see other reasons too for the rise in prices. Tapping was low during
February and March due to extremely hot conditions. Since there were no new
rubbers coming, the growers have held back old stocks, leading to tight supply,‖ Mr
Radhakrishnan said. ―These speculators too added fuel, telling growers that prices
will touch Rs 125 a kg. Therefore, the growers have found another reason to hold
back stocks,‖ he said. While rumours are afloat on sales default, Mr Radhakrishnan
denied any default took place. ―Tyre companies usually give orders on Tuesday for a
week‘s requirement and delivery has to be made in seven days. They are not having
much by way of inventories,‖ Mr Radhakrishnan said. ―The tight supply has forced us
to import around 20 per cent of our requirement during May-July,‖ Mr Buddhiraja.
Arrivals to begin May
Tyre companies are reported to have contracted to import about 25,000 tonnes.
―Arrivals are set to begin from the first week of May,‖ the ATMA official said. ―But
prices cannot rule at these levels without any fundamentals. The growing areas are
experiencing rains and tapping is scheduled to resume soon. In a week or 10 days,
arrivals will improve and, naturally, prices will have to come down,‖ said Mr
Radhakrishnan. ―In fact, at that time there could be even panic sales of rubber.
Needlessly, speculators and players in the futures market have raised the hopes of
the growers,‖ he said.
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JK Tyre to Go Ahead With Rs.500 Crore Expansion Plans
14 April 2009
News.infibeam.com
The fast growth of Indian economy and increasing disposable income among the
consumers has stimulated exceptional growth in the passenger car industry. India is
now Asia's fourth largest vehicle market which is doing much better than its global
peers. Several auto giants like General Motors Corporation, Nissan Motor Company,
Hyundai Motors, and Volkswagen et al are pumping in huge sums of money to
expand their manufacturing facilities in India.
JK Tyre & Industries plans to go ahead with its Rs 500-crore expansion program in
the next 18 months, according to a top company official. It would be speeding its
overall production capacity of nine million tyres in phases in India. It is widely
believed that the company will fund the expansion through a combination of internal
build-up and debt. A senior representative of JK Tyre Industries said that it sees
immense potential in its Off-the-Road (OTR) tyre business, which has propelled the
company to go ahead with its expansion program of scaling up the output of truck
and bus radials, OTR and specialty tyres at a capital outlay of Rs 500-crore.
JK Tyre & Industries is India's leading four-wheeler tyre manufacturer, and the 13th
largest tyre manufacturer in the world. It has achieved innumerable feats including
the top honours such as The Brand Equity Award, Rajiv Gandhi National Quality
Award, CII-Exim Bank Award, and several others. It is first Tyre Company in India to
be chosen as a Super brand. The company has also acquired Tornel - a leading
Mexican tyre manufacturing company.
JK Tyre is equipped with 4,000 dealers and over 120 stocking point. The company
has left a mark across every Indian road; treading into every nook and corner of the
country. JK Tyre is a preferred OEM supplier and continues to be ranked among the
top three companies by the JD Power Asia Pacific Tyre Customer Satisfaction Index
(TCSI) study.
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Tyre makers seek Govt help to check rubber prices
14 April 2009
Business Line
Alarmed by the increase in speculative activity in natural rubber futures trading, the
Automotive Tyre Manufacturers Association (ATMA) has sought immediate
intervention of the Government.
36% increase
As far as rubber consuming interests are concerned, it is a matter of concern that
despite no major change in fundamentals of demand and supply, domestic natural
rubber price has increased from Rs 70 a kg on March 1 to Rs 95 on April 9, an
increase of 36 per cent in just about a month‘s time. The unwarranted increase of
natural rubber price has also led to tightness on the supply side. The current supply
situation is also out of sync with the encouraging stock level of over two lakh tonnes
of natural rubber, as reported by the Rubber Board. Mr Rajiv Budhiraja, Director
General, ATMA, said in a release that international rubber availability is good and
with global prices ruling at much lower levels (currently at Rs 82.5 a kg), the domestic
tyre industry has stepped up its import volumes.
‘Side-stepped’
This is yet another spell wherein the interests of domestic rubber growers and
consumers are being side-stepped by the intermediaries with a view to making short-
term speculative gains,‖ he said, adding that large volume of rubber imports is bound
to depress the domestic demand for rubber in the near future. According to the
association, aberrations by way of domestic rubber price being higher by over Rs 12
a kg in comparison to the international price, disrupt smooth functioning of tyre
companies, besides leading to large scale imports.
Meet on April 20
To take stock of the situation as it has developed and to evolve appropriate course of
action for the tyre industry, Heads of Purchase Departments of leading tyre
companies and members of ATMA are meeting at Kottayam on April 20. The ATMA
delegation would also meet the Rubber Board Chairman and apprise him of the
concerns of the tyre industry and seek the Board‘s intervention to restore normalcy by
isolating the speculative interests and ensuring adequate and timely availability of
natural rubber for domestic consumers.
‘Reduce intra-day limits’
As an immediate step, ATMA has sought reduction in intra-duty limits for futures
trading in natural rubber to be confined to two per cent in comparison to the existing
enhanced limit to 4 per cent. It has further urged that at volatile times like this, futures
trading in NR should be temporarily suspended to bring some balance and discipline
in the market, which is imperative in the long-term interest of NR growing and
consuming interests alike.
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Soaring rubber price worry Tyre companies
16 April 2009
Commodityonline.com
Natural rubber prices are soaring to Rs 100 a kg level again. And nobody knows why.
That is the most surprising factor as far as rubber prices are concerned. If you talk to
market analysts, the fundamentals are the same and the demand is also without
much change. Still natural rubber prices climbed up to Rs 100 a kg this week from Rs
70 in March first week. This huge rise has caused concerns among the tyre
manufacturers and they have decided to meet the Rubber Board chairman in this
regard on April 20.
Worried over the rising prices of natural rubber, the Automotive Tyre Manufacturers
Association (ATMA) has sought immediate intervention of the government to tackle
the prices. The unwarranted increase of natural rubber price has also led to tightness
on the supply side. The current supply situation is also out of sync with the
encouraging stock level of over two lakh tonnes of natural rubber. According to a
press note issued by ATMA, international rubber availability is good and with global
prices ruling at much lower levels (currently at Rs 82.5 a kg), the domestic tyre
industry has stepped up its import volumes. This is yet another spell wherein the
interests of domestic rubber growers and consumers are being side-stepped by the
intermediaries with a view to making short-term speculative gains, the ATMA said.
The association said large volume of rubber imports is bound to depress the
domestic demand for rubber in the near future. According to the association,
aberrations by way of domestic rubber price being higher by over Rs 12 a kg in
comparison to the international price, disrupt smooth functioning of tyre companies,
besides leading to large scale imports. To take stock of the situation as it has
developed and to evolve appropriate course of action for the tyre industry, heads of
purchase departments of leading tyre companies and members of ATMA are meeting
at Kottayam on April 20.
The ATMA delegation would also meet Rubber Board chairman and apprise him of
the concerns of the tyre industry. As an immediate step, ATMA has sought reduction
in intra-duty limits for futures trading in natural rubber to be confined to two
per cent in comparison to the existing enhanced limit to 4 per cent.
Back to Top
New Product
Mahindra unveils Bolero Stinger at Autocar Performance Show news
14 April 2009
Domain-B
Utility vehicle major Mahindra & Mahindra Ltd (M&M) today unveiled the Bolero
Stinger – a customised concept at the `Autocar Performance Show 2008' in Mumbai.
Built on the Bolero platform, the Bolero Stinger combines its striking exterior with
powerful performance. The vehicle is powered by a 97hp CRDe engine and is
available in the 2WD BS3 variant.
''The Bolero Stinger epitomises Mahindra's ability to offer auto enthusiasts
customised concepts of a high specification and detailing. It is a super stylish
offroader which takes the rough and tough image of the Bolero to a new high. The
Stinger is meant for the adventurous and fun loving driver who thrives on speed and
the thrill of the open road," said Vivek Nayer, senior vice president - marketing,
automotive sector, Mahindra & Mahindra Ltd.
The Bolero Stinger boasts of a custom built guard with auxiliary lamps and rear roll
cage in powder coated black, styled scoops & bezels on side and bonnet with built in
mesh, styled body claddings, custom paint job for interiors & exteriors, modified body
shell and re-panelling, cargo bay with cover, alloy wheels, custom built tail lamp bezel
with LED lamps, SS. exhaust tail end in twin pipe, overhead amber indicator marker
lamps, customised door trim pads with map pockets and bottle holders, upholstery in
leather and suede combination and MP3 player with speakers,
Mahindra also displayed the recently launched Scorpio Automatic which incorporates
a fully automatic 6-speed gear box and the powerful 2.2 litre mHawk engine.
''Scorpio is the first Indian brand and the first SUV in its class to offer a 6-speed fully
Automatic Transmission. This new edition of one of India's most loved SUVs has
been designed to make driving an effortless experience and is equipped with in-built
intelligent driving modes for an effortless drive and a wide array of smart features,
giving the Scorpio an even greater competitive edge in its segment,'' M&M said in a
release. The Scorpio Automatic has a fully electronically controlled automatic
gearbox which results in shorter shift times and hence, improved drivability. This is a
major technological improvement over earlier Automatics which were hydraulic
controlled.
M&M also created a special 4x4 track at the show to demonstrate the superior
offloading capability of Mahindra's utility vehicles. This is the first time in India that an
automobile manufacturer has created a 4x4 track to give visitors a firsthand
experience of its vehicles in rough road conditions.
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Mahindra-Renault looking at expanding beyond Logan
28 April 2009
IANS
Renault and Indian auto major Mahindra and Mahindra, which jointly manufacture the
sedan Logan in India, will expand their product portfolio to better utilise the capacity
at their Nashik plant in Maharashtra.
"We are currently assessing the viability of four to five Renault cars to be
manufactured in the facility and will finalise the models with Mahindra," Ashish
Sinharoy, Renault India's senior vice president of corporate affairs, told IANS.
This comes as a U-turn for both car makers who had in the past ruled out expanding
the product line-up in the joint venture in the short term. The scope of the current joint
venture does not go beyond manufacturing Logan and integrating the distribution and
sales networks. But two factors have worked towards the re-think: Logan's sales
have plummeted, and the Nashik facility has been rendered under-utilised.
Sinharoy said Logan, which did very well in the first year of its launch, has been a
victim of the economic slowdown. Coupled with this, there was a lack of options in
terms of other models available in the joint venture's stable; hence the decision to
expand, he said.
Mahindra-Renault managed to sell close to 26,000 units of Logan during the 11
months of 2007-08 since the car was launched, while the number nearly halved to
only 13,423 last fiscal. "As a result, the plant has been under-utilised and the dealer
network is also under-selling. So we are actively looking at optimising the utilisation
and have decided to introduce new models in our line-up," Sinharoy said.
"Although the numbers for the new vehicles won't be huge, it will definitely pep up the
dealer network and induce demand."
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Audi introduces new Audi A6 in India
23 April 2009
PTI
German luxury car-maker Audi on Thursday launched its business sedan Audi A6 in
the Indian market.
"The Audi A6 is the most successful business sedan worldwide and one of our main
contributors to our achievement in the Indian market. We believe the new Audi A6 will
be one of the key players in the Indian luxury car market," Audi India Managing
Director Benoit Tiers said in a statement.
Audi A6, with four engine variants, would be available at Audi dealerships pan-India
from May 4 onwards, the statement said.
"India has been a significant growth driver for Audi and will be the car market of the
future," Tiers said.
Its price starts at Rs 38,57,000 (ex-showroom Mumbai) and offers a choice of four
engines and six colours.
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Honda to launch Jazz in June at Rs 5.5 lakh onwards
22 April 2009
The Economic Times
After a decade long operations in India, the largest player in the mid-size cars, Honda
Siel Cars (HSCI) is entering the high volume hatchback category with its small car
Jazz, a top company executive said. The car will have a new 1.2 litre engine
developed exclusively for the Indian market, carrying highest fuel efficiency in its
segment.
Jazz also called Fit in certain markets, is the only small car in Honda's global
portfolio. To be launched in India in the month of June, Jazz is likely to be the most
expensive petrol hatchback in the market with an expected base price of Rs 5.5 lakh.
It will be pitted against Skoda's Fabia, Tata Motors' Indigo, Ford Fusion and
Hyundai's Accent besides Ritz the upcoming product from Maruti's stable.
Speaking to ET, HSCI managing director & CEO Masahiro Takedagawa said, "Jazz
will have all the features found in a premium large car. Our survey shows that 80%
hatchback customers feel that these cars lack legroom and headroom space which
we have addressed in Jazz."
He added, "We have designed a special engine for India to optimise fuel efficiency
and power, which delayed the launch by one year. Jazz also comes strapped with a
toughened suspension to meet stiff roads conditions in India."
The car is based on Honda's City platform and will have a high 70% localisation. Jazz
is likely to endorse Honda pioneered V-Tec technology for high fuel efficiency, which
is already used in the Honda City engine. Jazz will also qualify for the concessional
8% excise duty under government's small car definition
"We will try to pass the benefit of lower excise duty on Jazz but 30% of its
components are imported and the weak rupee may lead to a higher price," Mr
Takedagawa said. He however added that the company is not positioning Jazz as a
volume generator and its best-selling sedan City will remain the largest car for Honda
in India.
Jazz will have customisation option for navigation system, in-car entertainment,
sporty tyres and other gizmos at the dealer level. It will be launched with manual
transmission and will be studded with an automatic transmission later.
According to sources in the automobile market, Honda could also launch a diesel
variant of Jazz in the next few years. The company is targeting smaller cities and
towns for the new car and plans to add 10 more dealerships in the next one year to
the current tally of 106 across the country news by end
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Tata’s' 'world truck' to roll out by May-end
22 April 2009
The Economic Times
TATA Motors is understood to be working full throttle on the global launch of its high-
profile ‗world truck‘ by the end of May 2009. The country‘s largest CV maker is
expected to gradually phase out its existing heavy and medium-range trucks,
replacing them with the world truck, two officials close to the development said.
―As a policy, Tata Motors does not talk about its future product launches. An
announcement will be made at an appropriate time,‖ said a Tata Motors
spokesperson. ―The world truck will sport a more expensive price tag. Given the
current slowdown in the commercial vehicle market, Tata Motors will continue
producing the existing range till the market picks up,‖ said a person familiar with the
development.
Tata Motors is developing the world truck along with its subsidiary Daewoo
Commercial Vehicles on a completely new platform. The trucks, powered with 185-
565 HP engines, will compete with the likes of Volvo, Nissan, Mercedes Benz and
MAN. The world truck, having up to 300 horse power (HP), will be launched in India,
while the higher HP models will be for the global markets,‖ said a senior company
official.
Price is a critical factor in the commercial vehicle segment and the company is keen
to keep the prices of its new range as competitive as possible. The world truck will be
priced at a premium of 5-10% compared to its existing range, as it will have far more
features such as AC cabins.
Although sales of commercial vehicles have started looking up this month, the
company has put price hikes on hold for the moment. Every year, commercial vehicle
majors increase prices in the range of 3-5% in April. During April to March 2009, CV
sales have taken a 22% knock at 3.84 lakh units. Sales of Tata Motors for the last
financial year fell by 22% to 2.33 lakh units.
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The Ritz' heart rolls out!
16 April 2009
TNN
The Maruti-Suzuki Ritz may still be a short while away from being launched, but its
power plant is live and kicking already. On April 14 2009, the
Indian car maker revealed the brand new K12M engine to the world. Manufactured
within Maruti's Gurgaon facility in a special new engine plant, the K12M is the second
of a family of modern engines. Its smaller sibling, the K10B was the first - and now
does duty in the ultra-compact A-Star small car.
The K12M is essentially a 1197cc petrol engine that is capable of putting out 85 PS of
power at 6000rpm in its current state of tune. Torque figures stand at 113Nm @
4500rpm - which should make the Ritz a sprightly performer when it hits showrooms
soon. The K12M's technological superiority is showcased in its all-aluminium
construction and the extensive use of plastic parts as was with the K10B as well.
Maruti's engineers worked closely with the Suzuki boffins in India and in Japan to
make the K12M as advanced as possible. The main aim for the team was to reduce
losses and an innovative rocker-less DOHC camshaft, plastic intake manifold and
offset crankshaft with low tension rings help do just that.
All that weight saving also makes the K12M extremely fuel efficient too - and not at
the price of performance! A high pressure fuel system and advanced injectors for
better atomisation and combustion help this 1.2 litre unit pump out decent power and
torque figures. Durability is also on the high side with the K12M as it employs a silent
timing chain and clever tappet design along with an increased spark plug life.
The K12M is also BS-IV compliant - which will make the Ritz the first ever passenger
car in India to adhere to the new pollution norm when it rolls out. With the K12M,
Maruti has taken yet another step forward to providing India with cutting edge
technology in their cars. And if the smaller K10B powered A-Star is anything to go by,
expect the K12M powered Ritz to be a huge pleasure as well!
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Industry Competition
Toyota small car may sport Rs 5-7 lakh tag
29 April 2009
The Economic Times
Toyota Kirloskar Motor, the Indian subsidiary of the Japanese auto giant, has
revealed the pricing segment for the compact car it plans to launch next year.
In an exclusive chat with ET, the company, which is the Indian venture of Toyota
Motor, the world‘s biggest car manufacturer by volumes, also plans to jack up its
production to 5,000 units a month by July, and double sales and servicing manpower
by 2010.
―The compact car will be priced in the B+ category,‖ said Sandeep Singh, deputy MD,
revealing details of the much-awaited car for the first time. This category has cars,
such as Maruti Swift, the Skoda Fabia and the Chevy UVA.
The pricing of these cars is between Rs 5 lakh and Rs 7 lakh. This means that the
compact car will be priced between a Santro top-end variant and a Honda City entry
variant. The model will be launched in both sedan and hatchback versions. Around
70,000 units of the so-called compact vehicle will be produced at its Rs 3,200-crore
factory at Bidadi in Bangalore.
The compact car will have a localisation of 65% to start with, and will gradually be
taken to 90% by 2011, said Shekar Viswanathan, deputy MD (Commercial). That
would make it one of the few foreign models with the highest percentage of local
components. The Innova, which sold 3,900 units in March, and the Corolla have a
localisation of 65% and 45%, respectively.
―We are looking to have 75% local components for the Innova and around 50% for
the Corolla by next year,‖ said Mr Viswanathan. Higher localisation for the small car
has made the company actively consider a new powertrain facility by the end of 2010.
Still in the planning stages, the facility will be dedicated to producing engines and
gearboxes for the compact car.
The company is looking at expanding dealer network from the current 82 to 150 by
2010-end, said Mr Singh. ―With the compact car, we want to be in semi-rural and
rural towns,‖ he said. By the end of this year, the number of dealerships will be
around 95. With the rise in dealerships will come new hires, which will double the
sales and servicing teams from the existing 2,800 people. The company, which had
cut production in the first quarter, saw a 20% shortfall in supply for its models in
March.
This has led to a revision in sales targets, and now the company will be making 5,000
units from July, a rise of 35% from its current level. This figure includes both, the
Innova, and the Corolla. ―We aim to sell 50,000 units of these cars this year,‖ said Mr
Singh. The company is banking on the post-monsoon festive season for a turnaround
in the automotive market.
But, imports and the depreciation in the rupee are casting a shadow in its efforts to
cut costs. The Japanese currency has appreciated 33% against the rupee since
October last year, making imports from that country much more expensive in India,
and thus increasing costs of production here.
Toyota Kirloskar also imports parts from Thailand, paid for in the US currency, which
has appreciated 21.6% since August. The company imports 30% of parts by value for
its Innova utility vehicle and 55% for the Corolla Altis car.
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Leyland may review LCV JV with Nissan
28 April 2009
The Economic Times
With the commercial vehicle segment showing very little signs of a revival, Ashok
Leyland, India‘s second largest truck maker, is ―reviewing‖ its collaboration with
Nissan Motor of Japan to manufacture light commercial vehicles.
Hinduja group sources told ET NOW that the review process is currently on and the
two partners will work out the revised investment and capacity programme over the
next few weeks. Industry insiders feel that the project, which was scheduled to go on
stream over the next two years, could get delayed as a result.
Last year, Ashok Leyland struck a deal with Nissan to form three joint venture
companies to manufacture light commercial vehicles, power trains and for technology
development for a total investment of Rs 2,400 crore. The project was supposed to
have a debt-equity ratio of 1:1 with each partner bringing in about Rs 600 crore each.
Under the revised plan, which is currently at the works, the capital investments are
likely to be downsized sharply.
While 51% of the vehicle manufacturing joint venture will be owned by Ashok
Leyland, Nissan is set to have a 51% shareholding in the power train joint venture.
Nissan Ashok Leyland Technologies, which will be involved in technology
development, will be equally owned by Ashok Leyland and Nissan.
However, R Seshasayee, managing director of Ashok Leyland, told ET NOW that the
joint venture plans are very much on track. ―There is no truth in the rumours that we
are shelving our joint venture with Nissan,‖ he said.
The buzz that Ashok Leyland is in two minds about going ahead with its joint venture
with Nissan has been gaining ground since the Hero group announced earlier this
month that it was exiting its truck joint venture with Daimler. The Hero-Daimler break-
up was clearly due to the sharp slowdown in commercial vehicle segment, and
industry insiders fear that the current demand situation could force other alliances to
review their truck plans in India.
The domestic commercial vehicle industry has been struggling in recent months with
volumes down by almost 23% in the last fiscal ended March 2009. Analysts expect
the industry to report a modest growth of 6-7% in the current financial year.
There are also reports that Bajaj Auto and Renault are also reviewing their
collaboration for developing the ultra-low cost car for India, although Rajiv Bajaj,
managing director of Bajaj Auto, maintains that the car joint venture is very much on
track.
Mahindra & Mahindra, which has joined hands with US-based Navistar, to tap the
commercial vehicle segment in India, has also made it clear that their plans for the
domestic track are intact. ―We are rolling out brand new platforms for the domestic
market and there are no plans to delay the rollout,‖ Pawan Goenka, president
(automotive sector), M&M, recently told ET NOW
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MRF bags HAL order for helicopter tyres
13 April 2009
Mydigitalfc.com
In a major boost to its technical capabilities, MRF is set to be the first Indian tyre
company to produce helicopter tyres for the Indian defence sector. The company has
secured orders from Hindustan Aeronautics (HAL), military aircraft manufacturer, to
make tyres for Chetak range of military helicopters. Satisfied with MRF‘s products,
the defence authorities have also asked the company to develop tyres for all fighter
aircraft and other helicopters.
―We have got the first order from HAL and are executing the same. The order is for
about 400-500 tyres for Chetak military aircraft,‖ a top company official said.
However, other details such as order size and delivery schedule couldn‘t be obtained.
―It‘s a prestigious order. More than the size, the order validates our product
performance and technology,‖ added the official.MRF will be selling its helicopter
tyres, developed over a period of three years, under the brand name Aero Muscle.
The Rs 5,000 crore plus MRF, which is already a supplier of tyres to the defence
sector, will initially execute the order out of its Arakonam plant, near Chennai. It has
invested a few crores in Arakonam to equip the facility to produce helicopter tyres.
Later, it will shift production to its Medak unit (Andhra Pradesh), where the company
proposes to invest more than Rs 120 crore in creating a separate assembly line for
aviation tyres.
Helicopter tyres for the defence sector are at present imported. There are over 30
different types of aviation tyres required by the defence forces, including navy, coast
guard and others. MRF obtained all approvals from certifying authorities to
manufacture and supply its indigenously developed tyres for Chetak helicopters last
year.
The defence sector contributes about 2-3 per cent to the company‘s top line.
According to a document of Defence Research and Development Organisation, MRF
tyres have been initially cleared for an operational life of 10 years with five years as
storage life. Based on this clearance, HAL (helicopter division) placed an order on
MRF for supply, which will result in foreign exchange savings. Based on the
confidence gained in development, Centre for Military Airworthiness and Certification
(CEMILAC), one of the certifying authorities, has initiated development of tyres by
MRF for all fighter aircraft and other helicopters.
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Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09
29 April 2009
The Economic Times,
Undeterred by an over 50 per cent fall in its net profit in the last fiscal, tyre maker
Apollo Tyres today said it will invest Rs 700 crore in 2009-10 mainly for completion of
its Chennai Greenfield facility. The company's net profit for 2008-09 almost halved at
Rs 108 crore compared to Rs 219 crore in the previous fiscal on account of high input
cost and sluggish demand in the domestic auto market. Net sales rose by 10.18 per
cent in FY'09 at Rs 4,070 crore compared to Rs 3,694 crore in the previous fiscal.
For the quarter ended March 31, 2009, Apollo Tyres posted a 22.04 per cent dip in its
net profit at Rs 46.20 crore against Rs 59.26 crore in the year-ago period. Net sales
went up 10.89 per cent at Rs 1,110 crore against Rs 1,001 crore in the same period
previous fiscal.
"We have earmarked a capital expenditure of Rs 700 crore for 2009-10, of which 90
per cent will go for completion of the construction work of our upcoming Chennai
facility, while the rest will be utilised for ongoing maintenance," Apollo Tyres Chief
Financial Officer Sunam Sarkar told reporters.
The company is setting up a Greenfield tyre producing facility in Chennai with an
initial capacity of 150 tonnes per day, expandable up to 450 tonnes per day. It had
announced to invest Rs 550 crore in the facility while starting the construction work in
September, 2008.
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Apollo Tyres offers to buy Dutch tyre maker
29 April 2009
Business Standard
Delhi-based Apollo Tyres, the country's second-largest tyre producer, has offered to
acquire 100 per cent stake in Vredestein Banden B.V, a Netherland-headquartered
premium tyre making for an undisclosed sum. "The trustee in bankruptcy at the
Almelo Court in the Netherlands has approved Apollo Tyres offer to acquire 100 per
cent stake of Vredestein Banden B.V (VBBV)."
The parties concerned will be in a position to disclose any further information,
including price, only after certain conditions have been met and certain approvals
including regulatory and statutory approvals are granted, wherever required, the
release further stated.
VBBV is a 100 per cent subsidiary of Russia's largest tyre manufacturer Amtel-
Vredestein N.V (AVNV).Earlier in the day, the board of Apollo Tyres gave their
approval to the management to proceed with requisite approvals and compliance on
the acquisition of VBBV.
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International Updates
Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board
27 April 2009 Eastern Daylight Time
Navistar (NYSE: NAV) continues to blaze new trails through the hybrid landscape,
becoming the first truck and bus manufacturer to receive total hybrid vehicle
certification from the California Air Resources Board (CARB) for improving fuel
economy and overall emissions.
The innovative integration of an optimized engine and hybrid system makes total
vehicle certification of the International Dura Star Hybrid box van and utility truck, and
the IC Bus CE Series hybrid bus a reality.
On Friday, April 24, 2009 the CARB voted to implement a $25 million voucher
incentive program as part of California Assembly Bill (AB) 118 to accelerate the
deployment of about 1,000 medium- and heavy-duty diesel hybrid trucks and buses
in California. Purchasers of commercial hybrid vehicles under this program will
receive incentives ranging from $10,000 to $35,000 per vehicle depending on weight
class. In addition, purchasers of CARB-certified International Dura Star Hybrid
models and IC Bus hybrid buses will receive vouchers worth another $5,000 per
vehicle under the incentive.
―This is a win-win for everyone in California,‖ said Jack Allen, Navistar president,
North American truck group. ―By working together we created the opportunity to put
more clean diesel hybrid trucks and buses on California‘s roads, and we‘re proud that
Navistar‘s hybrid leadership directly puts money back in our customers‘ pockets.‖
In addition to commercial hybrid trucks, Navistar is an industry leader in hybrid school
buses. In August 2007, Navistar‘s IC Bus subsidiary delivered the first hybrid diesel
school bus to the Napa Valley Unified School District in California. While most diesel-
only powered school buses achieve an average of six to seven miles per gallon, the
fuel efficiency of the IC Bus plug-in hybrid electric school bus nearly doubled the
average to 13 miles per gallon.
AB 118, authored and championed by former California State Assembly Speaker
Fabian Nunez, aims to reduce greenhouse gases from California‘s transportation
sector, and was signed by Governor Schwarzenegger on Oct. 14, 2007.
Environmental Innovations
For decades, Navistar has demonstrated a commitment to clean technologies that
benefit the environment and its customers. In 1989, Navistar was the first original
equipment manufacturer to release the smokeless diesel engine and, in 2001,
Navistar was the first engine manufacturer to gain certification from the U.S.
Environmental Protection Agency (EPA) for meeting particulate and hydrocarbon
emissions standards – six years ahead of schedule. Navistar was also the first to
enter line production of commercial diesel hybrid trucks and school buses.
Most Fuel Efficient Heavy Trucks
In addition to hybrid-electric trucks and buses, the conventional line-up of
International brand commercial trucks is among the most aerodynamic, fuel efficient
in the industry. Navistar recently became the first OEM to receive dual certification
through the U.S. EPA SmartWay Program for helping to reduce greenhouse gas
emissions. Navistar produces two industry-leading Class 8 trucks with SmartWay
certification — International LoneStar and International ProStar — a distinction they
received for their superior aerodynamics and fuel economy. While the aerodynamic
ProStar Class 8 tractor is the market leader in fuel-efficiency, in June 2008, the
groundbreaking LoneStar became the first classic-styled Class 8 tractor to receive
the SmartWay certification.
Award-winning Environmental Leadership
For its ongoing leadership, Navistar was honored with the 2007 Blue Sky Award from
West Start-CALSTART for its contributions to the commercial development of diesel-
hybrid technology. This preeminent award is presented each year by West Start-
CALSTART, the nation's leading advanced transportation technology industry
organization working to support and accelerate the growth of companies developing
clean and energy-efficient transportation technologies.
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Volkswagen Golf bags World Car of the Year
16 April 2009 TNN
During a ceremony at this year's New York Auto Show, an independent jury of 59
handed the prestigious World Car of the Year award to Volkswagen's new MK VI
Golf.
The award comes with its own claim-to-fame. Unlike other 'Car of the Year' awards
which are usually nation or continent specific, or at least affiliated to some sort of
automotive media, the World Car of the Year award is often considered to be the
most indisputable as its jury is entirely independent, composed of automobile
journalists from 22 different countries around the world. And to back its authenticity,
the rules which qualify any car for this award state that it must be on sale on at least
2 continents around the world.
Of the four categories of this award, the latest iteration of the Volkswagen Golf was
selected as the overall World Car of the Year 2009, besting out competition that
came from the likes of the new Ford Fiesta and the much talked about Toyota IQ.
The VW Golf was first introduced back in 1975 as a compact family car. It has had an
illustrious life spanning 35 years so far, and has gone on to become the third largest
selling car in the world. In its sixth generation now, the new Golf has made waves
across the world by being the safest, most technically advanced and dynamic Golf
yet. Though Volkswagen hasn't made any official announcements, the Golf is very
likely to be India bound in the foreseeable future.
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Bridgestone to increase radial passenger tire production capacity in China
13 April 2009 www.automotive-business-review.com
Bridgestone has announced that it will increase radial passenger tire production
capacity at Bridgestone Wuxi Tire in China, in response to the expected medium-to-
long term increase in demand for radial passenger tires in the Chinese market.
Bridgestone has applied to the Chinese authority for investment to increase
production, and has decided to strengthen its production capacity after receiving the
approval of the Chinese authority. The company intends to start increased production
at the Wuxi plant in the second half of 2011. Bridgestone has said that it is planning a
total investment of $98 million, which will enable it to increase daily production by
4,200 units, giving the plant an estimated daily output of 12,000 units once production
capacity has been increased.
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Bridgestone to pay fine over int'l price cartel
16 April 2009 www.tradingmarkets.com
Japan's top tire maker Bridgestone Corp. said Thursday it will pay a fine of 58.5
million euro‘s as ordered by the European Commission in January for forming a price
cartel to sell marine hoses used to transport oil. Bridgestone said it has decided to
comply with the European Commission's order without taking legal action with a
European Union court against the order.
The company said it appropriated about 7.5 billion yen to pay the fine in its earnings
report for the 2008 business year which ended in December. The European
Commission in late January ordered Bridgestone and four U.S. and European
companies to pay a total of 131 million euro‘s in fines for forming the price cartel.
The five companies, which also include Parker ITR S.R.L. SpA based in Italy and the
United States and Sweden's Trelleborg AB, fixed prices of marine hoses and
exchanged sensitive information, including the names of customers, between 1986
and 2007, according to the executive arm of the European Union.
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