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A month in the India Transport Sector December, 2012
1
Copyright India Transport Portal. Edited by Digital Bizzline Ltd. All rights reserved
VOLVO’S TRUCK STRATEGY
Volvo, the leading Swedish truck maker, recently
launched the Volvo FM480 10×4 Dump Truck,
specifically designed for mining in India. With coal
mining operations expected to soon take off in
India in a big way, Volvo has strategically placed its business
to capitalize its gains from what is considered to be one of
the most competitive sectors in India.
More information on ITP
IVECO LOOKS TO ENTER THE INDIAN TRUCK MARKET
The Indian truck market has witnessed rapid growth
over the last few years, making truck manufacturers
from across the globe sit up and take notice. As the
fourth largest truck market in the world, India is all
set to usurp the United States of America for the coveted
third position.
More information on ITP
“SECOND HAND TRUCK MARKET IS A STEADY MARKET
WHICH GOES ON ITS OWN WAYS” MR. ULHAS
AMBEGAONKAR
Mr. Ulhas Ambegaonkar has worked with the large
transportation companies to provide the business
management and intelligence solutions. He is
associated with a large transporters association as
technical associate in India. He has got the insights of the
transportation industry due to long term association. He has
worked with the second hand commercial vehicles market,
brokers, large, mid size organizations and single owner drivers.
More information on ITP
HOW MANY VEHICLES ON INDIA ROADS?
The development of infrastructure and the transport
sector have subsequently been receiving a much-
needed boost. With the commitment of the
government of India to build roads to reach both
the urban and rural populations alike, the future of transport
can only be predicted to become phenomenal.
More information on ITP
There are three problems with Indian roads:
there are too few, nobody wants to build them
because of financial issues and they are of
poor quality. NHAI is regularly blamed for the
poor condition of roads and national highways
in need strong repair. The nodal agency is also
blamed for not considering the many requests
raising this issue. Well, this is not a REALLY new
matter.
It is also not REALLY new that there is pressure
on the profitability of road construction firms.
For example, IRB Infrastructure Developers Ltd
and IL&FS Transportation Networks Ltd. have
both underperformed in the BSE benchmark
Sensex. This is because of the higher interests
costs. And also because the number of road
projects awarded by the NHAI has declined.
But, those facts (including land acquisition
issues, environmental clearances and banks
reluctant to fund) are not REALLY new. India
Transport Portal reported a lot on the matter.
So, the highway model is about to switch from
the PPP mode, which is not totally satisfactory
(but that is not REALLY new), to an investment
model (Build Operate Transfer and Engineering
Procurement Construction Contract). This is
going to be tested for the NHDP IV phase. In
the meantime, the NHAI has to give a funding
deadline for some projects. For example, four
projects have been given the extension.
So, what is REALLY new? The India Transport
Portal Team released an infographic that
highlights the NHDP road construction pace.
With detailed statistics gathered for each
stretch, you can monitor data regarding road
construction such as state, highway number,
length, laning, contractor, status, LOA,
implementation date, completion deadline,
etc. This is REALLY new!
Another piece of news? To go further, we are
co-organizing with the Walchand Hiranchand
Unit (WHU) in Transport Economics, Department
of Economics, University of Mumbai, a
roundtable on infrastructure issue. So if you
want any information on those topics, please
contact us and stay tuned on India Transport
Portal for REAL news!
FOCUS: TRUCK MARKET EDITORIAL
A month in the India Transport Sector December, 2012
2
Copyright India Transport Portal. Edited by Digital Bizzline Ltd. All rights reserved
MERCEDES BENZ SET TO CAPTURE 30 PERCENT OF THE LUXURY
CAR MARKET
The Indian automobile market has undergone vast
changes over the last decade, including becoming
one of the fastest growing automobile markets in
the world. The luxury segment remains largely
unaffected, as the preference remains intact for some of the
most luxurious and prestigious brands across the globe.
More information on ITP
TATO NANO STILL TO FULFIL ITS POTENTIAL
A few years back, Ratan Tata, chairman of the
Tata Group, had shared his dream of producing
the most affordable car possible for the millions of
two-wheeler commuters in India. The result: Tata
Nano, the world’s cheapest and smallest four-seater, with the
unbelievable price tag of $2500 was introduced by the
prestigious auto brand in 2008/2009.
More informations on ITP
OPTIONS FOR SELLING SECOND HAND CARS MULTIPLY
There was a time, not so long ago, when a car in
India was considered to be much more than a
precious commodity – it was indeed a part of
the Indian family, and the thought of selling one
for another was unfathomable. Thus, the Fiat or the
Ambassador remained with the family for years. But then the
times changed. A deluge of cars swept into the country, and
the Indian automobile market began to take shape.
More informations on ITP
SECOND HAND CAR SALES ON THE RISE IN INDIA
With a thriving automobile market that has
shown no signs of slowing down for over a
decade, the process of buying and selling
used cars within India has experienced a
remarkable transformation. Consumers are no longer
dependent on their acquaintances or car mechanics to find
a used car. Instead, they are able to look for the car they
want in almost the same way as they would for a brand new
one.
More informations on ITP
EMISSION TEST FOR VEHICLES – HOW
IMPORTANT IS IT TO DO IT
REGULARLY
India has become a hot-
bed for automobiles and
of late there has been an
exponential increase in
vehicles on the roads. This
has given rise to traffic
mayhem and to another mounting
concern, pollution. The level of
pollution within the country has been
rising proportionately to its traffic, and
this has put its ecological balance in
jeopardy.
More information in ITP
PLUMMETING NATURAL RUBBER
PRICES HAVE YET TO LOWER THE
PRICE OF TYRES
Natural rubber, which is an
essential component of
tyres, witnessed a
tremendous price hike few
years back. This price inflation was
triggered by rising global rates and by
concerns over India’s domestic
supply. So much so, that towards the
end of 2010 and beginning of 2011
the natural rubber price struck a
record high of $4.5 per kg. The
explosive growth of the automobile
industry, contributing to an increased
demand for tyres and the uncertainty
hovering over the supply of natural
rubber from its biggest producer,
Thailand, had caused prices to go
skyrocketing.
More information in ITP
CAR MARKET MISCELLANEOUS
A month in the India Transport Sector December, 2012
3
Copyright India Transport Portal. Edited by Digital Bizzline Ltd. All rights reserved
ROAD CONSTRUCTION HITS A FINANCING WALL
India today boasts of one of the largest road
networks in the world. The allocation of budgetary
resources in the past by the Union Government has
helped to finance road and national highway
construction projects throughout the country. However, over
the years, a growing demand for financial assistance from
other sectors has resulted in a decline in budgetary resources
available for road projects. Loan assistance from banks,
international funding agencies and private sector
participation have therefore played a major role in providing
the much-needed financial support for these projects.
More information on ITP
JHARKHAND: 132 NEW ROADS AND BRIDGE PROJECTS
ACROSS 2012 – 2013
Infrastructural constructions are at the core of the
development of any region. Road and bridge
construction is key to infrastructural growth as it
improves connectivity and boosts the economy of
the regions concerned. With this aim in mind, the Jharkhand
government has recently announced the construction of 132
new roads and bridge projects in the state for 2012-13.
More information on ITP
RAJASTHAN IMPLEMENTS THIRD PARTY INSPECTION ON
ROAD CONSTRUCTION
India is in the middle of an infrastructure revolution
with a commitment to building highways that
connect cities across the country. Building an
infrastructure, including highways and roads that
reach the remote parts of India, is key to sustaining the
country’s economic balance and growth. However building
roads is not only expensive in terms of money, but also in
terms of time. Therefore many highways built with a
considerable amount of effort begin to develop signs of
wear and tear all too soon.
More information on ITP
HIGH-END CYCLES GET MORE
GLAMOROUS
Producing approximately
ten per cent of the
world’s total production
of cycles, India is the
second largest bicycle
manufacturer after
China. The country churns out an
estimated 125 million units annually,
with a domestic consumption of
roughly ten million units. Cycling is a
popular mode of transportation in
India, particularly in the rural areas.
However, due to a significant change
in the lifestyles of city dwellers, rising
health concerns and an increase in
disposable income, the perception
towards cycling as a mode of
transportation for the poor and
middle class only, is undergoing a
rapid transformation.
More information on ITP
INFRASTRUCTURE
TRANSPORT ISSUES
MISCELLANEOUS
TRANSPORT ISSUES
A month in the India Transport Sector December, 2012
4
Copyright India Transport Portal. Edited by Digital Bizzline Ltd. All rights reserved
INDIA STILL HOLDS THE WORLD-RECORD FOR ROAD
FATALITIES
For a very long time now, India has been
recording the highest number of fatalities due to
road accidents in the world. And indeed, fate has
very little to do with it. According to statistics
released by the World Health Organization 1,
05,000 deaths were attributed to road accidents in 2011. A
more recent report pegs the death toll at 390 a day, or 17
lives lost per hour on Indian roads. To make matters worse,
the figures are inclined towards increasing every year.
More information on ITP
MISSING ROAD GUIDES RESPONSIBLE FOR HIGH ACCIDENT
RATE
India has one per cent of the world’s vehicles
plying its streets, yet accounts for ten per cent of
the world’s road accidents. This shocking statistics
says it all. Every year thousands of people are
killed on Indian roads while thousands of others
are left maimed. For years India has been battling with the
issue of road safety and it is still severely compromised. All the
blood spilling is due as much to human negligence, as to
faulty road guides and traffic signs.
More information on ITP
SATELLITE NAVIGATION- HOW EFFECTIVE ON INDIAN ROADS
Satellite Navigation or SAT NAV uses satellite
systems to automatically detect geo-spatial
locations through electronic receivers. Vehicles
fitted with satellite navigation systems help the
commuter to geo-map any location they desire. In many
countries, such as the USA, UK, etc., all new vehicles come
automatically fitted with a satellite navigation system. These
countries have successfully fallen under the radar of satellite
mapping. In India, however, this is not the case. Vehicles in
India do not come pre-installed with this type of system and
in addition the mapping of roads via satellite navigation is still
a maze.
More information on ITP
More information on ITP
Indian Transport Portal is an online
news center covering the most
critical industrial issues related to
transport markets in India.
India Transport Portal is edited by
Digital Bizzline Ltd. a UK based press
agency recently launched by a
group of freelance journalists.
Digital Bizzline Ltd. is registered at the
Companies House UK: 07301455
GOVERNANCE ISSUES IN
TRANSPORTATION
January 31 & February 1st,
2013
Mumbai
TYRE & RUBBER INDONESIA
March 26 – 29, 2013
Jakarta
TYREXPO
July 9 –11, 2013
Chennai
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