Indian Auto Industry Update

24 Jan 2017

IndustryPeugeot returns to India through CK Birla venture

Tax sops for customers will spur buying

Tata-Mistry row had been brewing since Tata Motors 2015 rights issue

Autos loses momentum due to demonetisation

Interviews amp FeaturesThe five top events associated with the Indian Automobile Industry in 2016

Cars SUVs MUVsMaruti Suzuki rated acirceuro˜Buyacirceurotrade by Kotak says Ignis could be another winner

Top-end spec comparison Tata Hexa vs XUV500 W10 vs Toyota Innova Crysta

Honda City facelift likely to launch in Feb 2017

Luxury CarsFacelifted Ford Mustang gets new 10-speed AT

Commercial VehiclesConstruction amp Agri Machinery23 Wheelers

Yamaha FZ 250 launch tomorrow will mark entry in 200-250 cc segment

New acirceuroordfacirceuroordfYamaha YZF-R15 unveiled in Thailand India launch soon

acirceuro˜Boosting consumption should be top priorityacirceurotrade

Top 5 facts about KTM RC390

Confirmed 2017 Bajaj Pulsar Ns200

E-BikesOkinawa Electric Scooters launched in India to invest Rs 275 crore over next 3 years

ComponentsMotherson sumi wired for near-term earnings growth with Finlands PKC buy

Auto-component maker Ranes performance reveals cash ban speed bump

Rane (Madras) Q3 FY17 PAT down 15 at Rs 272 crore

Bosch India expanding Pune plant to meet increasing ABS demand

Amtek Auto gains 4 as it moves closer to pare debt

Allied IndustriesAmara Raja Batteries shares dip 5 on reporting nearly 18 yoy fall in Q3 net profit

Raw material costs note-ban drain Amara Rajaacirceurotrades Q3 net

BYD Auto bets big on Indian e-vehicles light rail market

Emissions EnvironmentFinance amp Insurance

Tractor micro-finance loans most hit by demonetisation India Ratings

60 of vehicles on Indian roads donacirceurotradet have insurance

Oil Lubricants amp Alternative FuelsCrude oil eases after 2-day gain rising US production weighs

News MagazinesNext-gen Mitsubishi Montero likely to get Nissan underpinnings

Two-month waiting for Maruti Ignis

Porsche 718 Boxster Cayman launch on February 15

New Porsche Panamera India launch in March 2017

Tata Hexa automatic in high demand

2017 Toyota Vios revealed

ARAI ISRO collaborate to create prototype electric scooter

International NewsGreen vehicles gain popularity in China

Nissan along with Tan Chong begin vehicle assembly in Myanmar

Global sales of Volkswagen trucks amp buses up by 3

Toyota Vios facelift launched in Thailand

China approves first list of green car models for subsidies this year

Now your car can pick up tab for latte

EconomyRupee trading strong at 6814

Sensex ends higher by 83 points federal budget eyed

Govt to set FY18 fiscal deficit target at 33-34 per cent Reports

ClosingLast Financial Closing

Industry

Peugeot returns to India through CK Birla venture PTISee this story in The Economic Times

Paris French carmaker PSA Group will announce a return to India this week through a manufacturing venture with NewDelhi-based CK Birla Group Les Echos reported on Monday

The maker of Peugeot and Citroen cars absent from the fast-growing Indian market since the late 1990s has signed a joint venturedeal with the family-owned conglomerate to include a Chennai assembly plant with current annual production capacity of 12000vehicles the French daily newspaper said on its website

A PSA spokesman declined to comment on the report

Under Chief Executive Carlos Tavares PSA is pursuing an ambitious recovery plan after a 2014 brush with bankruptcy and haspledged to find an Indian partner by 2018 to resume production in a market that registers about 3 million new vehicles a yearhttpeconomictimesindiatimescomindustryautonewspassenger-vehiclepeugeot-returns-to-india-through-ck-birla-venture-reportsarticleshow56740326cms

Top

Tax sops for customers will spur buying Murali GopalanThe Hindu Business Line (Web amp Print Edition)

Mumbai The Budget is just one part of the auto industryamprsquos rather pressed timetable for the year

Come April it will need to prepare itself for the new Bharat Stage IV emission norms which will then be followed by a regime on newsafety standards In the interim it will be hoping that the Goods and Services Tax will become a part of the Indian landscape by Julythis year along with some clear directives on scrapping old vehicles

The biggest challenge will be unravelled in April 2020 when the BS-VI norms kick in This will make India the first country in theworld to skip BS V emission levels while jumping directly to BS VI To put it simply auto-makers will have less than 1500 days fromnow to make substantial investments in technology for a new clean air regime while keeping their fingers crossed that adequate fuelsupplies are assured across every nook and corner of the country

Is the Budget therefore only a sidebar in this critical chain of events Of course not It becomes especially relevant considering thatthe country has just gone through an astonishing upheaval since November 8 when the Centre decided to demonetise high valuecurrency As 86 per cent of hard cash was sucked out of the system sentiment naturally went for a toss and sales in rural Indiawere hit particularly badly This explains why tractors and two-wheelers ended up bearing the brunt of the impact

Industry will be hoping that the Budget announces enough sops to create a feel-good effect for customers who would then be

incentivised to buying cars and bikes all over again This would ideally be in the form of tax reliefs as well as initiatives on low-costhousing The idea is to send a message to the residents of amplsquoBharatamprsquo that things are on track and they have little to feelapprehensive about

From manufacturersamprsquo point of view seeking excise duty reliefs in the Budget does not really count given that the GST is dueto be rolled out in July Yet even here there is some anxiety about the Centre being able to stick to this date ampldquoAfter all GSTwas scheduled to roll out in April and we can only hope that it does not get put off once more beyond Julyamprdquo a top executivetold BusinessLine

The fear is that the results of the Assembly elections could have a bearing on GST especially in the case of Uttar Pradesh It is herethat the fortunes of the BJP could impact the implementation of this all-important tax reform A comfortable win may lead to arelatively easy roll-out but a victory for other parties still smarting from the demonetisation move could put the BJP on the backfootin Parliament and lead to a further delay in GST

Automakers will also be hoping that the Budget offers hefty incentives for hybrid and electric cars especially at a time when India isfast forwarding its clean air timetable

Thus far the outlay for electric cars has been modest at best which also puts in perspective why e-mobility has still not kicked off inright earnest In addition announcements of concrete measures on highways and road-building will be welcome in the Budgethttpwwwthehindubusinesslinecomeconomypolicybudget-countdown-automobilearticle9497816ece

Top

Tata-Mistry row had been brewing since Tata Motors 2015 rights issue Shally Seth Mohilemint (Web amp Print Edition)

Tata Sons Ltdamprsquos board had serious differences with Cyrus P Mistry its ousted chairman over the fundraising plans of TataMotors Ltd in 2015 according to the affidavit and annexure filed by Ratan Tata and Cyrus Mistry at the National Company LawTribunal (NCLT)

The affidavits were filed in response to a suit filed by Cyrus Investments Pvt Ltd and Sterling Investment Corp Ltd the Mistry familyinvestment firms alleging mismanagement and oppression of minority shareholders at Tata Sons the group holding company

In his affidavit Ratan Tata alleged that Mistry didnamprsquot keep the Tata Sons board informed about the details of theRs7500-crore Tata Motors rights issue Tata Sons as a principal shareholder and sole underwriter to the issue was expected topick up the unsubscribed portion of the sale He said no directors including the trustsamprsquo nominated ones had the opportunityto express their views on the matter

ampldquoThis in my view conflicted with the letter and spirit of the Articles of Association of Tata Sons which contemplate that allmajor issues of significance should come before the board of Tata Sons for deliberation so that all directors including the Trustsnominee directors who have an affirmative vote in relation to matters before board can effectively and in a meaningful way exercisetheir judgmentamprdquo Tata said in the affidavit Tata Trusts control two-thirds of Tata Sons

This was just one instance of Tata being concerned with the manner in which critical decisions were being taken by the operatingcompanies under Cyrus Mistryamprsquos chairmanship shows a hand-written personal note sent by Tata to Mistry

The note was filed as an annexure along with Mistryamprsquos affidavit

In his affidavit filed on 26 December Mistry alleged that Ratan Tata and trustee Noshir Soonawala ampldquowould regularly go on toallege a breach of articles of association every time he wished to have his wayamprdquo

Tataamprsquos personal note to Mistry on 30 January 2015 said that ampldquoMistry needs to acceptamprdquo that in absence of aprospective agreed long-term business plan for Tata Sons ampldquoit would be difficult for the Trusts to give their consent as aprincipal shareholderamprdquo

Mistryamprsquos response to the note said that he could not have shared further details as it would have violated insider tradingnorms The ousted chairman also said that all relevant board papers where the discussions on fund requirements were capturedfrom time to time were delivered to Tata regularly (in his capacity as chairman emeritus)

Moreover the trust-nominated directors participated in a presentation made by each company on the extent of equity infusion andinstruments Mistry clarified adding that he had asked C Ramakrishnan chief financial officer and HK Sethna companysecretary at Tata Motors to seek guidance from Soonawala on the equity issue and the type of instrument the company should beusing and it was only after getting his views and suggestions that the proposal was taken to board of Tata Motors Soonawala in hissubsequent response to the Mistryamprsquos letter on 16 February 2015 said the meetings with Tata Motorsamprsquo Ramakrishnanand Sethna were brief and no specifics were discussed

Mistryamprsquos souring relationship with Ratan Tata and Tata Trusts led to the formeramprsquos ouster as chairman of Tata Sons on24 October Both sides have since then been engaged in a bitter feud ampldquoGoing by this account it seems the acrimonybetween Tata Sons and Mistry was brewing for sometime His ouster doesnamprsquot surprise any moreamprdquo said ShriramSubramanian managing director and founder at InGovern Research a proxy advisory firm A Tata Sons spokesperson said hewould not comment on the affidavits Mistryamprsquos office also declined to commenthttpwwwlivemintcomCompaniesmsfe51E0gax6MbRfOi5APMTataMistry-ties-strained-further-with-Tata-Motors-2015-righhtml

Top

Autos loses momentum due to demonetisation Lokeshwarri SKThe Hindu Business Line

Auto stocks have put up a good show since the last Budget While the correction that took place since last September has reducedthe returns to some extent many of the front-line auto stocks such as Tata Motors Maruti and TVS Motors gained over 30 per centand most others managed double-digit returns This good performance rubbed off on the auto ancillary stocks as well with most ofthem doing well in an otherwise lacklustre market

The business since last Budget can be split into two parts pre-demonetisation and post-demonetisation Between April andNovember demand for passenger cars remained good due to better purchasing power of the urban customers launches of newcars and variants seventh pay commission pay-outs and declining borrowing rates The gung-ho mood of the urban consumer alsoreflected in brisk demand for high-end luxury bikes Tractor makers witnessed good demand due to normal South West monsoonand LCVs too recorded a pick-up in demand in the first eight months of this fiscal

Stocks forming the Nifty Auto Index (with the exception of Eicher Motor) recorded 10 per cent growth in revenue and 15 per centincrease in profit in the six months to September 2016 compared to the corresponding period in 2015

While Maruti led the pack with 43 per cent jump in earnings in the six months period other companies such as Hero Motocorp TVSMotors and MampM too recorded more than 20 per cent earnings growth in the first two quarters of FY17 Tata Motors put up asluggish performance dragged lower by its domestic performance even as JLR sales continued to rev up

Similarly many auto ancillary stocks such as Bosch Motherson Sumi and Exide continued to show traction with earnings growth ofover 20 per cent Tyre stocks such as Apollo Tyres and MRF however lost momentum in the first half of the fiscal as rubber pricesbegan firming up

But the picture has altered since December when the effect of the cash crunch following the Centreamprsquos decision to ban highvalue notes was reflected in auto sales numbers

Two-wheeler sales were the most affected with volume decline between 8 and 34 per cent recorded by the manufacturers with theexception of high-end bikes such as Royal Enfield Passenger car sales were not too greatly impacted with Maruti recording a mild44 per cent decline in December sales thanks to strong order book in the utility vehicle segment and new launches Whilecommercial vehicles also took a hit tractor manufacturers such as MampM and Escorts grew their sales by 8 and 12 per cent

While the slow-down due to demonetisation is expected to be temporary the sector will be looking forward to the Budget proposalsto simplify tax structure and propose concrete measures to boost demandhttpwwwthehindubusinesslinecommarketsautomobile-budget-stockarticle9497818ece

Top

Interviews amp Features

The five top events associated with the Indian Automobile Industry in 2016 The Financial Express

Auto Expo 2016Auto Expo ampndash The Motor Show 2016 the biennial show of the Indian automotive industry was organised during February 5-92016 at India Expo Mart Greater Noida The exposition jointly organized by - Automotive Component Manufacturers Association(ACMA) Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers (SIAM)

Some highlights of the seven-day long Auto ExpoThe Auto Expo ampndash The Motor Show 2016 had 65 vehicle manufacturers exhibiting products from across the globe

The first two days exclusively for media saw new investments launches concepts unveiled by global CEOs signifying furtherconsolidation of the industry in 2016

Over 108 new vehicles were launched and unveiled the Motor show saw a footfall of more than 6 Lakh visitors

Auto Expo ampndash Components show was held in Pragati Maidan from 4-7 February 2016 with more than 1500 exhibitors and afootfall of over 114000 during the show

While the vehicles exhibited remained most sought after entities at the event street plays puppet shows and laser showsshowcasing the importance of road-safety came in as a breath of fresh air for the visitors at large Stunt shows and superbike ridersalso added an element of panache to the show The vintage car segment was a huge draw and had all auto enthusiasts throngingthe Hall The section on automobilia and the Bollywood zone had become a must see area for the auto enthusiasts The graffiticompetition highlighting the fight against counterfeit parts launch of Asliman the anti-counterfeit mascot were added attractions

As an added attraction the organizers had a vehicle lottery everyday wherein 14 (fourteen) two-wheelers were given away by HeroMotoCorp TVS Motors and Suzuki Motor Cycles to the lucky winner over the 5 public days For the ease of traffic organisers made

DND toll-free for three hours in the morning and again in the evening every day of the Motor Show ensuring smooth trafficmovement while the Delhi and Noida Metro cooperated strongly by giving six Metro stations as the venue for sale of tickets

There were 20 red DTC buses plying in the periphery connecting the venue to the parking areas created for The Motor Show AutoExpo - The Motor Show was the top trending news on twitter and Facebook on all days of the event The social media was abuzzwith the new launches and the glamour quotient of the event

The event saw participation from the glamour world too Katrina Kaif Akshay Kumar Ranbir Kapoor Anil Kapoor Manoj BajpayeeAaliya Bhatt Taapsee Pannu The cricketing fraternity too had a fair share of representation in the form of Sachin TendulkarZaheer Khan Virat Kohli Piyush Chawla and former cricket legend Mohinder Amarnath Manchester United legend Louis Saha alsowas a part of the event

Honamprsquoble Supreme Court allowed sale of Big Diesel cars in Delhi NCRHonamprsquoble Supreme Court banned the sale of large diesel cars with an engine capacity of 2000 cc or more to combat thepollution issues of NCR in December 2015 However according to the IIT K report the entire transport sector contributes to 20 ofthe total PM25 emissions

ampbull A further breakup of the 20 ascribed to all types of vehicles (commercial passenger 2 3 4 wheelers etc) demonstratesthat only a minuscule figure of 2 of the total overall PM25 emission load can be attributed for passenger cars

ampbull Thus the contribution of 4 wheeled passenger vehicles is only 2 of the total PM25 emission in Delhi This 2 by passengervehicles includes all types of vehicles which use petrol diesel or CNG as a fuel Out of this 2 Diesel cars contribute only 15of the PM 25 emissions in Delhi Moreover the contribution of BS-IV diesel cars is only 050 this is because the emissions perBS-IV vehicle are much lower

ampbull The Honamprsquoble Courtamprsquos Order dated 16th December 2015 had banned all BS-IV diesel cars with engine capacity2000cc and above that contribute to only 013 of the total pollution

ampbull Therefore automobile manufacturers contended that a ban on registration of such vehicles means a ban on the latest BS-IVcompliant vehicles which would encourage use of more and more BS-I or BS-II or BS-III norms based vehicles already sold Thiswould have the paradoxical effect of penalizing BS-IV diesel 4 wheeled passenger vehicles which are complying with the latestprescribed norms and would actually encourage the use of more antiquated vehicles emitting 6-7 times higher PM25 emissionsthan the emissions by the latest vehicles compliant to BS-IV norms

After the above representation made by SIAM at the Honamprsquoble Supreme Court and also considering all the representationsthe Honamprsquoble court permitted the registration of BS-IV diesel cars of 2000cc in the Delhi NCR at the additional payment of 1environment protection charge

Leapfrogging from BS-IV to BS-VIIn a bold move in January 2016 the Government of India in consultation with SIAM decided to skip BS-V emission normsaltogether and leapfrog directly to BS-VI norms by April 2020

The move to BS-VI norms from BS-IV norms will substantially bring down vehicular emissions from new vehicles PM emissions amajor component of outdoor air pollution are also expected to come down drastically if parallel measures for controlling PMemissions from other sources are taken care of ie road dust garbage burning etc

It is estimated that auto amp auto parts industry in India be investing over USD 10 billion to be able to manufacture BS-VI compliantcars

ampldquoIndian auto industry is committed to meet the challenge of achieving to BS-VI emission norms by 2020 The target is verystiff but the auto industry has accepted the challenge in view of the rising concerns on vehicular pollution especially in the urbanmetrosamprdquo Mr Vinod Dasari President SIAM stated

Winter smogThe onset of winters brought a hazesmog over the whole of north India and with pollution the debate over emission also gottriggered This time various research agencies were involved in figuring out the causes and solutions to the mounting issue ofsmog The agencies cited that burning of paddy stubble in north Indian states were the main cause for the sad state of affair inDelhi Dust-generating construction sites industrial emissions as well as a dominance of coal-fired power plants were also stated tocontribute to the increasingly noxious air

Automobile industry on its part with the pledge of amplsquoBuilding the Nation Responsiblyamprsquo further resolved to introducebetter emission norms and leapfrog from BS-IV to BS-VI The resolve for making cleaner and safer vehicles has only beenstrengthened

DemonetizationPulling the Rs 500 and Rs 1000 currency notes out from circulation might have acted as a deterrent but it could not quell down thespirits of buyers A good monsoon and even better festival season fuelled the rural economy and the demand for all kind of vehicleswas already on a higher curveSoon the industry went on to explore better methods to retain customeramprsquos interest and considering the lack of hard cash theystarted offering 100 financing schemes Moves like these helped the industry handle the situation better

Demonetization acted only as a temporary dampener and the industry hopes to recover with the sales Rural India is learning to gowith less cash economy and the engine of growth is likely to continue kicking despite several hurdleshttpwwwfinancialexpresscomautocar-newsthe-five-top-events-associated-with-the-indian-automobile-industry-in-2016519169

Top

Cars SUVs MUVs

Maruti Suzuki rated acirceuro˜Buyacirceurotrade by Kotak says Ignis could be another winner Kotak Institutional EquitiesThe Financial Express (Web amp Print Edition)

Maruti Suzuki launched its new compact SUV Ignis which we believe is likely to be another winner due to its superior featuresperformance and higher fuel efficiency than its competition Our analysis suggest that at the introductory launch price for Ignisprofitability of the car will be significantly lower than for Maruti Swift and we expect the company to raise prices after assessing theorder book Maintain Buy with an unchanged target price of R6300

Ignis pricing is aggressiveampmdashprofitability likely to be lower than for Swift Our analysis suggests that Maruti Suzukiamprsquosintroductory pricing of Ignis is very aggressive given the features the company has offered in the car Ignis has significantly superiorfeatures over Swift and Hyundai Grand I10 The company has spent R95 billion (along with vendors) for the development of the carwhich will need to be compensated to the vendors till Ignis hits cumulative volumes of 200000

Maruti has priced the petrol variant of Ignis very aggressively while diesel variant will likely be significantly more profitable Weestimate the company will make a blended Ebit of ~R44000-69000vehicle on Ignis DeltaZeta variants versus ~R75000 for Swiftonce Ignis achieves cumulative 200000 volumes

It is difficult to estimate profitability of models but we have made calculated estimates on profitability of Ignis versus Swift afterassessing the features and pricing of both cars Maruti Suzuki will likely raise prices of the Ignis (especially the petrol variant) once itassesses the order book of the car According to our channel checks the company had achieved an order book of 8-12 weeks evenbefore announcing the pricing of the car We estimate the company will likely sell 90000 units of Ignis in FY2018 (60000 of petroland 30000 of diesel variants) We do believe Ignis will eat into Swift numbers and it could take additional volumes from Hyundai aswell

Ignis scores over Hyundai Grand i10 and Swift Maruti Ignis will compete with Hyundai Grand i10 and is priced competitively but hassuperior features better power and fuel efficiency than the Hyundai fare We believe the car is likely to appeal to the youngergeneration as they prefer compact SUVs and feature packed cars with bolder styling over hatchbacks

The company has also provided ABS + EBD and dual air bags as standard from the base variant itself in Ignis which willsignificantly improve the safety of the car which is not a standard fitment in Swift or Grand i10 We believe on paper Ignis seems toscore over Maruti Swift and Hyundai Grand i10 but compact SUVs appeal more to the younger generation than middleoldergeneration Also the stability of compact SUVs has not been tested as yet as it is a relatively new development in India given thesmall wheelbase as compared to larger SUVshttpwwwfinancialexpresscommarketmaruti-suzuki-rated-buy-by-kotak-says-ignis-could-be-another-winner519768

Top

Top-end spec comparison Tata Hexa vs XUV500 W10 vs Toyota Innova Crysta Asian Age (Web Edition)

The Tata Hexa squares up against two of the heavy hitters in the utility segment ampndash the Mahindra XUV500 and the InnovaCrysta The XUV5OO is a very popular product with its stylish SUV stance and optional all-wheel drive setup along with severalautomatic variants The Innova Crysta on the other hand is Indiaamprsquos favourite people mover ampndash popular among bothprivate as well as fleet owners Tata recently came into the price band of these two and certainly offers the best of both worldsLetamprsquos see how well it manages to compete with these two vehicles

DimensionsThe Hexa is longer and wider than the XUV500 and the Crysta It also has the longest wheelbase among the trio and beats theCrystaamprsquos by 100mm All of these characteristics should liberate more space in the cabin especially for taller occupants Andthe third row should be quite spacious as well The turning radius takes the biggest hit with big cars and the 575m rating reflectsthat With a 200mm ground clearance tackling even the tallest speed breakers should not be a problem

MechanicalsThe Hexa and the XUV500 come with a 22-litre engine while the Innova Crysta packs a 24-litre unit However the Hexa managesto not only trump the XUV but also the Crystaamprsquos bigger engine with the best power and torque figures The 156PS of poweris marginally more than the Innovaamprsquos 150PS figure but the 400Nm of torque is at a whole new level

What also boosts its off-road credentials is the combination of a body-on-frame and the option of 4WD The XUV500 is availablewith an AWD set-up but its monocoque frame limits its off-roading capabilities The Innovaamprsquos body-on-frame is also capableof handling a fair deal of abuse but lack of a 4WD set-up means all that beating can only happen on tarmac

The Innova is also the only vehicle here with a 5-speed manual transmission while the Indian manufacturers offer a 6-speed

gearbox

FeaturesThe battle of the features starts off with the safety kit and the Innova is quick to get off the mark by offering knee airbag for thedriver as standard equipment The XUV500 and Hexa donamprsquot have it even as an option However the stopping power isstronger in the Indian offerings here as they come with disc brakes on all four corners

The XUV goes further and provides a Tyre Pressure Monitoring System (TPMS) and a cornering light while Hexa gets a defoggerfor the outside rear-view mirror

When it comes to comfort and convenience the Hexa appears to be missing out on quite a bit of kit Thereamprsquos nopower-adjustable driver seat push button start or rake adjustment for the steering and the touchscreen is also smaller than thephones we carry in our pockets It does make up for the tiny infotainment screen with the JBL-powered 10-speaker music systemthat can get the party started anywhere

The XUV again presents a great case for itself by offering a power sunroof without making any glaring omissions in the featuresdepartment

VerdictThe Tata Hexa skips a few features that the XUV500 comes with Push-button start with passive keyless entry telescopic steeringand electronic seat adjustment are missing on the Hexa The touchscreen infotainment system is also on the smaller side comparedto the XUV and the Crysta While its pricing is on the lower side its not too far from the XUV500 Though the Hexa does offerfantastic cabin space and a robust mechanical set-uphttpwwwasianagecombusinessautos230117top-end-spec-comparison-tata-hexa-vs-xuv500-w10-vs-toyota-innova-crystahtmlHexa vs XUV5OO vs Innova Crysta variant-to-variant feature comparisonDeccan Chronicle (Web Edition)httpwwwdeccanchroniclecombusinessautos230117hexa-vs-xuv5oo-vs-innova-crysta-variant-to-variant-feature-comparisonhtml

Top

Honda City facelift likely to launch in Feb 2017 The Statesman

New Delhi Hondas most popular nameplate in India the Honda City is set for a revival While it may just be a cosmetic update itsnonetheless important for Honda since the City anchors the companys India sales and is one of the top selling cars in theC-segment To re-register its grip over the segment by taking the first movers advantage Honda would want to launch the Cityfacelift in India ahead of Ciaz facelift which could be here in March-April 2017 The Ciaz outsold the City in 2016 by a margin of5000-odd units

The City facelift recently made way into the Thai market and rumours were rife that it would come to India as early as January 2017Our sources however point to a Feb 2017 launch Dealerships in Delhi are accepting bookings for the updated model as somebuyers are ready to wait out for the new City Official bookings for the updated model are expected to commence in the last week ofJanuary 2017 Honda dealerships are therefore in the process of selling off their existing City stock by offering juicy deals on top ofcartel discount

The City facelift for the Thai market gets a mildly reworked fascia with a new bumper and a new sleeker front grille The mosttalked-about update is the inclusion of LED headlamps in the package that may make way into the Indian market as well HondaCitys chief rival in India and the current segment leader Maruti Suzuki Ciaz already gets projector headlamps as standard WithMaruti Suzukis Ignis sporting LED projector headlamps we expect Maruti Suzuki to offer the same in the upcoming Ciaz facelift aswell The Ciaz may enter the companys premium retail chain Nexa as their fifth product fourth being the Baleno RS which is duefor a Feb 2017 launch

Other changes in the facelift City include a redesigned rear bumper The interiors also get minor improvements with some newfeatures details about which can be read here

The C-segment didnt see much happening in the year 2016 with only the Skoda Rapid undergoing a major cosmetic overhaul 2017will however see the C-segment battle heating up with the all-new Hyundai Verna set to arrive in the market The Hyundai Vernawas once a tough nut to crack in the C-segment in India However new product launches in the Honda City and the Maruti SuzukiCiaz took Hyundai completely off-guard and outnumbered the Verna on sales charts The new Verna is expected to make a strongcomeback in India riding high on features Importantly Hyundai is expected to power the new Verna with a mild-hybrid diesel engineas seen on the Maruti Suzuki Ciaz SHVS (more on the new Verna and other upcoming Hyundais here)

Let us know which of the three cars ampndash the City the Ciaz or the Verna - will be your pick in the C-segment in the commentsbelowhttpwwwthestatesmancombusinesshonda-city-facelift-likely-to-launch-in-feb-2017-1485179492html

Top

Luxury Cars

Facelifted Ford Mustang gets new 10-speed AT

Deccan Chronicle (Web Edition)

Ford introduced the mid-cycle update of the Mustang recently in its home country the USA The 2018 avatar of this American bluecollar manamprsquos hero has received a host of changes both aesthetic and mechanical along with additional features Read on tofind out an in-depth analysis of the thoroughly updated pony car

Ford has just unwrapped the facelifted Mustang in the USA The pony-car receives a host of design feature and powertrain updatesand while this is just a refresh the changes are actually quite extensive

DesignThe new look has received a fair share of mixed reactions especially since a video leak revealed the Mustangamprsquos new lookahead of the official reveal Weamprsquoll leave the judgement to you but the car is now sleeker thanks to a remodeled bonnet andfront grille while the front bumper is new as well On the outside a big highlight is that for the first time the entire Mustang line willfeature all-LED front lights including the signature lighting low-beams turn signals and projector high-beams while LED fog lampscan be opted for as well

The LED tail lights have been tweaked as well as has the rear bumper while a new spoiler is available as an optional extraWhatamprsquos more is that while EcoBoost powered Mustangs get dual exhaust tips the full-fat V8 powered Mustang GT getsquad-tail pipes

Three new colours including Orange Fury (pictured above) have been introduced and customers can choose from a range of 12different wheel designs

PowertrainThe 37-litre V6 powered Mustang was widely considered a neither-here-nor-there model by Mustang enthusiasts and it looks likeFord thought so too since the variant has been dropped You now get the option of the 23-litre four-cylinder EcoBoost mill or the50-litre V8 Mustang GT (no prizes for guessing which one weamprsquod get) Both engines have been reworked for increased poweroutput though the official figures havent been disclosed

The manual transmissions for both engines have been reworked while the V8amprsquos manual box has been redesigned to includea twin-disc clutch for improved torque management and a dual-mass flywheel for smoother shifts and improved vibration controlFord is also offering an optional active valve exhaust giving the driver control over when heshe wants the Mustangamprsquosexhaust to whisper and when itamprsquos time to scream

M-A-J-O-R Update OneFord is now offering a new ten-speed automatic transmission (co-developed with General Motors) instead of the outgoingmodelsamprsquo six-speed unit The autobox is available with both engine options and promises improved shift-response (a weakpoint of the current transmission) and reduced friction-loss Yep you still get paddle-shifters too

M-A-J-O-R Update TwoOn all models new shock absorbers have been installed for better ride control while a new cross-axis joint in the rear suspensionclaims to improve stability by bumping up the lateral stiffness Stabiliser bars also aid in improving the handling but the realheadline here is the MagneRide magnetorheological adaptive damper technology

While adaptive dampers were earlier limited to the Shelby GT 350 theyamprsquore now available on both the EcoBoost and GTPerformance Packs for improving the Mustangamprsquos high-speed handling further

Interior and TechThe cabin sports a new (optional) 12-inch LCD all-digital instrument cluster Through it customers can personalize the displays fornormal sport and track mode Also featured is the Mustang MyMode feature with a memory function that allows customers to savetheir favorite drive settings including suspension and steering preferences

The new Mustang also benefits from safety kit like Pre-Collision Assist with pedestrian detection distance alert lane-departurewarning lane-keeping assist and a driver alert system Ford SYNC Connect with FordPass is available with the Mustang for the firsttime too Through the FordPass smartphone app owners can start lock unlock and locate their car remotely

The updated Mustang goes on sale in the USA later this year An Indian debut is likely in the first half of 2018httpwwwdeccanchroniclecombusinessautos230117facelifted-ford-mustang-gets-new-10-speed-athtml

Top

Commercial Vehicles

Construction amp Agri Machinery

23 Wheelers

Yamaha FZ 250 launch tomorrow will mark entry in 200-250 cc segment The Financial Express

Yamaha in India has surprisingly been totally absent from the growing segment of 200-250 cc motorcycles for long With growingdisposable incomes customers have shown an incline towards larger and sportier motorcycles in the last few years In order to plugthis gap Yamaha has been working on the FZ 200 250 which has been caught testing multiple times in the last few weeks Thenew FZ 250 will finally be launched in India tomorrow marking the companys entry in this growing segment

The FZ250 will be powered by a 249cc single-cylinder FI engine which delivers around 20hp of power and 20Nm of torque andcomplies with BSIV emission norms The motorcycle will get Bybre sourced disc brakes at the front and rear with ABS as standardAlong with this the motorcycle gets a LED headlamp setup with AHO ( Automatic Headlamps ON) functionality

Read about New Yamaha R15 V 30 details images and specs revealed India launch later this yearYamaha might launch the FZ250 between a price range of Rs 14 lakh to Rs 16 lakh depending on the variants When launchedthis month the FZ250 will compete with the likes of Honda CBR250R Bajaj Pulsar RS200 and TVS Apache RTR 2004V

Yamaha has finally revealed the R15 Version 30 in Indonesia the new version is more updated in safety and electronics It isexpected that new R15 V 30 to be launched in India later in 2017 and will be priced to command a slightly premium over thepresent modelhttpwwwfinancialexpresscomautobike-newsyamaha-fz-250-launch-tomorrow-will-mark-entry-in-200-250-cc-segment518851Yamaha FZ250 launching TomorrowDeccan Chroniclehttpwwwdeccanchroniclecombusinessautos230117yamaha-fz250-launching-tomorrowhtml

Top

New acirceuroordfacirceuroordfYamaha YZF-R15 unveiled in Thailand India launch soon The Economic Times

New Delhi New 2017 Yamaha YZF-R15 Version 30 has been unveiled in Thailand and the motorcycle is expected to be launchedsoon in India This new version has undergone changes in bodywork and engine

It now features VVA technology assist and slipper clutch hazard lamp inverted front suspension fork all-LED lighting system fullLCD panelmeter with shift indicator and wider tyres

The third generation Yamaha YZF-R15 measures 1990mm X 725mm X 1135mm with a wheelbase of 1135mm It comes equippedwith 1551cc liquid cooled 4-stroke SOHC single cylinder engine The engine churns out 142 kW power 10000 rpm and 147Nm torque 850 rpm It has an electric start

The new Yamaha YZF-R15 features new sleeker headlamps and tail lamp LED turning winkers upside down forks up front andnew alloy wheels

The Yamaha YZF-R15 was first launched in 2008 Its second generation was launched in India in 2011httpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesnew-yamaha-yzf-r15-unveiled-in-thailand-india-launch-soon56733607

Top

acirceuro˜Boosting consumption should be top priorityacirceurotrade Roy KurianThe Hindu Business Line

Reviving demand and consumption in the auto sector should be the top priorities in the Budget As someone closely involved in thetwo-wheeler industry it is crystal clear to me that customer sentiment is not so great after the demonetisation move and improvingthis is critical

The closest analogy I can think of to put this in perspective is a rapid roller-coaster ride For the first 15 minutes after this hair risingexperience your heart is beating furiously It is only after that you can breathe a lot more easily and slowly come back to yoursenses

The experience of demonetisation has been something like a roller-coaster ride which left people shell shocked and it is only nowthat they are slowly coming to terms with the new reality After all they were used to cash transactions and to suddenly be yankedout of that ecosystem takes a lot of coping

Yet Indians are remarkable when it comes to adapting to change quickly And even while the sentiment is perhaps better than whatit was following the aftermath of November 8 when demonetisation kicked in it still needs to be improved This is where the Budgetcan play a big role in easing customers quickly into the new milieu of a digital India by offering them a host of goodies

Boosting customer sentiment is absolutely critical and heshe should have more disposable income in hand to feel confident aboutspending on products like two-wheelers After all farmers and workers in other sectors found themselves strapped for cash in thedays following demonetisation and naturally put off what they considered not-so-essential purchases The little money they had in

their hands needed to be kept aside for immediate priorities like sowing for instance

Easier borrowing at low interest levels will help the cause coupled with more lenient tax sops to boost the amplsquofeel goodamprsquosentiment among buyers This will get a further fillip with initiatives like low-cost housing incentives targeted in particular at ruralIndia

Job creation is the need of the hour and this is where the auto industry plays a big role as a substantial contributor to manufacturingGDP Boosting local RampD and engineering will play a big role in hiring more people

(The writer is Vice-President (Sales amp Marketing) Yamaha Motor India Sales Pvt Ltd)httpwwwthehindubusinesslinecomtodays-papertp-newsboosting-consumption-should-be-top-priorityarticle9498020ece

Top

Top 5 facts about KTM RC390 Asian Age

Bajaj has always made sure that the KTMs are available with the most competitive price tags and its no different this time too

India finally gets the updated models of the popular KTM RC 390 and the RC 200 The twins now meet the stringent BSIV emissionstandards however the bigger RC 390 also receives a noticeable number of changes And here is the list of the top five of them

AppearanceLooking at the images from the launch event the cosmetic changes to the RC 390 are apparent and will significantly raise thebikeamprsquos road presence The sporty bright white and gloss black graphic setup along with orange detailing on the fairing and atplaces is far more flamboyant than the previous bikes rather dull paint scheme Additionally the bike has been given a UV resistantpaint for the first time which will increase the paints longevity One can also notice the amplsquoRC 390amprsquo moniker under andeither side of the pillion seat which receives 12mm of extra padding for added comfort Moreover the side-slung BSIV compliantexhaust unit looks beefy with the black and brushed metal setup

EngineThe motor is the same 3732cc single-cylinder liquid-cooled four stroke unit with minor tweaks The engine now carries ride-by-wiretechnology which makes the bike more responsive and more ideal for track use While the power remains unchanged at 435PSthe torque gets bumped by 1Nm to 36Nm The unit however retains the slipper clutch mated to the 6-speed race-tuned gearbox

FeaturesThe RC 390 has been bestowed with a slew of new features The bike gets new adjustable clutch and brake levers It also getsbigger rear view mirrors which should make them more usable with a better field of view ampndash something that the previous onesstruggled with The bike also gets smart features like EVAP ampndash prevents vaporised fuel loss ampndash and CAN BUS ampndash acentralised switchboard so that there are no loose cables hanging around inside the fairing of the bike It also features a bigger discbrake at the front 320mm against the previous 300mm On the other hand the WP suspension system at the front (upside down)and back (mono-shock) remains intact along with the dual channel ABS unit and the LCD instrument panel

PerformanceNow this oneamprsquos interesting -- the new RC 390 is significantly heavier than the previous bike With a dry weight of 1635kg ithas gained over 15kgs The most apparent reason for this is the new and bulky BSIV compliant exhaust unit Also Bajaj hasntprovided us with the official 0-100kmph and top speed figures This inevitably indicates towards two possibilities either the RC 390is equally fast as the outgoing bike or it is slower It might be faster but hey then why not mention it Yes the ride-by-wiretechnology is going to make the throttle response better but whether the bike is quicker (in terms of lap times) than before is yet tobe tested

PriceBajaj has always made sure that the KTMs are available with the most competitive price tags and its no different this time too At Rs225 lakhs (ex-showroom Delhi) the RC 390 retains its badge of the most affordable supersport machine in its category Needlessto say the 325 KTM showrooms across the nation will witness an increased flow of queries regarding the bikehttpwwwasianagecombusinesscompanies230117top-5-facts-about-ktm-rc390html

Top

Confirmed 2017 Bajaj Pulsar Ns200 Deccan Chronicle

Bajaj has recently confirmed the launch of 2017 Pulsar NS200 in India The Pune-based automaker has posted a teaser of the bikeon social media that says it is coming soon As per the speculations the new model could be launched within a few days and webelieve that it will not just be a cosmetic update Launched in 2012 as the Pulsar 200NS it was the flagship model of the companythat time and was based an all-new platform Moreover it was the first bike of the company to use a perimeter frame which is thesimilar one that comes in the existing Pulsar AS range RS200 and the newly launched Dominar 400

In 2015 reports emerged that the production of the Pulsar 200NS was being suspended to fulfil the demand of the new AdventureSport (AS) models Although never announced officially the bike was silently discontinued from the market by 2016 Now thecompany has decided to reintroduce the bike with some added features

The 2017 Bajaj Pulsar NS200 has already been showcased at a recent dealers meet of the company in Turkey There are no

cosmetic changes in the model except a revised paint job providing it with a new look The platform also remains unchanged andthe bike retains the same 1995cc liquid-cooled motor that was used in its predecessor However the 2017 version of the enginewill get some updates to meet the BS-IV emission standards along with a fuel injection system for better performance

The FI will help the mill to produce some extra power and will give a slight bump to the peak torque output as well The new PulsarNS200 is expected to have performance figures similar to its full-faired sibling the RS200 which means the maximum power andtorque figures could be 245PS and 186Nm respectively

Other features of the bike such as the digital-analog instrument front and rear petal disc brakes front 37mm telescopic forks rearNitrox monoshock and more are also expected to remain untouched Another anticipated feature on the bike is ABS which couldcome as an optional extrahttpwwwdeccanchroniclecombusinessautos230117confirmed-2017-bajaj-pulsar-ns200-launching-soonhtml

Top

E-Bikes

Okinawa Electric Scooters launched in India to invest Rs 275 crore over next 3 years Ronak ShahThe Economic Times

New Delhi New entrant in Indian two-wheeler electric space Okinawa Electric Scooters which also launched its Ridge electricscooter in the country is going to invest about Rs 270-275 crore in India over next three years and will also be increasing its productportfolio going forward with two more products launches already scheduled in 2017

Speaking to ETAuto the company said that its product portfolio will not just be restricted to scooters but will also includemotorcycles

Okinawa Ridge launched at a price of Rs 43702 (ex-showroom Delhi) will need RTO registration and insurance unlike most of theother electric scooters in the country because of its high power

Electric two-wheelers contribute to less than 1 percent of the total two-wheeler sales in India and the company is looking to gainsome momentum in this niche segment The company also told us that it is looking to establish the company pan India and will belocally manufacturing electric scooters from its plant in Bhiwadi Rajasthan

Commenting on the beginning of their operations Jeetender Sharma MD Okinawa Scooters said ampldquoBeing an Indiancompany our vision is to be a leading electric two-wheeler manufacturer by offering a solution to the daily commuting needs of theaverage person We aim to empower all our stakeholders through products that add to their lifestyle without subtracting anythingfrom the environmentamprdquo

ampldquoBy making technology and nature ride together Okinawa is poised to create a revolution in Indiaamprsquos transportationspace We promise never-seen-before performance standards and are driven by our motto of amplsquoPower the Changeamprsquo ineach component of our vehicles They run fast are great to look at come at extremely affordable prices and are a big ray of hope tocurtail the amount of environmental degradationamprdquo

Okinawa Ridge boasts a top-speed of 55 kmph and a range of 200 kms in full charge that requires a charging for 6-8 hours Thereis also an option of fast charge in which the company says the scooter can be charged by up to 80 in less than two hours

Currently the company has a total of 24 dealers in states like Rajasthan Haryana Punjab Delhi and Madya Pradesh but plans toexpand to 450 dealers across India in next three years The company is also looking to setup a RampD centre in Rajasthan and will beimplementing charging infrastructure facilities in key cities as a pilot project before extending it to other citieshttpautoeconomictimesindiatimescomnewstwo-wheelersscooters-mopedsokinawa-electric-scooters-launched-in-india-to-invest-rs-275-crore-over-next-3-years56729957Okinawa launches Ridge e-scooter at Rs 43702The Hindu Business Linehttpwwwthehindubusinesslinecomcompaniesokinawa-launches-ridge-escooter-at-43702article9497254eceOkinawa to invest Rs 270 crore to expand e-vehicle businessThe Hindu Business Linehttpwwwthehindubusinesslinecomcompaniesokinawa-to-invest-270-crore-to-expand-evehicle-businessarticle9497873eceOkinawa to invest $40m over next 3 yrs on expanding operationsThe Pioneerhttpwwwdailypioneercombusinessokinawa-to-invest-40m-over-next-3-yrs-on-expanding-operationshtml

Top

Components

Motherson sumi wired for near-term earnings growth with Finlands PKC buy Ashutosh ShyamThe Economic Times

Motherson Sumis acquisition of Finland-based PKC group for 571 million has potential to add value for the company in themedium-term thanks to incremental product portfolio scalability of business and the companys successful track record of turningaround its acquisitions

Although based on the current financials of PKC it appears that 50 premium paid for Finnish company is on the higher side butthe potential for revenue growth in the next two years and synergy benefits from the deal may be able to dispel investors concernsThere are several factors in play in the acquisition that may boost earnings growth of the Delhi headquartered Motherson Sumi

Firstly PKC supplies wiring harness which is a set of wires that runs throughout the vehicle to relay information and electricpower--for the heavy and medium commercial vehicle makers of the USA and Europe

Motherson has been so far supplying wiring harness mainly to passenger cars The entry in the CV segment will expand its productportfolio PKC is having 62 and 43 market share in the US and European heavy truck markets respectively

Secondly PKC generates income from US Brazil Europe and ChinaHence diversified revenue base will help Motherson expandits revenue base which has currently concentrated in Europe Thirdly the product portfolio has minimum overlap with the existingproduct line-up

Lastly the acquisition is likely to be neutral for the earning per share (EPS) for 2018 and expected to 7-8 accretive for 2019 ThePKC acquisition will aid the company to achieve its revenue target of $6 billion by 2020 Based on financials of 2016 Motherson hasvalued PKC group at 97 times of its EVEBITDA In the past two significant acquisitions -SMR and SMP -it paid 16 times and fivetimes their respective EVEBITDA

The revenues and margins of PKC have been floating in a narrow range over the last five years

With a historical track record of Mothersons management on improving profitability and ample room for the expanding addressablemarket of the PKC revenue growth and margins are expected to improve

The stock is trading at 50 premium to its long-term average price-earnings multiple which appears justified given its multi-yearearnings visibility and option value from acquisitions

Motherson has indicated that PKC may achieve revenue of 14 billion (2016 846 million) and 10 operating margin (2016 76)by 2018 Thus EVEBITDA based on 2018 earnings appears quite reasonable at 44 timeshttpautoeconomictimesindiatimescomnewsauto-financemotherson-sumi-wired-for-near-term-earnings-growth-with-finlands-pkc-buy56727042

Top

Auto-component maker Ranes performance reveals cash ban speed bump Bharani VaitheesvaranThe Economic Times

Chennai City-based automotive component and parts manufacturer Rane MadrasBSE -017 posted a 20 income in operatingrevenues but incurred a 15 drop in profit after tax in a quarter rocked by ripples of demonetisation Ranes total operating incomestood at Rs 2045 crore even as PAT slipped down to Rs 272 crore in the third quarter of the current fiscal

The Earnings Before Interest Taxes Depreciation and Amortisation margins slipped 47 basis points to land at 82 The TotalOperating Income for the nine months till December stood at Rs 7297 crore against Rs 623 crore during the same period last yearan increase of 17 Profits during the period showed a sharp increase at 20

The companys chairman L Ganesh said The performance in this quarter was mixed as the auto-industry felt some undercurrentsfrom the demonetisation drive The strong supplies to the OEM [Original Equipment Manufacturers] was offset by the suppresseddemand from the aftermarkets

Rane Madras is part of the Rane Group that has presence in steering gearBSE -196 and steering and suspension linkageproducts and die-castings With large market shares in these product lines Rane is banking on the anticipated recovery in theIndian auto-market according to Ganeshhttpeconomictimesindiatimescommarketsstocksearningsauto-component-maker-ranes-performance-reveals-cash-ban-speed-bumparticleshow56734310cms

Top

Rane (Madras) Q3 FY17 PAT down 15 at Rs 272 crore The Economic Times

Chennai Indian manufacturer of steering and suspension products and die casting components Rane (Madras) on Mondayreported its standalone financial performance for the third quarter (Q3 FY17) and nine months ended December 31 2016 in aBombay Stock Exchange (BSE) filing

The company has registered 15 percent decline in its standalone Q3 FY17 net profit (PAT) Performance and stood at Rs 272 croreas against Rs 320 crore during Q3 FY 16 Its total operating income was Rs 24466 crore for Q3 FY17 as compared to Rs 20452crore in Q3 FY16 an increase of 20 percent

Its standalone net profit (PAT) for April-December FY17 stood at Rs 12 crore as compared to Rs 1001 crore thereby registering a

year-on-year increase of 20 percent The total operating income for the period was Rs 72974 crore when compared with Rs62350 crore during same period last fiscal

Rane (Madras) has also informed BSE that the Board of Directors of the Company has declared an interim dividend of Rs 2 perequity share of Rs 10 each

The performance in this quarter was mixed as the auto-industry felt some undercurrents from the demonetisation drive The strongsupplies to OEM customers was offset by the suppressed demand in the aftermarkets We expect RML to benefit from theanticipated recovery in the Indian market We continue to work on several initiatives to improve our operational performance anddrive margin expansion said L Ganesh Chairman Rane Group

The automotive components manufacturer has witnessed strong demand from passenger car and commercial vehicle segments forthe Steering and Linkages Division However its performance in the Farm Tractors segment has subdued mainly due to superiorgrowth in unserved marketshttpautoeconomictimesindiatimescomnewsauto-componentsrane-madras-q3-fy17-pat-down-15-at-rs-2-72-crore56732621

Top

Bosch India expanding Pune plant to meet increasing ABS demand The Economic Times

Bengaluru Pune Owing to increased demand for Anti-lock Braking Systems (ABS) in India the Bosch Group in India is buildingcapacity at its Pune plant

This information was revealed on Monday during the visit of Winfried Kretschmann Minister President of the Southwest Germanfederal state of Baden-Wuumlrttemberg and his delegation at Bosch Indiaamprsquos Pune plant

Minister President Kretschmann stated ampldquoSmart cities smart mobility and innovative solutions for engineering and automobileproduction are the focus of our trip And this is why I am especially pleased that we are beginning our trip here in Pune at Boschampndash a company that is ensuring that cities and mobility systems worldwide become smartamprdquo

The sales of vehicles fitted with ABS in India in 2016 improved significantly owing to a combination of factors such as legislationmandates and improved customer awareness These factors led to strong demand and sales as India currently registers an ABSfitment rate of around 50 percent informed Bosch India in an official statement

Minister President Kretschmann said ampldquoBosch Group has already contributed significantly to the development of technologiesthat bring us closer to the vision of emissions-free and automated cars as part of a future digitally connected mobility system Thismeans that infrastructure will be better used traffic jams avoided and multimodal transportation improved Moreover the number oftraffic victims will decrease drastically and energy consumption and pollution will be reduced

ampldquoOver the past nine years Bosch has invested over Rs 400 crore in Bosch Chassis Systems India We are committed togrowing this segment of our business and to that end the development of the Pune plant is crucial and necessaryamprdquocommented Soumitra Bhattacharya managing director Bosch and president Bosch Group India

Boschamprsquos Chakan plant is a member of the International Production Network (IPN) for the ABS and the Electronic StabilityProgram (ESP) Each single machine for the ABS line is connected not only with each other but also with other ABS lines in theIPN These lines are managed by a Manufacturing Execution Systems (MES) Through this Boschamprsquos Chakan plant hasachieved a quality level close to zero defects added the company

Bosch currently employs around 1000 associates at two manufacturing facilities and one development center in Punehttpautoeconomictimesindiatimescomnewsauto-technologybosch-india-expanding-pune-plant-to-meet-increasing-abs-demand56733998

Top

Amtek Auto gains 4 as it moves closer to pare debt Business Standard

New Delhi Shares of Amtek Auto gained nearly 4 on reports the debt-ridden auto-component maker has moved closer to pare itsdebt burden by the middle of 2017

Reacting to the news report the stock of the company rose as much as 38 to Rs 3495 on the BSE

Nearly 1 lakh shares exchanged hands on the counter on the BSE against two-week average of 23 lakh shares

AMtek Auto has planned to cut three-fourths of its debt of Rs 13500 crore by the middle of 2017 reported Business Standard

As much as Rs 10500 crore is expected to come from the asset sale and an infusion of capital by overseas investors The creditorbanks may convert their loans into equity it saidhttpwwwbusiness-standardcomarticlemarketsamtek-auto-gains-4-as-it-moves-closer-to-pare-debt-117012300159_1html

Top

Allied Industries

Amara Raja Batteries shares dip 5 on reporting nearly 18 yoy fall in Q3 net profit The Economic Times

New Delhi Shares of Amara Raja Batteries slipped as much as 5 per cent in early trade on Monday after the company on Sundayreported a 1790 per cent drop in December quarter net profit at Rs 11232 crore on higher expenses The company had posted anet profit of Rs 13682 crore for the same period a year ago

The companyamprsquos total income from operations however advanced by 967 per cent to Rs 1502 crore from Rs 136954 crorereported for the year-ago period

Total expenses rose 1446 per cent to Rs 134496 crore from Rs 117503 crore reported fro the corresponding quarter of lastfinancial year

The scrip was trading 255 per cent down at Rs 87935 Shares of the company opened at Rs 898 and touched a high and low of Rs898 and Rs 85725 respectively in the first hour of trade BSE benchmark Sensex was trading 10405 points or 038 per centhigher at 2713855 around 945 am (IST)

Commenting on the Q3 performance Chief Financial Officer SV Raghavendra said ampldquoCapacity enhancements areprogressing as per the plan in the automotive batteries sector and capacity utilisations in all plants are at healthy levelsDemonetisation of high-value currency notes did not have much impact on collection on receivables The inventory buildup at theend of the quarter was slightly higher due to lower demand in two-wheeler batteries and on account of pre-season buildup ofinverter batteries The funds position continued to be comfortableamprdquo

Amara Raja is engaged in the batteries power solutions and electronics businesses among othershttpeconomictimesindiatimescommarketsstocksnewsamara-raja-batteries-shares-dip-5-on-reporting-nearly-18-yoy-fall-in-q3-net-profitarticleshow56727987cms

Top

Raw material costs note-ban drain Amara Rajaacirceurotrades Q3 net The Hindu Business Line

Hyderabad Amara Raja Batteries Ltd posted a lower net profit of Rs 11232 crore for the third quarter ended December 31 againsta profit of Rs 13632 crore for the corresponding quarter last year

The batteries major registered a 97 per cent increase in gross sales at Rs 1502 crore ( Rs 136954 crore)

Jaydev Galla Vice-Chairman and Managing Director said ampldquoOur year to date volume and revenue growth are in line with ourplan in both automotive and industrial applications Continuous improvements in operational efficiencies are supporting themanagement efforts in remaining aggressively competitiveamprdquo

ampldquoDemonetisation of high value currency and sharp increase in raw material prices during the quarter had moderate impact onthe quarter results and we believe that the market conditions would get restored to normalcy very soonamprdquo he said

For the nine months ended December 31 the company registered a gross income of Rs 449148 crore ( Rs 3919 crore) andposted a profit of Rs 37930 crore ( Rs 38257 crore)

The company said the automotive battery business continued to maintain growth overall Demonetisation impacted segments invarying proportions across segments

Trent Moore Nevill was appointed as an additional director to hold office up to the ensuing AGM consequent to the resignation ofShuqing Yang from the board

The companyamprsquos shares closed at Rs 87220 down 334 per cent on the BSE on Mondayhttpwwwthehindubusinesslinecomtodays-papertp-newsraw-material-costs-noteban-drain-amara-rajas-q3-netarticle9498004ece

Top

BYD Auto bets big on Indian e-vehicles light rail market V Rishi KumarThe Hindu Business Line

Hyderabad BYD Company Ltd through its electric mobility business arm BYD Auto is eyeing the opportunities for pure electricmobility vehicles and the upcoming light rail projects in India

Part of the diversified Chinese enterprise which is into IT automobiles new energy and light rail BYD is exploring manufacturingoptions in India with Goldstone Infratech Ltd with which it struck a partnership earlier this year

Goldstone recently bagged its maiden order for the supply of six pure electric powered buses from Mumbaiamprsquos BrihanmumbaiElectric Supply and Transport (BEST) It was also recently short-listed in a major order for the supply of 20 buses in HimachalPradesh These projects are seen to expedite BYDamprsquos India plans

ampldquoAs a major global player in electric mobility we are very upbeat on India prospects However some more clarity withregards to the regulatory environment for buses will enable us to firm up our long-term India plans The demand for such buses willbe a major driveramprdquo Liu Xueliang Chairman of BYD India and General Manager of BYD Group Asia-Pacific Territory toldBusinessLine

BYD had supplied more than 500 electric buses in Shenzhen over the past five years and they are all running efficiently Liu saidThis has prompted the local government there to order a big fleet of electric buses to replace diesel powered ones he added

Typically these buses can cover up to 300 km per single charge But this depends on the traffic and road conditions said KetsuZhang Regional Director for South Asia Region and General Manager of BYD India Following the BEST order BYD and Goldstoneare in discussions to make these buses in Telangana

BYD started its journey as a manufacturer of rechargeable batteries and later forayed into the automotive sector

It has raised funds from Warren Buffet and Samsung among others

ampldquoThe last mile connectivity solutions for metro rail is something we work on with several projects and hope to see similarsuccess in India We are also keen to tap the monorail project potential in India Our manufacturing plans will be based onregulatory environment and local demandamprdquo Liu saidhttpwwwthehindubusinesslinecomtodays-papertp-newsbyd-auto-bets-big-on-indian-evehicles-light-rail-marketarticle9498005ece

Top

Emissions Environment

Finance amp Insurance

Tractor micro-finance loans most hit by demonetisation India Ratings Joel RebelloThe Economic Times

Mumbai Rural borrowers for tractor and micro-finance loans have been impacted more by the demonetisation of high-value noteslast quarter while commercial vehicle (CV) and construction equipment (CE) loans have been hit marginally India Ratings andResearch (Ind-Ra) said in a report on the asset-backed securities (ABS) of these loans

ABS are bonds backed by financial assets mainly loan receivables In a note on Monday Ind-Ra said securities backed by tractorloans witnessed the highest movement of delinquent loans mainly because of the high dependence on cash lower ATM densitylower internet penetration and limited alternate payment options which have weighed on borrower incomes in rural areas

Collections also dropped for micro-finance loans because borrowers are highly dependent on cash ampldquoAs of November 2016the agency has seen the sharpest rise in delinquency of micro-finance loans with 0+dpd (days past due) rising to around 76 percent from less than 1 per cent in October 2016amprdquo Ind-Ra said hit by political interference and local issues along withdemonetisation

Heavy commercial vehicles were impacted more than passenger vehicles and light commercial vehicles the agency saidampldquoCV loans have seen a moderate drop in cumulative collection efficiency as about 98 per cent of the agencyamprsquos ratedCV ABS portfolio saw a drop of 5 per cent in cumulative collections in November 2016amprdquo

Ind-Ra did a stress test on the portfolio of pass-through certificates (PTCs) to check whether there is moderate stress emanatingfrom drop in collections by an additional 25 per cent for the next six months resulting in liquidity stress or severe stress applied byassuming increase in default rates by an additional 50 per cent from that assumed at the time of the initial rating

ampldquoInd-Ra in its analysis found that in a moderate stress 20 per cent of the senior PTCs will see a downgrade with 33 per centof them going below IND A(SO) level However in the severe stress 533 per cent of the senior PTCs will see a downgrade with 33per cent of them going below IND A(SO) levelamprdquo the agency said though it said a severe stress situation was unlikely

If it takes longer for the demonetised cash to make its way back into the economy or if certain sectors are affected by the pushtowards the digital economy then it could have bearing on the asset quality of such borrowers Ind-Ra saidhttpautoeconomictimesindiatimescomnewsautomotivefarm-equipmenttractor-micro-finance-loans-most-hit-by-demonetisation-india-ratings56738543

Top

60 of vehicles on Indian roads donacirceurotradet have insurance Somit SenThe Times of India

Mumbai Nearly 60 of the vehicles plying on Indian roads are uninsured most of them motorcycles and scooters The data hasbeen complied by General Insurance Council (GIC) which represents the countrys general insurers

In 2015-16 India had around 19 crore registered vehicles of these only 826 crore were insured said GIC secretary general RChandrasekaran on Monday

The situation was similar in 2012-13 when the total number of vehicles including two-wheelers cars and heavy vehicles registeredin the country stood at 15 crore of which only 602 crore were insured The figures are alarming since Indias roads are notorious fortheir high accident rate with 2015 alone recording over 5 lakh road crashes

Two-wheelers were involved in 29 of the accidents in 2015 cars and jeeps in 23 and buses in 83 Transport experts pointout the need for every vehicle to be insured as those without an insurance cause huge liability to mishap victimshttptimesofindiaindiatimescomindia60-of-vehicles-on-indian-roads-dont-have-insurancearticleshow56744325cms

Top

Oil Lubricants amp Alternative Fuels

Crude oil eases after 2-day gain rising US production weighs ReutersSee this story in The Hindu Business Line

Singapore Oil ticked lower on Monday falling for the first time in three sessions as prospects of rising US production weighed onthe market

US energy companies last week added the most rigs drilling for new production in almost four years Drillers added 29 rigs in theweek to January 20 bringing the total count up to 551 the most since November 2015 energy services firm Baker Hughes had saidon Friday

US oil production has risen more than 6 per cent since mid-2016 although it remains 7 per cent below a historic high in 2015 It isback to levels of late 2014 when strong US crude output contributed to a crash in oil prices

Brent crude the international benchmark for oil prices was trading at $5542 per barrel at 0441 GMT down 7 cents from its lastclose US West Texas Intermediate (WTI) crude futures fell 11 cents to $5311 a barrel

Crude oil had traded higher earlier in the session on the back of output cuts by OPEC and other producers

Production cuts by oil producers and a weaker dollar prevented the market from dropping further

OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than adecade energy ministers had said on Sunday as producers look to reduce oversupply and support prices

Ministers said 15 million of almost 18 million barrels per day (bpd) had already been taken out of the market

ampldquoOil is trading in a rangeamprdquo said Jeffrey Halley senior market analyst at OANDA brokerage in Singapore

ampldquoIn the medium term it is going to be tough for oil to break out The more oil goes up the more these shale drillers are goingto hedge by the futuresamprdquo

On the technical front Brent may climb up to $5655 per barrel as it has cleared resistance at $5543 according to Wang TaoReuters analyst for commodities and energy technicals

Hedge funds rushed to place bullish wagers on US crude oil last week data showed on Friday

The US dollar fell against the euro and yen on Tuesday after a drop in oil prices suggested US inflation would stay low and preventthe Federal Reserve from hiking interest rates at a steady pace this year Risk aversion also boosted the euro and yenhttpwwwthehindubusinesslinecommarketscommoditiesoil-edges-up-after-producer-meeting-but-high-us-output-weighsarticle9496624ece

Top

News Magazines

Next-gen Mitsubishi Montero likely to get Nissan underpinnings Autocar India

Mitsubishi is working on an all-new Montero SUV The current-gen Montero was first unveiled more than a decade ago globally andis long overdue a replacement

According to information on some international websites the next-gen flagship SUV for Mitsubishi is likely to share its underpinningswith Nissan This could be logical since Nissan has acquired 34 percent stake in Mitsubishi Motors Corporation (MMC) for 237billion yen (Rs 12324 crore) and has become its largest shareholder

At the time of this acquisition last year Nissan chairman and CEO Carlos Ghosn said that Nissan and MMC would collaborate onjoint purchase deep localisation joint plant utilisation common vehicle platforms technology-sharing and expansion of thecompaniesamprsquo combined presence in both developed and emerging markets

Nissan already has a similar-sized ladder-frame-based SUV the Patrol on sale in various international markets This model couldbe a candidate for sharing its underpinnings for the next-gen Montero The Nissan Patrol is currently in its sixth generation and isalso sold as Nissan Pathfinder Armada in the North America Nissanamprsquos luxury-arm Infiniti also sells a more luxurious versionof the Patrol called the QX80 in some markets

For India Mitsubishi is likely to bring in new models based on Nissan architecture in the future The carmaker recently re-launchedthe current-gen Montero SUV in India which is sold as a full importhttpwwwautocarindiacomauto-newsnext-gen-mitsubishi-montero-likely-to-get-nissan-underpinnings-404024aspx

Top

Two-month waiting for Maruti Ignis Autocar India

Marutiamprsquos recently-launched Ignis hatchback is sold via the companyamprsquos Nexa dealerships and is priced starting at Rs459 lakh The car is available in four variants and has a wide price band going up to Rs 780 lakh for the top-end diesel Alpha trimEngine options on the Ignis include the tried and tested 12-litre petrol and the popular 13-litre diesel While the five-speed manualgearbox is standard the AMT is offered as an option on both petrol and diesel models

A quick survey across various dealerships revealed that both the petrol and diesel variants are in demand The Ignis Alpha petrolwith manual gearbox has a waiting period of close to eight weeks while deliveries of its diesel counterpart are said take a minimumof 12 weeks There is a high demand for the AMT-equipped models too

With the Ignis Maruti has added yet another premium hatchback to its Nexa line-up with the focus on first-time buyers who want acar that stands out in the crowd The Ignis has no direct competition except for the Mahindra KUV100 which is priced between Rs458 lakh and Rs 716 lakh Marutiamprsquos new launch is expected to benefit Nexa dealerships which until now only had theBaleno generating good sales numbershttpwwwautocarindiacomauto-newstwo-month-waiting-for-maruti-ignis-404025aspx

Top

Porsche 718 Boxster Cayman launch on February 15 Autocar India

Porsche is set to launch the 718 Boxster and 718 Cayman on February 15 2017 The new 718s are essentially thoroughly updatedversions of the outgoing Boxster and Cayman

The biggest and most dramatic change is in the engine department Porsche has replaced the older carsamprsquo flat-six engineswith turbo-charged flat-fours Interestingly the amplsquo718amprsquo prefix links the cars to Porscheamprsquos four-cylinder race cars ofthe past The international 718 line-up includes 300hp 20-litre and 350hp 25-litre engine options (the latter powers theamplsquoSamprsquo variants) but India will only get the smaller of the two powerplants While the cars in India will come withPorscheamprsquos PDK dual-clutch automatic gearbox the manual gearbox will not be sold in our market Despite the drop indisplacement Porsche claims an impressive 0-100kph time of 47sec for both the 718 Boxster and 718 Cayman

Along with suspension tweaks for sharper handling Porsche has given a few cosmetic updates as well Also the cabin gets thecompanyamprsquos latest infotainment system

Significantly the 718 range in India is expected to start in the region of Rs 80 lakh (estimated ex-showroom) which would be a 20percent drop in prices compared to the outgoing models The 718amprsquos smaller 20-litre engine has qualified it for a lower dutybracket and correspondingly the pricing will be a lot more competitive However as with all Porscheamprsquos there will be lots ofcustomisation options on offer which could add significantly to the final price tag Another key point is that this time around theBoxster will be priced higher than the Cayman in line with the international trend of convertibles being pricier than their coupederivativeshttpwwwautocarindiacomauto-newsporsche-718-boxster-cayman-launch-on-february-15-404029aspx

Top

New Porsche Panamera India launch in March 2017 Autocar India

Porsche will launch the second-gen Panamera in India in March

At the time of launch the German carmaker will only offer the four-door sedan in Turbo form The Panamera Turbo is powered byan all-new 40-litre twin-turbo V8 petrol that makes 550hp and 770Nm giving the sedan a claimed 0-100kph time of 42 seconds

The Turbo will be followed by the Panamera Executive Turbo The amplsquoExecutiveamprsquo is essentially a stretched version of thePanamera and features a 150mm longer wheelbase for increased rear passenger space

Expect a price tag in the region of Rs 19 crore (estimated ex-showroom) for the standard Turbo while the Executive Turbo will costover Rs 2 crore

Porsche will expand the Panamera range with the launch of more petrol and diesel variants by the year-end A hybrid model willlaunch next year The diesel models will include a new 30-litre V6 as well as a strong 40-litre V8 that makes 442hp and 850Nm

The delay in launching other versions of the Panamera is primarily down to those versions being subject to the lengthyhomologation process for cars with engines smaller than 3000cc

Porsche will also launch the new 718 Boxster and Cayman on February 15 with prices starting at the Rs 80 lakh mark(ex-showroom)httpwwwautocarindiacomauto-newsnew-porsche-panamera-india-launch-in-march-2017-404022aspx

Top

Tata Hexa automatic in high demand Autocar India

Tata has left no stone unturned on its second foray into the premium segment The Tata Hexa which was launched on January 182017 packs in a lot of equipment a choice of engines gearboxes and drivetrains and even a choice of seating configuration TheTata Hexa is available in three basic trims ampndash XE XM and XT ampndash with the mid and top available with a choice of runninggear thus taking the total option to six variants including a range-topping 4x4 model

The base XE is powered by a 22-litre diesel engine developing 150hp and 320Nm of torque paired with a five-speed manualgearbox as standard The XM and XT trims use a more powerful iteration developing 156hp and 400Nm of torque these units areavailable with a six-speed manual or a six-speed automatic (XMA XTA) gearbox As mentioned before the top trim manual alsogets a 4X4 variant

As per information we have gathered from dealers the two automatic trims ampndash the XMA and XTA ampndash are in high demandAt the launch Tata also announced a minimum waiting period of eight weeks or around two months for the Hexa However bookingtrends suggest that buyers looking for the automatic variant may have to wait longer than those opting for the manual

In terms of pricing Tata announced an introductory price for the Hexa starting at as low as Rs 1199 lakh (ex-showroom Delhi) andgoing up to Rs 1749 lakh for the top XTA 4x4 The pricing places the Hexa below Mahindraamprsquos XUV500 across the board butalso places it within the price bracket of the Toyota Innova Crystahttpwwwautocarindiacomauto-newstata-hexa-automatic-in-high-demand-404018aspx

Top

2017 Toyota Vios revealed Autocar India

Toyota has unveiled a heavily updated Vios sedan for the international markets This is the third update to the current-gen ToyotaVios sedan

The refreshed Vios gets bits from Toyotaamprsquos latest design language which is prominently seen on the all-new nose which issimilar to the recently-unveiled Camry sedan The grille is now divided into two parts with a bolder logo on the top and a hexagonalbottom It also gets projector headlamps and LED daytime running lights The Viosamprsquos spacious interior is an upmarket affairand comes with features like climate control steering-mounted audio controls and a touchscreen infotainment system withsmartphone connectivity Higher-spec variants are likely to get colour-coded trim on the dashboard and door pads

For India Toyota has been testing this car in its pre-facelift form for some time The carmaker is likely to bring the next-gen model toIndia sometime in the near future The India-spec car could get retuned versions of the Etiosamprsquos 15-litre petrol and 14-litrediesel engines The Vios in India will rival the likes of the Honda City Hyundai Verna Maruti Ciaz Volkswagen Vento and theSkoda Rapidhttpwwwautocarindiacomauto-news2017-toyota-vios-revealed-404017aspx

Top

ARAI ISRO collaborate to create prototype electric scooter Autocar India

Automotive Research Association of India (ARAI) and Indian Space Research Organization (ISRO) are jointly working on a project

to explore the applications of lithium-ion battery technology used in space for surface transport vehicles This success could proveto give a big fillip to electric mobility in the country

A prototype two-wheeler developed using ISROamprsquos lithium-ion battery was unveiled by Sanjay Mitra secretary Ministry ofRoad Transport and Highways government of India during the inauguration function of the Symposium on International AutomotiveTechnologies (SIAT 2017) at the ARAI Campus in Pune Our sister publication Autocar Professional is the official media partner forthis biennial event

90km per charge 45kph top speed 20-30 paise per km running cost

Sharing some details of the two-wheeler prototype Anand Deshpande convenor of SIAT 2017 said ampldquoThis is a landmarkdevelopment under the joint research project of ISRO and ARAI where lithium-ion battery technology developed for spaceapplications was successfully adapted for the automotive segment We at ARAI have worked upon on various factors like thebattery management system lab testing road testing and automotive duty cycle at different temperatures charge anddischargeamprdquo

ampldquoIn space applications reliability is of paramount importance while in the automotive segment affordability is equallyimportant Thus our teams are now working in this direction The prototype is loaded with a 48 volt 50 ampere-hour battery andsuccessfully runs up to 90 kilometres once charged for two hours We are working on reducing the charging time and have set thetarget to bring it down to one hour initially It does not use much electricity for charging and the running cost per kilometre could beas less as 20-30 paise per kilometre The vehicle can attain the speed of 40-50 kilometres per houramprdquo he addedhttpwwwautocarindiacomauto-newsarai-isro-collaborate-to-create-prototype-electric-scooter-404009aspx

Top

International News

Green vehicles gain popularity in China IANSSee this story in The Economic Times

Beijing Green vehicles - hybrid electric and fuel cell -- are gaining popularity in China owing to a rising concern over air pollutionand generous government subsidies

The sale of these vehicles also called new energy vehicles grew 53 per cent in 2016 to 507000 units as compared to 2015according to China Association of Automobile Manufacturers the main industry group for the Chinese automotive industry

Jochem Heizmann President and CEO of Volkswagen Group China told Efe news on Monday that the significant growth makesChinas new energy vehicles market the biggest in the world and it will continue to remain so in future

Rising green mobility in the worlds second largest economy is also attracting more and more brands into the sector

In 2015 China had assigned a 334 billion yuan ($4 billion) towards subsidies for the development of environment-friendly vehicles

Chinas industry ministry plans to maintain its support till at least 2020 although it intends to toughen the requirements after it wasdiscovered in September 2016 that several companies manipulated data to avail more subsidies

Consumers however are not bothered by the subsidy or its possible discontinuation when they are deciding to buy a green vehicle

A Beijing resident told Efe news he bought an electric car for three reasons He needed a vehicle it was very difficult to register anormal vehicle and he wanted to experience the new technology which is less polluting and almost noiseless

The only disadvantage he says is that it cannot travel for more than 300 km on a single charge and even less than that duringwinter

In cities like Beijing where the number of registration of new vehicles per year is restricted in order to reduce traffic congestion andpollution green vehicles have an edge over regular ones and one of the reasons for their success in big cities according toProfessor Hao Yu of Beijing Institute of Technology

However another reason for their increased popularity in big cities over smaller ones Hao adds is the availability of more chargingstations

According to the National Energy Administration there are 107000 public and 170000 private charging stations throughout thecountry and Beijing wants to make them available along 36000 km of highways and one within a radius of one kilometre in the maincitieshttpautoeconomictimesindiatimescomnewsindustrygreen-vehicles-gain-popularity-in-china56741514

Top

Nissan along with Tan Chong begin vehicle assembly in Myanmar The Economic Times

Yangon Nissan Motor Company and Tan Chong Motor Myanmar (TCMM) today in a press statement announced that they havebegun assembling cars for the first time in Myanmar with the Nissan Sunny The assembly operations will initially use the existingTan Chong facility

Nissan and TCMM made a strong commitment to Myanmar market which includes strong product line up and local productioncapabilities Todayamprsquos event is a key milestone in the ongoing expansion plans for Nissan and its partner TCMM HonourableChief Minister of Yangon along with several dignitaries from business community automotive associations joined the eventalongside executives from Nissan and Tan Chong

Earlier in February 2016 Nissan and Tan Chong executives joined Bago government officials to sign a land lease agreement withrepresentatives of the countrys Bago Region

ampldquoWith the introduction of the locally assembled New Nissan Sunny today we are confident that this will further cement ourcommitment and support to the Myanmar Government in developing the automotive industryamprdquo said Datoamprsquo Tan SengSung consultant to Tan Chong Group in his opening remark

ampldquoNissan is pleased to be a strong player in the growth of automotive industry in Myanmar said Yutaka Sanada regionalsenior vice president Nissan Asia amp Oceania region This is a key milestone in our wider growth strategy in the region includingcountries like Philippines Vietnam Cambodia and Laos We are eager to develop a long and productive relationship with thepeople of Myanmar and continue to generate returns throughout the supply chain stimulate jobs and investment

ampldquoI am pleased that Tan Chong Group the sole distributor of Nissan vehicles in Myanmar will further expand their business inMyanmar with the construction of a CKD assembly plant thus bringing in investment and employment opportunities to the localcommunity to help boost the economic growth and elevate income levelsamprdquo said Chief Minister U Phyo Min Thein YangonRegion Governmenthttpautoeconomictimesindiatimescomnewsindustrynissan-along-with-tan-chong-begin-vehicle-assembly-in-myanmar56727512

Top

Global sales of Volkswagen trucks amp buses up by 3 The Economic Times

New Delhi Volkswagen Truck amp Bus sold around 184000 trucks and buses under the MAN Scania and Volkswagen Caminhotildees eOcircnibus brands in fiscal year 2016 company said in a global press release This marks a 3 increase over the previous year

Volkswagen owned MAN Truck amp Bus accounted for 83200 vehicles 5 more than previous year Scania unit sales rose by 6over the previous year to 81350 trucks and buses On the other hand unit sales at Volkswagen Caminhotildees e Ocircnibus contracted byroughly 17 percent to 20370 vehicles reflecting the protracted difficult economic situation in South America particularly Brazil

Andreas Renschler Chief Executive Officer of Volkswagen Truck amp Bus and the member of the Board of Management ofVolkswagen AG responsible for commercial vehicles says The crisis in Brazil Brexit in Europe and the difficult conditions in theMiddle East made 2016 a turbulent year Against this backdrop we are very satisfied with the increase in units sales achieved Weowe this performance to our outstanding products and a motivated and customer-oriented team In this way we were able to morethan offset the muted sales in some markets through sales successes elsewhere

Business in medium-heavy and heavy trucks rose by 2 percent over the previous year MAN Scania and Volkswagen Caminhotildees eOcircnibus sold roughly 165810 trucks At the same time the individual regions painted a mixed picture driven by the sustainedeconomic recovery in Western Europe the Volkswagen Truck amp Bus brands achieved a 9 increase in truck sales over theprevious year in this region

Gains were recorded in Italy France and the Netherlands Truck sales in Central and Eastern Europe rose by a significant 21percent By contrast sales in Brazil were down contracting by 24over the previous year to 16270 units This was due to theprotracted macroeconomic difficulties and the difficult financing conditions

Unit sales of buses were also up in 2016 At a total of 17780 units the Volkswagen Truck amp Bus brands recorded a roughly 4percent increase compared with the previous yearhttpautoeconomictimesindiatimescomnewsindustryglobal-sales-of-volkswagen-trucks-buses-up-by-356727701

Top

Toyota Vios facelift launched in Thailand The Economic Times

New Delhi Thai arm of Japanese car maker Toyota has launched a facelift of its popular B-segment sedan ampndash Vios as permedia reports Toyota Vios facelift now has a similar design to its elder siblings - Corolla Altis and even the Toyota Camry hybridwhich is yet to be launched in the Thai car market

Toyota Vios gets redesigned front and rear bumpers new LED headlamps and a longer yet sleek looking front grille along with16-inch alloy wheels Interiors of the vehicle have also been tweaked slightly with seats wrapped in leather and all black dashboardto give the car a premium positioning

The sedan gets the same 15L petrol engine shedding 108hp with only CVT gearbox Toyota claims that there is no demand for a

manual variant on its Vios The car rivals to Honda City which has also got a facelift in Thailand during December 2016 and has abit more powerful petrol engine than Toyota Vios

Toyota Vios facelift in the Thai market is priced between 609000 baht-789000 baht which is a bit more expensive than Honda City

The car was first launched 20 years ago as Soluna in Thailand and ever since the company has sold over 850 lakh units of ToyotaVios The company hopes to sell over 2500 units of Vios every month in Thailand says a media reporthttpautoeconomictimesindiatimescomnewspassenger-vehiclecars-toyota-vios-facelift-launched-in-thailand56731038

Top

China approves first list of green car models for subsidies this year ReutersSee this story in The Economic Times

Beijing China released on Monday this years first list of recommended green energy vehicles paving the way for 185 car modelsto receive government subsidies

Beijing has spent billions of dollars promoting electric and plug-in hybrid cars to help the domestic auto industry develop thetechnology to leapfrog global competitors while also reducing frequent bouts of heavy urban air pollution

But the discovery of widespread cheating in the subsidy programme has prompted the government to step up oversight capsubsidies and raise technical standards for applicants

As a result all models previously approved for government subsidies are required to reapply this year

The list issued by the Ministry of Industry and Information Technology (MIIT) included vehicles from BAIC Motor Corp Ltd GeelyAutomobile Holdings Ltd BYD Co Ltd Chongqing Changan Automobile Co Ltd and Chery Automobile Co Ltd

Beijing is expected to approve more car models later this year The government published five lists last year giving the green lightto 2193 car models

The ministry on Monday also approved several vehicles that use ternary lithium-ion batteries which employ the chemical elementsof nickel cobalt and manganese (NCM)

NCM batteries which Korean firms LG Chem and Samsung Electronics primarily make were ineligible for subsidies under lastyears rules

Beijing lifted those restrictions this year after requiring companies to conduct more rigorous safety testing

Most Chinese battery makers prefer more stable but less energy dense lithium-iron-phosphate batteries although some Chinesefirms like Contemporary Amperex Technology Ltd also produce significant numbers of NCM batterieshttpautoeconomictimesindiatimescomnewsindustrychina-approves-first-list-of-green-car-models-for-subsidies-this-year56733992

Top

Now your car can pick up tab for latte The Times of India

Most consumers have yet to figure out how to pay for their daily lattes using their smartphones But that hasnamprsquot stoppedautomakers from adding digital wallets to cars tooIn-car payments long just a pipe dream on the research floors at big automakers are finally ready to make their realworld debut

Honda Motor Co showed off a prototype at CES 2017 in Las Vegas earlier this month that lets drivers pay for parking or gas withoutever reaching for their credit card General Motors Co and Kia Motors Corp may offer a similar feature as soon as this year AndVolkswagen AG purchased PaybyPhone a provider of parking-meter mobile payments in a deal last month

The idea is to make better use of the 48 minutes that the average American spends in the car each day Initially the usefulness ofthe technology will be limited to things like tolls and the fast-food drivethrough ampldquoAll the carmakers are at various stages ofreadiness but theyamprsquore all working on itamprdquo said Jim McCarthy global head of innovation and strategic partnerships forVisa Inc which joins Mastercard Inc in the race to enable payment capabilities for automakers ampldquoItamprsquos just convenienceitamprsquos kind of like Uberamprdquo

Carmakers expect the digital wallets to catch on as the number of connected autos ampmdash vehicles with built-in satellite cellularWi-Fi or Bluetooth ampmdash expands This year the global figure with cellular connectivity alone will rise to 657 million cars upfrom 404 million in 2016 according to researcher Gartner Inc

At CES 2017 Gentex Corp hyped a technology embedded in rear-view mirrors that could make car payments more secure byscanning a personamprsquos iris to verify his or her identity The technology should be in cars next year said Salil Prabhakar chiefexecutive officer of Gentexamprsquos iris-recognition technology supplier Delta ID Inc

GM will have 2 million cars with the pre-installed OnStar Go app on the roads by the end of the year and drivers will be able to pay

with a digital wallet built into the car known as Masterpass said Kiki Del Valle a senior vice president at Mastercard GMamprsquospayment partner Kia is doing internal tests of an app that drivers would download on their phone and link to a credit card saidHenry Bzeih managing director of the companyamprsquos connected and mobility division The vehicle will connect to the app anddisplay information on the dashboard ampldquoso customers donamprsquot have to fiddle with their phones while drivingamprdquo hesaid

Top

Economy

Rupee trading strong at 6814 PTISee this story in The Hindu Business Line

Mumbai The rupee was trading a tad up at 6814 in the evening deals on increased selling of the American currency by exporters

According to forex dealers the dollaramprsquos weakness against some currencies overseas and a firm domestic equity marketsupported the rupee

The domestic unit opened strong at 6802 against the previous close of 6818 at the Interbank Foreign Exchange market today

It hovered in a range of 68106 and 6801 before quoting at 6814 up 4 paise at 335 pm local time

Meanwhile the benchmark BSE Sensex ended higher by 8284 points or 031 per cent at 2711734

The dollar slid broadly after US President Donald Trump struck a protectionist tone in his inauguration speech underminingoptimism over the US economy spurred by his promises of tax cuts and other stimulushttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9496596ece

Top

Sensex ends higher by 83 points federal budget eyed AgenciesSee this story in The Hindu Business Line

Mumbai The Sensex and Nifty ended higher due to bargain-hunting in recently-beaten stocks though investors remained cautiousahead of January month derivatives expiry on Wednesday and the federal budget next week

The 30-share BSE index Sensex ended higher by 8284 points or 031 per cent at 2711734 and the 50-share NSE index Niftyclosed up 4215 points or 05 per cent at 8391

Among BSE sectoral indices metal index gained the most by 261 per cent followed by PSU 126 per cent oil amp gas 115 per centand FMCG 099 per cent On the other hand capital goods index was down 056 per cent and healthcare 052 per cent

Top five Sensex gainers were GAIL (+241) HDFC (177) Tata Motors (+172) Tata Steel (+155) and Hero MotoCorp(+155) while the major losers were ICICI Bank (-226) LampT (-149) Axis Bank (-12) Sun Pharma (-100) and Reliance(-095)

Traders are in a wait-and-watch mode ahead of the governments 201718 budget to be unveiled on February 1 amid hopes forincentives to support an economy hit by cash shortages after a ban on higher-value banknotes

ampldquoMarkets have been on a cautionary stance ahead of the speech (Trumps inauguration speech) but have now bounced backslightlyamprdquo said Anand James chief market strategist at Geojit BNP Paribas Financial Services

ampldquoIts more about bargain-hunting and markets are not keen on giving away gains a week before the budgetamprdquo

A report by SMC Global said Most of the Asian stocks declined today as traders reacted for the first time to Donald Trumpamprsquosinauguration Demand for safe haven assets rose while the US dollar slumped after Bank of Japan Governor Haruhiko Kuroda saidthat the greenback could strengthen in the Trump presidency US stocks closed modestly higher Friday recouping much of themarkets loss from a day earlier US housing starts jumped by 113 per cent to an annual rate of 1226 million in December aftertumbling by 165 per cent to a revised November rate of 1102 million Economists had expected housing starts to rise to an annualrate of 1200 million from the 1090 million originally reported for the previous monthhttpwwwthehindubusinesslinecommarketsstock-marketssensex-nifty-live-updatearticle9496628ece

Top

Govt to set FY18 fiscal deficit target at 33-34 per cent Reports PTISee this story in The Economic Times

Mumbai Government is likely to set fiscal deficit target in the range of 33-34 per cent of GDP for the financial year 2017-18 in theupcoming Budget say research reports

The Budget for the financial year 2017-18 will be presented on February 1

We think that the government will have to tread very carefully between the need for stimulating demand in a weak economicenvironment after demonetization and continuing on the path of fiscal consolidation We expect the government to budget for afiscal deficit target of 33 per cent of GDP 30 basis points higher than planned in the governments medium-term fiscal consolidationprogram Goldman Sachs said in its research report

It said the lower reduction in fiscal deficit is to stimulate demand in a weak economic environment post demonetisation announcedin early November

An SBI internal research report Ecowrap has pegged in a fiscal deficit target of Rs 575 lakh crores for the financial year 2017-18at 34 per cent of GDP

Fiscal deficit for the financial year 2016-17 is budgeted at 35 per cent

The Goldman Sachs report said the government is likely to meet its budget deficit target of 35 per cent of GDP for the financial year2016-17 due to better-than-expected tax revenue growth and via some adjustment to capital spending

Higher revenues from duties on oil (03pp higher than budgeted) should help the government achieve its target for the currentfinancial year it said

Additional income tax revenues from the amnesty on undisclosed income ending in September 2017 are also likely to boostgovernment tax revenue (01pp of GDP) it said

We think that higher-than-expected tax revenues would offset any shortfall on the non-tax side including telecom spectrumreceipts and privatization proceeds the Goldman Sachs report said

It expects government capital spending to be slightly lower in current financial year compared to what was budgeted - 15 per centof GDP as against 16 per cent budgeted

Goldman Sachs expects tax revenue to grow by over 16 per cent in the financial year 2017-18 and support government finances

The SBI research report expects a 13 per cent growth in tax revenues (gross) in the financial year 2017-18 driven primarily byrobust growth in corporation tax (288 per cent)

Capital receipts on the other hand may rise marginally due to low disinvestment target compared to the current fiscalover-optimistic target of Rs 56500 crore Ecowrap said

We expect the government would keep a realistic disinvestment target of Rs 45000 crore for the financial year 2017-18 Ecowrapsaid

On the expenditure side the SBI research report said it doesnt perceive any significant jump and hopes a marginal increase inrevenue expenditure at 131 per cent for the financial year 2017-18 compared to fiscal 2016-17 while a modest increase of 133 percent in capital expenditure

The removal of distinction between plan and non plan expenditure will help capital expenditure to grow at a better rate in the nextfiscal 2017-18 Ecowrap said

For the financial year 2017-18 it expects a net market borrowing at Rs 405 lakh crore with gross borrowing at Rs 580 lakh croreafter adjusting for net redemptions of Rs 175 lakh crore (adjusted for debt switch and buy back)

The SBI research report believes there is a need to raise the income tax exemption limit to Rs 3 lakh from Rs 25 lakh

It also expects the government to increase the exemption limit of interest payments under housing loan to Rs 25 lakh for existinghome loan buyers also from the current level of Rs 2 lakh

The overall impact of such concessions will result in revenue foregone of around Rs 35300 crore Ecowrap said

However it is expecting a tax collection under Income declaration Scheme (IDS) to be around Rs 50000 crores and cancelledliabilities from RBI to be around Rs 75000 crore which will still give the government a sizeable revenue surplus even after suchgiveawayshttpeconomictimesindiatimescomindustrybankingfinancegovt-to-set-fy18-fiscal-deficit-target-at-3-3-3-4-per-cent-reportsarticleshow56733020cms

Top

Closing

Last Financial Closing

Sensex 2711734 (+8284)NSE 839150 (+4215)US$ spot Rs6822US$ Y1129800US$ 6 months RsYen Rs60Euro spot Rs7315

Gold (10gm) Rs29259Silver (1kg) Rs4169200

Crude Oil (WTI) Crude Oil (Brent) $5504 (-045)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18470 Asahi Ind 1 19635Amara Raja B 1 87060Ashok Leyland 1 8630Bajaj Auto 10 270650Bharat Forge 2 93510Denso 1 Eicher Motor 10 2272795Escorts 10 35900Exide Ind 1 19415Force Motors 10 414730Gabriel India 1 10870Hero Motocor 2 309680Hind Motors 5 875Hi-Tech Gear 10 31560Jay Bh Maruti 5 33705

Jamna Auto 5 18510JK Tyres amp Inds 10 12535 Kinetic Motors 10 Kinetic Engg 10 KOEL 2 33015Kirloskar Br 2 20795LML Ltd 10 1340LampT 2 139355Lumax Ind 10 102020Lumax Tech 10 45750MampM 5 118890Maruti Suzuki 5 570000Motherson SS 1 32365Minda Inds 2 34545MRF 10 5235170Omax Auto 10 7640Rico Auto 1 5940Sona Koyo St 1 7375

SRF 10 163515Tata Motors 2 53270 TVS Motors 1 38100

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5550Hindalco 1 18170Hind Zinc 2 29510JSW Ispat S 10 Jind Steel 1 7895JSW Steel 1 19415Jindal Saw 2 6090

National Aluminium 5 7430SAIL 10 6135Tata Steel 10 46180Visa Steel 10 2050

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 22010Binani Industries 10 7490Birla Corp 10 70605India Cement 10 13910Prism Cement 10 9020JK Cement 10 71980Shree Cement 10 1516965

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

National Aluminium 5 7430SAIL 10 6135Tata Steel 10 46180Visa Steel 10 2050

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 22010Binani Industries 10 7490Birla Corp 10 70605India Cement 10 13910Prism Cement 10 9020JK Cement 10 71980Shree Cement 10 1516965

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions