Indian Auto Industry Update

13 May 2017

IndustryIndias 2030 all-electric car target seen ambitious by IEA

Use of electric vehicles can save $60 billion by 2030 Niti Aayog

Almost 70 of auto sales in India to be digitally influenced by 2020

Niti Aayog proposes incentives subsidies for Electric Vehicles

Investments worth Rs 15000 crore in pipeline Tamil Nadu govt

Interviews amp FeaturesCars SUVs MUVs

Fiat Argo teased ahead of reveal

India China plans for electric cars threaten to cut petrol demand

Suzuki is pumping in billions of dollars to further strengthen its position in India

Luxury CarsAudi India inaugurates new service facility in Bhubaneswar

BMW 8 series coupe confirmed

Commercial VehiclesTata Motors says it is confident of meeting BS-VI norms by 2020

Tata Motors commercial division plans to get future ready

Construction amp Agri Machinery23 Wheelers

TVS Motor gains 3 after announcing alliance with Guatemala-based company

Delhi govt orders registration of BS-III two-wheelers

E-BikesComponents

UNO MINDA amp Microsoft enters into partnership to bring connected vehicle technologies

Allied IndustriesEmissions EnvironmentFinance amp InsuranceOil Lubricants amp Alternative FuelsNews Magazines

Skoda Karoq SUV teased ahead of unveil

Pininfarina to develop platform for Iran Khodro

2018 Jeep Wrangler interior leaked

TVS to strengthen Central America presence

BMW 8-series to enter production in 2018

Volkswagen for electric future but says diesel amplsquoindispensableamprsquo

2017 Isuzu MU-X review test drive

Down memory lane Hondas superbike legacy

International NewsBMW group global sales clock 192494 units in April 2017

BMW makes veiled jobs warning urges Brexit pragmatism

Fiat Chrysler recalling 125 million trucks for software error

Suzuki Motor sees 10 drop in FY17 operating profit on RampD costs

Skoda achieves 97300 deliveries to customers in April 2017

Skoda releases pictures of its new compact SUV Karoq

South Korea orders vehicle recalls for Hyundai and Kia vehicles

Canadian auto parts maker Magnas Q1 profit beats estimates

EU nations agree on draft car approval rules despite German reluctance

The toughest challenge for self-driving cars Human drivers

Unfair labour practices charged at Volkswagenamprsquos US plant

EconomySensex Nifty start on a flat note Infosys SBI top gainers

Sensex ends lower by 63 points ahead of IIP retail inflation data

Forex reserves at life-time peak of $37571 billion

Rupee opens 5 paise higher at 6438 against dollar

GST to have macro economic impact RBI

ClosingLast Financial Closing

Industry

Indias 2030 all-electric car target seen ambitious by IEA Bloomberg Saket SundriaSee this story in The Economic Times (Web Edition)

Indiaamprsquos potential plan to sell only electric cars by the end of next decade would require nearly eight times the global stock ofsuch vehicles according to the International Energy Agency

The country would need to sell more than 10 million electric cars in 2030 compared with the almost 13 million on the roadworldwide in 2015 the agency said in an emailed response to questions The goal also equals 10 per cent of the 2030 target forelectric vehicles on the road globally agreed to in the Paris climate talks

While the details are yet to be worked out ampldquoit is an ambitious plan nonethelessamprdquo the IEA said ampldquoRegardless theexact formulation of the target and the extent of its long-term achievement it is a good step that will help India to be among theglobal leaders in deploying a technology that is crucial to temper increasing oil import needs local air pollution in cities and limitCO2 emissionsamprdquo

Indiaamprsquos fast-growing economy and rising urbanization has set it on course as a key driver of global energy growth in thecoming decades A group of ministers has been directed to ensure that by 2030 almost all vehicles in the country are powered byelectricity as a way to cut oil imports and pollution according to a government statement in March citing Power Minister PiyushGoyal The idea is that not a single gasoline or diesel car should be sold in the country by then the Press Trust of India reportedGoyal as saying

While reaching the target would chop almost 10 percent of Indiaamprsquos 2030 forecast oil use the country would remain a keycenter of global consumption growth second only to China as road freight transport petrochemicals and the residential sectorcontinue to push demand higher the IEA said

Infrastructure HurdlesThe government would need to build more charging points and lower the cost of electric vehicles if it wants to achieve its goalaccording to Tushar Bansal director at energy consultant Ivy Global Energy Pte

ampldquoThe electric vehicles today can only go a limited distance before requiring rechargingamprdquo Bansal said ampldquoBecauseof the number of infrastructural additions and changes required replacing gasoline cars with electric vehicles is expected to be alonger drawn-out affair as the market will take time to adjustamprdquo

India had close to 5000 electric vehicles on the road by the end of last year according to the IEA That compares with the morethan 3 million passenger vehicles sold in the country in the year ended March 31 according to data from the Society of IndianAutomobile Manufacturers

Companies including Mahindra amp Mahindra Ltd Volvo Cars BMW AG and Toyota Motor Corp sell electric or hybrid cars in IndiaMahindra offers its e2O Plus in Delhi at 626387 rupees ($9724) not including taxes according to its website The cheapestgasoline powered car can be bought for about a third of thathttpautoeconomictimesindiatimescomnewsindustryindias-2030-all-electric-car-target-seen-ambitious-by-iea58640479Indiaamprsquos 2030 target to sell only electric cars very ambitious says IEAThe Financial Express (Web Edition)httpwwwfinancialexpresscomeconomyindias-2030-target-to-sell-only-electric-cars-very-ambitious-says-iea665745Electric vehicles to save $60 bn in fuel costs by 2030 Niti AayogDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-electric-vehicles-to-save-60-bn-in-fuel-costs-by-2030-niti-2435901

Indiaamprsquos 2030 all-electric car target amplsquoambitiousamprsquo IEAmint (Web Edition)httpwwwlivemintcomIndustryvt5LqZam0STgV3SGuXH22MIndias-2030-allelectric-car-target-ambitious-IEAhtmlElectric vehicles to save $60 bn in fuel costs by 2030 Niti AayogThe Statesman (Web Edition)httpwwwthestatesmancombusinesselectric-vehicles-to-save-60-bn-in-fuel-costs-by-2030-niti-aayog-1494581796html

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Use of electric vehicles can save $60 billion by 2030 Niti Aayog ReutersSee this story in Business Standard (Web Edition)

New Delhi India could save as much as $60 billion in energy costs by 2030 and one gigatonne of carbon emissions between 2017and 2030 by adopting more electric and shared vehicles according to a report released on Friday by the countrys leadingthink-tank

The report on transformative mobility solutions by Niti Aayog Indias policy commission chaired by Prime Minister Narendra Modiprovides a 15-year roadmap for electrification of vehicles in the country and is likely to form the basis for a new green car policysources had told Reuters

The 134-page report suggests three major transitions - a shift from private vehicle ownership to shared usership from petrol anddiesel to electric vehicles and from cities designed for cars to cities designed for humans

Such a transformation could position India as the global leader in clean shared and connected passenger mobility whileestablishing a model of low-carbon solutions for other developing nations to follow the report co-authored by US-basedconsultant Rocky Mountain Institute said

The main recommendations include limiting the registration of petrol and diesel cars through public lotteries providing fiscal andmonetary incentives and subsidies to push sales of electric vehicles and using tax revenues from the sale of petrol and diesel carsto set up electric charging stations

It suggests lowering interest rates and electricity tariffs for electric taxis establishing a consortium for manufacturing standardisedbatteries and common components to bring down their cost and setting up battery-swapping facilities

The report suggests forming a regulatory body to create update and simplify the regulatory framework for electric vehicles andpiloting the recommendations in a few areas called lighthouse regions before deploying them across Indiahttpwwwbusiness-standardcomarticleeconomy-policyuse-of-electric-vehicles-could-save-60-billion-by-2030-niti-aayog-117051200412_1htmlLimit diesel petrol vehicles encourage EVs NITI AayogThe Indian Expresshttpindianexpresscomarticleindialimit-diesel-petrol-vehicles-encourage-evs-electric-vehicles-niti-aayog-4653110Niti Aayog pitches for restricting diesel petrol vehicles encourages EVsThe Pioneer (Web amp Print Edition)httpwwwdailypioneercombusinessniti-aayog-pitches-for--restricting-diesel-petrol--vehicles-encourages-evshtml

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Almost 70 of auto sales in India to be digitally influenced by 2020 The Economic Times (Web Edition)

Mumbai Almost 70 of automobile sales in India or $40 billion will be digitally influenced by 2020 says a research report releasedby Bain amp Company and Facebook on How digital is transforming the face of Indian automotive industry

The report was created based on responses of 1551 Indian customers who had purchased a vehicle in the last 12 months andsurveyed their purchase influencers The findings were further supplemented with a survey of 87 dealers and conversations with topmanagement teams across automakers

The report also drew insights from Bainamprsquos Global Automotive Consumer Survey that included respondents from the US theUK Germany China and India

The report which looks at the impact of digital technologies on the automotive industry finds that digital engineering 3D printingsmart sensors and the Internet of Things (IoT) are poised to disrupt auto RampD manufacturing sales marketing and after-salesservices

Social media will influence about 40 of sales valued at $23 billion by 2020 up from 20 of sales today

Karan Singh Managing Director at Bain amp Company India says as digital technologies cause disruption across the value chain frommanufacturing to after sales service rules of the game are changing and new opportunities and threats are emerging forautomakers

Players from outside the traditional auto industry are witnessing rapid growth world over It is important to evolve the businessmodel to tap into shifting profit pools added Singh

Highlighting the importance of mobile in the overall device mix the report said that 80 of online research is on mobile phones

today and this is expected to rise further with the increasing penetration of smart phones and mobile data connections

Not surprisingly those 35-years-old and younger will lead the digital charge 49 of consumers younger than 35 years report digitalinfluence on purchases today compared with 40 of those older than age 35 As this cohort ages and a new younger cohort entersthe market digital influence is set to increase

According to Bain and Cos partner Yaquta Mandviwala who co-authored the report India is likely to witness digital leap frogginggiven consumersamprsquo openness to new technologies

At this time more than ever it is important for companies to adopt a digital mindset To remain relevant companies will need tokeep up with the changing customer behaviour differentiate the retail format in to brand experience centres use product digitizationto create deeper ongoing relationships and invest in a strong analytics backboneamprdquo she added

The study also explores auto customersamprsquo changing mindsets and attitudes towards shared mobility More than 40 of leadconsumers report using app-based taxi services like Ola and Uber more than three or four times per weekend further head room forgrowth exists

ampldquoTechnology is transforming the automobile industry in un-imaginable ways and this report discusses quite a fewinsightsamprdquo said Umang Bedi Managing Director Facebook India

Umang further added ampldquoDigital has struck the automotive world with lightning speed and this transition to digital is only goingto accelerate todayamprsquo side as go from drawing board to production in months rather than decades All this advancement andfocus on digital will deepen relationships between customers and auto manufacturersamprdquo

Bain and Facebookamprsquos findings highlighted the changing role of the automotive dealer with almost 72 of customers selectinga vehicle brand and 49 choosing the vehicle model before stepping into a dealership thereby limiting the dealers influence onbuying decision

Though dealers have started to shift towards better digital engagement with their customers more than 85 of the dealerssurveyed say they still use bulk SMS and database calling as their customer-targeting process

The report claims that most Indian automobile OEMs are behind the curve in digital investments spending 10 to 11 of their totalmarketing expenditure on digital mediums in 2016 and they need to redefine their marketing and customer engagement efforts

Digital disruptions across the value-chain are likely to cause a drop in profits from the core activities of car makers like vehicleengineering manufacturing and sales by about 8 in the decade to 2025even though industry profits are projected to grow about35 in the same period the report said

The sector will witness the emergence of new players such as software and mobility platform providers with non-traditional sourcesof competitive advantage who will gain an increasing share of sector profits

The report enlists five critical imperatives for auto OEMs to consider in this new competitive landscape It called for evolvingbusiness models to taping to shifting profit pools radically changing the investment mix to follow the customer online differentiatingthere tail format using product digitisation to created deeper on going customer relationships and building the data and analyticsbackbone to enable meaningful use of digital

Looking ahead post-purchase activities are expected to be the next digital frontier By 2020 up to 40 of consumers are expectedto book repair and maintenance services online and about 30 will go online to purchase vehicle accessories up from 14 and 8respectively today

As per Bainamprsquos Global Automotive Survey Indian and Chinese consumers have depicted a greater willingness to shift multipleparts of their purchases online compared with their peers in the US the UK and Germanyhttpautoeconomictimesindiatimescomnewsindustryalmost-70-of-auto-sales-in-india-to-be-digitally-influenced-by-202058612343amplsquo70 of Indian automobiles sales to be digitally influenced by 2020amprsquoThe Pioneer (Web amp Print Edition)httpwwwdailypioneercombusiness70-of-indian-automobiles-sales-to-be-digitally-influenced-by-2020htmlDigital India 70 of automobile sale likely to be digitally influenced by 2020Daily News amp Analysishttpwwwdnaindiacommoneyreport-70-pct-of-indian-automobile-sales-to-be-digitally-influenced-by-2020-report-243455470 Indian auto sales to be digitally influenced by 2020 Bain amp Co Facebook studyHindustan Timeshttpwwwhindustantimescomautos70-indian-auto-sales-to-be-digitally-influenced-by-2020-bain-co-facebook-studystory-lEMf0YvCo4SGDVMJt3BNWKhtml70 of auto sales to be digitally influenced by 2020 Bain-Facebook reportminthttpwwwlivemintcomTechnologylGkt4PlmDA1FeZrt3UFT5L70-of-auto-sales-to-be-digitally-influenced-by-2020-BainFhtml

Top

Niti Aayog proposes incentives subsidies for Electric Vehicles The Economic Times (Delhi Print Edition) New Delhi In what could form the basis of Indias new green car policy the government may consider doling out both fiscal andnon-fiscal incentives and subsidies to push sales of electric vehicles while discouraging the use of petrol and diesel-run vehiclesfollowing a report from its think-tank Niti Aayog

According to the Aayogs report on transformative mobility solutions unveiled on Friday India can save as much as $60 billion inenergy costs by 2030 and one gigatonne of carbon dioxide emissions between 2017 and 2030 if it adopts more electric and sharedvehicles

While fiscal incentives could include `feebates or rebates for energy-efficient vehicles paid from fees collected by non-efficient ones and zero-emission vehicle credits non-fiscal incentives could include easier registration and preferred electricity tariffs

ampldquoRoll out enhanced fiscal incentives to make EVs more profitable for automakers and affordable for consumers as the costcomes downampldquo it said

In the report prepared in collaboration with Colorado-based Rocky Mountain Institute the Aayog has proposed incentivisingefficient new vehicles by penalising inefficient ones and setting up ampldquoa manufacturer consortium for batteries commoncomponents and platforms to develop battery cell technologies and packs and to procure common components for Indian originalequipment manufacturersampldquo

The government is planning a mass scale shift to electric vehicles by 2030 so that all vehicles on Indian roads by then--bothpersonal and commercial--are powered by electricity

A case for a threepronged approach comprising of system integration shared infrastructure development and scaled manufacturinghas been made in the report titled `India Leaps Ahead Transformative Mobility Solutions for All ampldquoIndia could leapfrog theconventional mobility modelampldquo the report said

While such a strategy will help check pollution and fuel imports it will have a far-reaching impact on Indias automobile market

The other key recommendations include setting up a unified metropolitan planning authority and creating standardised swappablebatteries for twoand three-wheelers ampldquoto electrify these important vehicle segments as quickly as possible through apay-peruse business model and an integrated payment tracking and smart-charging systemampldquo

The Indian government has been trying to push sales of electric vehiclesThe Centre is exploring measures ranging from leasing ofsuch vehicles to transferring technology to companies for commercial production of lithium-ion batteries

As per the report India can save 64 of the energy demand from the road sector for passenger mobility and 37 of carbonemissions in 2030 through its electric vehicle programme

This would result in a reduction of 156 million tonnes of oil equivalent in diesel and petrol consumption for 2030 ampldquoAt $52bbl ofcrude this would imply a net savings of roughly `39 lakh crore (approximately $60 billion) in 2030ampldquo it added

The electric vehicle plan will help create demand for electricity generated by Indias power plants

Of the countrys installed power generation capacity of 329204 MW only about half is operational at any given time due to muteddemand

Top

Investments worth Rs 15000 crore in pipeline Tamil Nadu govt PTISee this story in The Economic Times (Web Edition)

Chennai Tamil Nadu government has said several multi-national companies have announced plans to invest around Rs 15000crore in projects in the state that would help generate 6500 jobs

Tamil Nadu continues to be a favourite destination for investors and committed investments are taking roots within the investmentperiod as per the MoUs an official release said in response to media reports on investments by auto-majors Kia Motor and Fordoutside the state

Elaborating on some of the upcoming projects the release said France-based PSA Peugeot Citroen is currently planning to set upthree manufacturing facilities in Kancheepuram district and Hosur (respectively) at investments worth Rs 3000 crore

The initial investment envisaged in these facilities will be about Rs 3000 crore This investment is further expected to increase toRs 4000 crore in the vehicle and powertrain projects it said

The release further said Companies like Hyundai Motor Yamaha Musical Instruments Xuzhou Construction Machinerymanufacturing company Vedanta ITC CEAT Tyres Freudenberg Germany are proposing to invest Rs 15000 crore in TamilNadu

These investments would generate employments for about 5000 people it added

Referring to the MoUs signed during the maiden Global Investors Meet (GIM) in September 2015 the release said Many of theprojects signed have taken off while 10 projects have been inaugurated so far

The projects signed include Microsoft Corporation Amway Tamil Nadu Newspapers and Print Takasago Growth Link OverseasCompany Samsung Saint Gobain MRF Sun Edison Welspun Renewable Energy the release said

Several other projects by various companies that were signed during the GIM were under advanced stage of implementation the

government said in the releasehttpautoeconomictimesindiatimescomnewsindustryinvestments-worth-rs-15000-crore-in-pipeline-tamil-nadu-govt58638954

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Interviews amp Features

Cars SUVs MUVs

Fiat Argo teased ahead of reveal PTISee this story in Deccan Chronicle (Web Edition)

The Grand Punto aka the third generation Punto was introduced in 2005 And even after 12 years of existence the Punto styledby Giorgetto Giugiaro remains timeless However now the Punto is unable to compete with better-equipped rivals with sharperstyling

To resolve this issue Fiat is now introducing a new successor of the Punto called the Argo The Argo will be revealed in Brazil inthe coming days and recently the automaker released a teaser video of the same

The Argo as seen in the teaser videos looks diametrically opposite to the car it will be replacing It seems that the Argo will havehorizontally placed headlamps with LED lighting and daytime running LEDs The fog lamps will be LED as well

The teased hatch is certainly the performance-oriented version of the Argo as it gets a dual-tone roof spoiler and Abarthamprsquoscrazy-looking scorpion-inspired alloys At the rear it gets wrap-around LED tail lamps much like the Fiat Tipo hatch Stay tuned toCardekho for the Argoamprsquos reveal later this monthhttpwwwdeccanchroniclecombusinessautos120517fiat-argo-teased-ahead-of-revealhtml

Top

India China plans for electric cars threaten to cut petrol demand ReutersSee this story in The Economic Times (Web Edition)

SingaporeKuala Lumpur Demand for gasoline in Asia may peak much earlier than expected as millions of people in China andIndia buy electric vehicles over the next decade threatening wrenching change for the oil industry oil and auto company executiveswarned

They said refiners should prepare for a future in which gasoline their biggest source of revenue will be much less of a cash cow

Change is being prompted by policy moves in India and China where governments are trying to rein in rampant pollution cut oilimports and compete for a slice of the fast-growing green car market

In its road map released in April China said it wants alternative fuel vehicles to account for at least one-fifth of the 35 millionannual vehicle sales projected by 2025

India is considering even more radical action with an influential government think-tank drafting plans in support of electrifying allvehicles in the country by 2032 according to government and industry sources interviewed by Reuters late last week

We will see a clear shift to electric cars Its driven by legislation so electric cars are coming its not a niche anymore Wilco Starkvice president for strategy and product planning at German car maker Daimler told Reuters

Stark and other executives were interviewed during the Asia Oil amp Gas Conference in Kuala Lumpur this week

Daimler sees electric vehicles contributing 15-20 percent of its overall sales by 2025 and at least an additional 10 percent of salescoming rom hybrids he said

Electric cars currently make up less than 2 percent of the global car fleet and any faster-than-expected growth in that percentagewill materially impact oil demand and the refining business

Technology is moving fast In 10-15 years our gasoline market might not be the same as it is today said Dawood Nassif boarddirector at the state-owned oil company Bahrain Petroleum Company (BAPCO)

With gasoline responsible for up to 45 percent of refinery output and one of the highest profit-margin fuels a slowdown or fall indemand will have far reaching implications

Credit agency Moodys says that the fast pace of technological development makes accurate predictions difficult but warned thatdirect financial effects from falling oil demand including gasoline could be material by the 2020s

government said in the releasehttpautoeconomictimesindiatimescomnewsindustryinvestments-worth-rs-15000-crore-in-pipeline-tamil-nadu-govt58638954

Top

Interviews amp Features

Cars SUVs MUVs

Fiat Argo teased ahead of reveal PTISee this story in Deccan Chronicle (Web Edition)

The Grand Punto aka the third generation Punto was introduced in 2005 And even after 12 years of existence the Punto styledby Giorgetto Giugiaro remains timeless However now the Punto is unable to compete with better-equipped rivals with sharperstyling

To resolve this issue Fiat is now introducing a new successor of the Punto called the Argo The Argo will be revealed in Brazil inthe coming days and recently the automaker released a teaser video of the same

The Argo as seen in the teaser videos looks diametrically opposite to the car it will be replacing It seems that the Argo will havehorizontally placed headlamps with LED lighting and daytime running LEDs The fog lamps will be LED as well

The teased hatch is certainly the performance-oriented version of the Argo as it gets a dual-tone roof spoiler and Abarthamprsquoscrazy-looking scorpion-inspired alloys At the rear it gets wrap-around LED tail lamps much like the Fiat Tipo hatch Stay tuned toCardekho for the Argoamprsquos reveal later this monthhttpwwwdeccanchroniclecombusinessautos120517fiat-argo-teased-ahead-of-revealhtml

Top

India China plans for electric cars threaten to cut petrol demand ReutersSee this story in The Economic Times (Web Edition)

SingaporeKuala Lumpur Demand for gasoline in Asia may peak much earlier than expected as millions of people in China andIndia buy electric vehicles over the next decade threatening wrenching change for the oil industry oil and auto company executiveswarned

They said refiners should prepare for a future in which gasoline their biggest source of revenue will be much less of a cash cow

Change is being prompted by policy moves in India and China where governments are trying to rein in rampant pollution cut oilimports and compete for a slice of the fast-growing green car market

In its road map released in April China said it wants alternative fuel vehicles to account for at least one-fifth of the 35 millionannual vehicle sales projected by 2025

India is considering even more radical action with an influential government think-tank drafting plans in support of electrifying allvehicles in the country by 2032 according to government and industry sources interviewed by Reuters late last week

We will see a clear shift to electric cars Its driven by legislation so electric cars are coming its not a niche anymore Wilco Starkvice president for strategy and product planning at German car maker Daimler told Reuters

Stark and other executives were interviewed during the Asia Oil amp Gas Conference in Kuala Lumpur this week

Daimler sees electric vehicles contributing 15-20 percent of its overall sales by 2025 and at least an additional 10 percent of salescoming rom hybrids he said

Electric cars currently make up less than 2 percent of the global car fleet and any faster-than-expected growth in that percentagewill materially impact oil demand and the refining business

Technology is moving fast In 10-15 years our gasoline market might not be the same as it is today said Dawood Nassif boarddirector at the state-owned oil company Bahrain Petroleum Company (BAPCO)

With gasoline responsible for up to 45 percent of refinery output and one of the highest profit-margin fuels a slowdown or fall indemand will have far reaching implications

Credit agency Moodys says that the fast pace of technological development makes accurate predictions difficult but warned thatdirect financial effects from falling oil demand including gasoline could be material by the 2020s

The changes are so big that the influential International Energy Agency (IEA) plans to revisit its analysis of electric vehicle trendsand oil demand

The choices made by China and India are obviously most relevant for the possible future peak in passenger car oil demand anIEA spokesman told Reuters

In its current policies scenario last updated in November 2016 the IEA still expects oil demand from vehicle use to rise until 2040

Its not just China and India that are changing fast

Asias major car makers Japan and South Korea already sell significant volumes of hybrid vehicles - which operate off gasolineand electricity - while fuel efficiency gains will continue to cut gasoline consumption for standard vehicles

There will though be some major hurdles before a country like India goes mostly electric High battery costs would push up carprices and a lack of charging stations and other infrastructure in India means car makers may hesitate to make the necessaryinvestment in the technology

Need to AdpatAsia has long been the main driver of future oil demand thanks to supercharged growth in sales of autos

China sells more than 2 million new cars a month and is challenging the United States as the worlds biggest oil consumer Indianow is the worlds third-biggest oil importer ahead of Japan

More than a third of the worlds refineries are in Asia up from just 18 percent in 1990

For refiners the growth of vehicles that run on electricity and other alternative fuels is a wake-up call They can tweak the productsthey make from crude oil to an extent but still mostly rely on gasoline consumption for revenue

Rising pressure on margins and cash flows will potentially lead to stranded assets Moodys warned using a term for assets thatno longer provide an economic return because of changes in the market or regulatory environment

The oil industry is taking note

Royal Dutch Shell said this week that it is looking into the potential to introduce electric vehicle charging points at our retail sitesin several countries

Oil executives say it is still premature to expect overall oil demand to fall soon

Our industry will not disappear said Abdulaziz al Judaimi senior vice president for downstream at Saudi Aramco the worldsbiggest oil export company

They are envisaging a shift towards producing more petrochemicals like plastics or household chemicals areas where consumptionis soaring

Saudi Aramco is jointly developing the huge Malaysian RAPID refinery and petrochemical complex with state-owned Petronas andthe two said this week they are exploring an expansion of its petrochemical capacity

Exxon Mobil this week said it would buy a petrochemical plant in Singapore

Refiners also still see strong oil demand from heavy industry

Refiners may shift their focus from gasoline to middle distillates said KY Lin of Taiwans Formosa Petrochemical a major Asianrefiner Gasoil is used widely including in farmingindustrial equipment and also as a marine fuelhttpautoeconomictimesindiatimescomnewsindustryindia-china-plans-for-electric-cars-threaten-to-cut-gasoline-demand58644746

Top

Suzuki is pumping in billions of dollars to further strengthen its position in India Sharmistha Mukherjee amp Ketan ThakkarThe Economic Times (Web amp Print Edition)

On March 9 when most automobile industry honchos were busy attending the Geneva Motor Show the heads of two Japanesecarmakers made a flying visit to the Indian capital The only item on their agenda was a meeting with the Prime Minister NarendraModi to explain their joint plans for the country under a business partnership the companies announced late last year The timingwas propitious as campaigning had just ended in Uttar Pradesh and one the first appointments given were to the captains of thetwo Japanese carmakers They flew in for the meeting and flew out immediately after the powwow updating the Indian governmenton the new alliance between companies who otherwise fight every inch for market share

As the discussion veered towards pure hybrid and electric vehicles Toyota Motor president Akio Toyoda and Suzuki Motorchairman Osamu Suzuki told Prime Minister Narendra Modi that they would come up with new technologies for India and alsopossibly make those vehicles here for the export markets people in the know of the matter said

The Toyota-Suzuki partnership could prove to be a boon for all involved at a time when India is tightening regulations over vehicularemission and pushing for greener technologies They could harness Toyotaamprsquos expertise in manufacturing and technology

and Suzukiamprsquos deep understanding of the Indian market through unit Maruti Suzuki to make products that meet Indiaamprsquosrequirements ampmdash primarily vehicles that offer value for money The stakes are particularly high for Suzuki given that it getsabout half the sales and 45 of operating profit from India where unit Maruti makes one in every two cars sold And the companyisnamprsquot wasting any time to embrace new technologies that it may require to make its products future-proof

It announced a factory to make lithium ion batteries ampmdash rechargeable batteries used in electric and hybrid vehicles ampmdash injoint venture with Toshiba and Denso And if one ties along the proposed partnership with Toyota Suzuki is clearly thinking farahead into the future The move in fact has a potential to drive car electrification in the country

It is perhaps this far-reaching approach and deep engagement of Suzuki that have boosted subsidiary Marutiamprsquos performancein the past few years Among the milestones it has crossed of late the Indian automaker raced ahead of Hyundai Motor Renaultand Audi to enter the elite club of the worldamprsquos top 10 automakers in terms of market capitalisation this month Strongdouble-digit volume growth in recent times catapulted its market capitalisation to touch Rs 200000 crore on May 2 It has alsoemerged the second most valued stock globally after Tesla in terms of market cap to sales ratio

Suzuki is targeting to do better and bigger here This has led to massive investments in Maruti Suzuki in the last three yearsampldquoIndia clearly is at the centre of discussion (at Suzuki) amphellip be it on electric or hybrid technology or even partnershipdiscussions With strong support from the parent Maruti wants to be ready when the hybridisation wave starts in thecountryamprdquo said a person associated with the company Such focus on technology products as well as services makescustomers like Samir Ghosh of Kolkata stick to the Maruti brand

Ghosh a 58-year-old businessman learnt to drive in a Maruti 800 in the 1980s and since has purchased only Maruti vehiclesampldquoI am familiar with the brand their cars are valuefor-money deliver well on fuel efficiency Most importantly servicing theircars are easy hassle-freeamprdquo he said

Heavy investmentsEven as the Suzuki-Toyota alliance is working on the contours of development in areas of green mobility Marutiamprsquos parent hastaken on the responsibility of bringing in resources to meet capacity requirements in the Indian market Suzuki has lined upinvestments worth close to Rs 10000 crore to set up manufacturing facilities in Gujarat to produce 750000 vehicles a year

This frees up the Indian unitamprsquos reserves ampmdash Rs 23000 crore as of March 31 ampmdash for investment in strengtheningproduct development capability and building marketing and service infrastructure Maruti plans to spend around Rs 4500 croreannually over the next few years in bringing in new products and another Rs 1900 crore for commissioning the second phase of itsRampD centre in Rohtak in Haryana

ampldquoWith Suzuki investing in setting up the manufacturing facility in Gujarat we do not have any business of getting into otherbusinesses We can focus our investments in product development and on rapidly expanding our sales and service networkamprdquosaid RC Bhargava the 82-year-old chairman of Maruti Among other factors Bhargava attributes Marutiamprsquos phenomenalgrowth over the last three and half decades to the personal involvement of Suzuki patriarch Osamu Suzuki in the India businessampldquoNormally the president of a foreign company does not take personal interest in a project in another country And whenMaruti started it was not such a big projectamprdquo Bhargava said ampldquoBut he took personal interest from thebeginningamprdquo

Expanding reachAs the company is pacing up towards its target of selling 2 million vehicles a year by the turn of the decade building accompanyingsales and service network will be key Bhargava said Maruti had invested Rs 11000 crore for setting up its existing sales andservice infrastructure Replicating infrastructure of the same scale today will require about Rs 30000 crore Bhargava said mainlybecause there has been an astronomical increase in land prices Half of the resources required for the expansion will come fromMarutiamprsquos reserves Almost a third of Marutiamprsquos volume comes from rural areas

To further cover the hinterlands of the country and establish a strong network in emerging towns and cities it intends to add 3000outlets and 1800 workshops in the next three-four years to its existing network of 2000 sales outlets and 3200 workshops Its realestate arm is meanwhile mapping out emerging markets for acquiring land to protect dealers from ballooning rentals

Already 98-99 of the companyamprsquos channel partners are profitable and even the NEXA outlets which exclusively sellMarutiamprsquos premium products have started making money thanks to the rousing response to the Baleno hatchback Unlikeother carmakers Marutiamprsquos dealers do not rely on margins from the sale of vehicles but sustain operations profitably fromrevenue gained through service financing and sales of accessories

ampldquoOne expects a market leader to do anything and everything but clear choices have been made There is a method behindthe madness The setting up of the NEXA channel premiumisation of the product portfolio setting up of the real estate company orfor that matter the parent company investing in manufacturing and the local subsidiary strengthening its marketing muscle are allwell thought out strategiesamprdquo said an industry veteran

Local RampDMaruti has been quick in updating its product portfolio introducing new vehicles and upgrading existing models to meet demands ina market where product lifecycles have become short in the past decade It plans to bring in 15 new products through 2020 Toreduce turnaround time much of the development work is now being done locally This has in turn entailed a 70 jump inresources allocated for establishing the Rohtak RampD centre Maruti will be spending Rs 3800 crore on the RampD centre up from theabout Rs 2000 crore investment envisaged initially

Already India is at the core of product planning processes at Suzuki and going ahead the country will bear larger responsibility innew product development as seen in case of the Ignis and the Vitara Brezza

ampldquoMost of the work we do now is work-share with Suzuki That is how we are looking at meeting the requirement of the Indianmarket and also of the global marketamprdquo said executive director (engineering) CV Raman ampldquoWe are in the process of

developing our capability and by doing that we will also develop our capacity to do more model development locallyamprdquo

Maruti has recruited around 1400 engineers in Rohtak About a third of them have been trained for at least six months at the Suzukiheadquarters in Japan ampldquoThere is a certain sense of openness towards Indian RampD now and this has been driven by (Indiamanaging director Kenichi) Ayukawa Japan and Indian RampD are collaborating more than ever and that will play a significant rolegoing aheadamprdquo said a person associated with the company

Sales offensiveThe aggressive product offensive of the company has started bearing fruit Long known for its small cars Maruti took a quantumleap by edging out competition in all the segments of the passenger vehicle market right from small cars sedans crossoversSUVs and vans in the last financial year

It still has a strong order backlog for the Brezza and Baleno which together have combined bookings of around 125000 unitsampldquoAlto Dzire Wagon R and Swift continue to remain the top sellers in the Indian market NEXA has brought in new customersby redefining the car purchase and ownership experience A strong portfolio of products ampmdash Ignis Baleno Ciaz S Cross andBrezza ampmdash has drawn new customers who are young at heartamprdquo said RS Kalsi executive director for sales amp marketingampldquoWe will be getting 150000 vehicles from Suzuki Gujarat this fiscal and currently our efforts are focused on reducing thewaiting period on our carsamprdquo

But it is not only Maruti Suzukiamprsquos emphasis on bringing in new products which helped it gain momentum the company hasalso been at the forefront of bringing down the entry barrier for newer technology solutions be it the auto gear shift option with theCelerio or mild hybrid solutions in the Ciaz Once the battery packaging facility comes onstream more offerings can be expectedfrom the company in the field of hybrid and electric technology

Oiling supply chainBut what really ties up the different aspects of the growth strategy chalked out by Maruti and Suzuki is the push towards localisationbe it in areas of product development or sourcing At a time when other car makers are engaged in talks around rationalisationMaruti is opening arms to new vendors and moving towards sourcing from multiple bases The idea is to de-risk operations andavert disruptions in supplies It has 444 tier-I and 2050 tier-II suppliers

According to person in the know of the strategy this change has been driven by Japanamprsquos openness towards global sourcingThere are equal opportunities for Indian European or US vendors as long as they match up on quality and cost parametersampldquoAnother big change has been unlike in the past where the precedence was given to best cost over quality it is the otherway round nowamprdquo this person addedhttpeconomictimesindiatimescomindustryautonewspassenger-vehiclecarssuzukis-future-proof-plan-set-to-pump-in-billions-of-dollars-to-strengthen-its-position-in-indiaarticleshow58650876cms

Top

Luxury Cars

Audi India inaugurates new service facility in Bhubaneswar The Economic Times (Web Edition)

Bhubaneswar Indian arm of German auto maker Audi has inaugurated a service facility in Bhubaneswar the company said in apress release

The new service centre is spread over an area of 28000 sq ft with a total of 8 bays the exclusive service facility is located at Plot 1383 PO - Jayapur NH-5 Pahal Cuttack Bhubaneswar Road The new service facility will serve its customers in Bhubaneswarand the Eastern region

Talking at the inauguration Rahil Ansari Head Audi India said ampldquoThe customer is at the core of what we do at Audi we arecommitted towards having a customer as part of the Audi family They should stay with the brand once they join the Audi brand andfor that service is as important as product excellenceamprdquo

ampldquoThe new state-of-the-art service facility in Bhubaneswar will offer our customers the same service levels as availableglobally We are also planning some new initiatives that will set benchmarks for service level efficiency accessibility andaffordability because amplsquototal cost of ownershipamprsquo is not only a phrase for us but we want to live by itamprdquo said MrRahil Ansari Head Audi Indiaamprdquo

Speaking on the occasion Mr Devjyoti Patnaik Managing Director Audi Bhubaneswar said ampldquoAudi Bhubaneswar has beensetting luxury benchmarks in Odisha since we started here in 2013 The new service facility continues our legacy of offering the bestluxury experience which commensurate with the perfection that Audi brand stands for We are looking forward to delight ourcustomers with this new service facilityamprdquo

ampldquoThe new facility in Bhubaneswar reflects this ideology and reaffirms our commitment to Audi owners in Indiaamprdquo addedRahil Ansariamprdquohttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsaudi-india-inaugurates-new-service-facility-in-bhubaneswar58644445

Top

BMW 8 series coupe confirmed

developing our capability and by doing that we will also develop our capacity to do more model development locallyamprdquo

Maruti has recruited around 1400 engineers in Rohtak About a third of them have been trained for at least six months at the Suzukiheadquarters in Japan ampldquoThere is a certain sense of openness towards Indian RampD now and this has been driven by (Indiamanaging director Kenichi) Ayukawa Japan and Indian RampD are collaborating more than ever and that will play a significant rolegoing aheadamprdquo said a person associated with the company

Sales offensiveThe aggressive product offensive of the company has started bearing fruit Long known for its small cars Maruti took a quantumleap by edging out competition in all the segments of the passenger vehicle market right from small cars sedans crossoversSUVs and vans in the last financial year

It still has a strong order backlog for the Brezza and Baleno which together have combined bookings of around 125000 unitsampldquoAlto Dzire Wagon R and Swift continue to remain the top sellers in the Indian market NEXA has brought in new customersby redefining the car purchase and ownership experience A strong portfolio of products ampmdash Ignis Baleno Ciaz S Cross andBrezza ampmdash has drawn new customers who are young at heartamprdquo said RS Kalsi executive director for sales amp marketingampldquoWe will be getting 150000 vehicles from Suzuki Gujarat this fiscal and currently our efforts are focused on reducing thewaiting period on our carsamprdquo

But it is not only Maruti Suzukiamprsquos emphasis on bringing in new products which helped it gain momentum the company hasalso been at the forefront of bringing down the entry barrier for newer technology solutions be it the auto gear shift option with theCelerio or mild hybrid solutions in the Ciaz Once the battery packaging facility comes onstream more offerings can be expectedfrom the company in the field of hybrid and electric technology

Oiling supply chainBut what really ties up the different aspects of the growth strategy chalked out by Maruti and Suzuki is the push towards localisationbe it in areas of product development or sourcing At a time when other car makers are engaged in talks around rationalisationMaruti is opening arms to new vendors and moving towards sourcing from multiple bases The idea is to de-risk operations andavert disruptions in supplies It has 444 tier-I and 2050 tier-II suppliers

According to person in the know of the strategy this change has been driven by Japanamprsquos openness towards global sourcingThere are equal opportunities for Indian European or US vendors as long as they match up on quality and cost parametersampldquoAnother big change has been unlike in the past where the precedence was given to best cost over quality it is the otherway round nowamprdquo this person addedhttpeconomictimesindiatimescomindustryautonewspassenger-vehiclecarssuzukis-future-proof-plan-set-to-pump-in-billions-of-dollars-to-strengthen-its-position-in-indiaarticleshow58650876cms

Top

Luxury Cars

Audi India inaugurates new service facility in Bhubaneswar The Economic Times (Web Edition)

Bhubaneswar Indian arm of German auto maker Audi has inaugurated a service facility in Bhubaneswar the company said in apress release

The new service centre is spread over an area of 28000 sq ft with a total of 8 bays the exclusive service facility is located at Plot 1383 PO - Jayapur NH-5 Pahal Cuttack Bhubaneswar Road The new service facility will serve its customers in Bhubaneswarand the Eastern region

Talking at the inauguration Rahil Ansari Head Audi India said ampldquoThe customer is at the core of what we do at Audi we arecommitted towards having a customer as part of the Audi family They should stay with the brand once they join the Audi brand andfor that service is as important as product excellenceamprdquo

ampldquoThe new state-of-the-art service facility in Bhubaneswar will offer our customers the same service levels as availableglobally We are also planning some new initiatives that will set benchmarks for service level efficiency accessibility andaffordability because amplsquototal cost of ownershipamprsquo is not only a phrase for us but we want to live by itamprdquo said MrRahil Ansari Head Audi Indiaamprdquo

Speaking on the occasion Mr Devjyoti Patnaik Managing Director Audi Bhubaneswar said ampldquoAudi Bhubaneswar has beensetting luxury benchmarks in Odisha since we started here in 2013 The new service facility continues our legacy of offering the bestluxury experience which commensurate with the perfection that Audi brand stands for We are looking forward to delight ourcustomers with this new service facilityamprdquo

ampldquoThe new facility in Bhubaneswar reflects this ideology and reaffirms our commitment to Audi owners in Indiaamprdquo addedRahil Ansariamprdquohttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsaudi-india-inaugurates-new-service-facility-in-bhubaneswar58644445

Top

BMW 8 series coupe confirmed

The Statesman (Web Edition)

New Delhi Did you ever think that the BMW 6 Series Coupe was a bit too bland and a bit too small for your liking Well good newsAfter a lot of rumours about BMW testing its new offering in the luxury coupe segment doing rounds all over the internet thecompany has confirmed that it will launch the BMW 8 Series Coupe in 2018

To give us an idea about what it will look like BMW has released a teaser image as well As youamprsquod expect it is a low-slungtwo-door coupe with a long hood and wide haunches A design concept which will reveal more details about the coupe will beshowcased at the 2017 Concorso damprsquoEleganza Villa damprsquoEste on May 26 The Munich-based auto giant confirmed thatthe coupe will be launched in 2018

At the annual general meeting Harald Kruumlger chairman of the board of management BMW AG said ampldquoThe BMW 8 SeriesCoupe will build on our tradition of luxurious sports coupes and add a genuine dream car to our lineup ampndash a slice of pureautomotive fascination The 8 Series Coupe will underpin our claim to leadership in the luxury segment I can tell you today that thiswill be a true luxury sports coupeamprdquo

Once in production the BMW 8 Series Coupe could share its engine options with the 7 Series saloon albeit tuned differently Wecanamprsquot rule out possibilities of an M Sport or M Performance variant as well Whatever may be the end product it certainlysounds very exciting When launched BMWamprsquos flagship coupe will lock horns with the Mercedes-Benz S-Class Coupe and theLexus LC 500httpwwwthestatesmancombusinessbmw-8-series-coupe-confirmed-1494586858html

Top

Commercial Vehicles

Tata Motors says it is confident of meeting BS-VI norms by 2020 PTISee this story in Business Standard (Web Edition)

Kolkata Leading automobile manufacturer Tata Motors Limited on Friday said that the company was readying itself for complianceto the Bharat Stage-VI (BS) emission norms scheduled to come into effect from 2020

TML is now working towards manufacturing BS-VI- compliant commercial vehicles for which significant RampD activity is beingundertaken Girish Wagh head product line MHCV (medium and heavy commercial vehicles) of the company said

TML is in a most advanced stage in terms of BS-VI migration Wagh told reporters in Kolkata

Without going into details of the technology required and cost involved for migration Wagh said that out of the Rs 3500 crore-oddoutlay which the company makes in its RampD activity 40 per cent of that goes towards MHCV

By 2020 we will have to start selling BS-VI-compliant vehicles which meant that the readiness will have to be there at least six toeight months ahead of the deadline the official said

We are also talking to the oil marketing companies for availability of BS-VI-compliant fuel he added

With the inventory of BS-III MHCV which the company was having now at its factory Wagh said there were around 4500 of themand was being planned for export to the SAARC countries

Business head of the unit Rajesh Kaul said that under BS-VI emission norms the levels of particulate matter sulphur nitrous oxidecarbon monoxide and hydro-carbons would have to be reduced to a great extent

For this the company had already started manufacturing specialised types of engines with EGR and SCR technologies

TML enjoys a market share of 535 per cent in the MHCV category nationally and 70 per cent in the easthttpwwwbusiness-standardcomarticlecompaniestata-motors-says-it-is-confident-of-meeting-bs-vi-norms-by-2020-117051200652_1htmlTata Motors gearing up for Bharat Stage-VIThe Hinduhttpwwwthehinducomtodays-papertp-businesstata-motors-gearing-up-for-bharat-stage-viarticle18442927eceTata Motors confident of meeting BS-VI norms by 2020The Indian Expresshttpindianexpresscomarticlebusinesscompaniestata-motors-confident-of-meeting-bs-vi-norms-by-2020-4652882TMS confident of meeting BS-VI guidelines by 2020The Pioneer (Web amp Print Edition)httpwwwdailypioneercombusinesstms-confident-of-meeting--bs-vi-guidelines-by-2020htmlTata Motors confident of meeting BS-VI norms by 2020Deccan Chronicle (Web Edition)httpwwwdeccanchroniclecombusinesscompanies120517tata-motors-confident-of-meeting-bs-vi-norms-by-2020html

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Tata Motors commercial division plans to get future ready Avishek RakshitBusiness Standard (Web Edition)

Kolkata After domestic sales of its commercial vehicles plummeted by 36 per cent in April this year following the sudden SupremeCourt order banning sales of Bharat Stage (BS) III vehicles Tata Motors commercial vehicles division is getting future ready toavoid any such sales disruptions in the coming three years

The company which is now faced with an inventory of 15000 BS-III graded commercial vehicles of which the heavy vehiclesaccount for atleast 27 per cent is working on introducing Exhaust Gas Recirculation (EGR) and Selective Catalytic Reduction(SCR) technology in its vehicles which will not just make its vehicles comply with BS IV emission norms but these technologies willalso help the company migrate from BS-IV to BS-VI which is poised to become the norm in April 2020

We have to be ready with the vehicles meeting BS-VI norms much before its proposed roll out date so that we are not faced anymore shocks which arose from a recent incident Thus we are powering our engines with the SCR technology Rajesh Kaul head -sales amp marketing Medium and Heavy Commercial Vehicles at Tata Motors said

Kaul said that the EGR technology which Tata Motors has developed in-house will be used in the light-medium commercial vehiclerange while the SCR powered engines sourced from diesel engine maker Cummins will be used for heavy vehicles

However the company is betting high on the SCR technology which it says is future ready and a proven global technology WhileEGR is a relatively low-cost simple and easy to integrate solution SCR can be scaled up to meet the norms of the upcoming BS VIstandards

Although the company manufactured commercial vehicles in accordance to BS-III norms which now has changed to cater to BS-IVnorms it had developed the EGR technology back in 2010 while adopted the SCR emission solution in 2014

As per Girish Wagh head - product line Medium and Heavy Commercial Vehicles at Tata Motors prices of commercial vehiclescan shoot up by 7-9 per cent on account of the switchover to the SCR technology However he couldnt state the effect on vehicleprices once India shifts from BS IV to BS VI norms directly

It cannot be predicted at this point of time The price will depend on several factors including research and development he said

Annually Tata Motors spends around Rs 3500 crore on research and development of which around 40 per cent is on thecommercial vehicles product-lines However Wagh could not give a monetary estimate on the companys expected expenses tomake it ready for BS-VI norms

Over the stockpile of BS-III norm vehicles in its warehouse Wagh said the company is exploring options to export these vehicles inthe SAARC regionhttpwwwbusiness-standardcomarticlecompaniestata-motors-commercial-division-plans-to-get-future-ready-117051201022_1html

Top

Construction amp Agri Machinery

23 Wheelers

TVS Motor gains 3 after announcing alliance with Guatemala-based company Business Standard

Mumbai TVS Motor Company was trading 3 higher at Rs 515 on BSE in an otherwise subdued market after the companyannounced its alliance with MASESA (Mayor Servicios Socieda Anonima) a Guatemala based company to strengthen its presencein Central America Latin America South East Asia and Middle East The SampP BSE Sensex was down 019 at 30193 at 1153pm

ampldquoIn this alliance MASESA will develop exclusive TVS Motor Company concessionaires in Guatemala El SalvadorHonduras Nicaragua and Costa Ricaamprdquo the two and three-wheeler manufacturer said in a press release

The stock is trading close to its all-time high of Rs 519 touched on April 27 2017 in intra-day trade after announcement ofJanuary-March quarter (Q4FY17) results

Thus far in the calendar year 2017 TVS Motor outperformed the market by surging 43 as compared to 15 rise in SampP BSE Autoindex and 14 gain in the benchmark SampP BSE Sensex

On outlook for FY 2017-18 the Company said it will introduce a new motorcycle and a new scooter In addition to these newlaunches the Company has also planned upgrades across segments to strengthen its product portfolio

With the widest range of product across segments TVS Motor Company expects to better its performance in the ongoing fiscal yearand grow ahead of the industry it added

Meanwhile most of the analysts believe that the companys current valuation captures most of the future growth prospect

ampldquoWith Victor failing to gain market share and moped growth cooling off TVS may miss its market share guidance Weenvisage multiple challenges to margins such as increase in commodity prices higher cost from shift to BSIV emission norms lowerrevenue share of mopeds and expiry of excise duty exemption in Himachal Pradesh in FY18amprdquo IIFL Institutional Equities saidin result updatehttpwwwbusiness-standardcomarticlemarketstvs-motor-gains-on-alliance-with-masesa-117051200394_1html

Top

Delhi govt orders registration of BS-III two-wheelers PTISee this story in Daily News amp Analysis

The Delhi government has ordered registration of BS-III two-wheelers which were sold on or before March 31 following a high courtorder

The development comes as a relief for car dealers who had sold BS-III vehicles till March 31 but were not able to get themregistered as the regional transport offices (RTOs) were not accepting the documents after the deadline set by the Supreme Court

The apex court had set March 31 as the deadline for the sale and registration of BS-III vehicles

Around 1000 of such two-wheelers are awaiting registration in the national capital

In its order dated yesterday the Transport department said prior to registration of these vehicles the regional transport officersconcerned will have to ensure that they were sold on or before March 31

The registering authority would take into account the proof of online payment made on or before March 31 or the issuance of aninsurance policy online on or before the said date in the name of the purchaser the order read

It added that in case the online payment was not made or the insurance policy not issued on or before March 31 the licensingofficer will be held responsible for the violation

The deadline for production of vehicles before the motor licensing officers has already been extended to May 15

However the direction would only be applicable to non- self registering dealers who cannot make online payment of sales tax thehigh court had clarified in its May 8 order

Several such dealers had moved the Delhi Hight Court saying the Transport department was not considering the documentspresented by them for registration of vehicles even though they had sold them before March 31

The Supreme Court on March 29 had banned the sale and registration of vehicles which were not BS-IV compliant from April 1the day the new emission norms came into forcehttpwwwdnaindiacommoneyreport-delhi-govt-orders-registration-of-bs-iii-two-wheelers-2436353

Top

E-Bikes

Components

UNO MINDA amp Microsoft enters into partnership to bring connected vehicle technologies The Economic Times

New Delhi Uno Minda Group a leading automotive component maker from North India has tied up with software giant Microsoft tobring connected vehicle technologies in the automotive industry

Uno Minda Group entered into collaboration with Microsoft through its connected vehicle and telematics arm Minda iConnect PvtLtd The partnership will aim to enhance in-vehicle connectivity and efficiency to provide an enriched driving experience toautomotive users in the country said the company in a statement on Friday

Rajiv Sodhi Cloud and Enterprise Lead Microsoft India said We believe that the power Microsoft Azure cloud and Azure IOTservices will bring secure and faster connected experiences to vehicle drivers in the countryamprdquo

Commenting on the partnership Ravi Jakhodia CEO Minda iConnect said this partnership with Microsoftamprsquos fast-pacedinnovation cycle will create a fully connected and seamless driving experience for the end customers

This partnership puts in place the right building blocks as we aim to connect millions of vehicles across passenger and commercialsegmentsamprdquo added Jakhodia

As part of this collaboration Microsoft and Minda will work on technologies for both the passenger car and commercial vehicleautomobile manufacturers to significantly enhance customer experience across ampndash safety and security convenience and easeof ownership and on content and entertainment front

On the safety and security front Minda and Microsfot over the next two years will focus on real time benchmarking of drivingbehavior real time coaching vehicle to vehicle and vehicle to infrastructure communication In addition they will look at ways inwhich how fleet owners will be enabled to better incentivize their drivers to improve both fleet efficiency and driver safety

On the convenience and ease of ownership aspect the partners will aim to bring the right ecosystem partners onto the platform toprovide a seamless vehicle management experience for end customers For example seamless road side assistance insurancerenewals and usage based insurance would be some of the upcoming features

And on the content and entertainment front with 4G networks now becoming prevalent in India audio video and news content withconnected vehicle program will be some of the key highlights for the end consumershttpautoeconomictimesindiatimescomnewsauto-componentsuno-minda-microsoft-enters-into-partnership-to-bring-connected-vehicle-technologies58644257Uno Minda Microsoft to work towards connected vehicles in IndiaThe Hindu Business Linehttpwwwthehindubusinesslinecomcompaniesuno-minda-microsoft-to-work-towards-connected-vehicles-in-indiaarticle9695908eceref=wl_news

Top

Allied Industries

Emissions Environment

Finance amp Insurance

Oil Lubricants amp Alternative Fuels

News Magazines

Skoda Karoq SUV teased ahead of unveil Autocar India

Skoda has released teaser images of its new Karoq SUV ahead of its public debut later this month It comes with an all-new designadvanced driver assistance technology and four new turbocharged engines

Ditching the unique exterior shape of its predecessor the Yeti for a more conventional SUV body the Karoq shares many featureswith the larger Kodiaq which it sits below in Skodaamprsquos line-up

The Karoq has space for five passengers and has a boot capacity of 521 litres or 1630 litres with the back seats folded down Thiscomfortably beats the caramprsquos main rival the Nissan Qashqai which offers 430 and 1585 litres respectively Built on theVolkswagen Groupamprsquos MQB platform shared with models such as the Audi Q2 and Seat Ateca the Karoq comes with achoice of five turbocharged engines four of which are new to Skoda

The new petrol engines are an entry-level 10-litre TSI three-cylinder and a 15-litre TSI with the latter enabling a 0-100kph time of84sec and featuring active cylinder technology Thereamprsquos a new diesel 16-litre TDI and a new 20-litre TDI enabling a0-100kph time of 78sec ampndash the quickest available These new Skoda units are joined by a 20-litre TDI thatamprsquos familiar tothe brand The Karoq will come with two- and four-wheel-drive guises and with a choice of a six-speed manual or seven-speed DSGautomatic gearbox In higher spec it comes with Skodaamprsquos Drive Mode Select system which enables the caramprsquosdrivetrain to be switched through Normal Sport Eco Individual and Snow

Driver assist systems include a radar-based adaptive cruise control blind spot detect and front assist which includes automatic citybraking with a pedestrian braking system Thereamprsquos also hill hold control to prevent roll back and emergency assistance whichcan intervene if the driver becomes incapable of driving and when adaptive cruise control and lane assist are on

In-car technology includes gesture control for certain functions wireless phone charging as well as a mobile online connection thatworks with the infotainment In top spec the infotainment system has a screen of up to 92-inch and three other displays including anew digital instrument cluster that makes its debut in a Skoda

There is no news on whether the Skoda Karoq will come to India However Skoda is readying the India-entry of its new flagshipSUV the Kodiaqhttpwwwautocarindiacomauto-newsskoda-karoq-suv-teased-ahead-of-unveil-404809aspx

Top

Pininfarina to develop platform for Iran Khodro Autocar India

Pininfarina has signed a pound30 million deal with Iranian automotive company Iran Khodro to produce a new platform thatamprsquollunderpin at least four vehicles

The deal will see Iran Khodro which manufactures vehicles for Iranian brand Samand Peugeot and Renault to be sold in Iranproduce a medium-size passenger car likely a saloon or small SUV first

Pininfarina will be involved in the entire process of getting the car to production from concept design to physical validation of thefinal product It will even support the start of production

Silvio Pietro Angori Pininfarina Group CEO said ampldquoThe agreement with Iran Khodro represents another important step in thegrowth strategy of Pininfarina on markets of the new Silk Road and the Middle East

ampldquoWe are happy to contribute to the development of the Iranian automotive industry through a very significant style andengineering programme for our companyamprdquo

The partnership which is planned to last three years isnamprsquot the first of its kind for Pininfarina The former design house hasexpanded its portfolio to include full engineering projects such as the recent Hybrid Kinetic Group turbine cars and PininfarinaFittipaldi EF7

It is also planning an electric supercar with links to parent company Indian automotive giant Mahindras involvement in Formula Ehttpwwwautocarindiacomauto-newspininfarina-to-develop-platform-for-iran-khodro-404892aspx

Top

2018 Jeep Wrangler interior leaked Autocar India

Following leaked images of the next-gen Wranglers exterior surfacing online earlier this year images of the SUVamprsquos cabin tooare now in the open

As with the exterior the cabin too follows an evolutionary design with the basic set-up more or less unchanged The 2018 Wranglerretains its shallow and upright dashboard though with a heavily revised layout of switchgear and more tech on offer The dashboardseems to feature a body-coloured strip running the length of the unit with new circular air-con vents flanking a large centraltouchscreen infotainment system

The air-con system also features new controls lower down on the centre console flanked by dials to operate the touchscreen systemwith the power window switches located near the base of the centre stack The instrument cluster is revised though it remains ananalogue unit As per reports the car is also expected to feature tech such as a start-stop system reverse camera navigationfunction heated steering and key-less entry and go

As with its predecessor the next-gen Wrangler is set to continue to be a ladder-on-frame SUV with solid axles to retain itslegendary off-road character

Under the hood the current range of engines is expected to be updated and carried forward with the next-gen SUV also expected toreceive hybrid powertrains as well

The 2018 Wrangler is expected to make its global debut towards the end of the year with the model also entering production aroundthe same time

For India it is likely that Jeep will bring in the new Wrangler shortly after its launch in international markets with the India-spec carcurrently being imported as CBU At present the brand in India is focusing on the launch of its most affordable SUV the all-newCompass which recently made its debut in the countryhttpwwwautocarindiacomauto-news2018-jeep-wrangler-interior-leaked-404891aspx

Top

TVS to strengthen Central America presence Autocar India

TVS has ramped up its efforts to increase and improve its global presence by forging a partnership for expansion in CentralAmerica TVS has forged an alliance with MASESA (Mayor Servicios Socieda Anonima) a Guatemalan company that specialises incommercialising two- and three-wheelers in the region

MASESA will help TVS set up retail and service operations in Guatemala El Salvador Honduras Nicaragua and Costa Rica

MASESAamprsquos team will help TVS build support infrastructure that is critical to the brandamprsquos growth in the region The firstphase of this alliance will involve the setting up of five retail showrooms in the region with integrated parts and service centresAdditionally TVS products will also be sold through the 500 dealers that MASESA has in the region

The following range of TVS products will be marketed in Central AmericaMotorcycles Star HLX 100125 Sport 100 ES Phoenix 125 Stryker 125 Max 125 (from the Indonesian market) and Apache RTR160180200Scooters Scooty Zest 110 Wego 110 and Neo 110 (from the Indonesian market)Three-wheelers King DLXhttpwwwautocarindiacomauto-newstvs-to-strengthen-central-america-presence-404890aspx

Top

BMW 8-series to enter production in 2018 Autocar India

The BMW 8 Series name will be resurrected on a new flagship model in 2018 as part of moves to provide greater competition tolong-time adversary Mercedes and its S-class coupeacute as well as the Bentley Continental GT

BMW boss Harald Kruumlger confirmed the 8 Series will be launched in 2018 while talking at the firms annual general meeting today Aconcept car will be revealed at the 2017 Concorso damprsquoEleganza Villa damprsquoEste in Italy on May 26 before the productioncar goes on sale next year This suggests the production car may be revealed at this years Frankfurt motor show

ampldquoThe BMW 8 Series coupe will be build on our tradition of luxurious sports coupes and add a genuine dream car to ourline-up ampndash a slice of pure automotive fascinationamprdquo said Kruumlger ampldquoThe 8 Series coupe will underpin our claim toleadership in the luxury segment I can tell you today that this will be a true luxury sports coupeamprdquo

BMW 8 Series - what we know

The BMW 8 Series is planned to be a technological flagship with driveline components multi-material architecture electrical systemand connectivity solutions closely related to those used by the current sixth-generation 7 Series It will be built at BMWamprsquosDingolfing factory in Germany from 2018 our sister publication Autocar UK believes

While shrouded in secrecy insiders at BMWamprsquos RampD centre in Munich suggest that two differing layouts for the 8 Series wereput before BMW chairman Harald Krueger who is personally driving plans to extend the BMW line-up to include additional luxurymodels

The first adopted a four-door layout and was described as being ampldquosimilar in concept to the BMW 6 Series Gran Coupeacute onlybigger and nobler in appearanceamprdquo An alternative layout calls for a more classic two-door coupeacute and cabriolet pairing Theteaser image released as Kruumlger spoke suggests the two-door concept is the more likely to make production

Among the reasons behind Kruegeramprsquos push to extend BMWamprsquos reach at the upper end of its line-up is the continuedsuccess and profitability of the Mercedes-Benz S-class and its various derivatives in key markets such as the US and China

ampldquoWith the decision to bring back the 8 Series Krueger is looking at a potentially lucrative revenue stream with highprofitability on a per unit basisamprdquo a BMW senior manager revealed to Autocar UK It was also suggested that pricing of thenew car would distance it from Rolls-Royce models

Rumours of a return for the 8 Series name stretch back to 2010 but bosses officially denied that any plans to bring back thenameplate existed in 2013 when the German firm unveiled the Pininfarina-designed Gran Lusso concept The original BMW 8Series was built from 1989 to 1999 as a two-door coupeacutehttpwwwautocarindiacomauto-newsbmw-8-series-to-enter-production-in-2018-404889aspx

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Volkswagen for electric future but says diesel acirceuro˜indispensableacirceurotrade Autocar India

The Volkswagen Group will invest around pound75 billion (Rs 73823 crore) into developing electric and alternative drivetrain cars in thenext five years with plans to launch more than 30 battery-powered models by 2025

Speaking at the Groupamprsquos annual general meeting CEO Matthias Muumlller also launched a staunch defence of diesel enginessaying that they will remain indispensable for the foreseeable future

The pound75bn investment is part of the Groups plans to become the market leader in e-mobility as part of the Together - Strategy2025 plan Volkswagen has already invested pound25bn in developing alternative drive technology over the past five years

Speaking about the investment plan Muumlller said ampldquoThis is how we will be rolling out more than 10 new electrified models bythe end of 2018 By 2025 we will be adding more than 30 more BEVs [battery-electric vehicles]amprdquo

The Volkswagen Group has established a centre of excellence at its Salzgitter factory in Germany tasked with developing batterycells and modules and is also negotiating with potential partners in Europe and China

ampldquoVolkswagen is becoming faster more focused and more customer-drivenamprdquo added Muumlller ampldquoWe aretransforming Volkswagen from an automaker into a globally leading mobility provideramprdquo

Muumlller defends diesel engines

While Muumlller believes that ampldquothe future is electricamprdquo he said that conventional petrol and diesel-engined cars remainhugely important to the Group Despite the ongoing fallout from the Dieselgate scandal and current controversy over dieselemissions Muumlller said ampldquoDiesel will remain indispensable for the foreseeable futureamprdquo

He added ampldquoThis applies also and especially to the Euro 6 diesel despite the current heated debate

ampldquoThe internal combustion engine is primarily part of the solution not part of the problem 124 years after it was invented thediesel engine still has plenty of potential and we intend to exploit that potential

ampldquoBy 2020 we will have made our internal combustion engines between 10 and 15 percent more efficient and therefore alsocleaner This will help protect the environment and conserve resourcesamprdquohttpwwwautocarindiacomauto-newsvolkswagen-for-electric-future-but-says-diesel-8216indispensable8217-404881aspx

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2017 Isuzu MU-X review test drive Autocar India

What is it

Itamprsquos the much-awaited replacement for Isuzuamprsquos launch model the MU-7 When that massive SUV was launched whatwas clear was that it had presence but up against the likes of the (now last-gen) Fortuner and Endeavour it felt a bit behind thetimes And now that there are new versions of the competition this all-new model the MU-X couldnamprsquot have come a minutesooner It shares its platform with the Isuzu D-Max V-Cross a car we really liked and also the Chevrolet Trailblazer but it gets itsown unique engine and gearbox

As such it resembles both the cars it shares a platform with the front end being very close to that of the V-Cross (complete with themassive amplsquofangedamprsquo chrome grille) and the glasshouse and rear quite similar to the Trailblazer Whatamprsquos new atthe front is a more aggressive contrast-coloured bumper with LED daytime running lamps embedded in it Whatamprsquos refreshingis that it does without any black cladding on the sides and instead makes up for that with a set of really chunky wheel arches Therear end may be similar in shape to the Chevrolet even getting a similar blacked-out D-pillar but Isuzuamprsquos wraparoundtail-lamps give it a distinct look Also really attractive are the multi-spoke 17-inch alloy wheels they may be a little smaller than whatsome competitors offer but their design is really smart and the tall 65-profile tyres complement the tough look nicely Overall theMU-X has a strong SUV stance and a lot of presence

Whatamprsquos it like on the inside

As is befitting this sort of big ladder-frame SUV itamprsquos a climb up into the cabin and once there youamprsquoll find a dashboardsimilar to the D-Max V-Cross but with a number of new embellishments For a start thereamprsquos a nice texture to the plasticsthereamprsquos piano black frames for the vents and centre console around the cool circular AC control pod and silver accents onthe steering wheel with many more controls at your disposal Theres even nice soft leather cushioning on the armrests and doorpads Fit and finish is pretty tight and the design is very neat but you donamprsquot get that same sense of richness you do in say aFortuner or an Endeavour

The equipment list is pretty good too You get leather upholstery and a powered driveramprsquos seat keyless entry and gothereamprsquos cruise control and thereamprsquos even a seven-inch touchscreen The highlight though is a 10-inch screen that foldsout of the roof so rear passengers can watch movies Still it doesnamprsquot quite match up to more modern rivals the touchscreenfor instance is functional and easy to use but doesnamprsquot feature any form of smartphone integration

What youll really love is the space or even just the sense of space For one the front seats feel nice and comfortable even thoughtheyre not heavily contoured The drivers seat is set very high (even short drivers wont mind it in its lowest position) and that givesyou a superb view out and a commanding position from the wheel The middle row has huge amounts of legroom thigh support ispretty good and you can even recline the 6040 split backrest The third row is accessible with a single lever pull that folds and flipsthe middle row forward Space here is pretty good too but whats better is that the seat itself is placed high enough and is wellcushioned too Boot volume isnt tremendous but you could just about squeeze in a medium size suitcase with all three rows up

Whatamprsquos it like to drive

The motor is a 30-litre four-cylinder turbo diesel that makes 177hp and 380Nm The torque figure is telling because its considerablylower than most rivals which generally are past the 400Nm mark and a good reserve of torque is essential for big SUVs like thisone The gearbox is a five-speed automatic and can be had with either 4x2 or the 4x4 (selectable by a rotary knob) we have here

Its not the most refined engine with lots of vibes and noise being felt once you extend it past 2000rpm The fan too is quite loudand can be heard in the cabin If you punch the accelerator for an overtake or to pick up the pace after a speed breaker youll get amassive bellow and not a lot of movement and you just dont know if the gearbox is going to shift up down or not at all its veryinconsistent If you keep the throttle at about one-third it will make smooth and beautiful progress the gearbox shifting awayseamlessly

Similarly the ride quality The long-travel suspension is set up very soft so if youre driving slowly and smoothly you get this

wonderful pillow-like ride But the moment you step the pace up even past 60kph it starts to move all over the place Even thesmallest of bumps registers in the cabin and the steering jolts around in your hands Suffice to say it crashes pretty hard throughlarge sharp bumps

Like most ladder-frame SUVs this isnt one for corners and the soft suspension results in a whole lot of roll The steering which isseriously heavy at low speeds does retain some weight and feel at higher speeds but theres a distinct vagueness around thecentre position Also with all the mass at work in the corners the tyres quite easily squeal in protest Again provided you corner thecar gently the car will respond just fine

So it all depends on your driving style whether its the engine gearbox ride or handling This is not a car to be hustled and prefersbeing driven at a leisurely pace at all times Overstep the limits and things start to go awry stay within them and youll have asmooth and comfortable drive

Should I buy one

One thing to remember at the outset is when the MU-7 was launched in India a few years ago this MU-X was already on sale inmarkets like Thailand and while itamprsquos finally here now globally itamprsquos recently been given a facelift and thats not the oneweve gotten So it seems once again the Indian market has been denied the latest version of Isuzuamprsquos flagship SUV

Still its a huge step up from the MU-7 and even the D-Max V-Cross in terms of luxury and creature comforts Actually how youview this car depends on what you compare it to Yes its a big step up from the V-Cross pickup but then it costs nearly twice asmuch At Rs 13 lakh your expectations arent that high but once youre past the 20-lakh mark theres a standard to be met

Speaking of which the MU-X simply cant compare to the new Fortuner or the Endeavour on most counts ampndash performancerefinement comfort luxury equipment and ride quality but then you have to remember it costs Rs 5-6 lakh less than them In factthe entire MU-X range (Rs 2399-2599 lakh ex-showroom Delhi) is cheaper than the cheapest variants of the competition Onlythe Chevy Trailblazer compares on price

So it falls a bit short of the gold standard set by the brand new Endeavour and Fortuner in this segment but it is a whole lot moreaffordable Think of it then as the SUV for those who are on somewhat of a budget but also dont mind skipping a few fripperies TheMU-X has all the essentials if not every luxury while also being spacious and comfortable and superb off roadhttpwwwautocarindiacomauto-reviews2017-isuzu-mu-x-review-test-drive-4048940aspx

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Down memory lane Hondas superbike legacy Autocar India

What defines a good motorcycle Is it good engineering or a rider-friendly approach Or is it simply the culmination of worldlyexperiences that lie dormant in the perceiveramprsquos mind These are questions that will continue to encourage manufacturers topush motorcycles further But is that really enough

Maybe riders from 40 years down the line will long for the character of todayamprsquos motorcycles the same ones that have beendeemed soulless by the children of the amplsquo60s and amplsquo70s Whatever the case may be itamprsquos time to dive into thelegacy and evolution of a motorcycle that sculpted the way for the modern machines that we see today

Since its inception in the late 1940s Honda set out to break stereotypes and produce motorcycles that were accessible and friendlyand less of a luxury item However the company started to grow rapidly in the amplsquo60s and its focus started to shift making it aforerunner in motorcycle engineering and technology

The amplsquo60s was an era that was largely dominated by British and American motorcycles Besides being known for the hippiemovement the decade saw larger displacement 500cc-plus motorcycles capture the attention of motorcyclists all over the globeWhile this space was occupied mostly by the aforementioned British and American manufacturers their Japanese counterpartswere slowly catching up Little did they know that the end of the decade would summon the dawn of a new era

With complacency slowly beginning to creep up on the West Honda only marginally managed to beat fellow Japanesemanufacturer Kawasaki to the punch and created history in 1969 with its brand new CB750 model With the British and Americansalready in the four-cylinder game Honda went the whole nine yards and set a completely new standard in performance reliabilityand rideability

The Start of the RevolutionThe CB750 was a testament to the engineering potential of the amplsquo60s It adopted technology used on pre-World War II racingengines and was the first production motorcycle to get a combination of a transverse overhead camshaft in-line four-cylinderengine with four carburettors four exhausts an electric starter a 12V electrical system a disc brake and that indispensable featureknown as reliability This was a layout that would go on to become the most practical and common layout for modern sports bikes

When we discovered that Andrei Damprsquosouza from Mumbai had perfectly restored his 1980 model CB750K with the help of acemechanic Johny Pereira it was impossible to resist the opportunity to experience this bike And what better way to do it than beable to compare it to a modern-day descendant of this motorcycle Of course while that would technically be the naked CB650Fthis motorcycle isnamprsquot sold in India So the next best option would be its sibling that is available here the fully fairedCBR650F

The K series of the CB750 was touring-oriented and began production in 1978 and by now it had already adopted four valvesinstead of two and was churning out about 67 ponies Swing a leg over the saddle and the 231kg heft of the motorcycle becomes

immediately apparent But thumb that starter and the four cylinders rumble to life The sound at idle is simply a symphony of bassysound orchestrated by the four exhausts Dropping it into first gear with a clutch that doesnamprsquot feel heavy at all results in anextremely satisfying and solid clunk

Let that clutch out and the torquey nature of the engine lets you float ahead without much need for heavy throttle input In factthereamprsquos so much torque on demand that you rarely need to drop below fifth gear This is a motorcycle that pulls cleanly from25-30kph in top gear all the way to a top speed of over 200kph If that isnamprsquot a marvel of engineering I donamprsquot knowwhat is And as the revs climb the exhaust note transforms from a cheery rumble into a smooth well-muffled howl

Riding this machine would really make you question its 37 years of existence It doesnamprsquot feel that old or outdated Itamprsquosalmost vibration free still pulls like a bat out of hell and sounds glorious In fact youamprsquod be forgiven if you thought this wasjust another modern-day retro-styled motorcycle The only thing you couldnamprsquot do with this motorcycle is corner it too hardThe wide-set main stand keeps clearances quite low and scrapes if you lean in too deep

The modern fledgelingNow it was time to get astride a variant of the CB750amprsquos descendant ampndash a 2015 CBR650F This is a motorcycle that justoozes Hondaamprsquos levels of refinement and rideability but does it invoke the same sort of charm as the CB750K Simply putjust no

While riding these motorcycles back to back it is immediately apparent that anything you do on the CB750K just becomes a loteasier on the CBR650F Itamprsquos definitely the more nimble handler feels instantly more powerful the suspension works betterand the brakes work wonderfully And although the exhaust note is quite soft and refined at idle whack that throttle open and thefour-cylinder engine puts out a delectable scream

This is a motorcycle you can simply go faster on with a lot less effort And the fact that the CBR650F can also trundle along in topgear at 25-30kph and pull to its 200kph-plus top speed shows that although the focus has shifted from torque to powerHondaamprsquos spectacular levels of refinement have only improved

In retrospectBut when Andrei and I sat to exchange notes after riding these machines we both agreed that somewhere along the way thenewer motorcycles have lost some of the so-called character and charm Itamprsquos hard to put a finger on what character reallyentails The most logical explanation we could muster was that older motorcycles needed you to really understand the quirks of themachine before you could extract their true potential This sort of understanding creates a strong bond between the rider andmachine

With newer motorcycles that concept still exists but at a diluted level So will future motorcycles be even less so Will it reach apoint where motorcycles become so easy to ride that human error becomes almost negligible Weamprsquove already seen this trendsteadily on the rise among cars If this were to become a reality wouldnamprsquot it just take away the thrill of riding a motorcycleWe can only hope that there are more well-maintained motorcycles like this CB750K to remind us of what motorcycling truly isabouthttpwwwautocarindiacomauto-featuresdown-memory-lane-hondas-superbike-legacy-404893aspx0

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International News

BMW group global sales clock 192494 units in April 2017 The Economic Times

Munich German auto-maker BMW Group in April 2017 sold a total of 192494 units reporting a 74 increase year-on-year In theperiod Jan-April the company sold 779736 units

ampldquoThanks to the strength of our model line-up the BMW Group continues to achieve sustainable profitable sales growthmonth after monthamprdquo commented Dr Ian Robertson Member of the BMW AG Board of Management with responsibility forSales and Brand BMW

ampldquoCustomer demand is high across the range with a number of stand-out models including the X1 the 5 Series and the 7Series As availability of the new BMW 5 Series ramps up demand for this new generation is twice as high as for the previousmodel at this point in the market launchamprdquo he continued

ampldquoWith demand for our electrified vehicles up over 80 Iamprsquom confident that weamprsquoll achieve our target of delivering100000 electrified cars on the road this year underlining our industry-leading position in the fieldamprdquo he added

BMW brand sales increased 62 compared with the same period last year as the company managed to sell 668095 unitsgloballyIn April last month its global sales registerd a total of 164641 units BMW X1 BMW X3 and BMW 7 series dominated thesales of BMW brand worldwide

Mini brand vehicles are up 36 compared with the same period last year with a total global sales of 110643 delivered tocustomers around the world in the first four months of the year April sales at MINI were down 30 (27588)

Companys two-wheeler arm BMW Motorrad last month sold a total of 17915 motorcycles and maxi-scooters delivered around theworld and reported a 67 rise in sales compared to April 2016

BMW claims that Europe and Asia where its top sales market last month despite headwinds in some European markets April sawan unusually sharp increase in sales in Mainland China This is largely due to full availability of the BMW X1 and the introduction ofthe new BMW 1 Series sedan a car made exclusively for the Chinese markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsbmw-group-global-sales-clock-192494-units-in-april-201758641791

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BMW makes veiled jobs warning urges Brexit pragmatism AFPSee this story in The Economic Times

Frankfurt Am Main German high-end carmaker BMW issued a veiled warning on Thursday that a bad Brexit deal could see Miniproduction leave Britain calling for pragmatism from London and Brussels in EU exit talks

We hope for pragmatism from all parties in the Brexit negotiations That means no new barriers to trade Free movement for skilledworkers BMW chief executive Harald Krueger told investors at the Munich firms annual general meeting

Here we are planning in terms of scenarios You know that we make Mini models at VDL Nedcar in the Netherlands Wereflexible he added in what appeared to be a hint that production of the landmark British brand could quit the island nation

BMW employs around 18000 people in the United Kingdom and claims that its presence supports a further 46000 workers

Its Oxford plant produces a variety of Mini models while a factory in Hams Hall outside Birmingham builds engines and a Swindonworks makes body panels and some sub-assemblies

BMW has yet to decide whether to build a new all-electric Mini in Oxford and has refused to confirm or deny press reports that themodel will be produced in Germany or the Netherlands instead due to Brexit uncertainty

The group also owns legendary luxury manufacturer Rolls-Royce Motor Cars based in Goodwood

Car producers have become emblematic of the difficulties Britain will face in extricating itself from the 28-nation European Unionafter a close-run referendum last June

Nissan CEO Carlos Ghosn in October gave the green light to new investments at its plant in Sunderland northeast England afterreceiving private guarantees from London over Brexit fallout

Around 56 percent of the 17 million cars made in the UK in 2016 were exported to the European Union and the country alsoimports large numbers of vehicles manufactured in France Germany and Spain

Meanwhile complex supply chains mean car parts and sub-assemblies can cross national borders multiple times for differentproduction processes before a final vehicle is assembled

Brexit supporters have argued that the sheer complexity and the massive potential impact of new barriers to trade will makecontinental industry lobbies pressure their governments to strike a favourable deal with Britain

That has so far not been true of Germanys powerful carmakers whether in statements from the influential VDA industry federationor from individual firms

Most of our customers are here in Europe Its always been clear to us we support the European community We support theinternal market Thats our conviction We benefit from Europe and the euro BMW chief Krueger said Thursday

Britain is set to definitively quit the EU in March 2019 after a two-year negotiating period triggered earlier this year by PrimeMinister Theresa Mayhttpautoeconomictimesindiatimescomnewsindustrybmw-makes-veiled-jobs-warning-urges-brexit-pragmatism58641596

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Fiat Chrysler recalling 125 million trucks for software error ReutersSee this story in The Economic Times

Washington Fiat Chrysler Automobiles NV said Friday it is recalling more than 125 million trucks worldwide to address a softwareerror linked to reports of one crash death and two injuries

The Italian-American automaker said it will reprogram computer modules because an error code could temporarily disable side airbag and seat belt pretensioner deployment during a vehicle rollover if the vehicle were subjected to a significant underbody impact

The recall covers about 1 million 2013-16 Ram 1500 and 2500 pickups and 2014-2016 Ram 3500 pickups in the United States216007 vehicles in Canada 21668 in Mexico and 21530 outside North America the automaker saidhttpautoeconomictimesindiatimescomnewspassenger-vehicleuvfiat-chrysler-recalling-1-25-million-trucks-for-software-error58644959

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Suzuki Motor sees 10 drop in FY17 operating profit on RampD costs ReutersSee this story in The Economic Times

Tokyo Suzuki Motor on Friday forecast a 10 percent fall in its full-year operating profit on increased research and developmentcosts even as the Japanese automaker expects vehicles sales growth to continue in India and Europe

Japans fourth-largest automaker said it expected operating profit to come in at 2400 billion yen ($211 billion) in the year to March2018 short of an average estimate of 2547 billion yen from 21 analysts polled by Thomson Reuters IBES

Suzuki which specialises in compact cars and dominates the Indian market through its majority stake in Maruti Suzuki India posteda stronger-than-expected 365 percent jump in operating profit to 2667 billion yen in the year ended in March as higher sales in theSouth Asian country and in Europe offset negative currency impact

Suzuki said it would pay a full-year dividend of 44 yen per share for the year ended March up from 32 yen per share a year earlierand forecast a dividend of 44 yen this year

The company took an accounting impairment loss of 399 billion yen in the year ended March including an extraordinary loss on itsThailand operations

Suzukis latest forecasts are based on an assumption for the yen to average around 110 yen to the US dollar stronger than itstrading rate around 114 yen on Friday and 165 yen to the Indian Rupee

It expects global consolidated vehicle sales to increase 52 percent in the year to March to 307 million vehicles In India where itsells one in every two cars it expect vehicles sales to rise 8 percent from a year earlier

Suzuki owns 562 percent of Maruti and gets the bulk of its revenues from the Indian partnership which has a market value ofaround $30 billion higher than Suzukis market capitalisation of about $205 billionhttpautoeconomictimesindiatimescomnewsindustrysuzuki-motor-sees-10-drop-in-fy17-operating-profit-on-rd-costs58641164

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Skoda achieves 97300 deliveries to customers in April 2017 The Economic Times

New Delhi Czech car manufacturer Skoda has achieved 97300 deliveries to customers in April thereby matching the record levelfrom the same month last year (April 2016 97200) In April the brand performed particularly well in Central Europe (+137) andEastern Europe (+114) brvbarkoda expects further impetus for growth from its new brvbarkoda Karoq compact SUV according to acompany statement The new model will be celebrating its world premiere on 18 May in Stockholm

ampldquoIn April we matched the record level from April 2016 thereby proving our strengths in challenging marketconditionsamprdquo said Werner Eichhorn brvbarkoda Board Member for sales and marketing ampldquoThe brvbarkoda Kodiaqamprsquos positivestart offers a glimpse of the strength of our SUV campaign With the new Karoq which will be celebrating its world premiere in a fewdaysamprsquo time we will further improve our position in the important SUV segmentamprdquo added Eichhorn

As part of its 2025 Strategy brvbarkoda is advancing the expansion of its model range with an extensive SUV campaign Following themarket launch of the brvbarkoda Kodiaq another model ampndash the brvbarkoda Karoqampndash will be launched The brandamprsquos newcompact SUV will be introduced to the global public for the first time on 18 May in Stockholm Its market launch will be at the end ofthe year

In Western Europe brvbarkoda came close to last yearamprsquos high level in April with 41100 deliveries (April 2016 41400 vehicles)With 14400 deliveries (April 2016 14900 vehicles) Germany remains the strongest individual market in Europe Growth has beenachieved in France (2300 vehicles +74) Belgium (2300 vehicles +123) Austria (2300 vehicles +96) Spain (2200vehicles +32 per cent) Italy (2100 vehicles +39) and Greece (400 vehicles +661)

In Central Europe brvbarkoda saw an increase of 137 to 18700 deliveries (April 2016 16400 vehicles) In April the brand increasedsales by 84 to 8700 vehicles (April 2016 8000) Particularly strong growth rates can be seen in Poland (5400 vehicles+145) Slovakia (1900 vehicles +111) Croatia (800 vehicles +1111) and Slovenia (800 vehicles +293)

In Eastern Europe excluding Russia vehicles delivered by the car manufacturer increased by 114 to 3400 vehicles (April 20163100 vehicles) The Baltic states also achieved strong growth (700 vehicles +155) Serbia (600 vehicles +168) Ukraine (500vehicles +429) and Bulgaria (300 vehicles +190) In Russia brvbarkoda deliveries increased in April by 89 per cent to 5400vehicles (April 2016 4900)httpautoeconomictimesindiatimescomnewspassenger-vehiclecarsskoda-achieves-97300-deliveries-to-customers-in-april-201758640083

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Skoda releases pictures of its new compact SUV Karoq The Economic Times

Mlada Boleslav Czech car manufacturer Skoda Auto has released first pictures of its new upcoming SUV Skoda Karoq on Friday in

an official statement

The new Skoda Karoqamprsquos front has a three-dimensional design The radiator grille framed by a chrome trim has verticaldouble slats and creates a trapezoidal cross section

The design of the headlights is inspired by Bohemian glass art The crystalline cut of the full-LED headlights and the eight lightstrips that make up the amplsquoeyelashesamprsquo create a unique lighting pattern The large Skoda logo is placed on the bonnet

LED technology is also used for the tail lights The tail lighting with LED technology includes the rear lights brake lights and foglights The design concept also features narrow raked tail lights the outer segment of which is embedded in the side frames whilethe inner segment is integrated into the tailgate The tail lights form the Skoda-typical amplsquoCamprsquo shape

The compact SUV is 4382 mm long 1841 mm wide and 1605 mm high and the long wheelbase measures 2638 mm(all-wheel-drive version 2630 mm) The boot has a capacity of 521 litre with the rear seats in place This increases to 1630 litrewith the rear seats folded down

The interior exhibits newly designed dashboard divided into a tall upper and narrow lower section The door trims continue thisdesign approach The four large air vents sit vertically and the middle two flank the in-car monitor

Ultra-slim lighting strips are located on the upper edge of the four door trims and continue around the dashboard The driver cancontrol the brightness of the illumination which can be set to one of ten different colours

The new compact SUV will be celebrating its world premiere on May 18 in Stockholm Its market launch will follow in the second halfof 2017httpautoeconomictimesindiatimescomnewspassenger-vehicleuvskoda-releases-pictures-of-its-new-compact-suv-karoq58641414

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South Korea orders vehicle recalls for Hyundai and Kia vehicles ReutersSee this story in The Economic Times

Seoul Hyundai Motor Company and Kia Motors said they would recall 240000 vehicles from South Korea after the transportministry issued its first compulsory recall order over safety defects first flagged by a whistleblower

The ministry also asked the prosecutor to investigate whether or not the automakers allegedly covered up the five flaws whichaffect 12 models including the Elantra Sonata Santa Fe and Genesis

This is the first time ever that the ministry ordered a compulsory recall of Hyundai and Kia vehicles and comes after the automakershad rejected an earlier order for a voluntary recall saying the defects did not compromise driving safety

On Friday Hyundai and Kia said they accept the administrative order adding There have been no reported injuries or accidentsfrom the cited issues

Safety is always HyundaiKias number one priority and we make decisions on recalls or any other customer protection steps incompliance with regulators around the world and stringent internal procedures they said in a statement

The planned recalls will add to the 15 million vehicles that Hyundai and Kia last month offered to fix in South Korea and the UnitedStates over possible engine stalling - a defect which was also flagged by 26-year-old Hyundai engineer Kim Gwang-ho who lastyear had reported a total of 32 defects to the vehicle safety regulator

The transport ministry later asked the automakers to recall the vehicles over eight of the 32 problems while offering free repairs onnine cases

Shares of Hyundai Motor fell 13 percent and Kia Motors declined nearly 1 percenthttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssouth-korea-orders-vehicle-recalls-for-hyundai-and-kia-vehicles58637894South Korea orders vehicle recalls for Hyundai Kia after whistleblower reportThe Times of Indiahttptimesofindiaindiatimescomautomiscellaneoussouth-korea-orders-vehicle-recalls-for-hyundai-kia-after-whistleblower-reportarticleshow58638564cms

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Canadian auto parts maker Magnas Q1 profit beats estimates ReutersSee this story in The Economic Times

Canadian auto parts maker Magna International on Thursday posted a bigger-than-expected profit for the first quarter helped byhigher demand and the company also raised its full-year sales forecast

Magna said sales in Asia rose 10 percent to $557 million in the quarter ended March 31 while sales in Europe climbed 8 percent to$246 billion

North America sales which make up the bulk of Magnas total sales increased 7 percent to $509 billion

The helped total sales jump to $937 billion from $890 billion at Magna which counts General Motors Volkswagen BMW and FordMotor among its biggest customers

Net income attributable to Magna rose to $586 million or $153 per share in the quarter from $492 million or $122 per share ayear earlier

The company earned $154 per share on an adjusted basis topping analysts average estimate of $134 according to ThomsonReuters IBES

Magna raised its full-year 2017 sales forecast to $366 billion to $383 billion from its prior forecast of $36 billion to $377 billion

The Aurora Ontario-based company also raised its total production sales forecast to $308 billion to 321 billion from $304 billion to$317 billion

The companys US-listed shares were up about 18 percent at $4355 in pre-market trading on Thursdayhttpautoeconomictimesindiatimescomnewsauto-componentscanadian-auto-parts-maker-magnas-q1-profit-beats-estimates58638906

Top

EU nations agree on draft car approval rules despite German reluctance Reuters Robert-Jan BartunekSee this story in The Economic Times

Brussels EU nations agreed on Friday on new draft rules for car approvals despite opposition from Germany EU sources said in abid to prevent a repeat of the Volkswagen emissions cheating scandal

Under the draft text agreed by member states seen by Reuters the European Commission would be allowed to impose fines of upto 30000 euros ($32613) per vehicle on manufacturers who cheat the system

German carmaker Volkswagen has admitted to using software to cheat US diesel emission tests in September 2015

EU diplomats say Germany Europes largest car manufacturer has been reluctant to hand more market surveillance powers toBrussels despite the fallout from the VW scandal

They are not very hot on the proposal to give new powers to the Commission an EU diplomat told Reuters

The draft rules will be discussed by EU economy ministers on May 29 before negotiations with European Parliament and theCommission on the final legislation

Frustrated by what it sees as governments colluding with carmakers EU regulators launched legal cases against Germany Britainand five other EU members in December for failing to properly police the industry

The Council is right not to let Germany stand in the way of compromise as the country has so far failed to penalize VW and yetcontinues to oppose any EU controls a spokeswoman for campaign group Transport and Environment saidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarseu-nations-agree-on-draft-car-approval-rules-despite-german-reluctance58646606

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The toughest challenge for self-driving cars Human drivers APSee this story in The Times of India

Detroit In just a few years well-mannered self-driving robotaxis will share the roads with reckless law-breaking human drivers Theprospect is causing migraines for the people developing the robotaxis

A self-driving car would be programmed to drive at the speed limit Humans routinely exceed it by 16 to 24 kph (10 to 15 mph) justtry entering the New Jersey Turnpike at normal speed Self-driving cars wouldnt dare cross a double yellow line humans do it allthe time And then there are those odd local traffic customs to which humans quickly adapt

In Los Angeles and other places for instance theres the ``California Stop where drivers roll through stop signs if no traffic iscrossing In Southwestern Pennsylvania courteous drivers practice the Pittsburgh Left where its customary to let one oncomingcar turn left in front of them when a traffic light turns green The same thing happens in Boston During rush hours near Ann ArborMichigan drivers regularly cross a double-yellow line to queue up for a left-turn onto a freeway

Theres an endless list of these cases where we as humans know the context we know when to bend the rules and when to breakthe rules says Raj Rajkumar a computer engineering professor at Carnegie Mellon University who leads the schools autonomouscar research

Although autonomous cars are likely to carry passengers or cargo in limited areas during the next three to five years experts say itwill take many years before robotaxis can coexist with human-piloted vehicles on most side streets boulevards and freewaysThats because programmers have to figure out human behavior and local traffic idiosyncrasies And teaching a car to use that

knowledge will require massive amounts of data and big computing power that is prohibitively expensive at the moment

Driverless cars are very rule-based and they dont understand social graces says Missy Cummings director of Duke UniversitysHumans and Autonomy Lab

Driving customs and road conditions are dramatically different across the globe with narrow congested lanes in European citiesand anarchy in Beijings giant traffic jams In Indias capital New Delhi luxury cars share poorly marked and congested lanes withbicycles scooters trucks and even an occasional cow or elephant

Then there is the problem of aggressive humans who make dangerous moves such as cutting cars off on freeways or turning left infront of oncoming traffic In India for example even when lanes are marked drivers swing from lane to lane without hesitation

Already there have been isolated cases of human drivers pulling into the path of cars such as Teslas knowing they will stopbecause theyre equipped with automatic emergency braking

Its hard to program in human stupidity or someone who really tries to game the technology says John Hanson spokesman forToyotas autonomous car unit

Kathy Winter vice president of automated driving solutions for Intel is optimistic that the cars will be able to see and think likehumans before 2030

Cars with sensors for driver-assist systems already are gathering data about road signs lane lines and human driver behaviorWinter hopes auto and tech companies developing autonomous systems and cars will contribute this information to a giantdatabase

Artificial intelligence developed by Intel and other companies eventually could access the data and make quick decisions similar tohumans Winter says

Programmers are optimistic that someday the cars will be able to handle even Beijings traffic But the cost could be high and itmight be a decade or more before Chinese regulators deem self-driving cars reliable enough for widespread public use says JohnZeng of LMC Automotive Consulting

Intels Winter expects fully autonomous cars to collect process and analyze four terabytes of data in 1 hour of driving which is theaverage amount a person spends in a car each day Thats equal to storing over 12 million photos or 2000 hours of movies Suchcomputing power now costs over $100000 per vehicle Zeng says But that cost could fall as more cars are built

Someday autonomous cars will have common sense programmed in so they will cross a double-yellow line when warranted or tospeed up and find a gap to enter a freeway

Carnegie Mellon has taught its cars to handle the Pittsburgh Left by waiting a full second or longer for an intersection to clearbefore proceeding at a green light Sensors also track crossing traffic and can figure out if a driver is going to stop for a sign or redlight Eventually there will be vehicle-to-vehicle communication to avoid crashes

Still some skeptics say computerized cars will never be able to think exactly like humans

Youll never be able to make up a persons ability to perceive whats the right move at the time I dont think says New JerseyState Police Sgt Ed Long who works in the traffic and public safety officehttptimesofindiaindiatimescomautocarsthe-toughest-challenge-for-self-driving-cars-human-driversarticleshow58640084cms

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Unfair labour practices charged at Volkswagenacirceurotrades US plant APSee this story inThe Financial Express

Nashville The National Labor Relations Board has filed another unfair labor practices complaint against Volkswagen for hikinghealth insurance premiums and changing working hours of employees who voted for union representation at the Germanautomakeramprsquos only US plant Volkswagen is mounting a legal challenge to NLRB rulings in favor of the small group ofskilled-trades workers who voted in 2015 to be represented by the United Auto Workers union

But the NLRB says the federal appeals court case doesnamprsquot override the UAWamprsquos exclusive collective-bargaining rightsover the terms and conditions of employment of the workers who maintain and repair the plantamprsquos machinery and robotsVolkswagen Chattanooga spokesman Scott Wilson says that until the appeals court rules the company is amprdquounable to bargainwith the UAW without compromising our legal argumentamprdquohttpwwwfinancialexpresscomindustryunfair-labour-practices-charged-at-volkswagens-us-plant666228

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Economy

Sensex Nifty start on a flat note Infosys SBI top gainers The Economic Times

New Delhi Benchmark indices opened on a flat note on Friday ahead of key economic releases including factory output numbersand readings on inflation later in the day

Trading was stock-specific with Reliance Infra surging over 4 per cent on arbitration win against Delhi Metro

Glenmark slumped over 15 per cent to see its biggest intraday fall in seven years Asian Paints fell following its March quarterresults Telecom stocks were under pressure CCI ordered a detailed probe into the alleged unfair practice by top three telecomplayers

At 925 am the BSE Sensex was trading 470 points or 002 per cent lower at 30246 The index had hit a high of 3029974 inearly trade The Nifty50 rose 325 points or 003 per cent to 942565

Asian markets were trading mixed at the time of writing this report There were some concerns over likely cut in Fed balance sheet

Fed vice-chairman William Dudley on Thursday said that the Fed is on track to cut its asset purchases this year or the next as theUS economy is well on its way to recovery Besides Boston Fed President Eric Rosengren urged other policymakers to hikeinterest rates three more times this year

Sentiment though remained calm given the IMDamprsquos recent forecast of a normal rainfall this year

The day will see the release of industrial production data for March but that after the market hours The industrial output slipped toa 4-month low contracting by 12 per cent in February due to fall in the manufacturing sector and lower offtake of capital as well asconsumer goodshttpeconomictimesindiatimescommarketsstocksnewssensex-nifty-start-on-a-flat-note-infosys-sbi-top-gainersarticleshow58638662cms

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Sensex ends lower by 63 points ahead of IIP retail inflation data AgenciesSee this story in The Hindu Business Line

Chennai The Sensex and Nifty ended lower on Friday after jumping to record highs twice this week as investors turned cautiousahead of inflation and IIP data and booked profits in recent outperformers

The industrial production data (IIP) for March and April inflation data based on consumer price index (CPI) will be announced aftermarket hours today

Domestic sentiment was also hit due to weak global cues

The broader NSE index closed down 215 points or 023 per cent at 940090 but was up 124 per cent for the week

The benchmark BSE index ended 6283 points or 021 per cent lower at 3018815 but was up 110 per cent for the week

Both indexes snapped four straight sessions of gains

Among BSE sectoral indices consumer durables index fell the most by 098 per cent followed by banking 089 per cent power081 per cent and healthcare 066 per cent On the other hand IT index was up 116 per cent realty 081 per cent TECk 068 percent and auto 012 per cent

Top five Sensex gainers were Infosys (+212) Hero MotoCorp (+211) Cipla (+100) Sun Pharma (+081) and Tata Motors(+07) while the major losers were Asian Paints (-304) Axis Bank (-28) ICICI Bank (-123) Adani Ports (-12) andHDFC (-096)

Consumer inflation

Consumer price inflation (CPI) is expected to have eased to a three-month low of 349 per cent in April from 381 per cent theprevious month below the central banks medium-term target of 4 per cent due to lower base effects and a fall in the cost of pulsescereals and perishable goods

ampldquoThere is plenty of interest in todays inflation and production data due post-market hoursamprdquo DBS Group Research saidin a report

ampldquoThough it has pared gains today the market is still performing at its bestamprdquo said Deven Choksey managing directorKR Choksey Investment Managers

The Reserve Bank of India had said in April that it was committed to bringing headline inflation closer to 4 per cent on a durablebasis and in a calibrated manneramprdquo

A lower rate of inflation would likely lower the chances of an interest rate hike potentially adding more fuel to the ongoing rally in

equities

Meanwhile FIIs bought shares net worth Rs 130671 crore yesterday as per the provisional figures issued by the stockexchangeshttpwwwthehindubusinesslinecommarketssensex-nifty-live-updatearticle9694390ece

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Forex reserves at life-time peak of $37571 billion PTISee this story in The Economic Times

Mumbai The forex reserves touched a fresh life-time high of $37571 billion after rising by $2985 billion in the week to May 5helped by increase in foreign currency assets the Reserve Bank said

The reserves had risen by $1594 billion to $37273 billion in the previous week

Foreign currency assets (FCAs) a major component of the overall reserves rose by $2474 billion to $35153 billion in the reportingweek the RBI said

Expressed in US dollar terms FCAs include the effects of appreciationdepreciation of non-US currencies such as the euro poundand the yen held in the reserves

After remaining stable for past few weeks gold reserves rose by $5699 million to $20438 billion the central bank said

The special drawing rights with the International Monetary Fund decreased marginally by $04 million to $1459 billion

The countrys reserve position with the Fund too declined by $584 million to $2288 billion the RBI saidhttpeconomictimesindiatimescommarketsforexforex-reserves-at-life-time-peak-of-375-71-billionarticleshow58645565cms

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Rupee opens 5 paise higher at 6438 against dollar The Economic Times

New Delhi The rupee opened 5 paise higher at 6438 against dollar on Friday on account of selling of American currency by banksand exporters

The local currency on Thursday closed 25 paise up at 6438 against dollar The forex market further got a boost sentiment from thedomestic equities record-setting spree

Meanwhile domestic equity markets opened on a flat note following mixed global cues The 30-share Sensex opened 3463 pointsor 011 per cent up at 3028561 while NSE Nifty opened 1425 points or 015 per cent up at 943665

Foreign portfolio investors bought shares worth Rs 136492 on Thursday with gross purchases and gross sales of Rs 971764crore and Rs 835272 crore respectively

Government bonds ended little changed on Thursday as investors awaited the auction of a new 10-year paper amid lack of majordomestic cues The benchmark 697 per cent 2026 bond yield was unchanged at 694 per centhttpeconomictimesindiatimescommarketsforexrupee-opens-5-paise-higher-at-64-38-against-dollararticleshow58638646cms

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GST to have macro economic impact RBI IANSSee this story in The Statesman

Mumbai Introduction of the GST system is expected to have a macro economic impact and will set a new course for cooperativefederalism by strengthening Centre-state partnership the RBI said in a report released here on Friday

According to the Reserve Bank of India (RBI) report entitled State Finances A Study of Budgets of 2016-17 the Goods andServices Tax (GST) introduction is expected to have significant macro economic implications in terms of growth inflation exportcompetitiveness and fiscal balance in the years ahead

The successful implementation of GST will result in additional revenue through simpler and easier tax administration supported byrobust and user-friendly IT (information technology) systems the study said

It said the GST is expected to reduce administrative costs for collection of tax revenue and improve revenue efficiency whileuniformity in tax rates and procedures will lead to economy in compliance cost

The GST regime will also increase the shareable pool of resources resulting in transfer of large funds to the states for

developmental works

Such an outcome will ensure debt sustainability of states in the long term In fact the GST is likely to set a new course forcooperative federalism in India by strengthening Centre-state partnership the study said

According to the RBI study most of the central cesses will be subsumed into the GST and in turn increase the divisible pool ofresources which is to the advantage of states

Introduction of a new cess on luxury and demerit goods may be contrary to the GST spirit but the proceeds will be used tocompensate the states thus the overall impact of GST will be beneficial the study said

The study said that from the point of view of implementation it could be argued that the GST is imposed on consumption whilecess which is typically applied at the stage of manufacturing may be difficult to administer and could also lead to cascading effects

On the status of states finances the study said that increasing reliance on market borrowing along with enabling conditions foradditional borrowing by states poses challenges for the sustainability of state finances as higher state borrowings raise yields andcost of borrowing

Due to prevailing uncertainty about the revenue outcome from the GST implementation the outlook for revenue receipts of statescould turn uncertain the study said

There is however the cushion of compensation by the Centre for any loss of revenue for initial five years In this context the GSTremains the best bet for states in clawing back to the path of fiscal consolidation over the medium term the study saidhttpwwwthestatesmancombusinessgst-to-have-macro-economic-impact-rbi-1494599641html

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Closing

Last Financial Closing

Sensex 3018815 (-6283)NSE 940090 (-2150)US$ spot Rs6431US$ Y1133300US$ 6 months RsYen Rs57Euro spot Rs6995

Gold (10gm) Rs2805500Silver (1kg) Rs3815500

Crude Oil (WTI) Crude Oil (Brent) $5007

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 22705Asahi Ind 1 23895Amara Raja B 1 92625Ashok Leyland 1 8570Bajaj Auto 10 300480Bharat Forge 2 111720Denso 1 Eicher Motor 10 2916960Escorts 10 64680Exide Ind 1 24485Force Motors 10 448995Gabriel India 1 12950Hero Motocor 2 354150Hind Motors 5 965Hi-Tech Gear 10 33530Jay Bh Maruti 5 64210

Jamna Auto 5 23320JK Tyres amp Inds 10 1657

Kinetic Motors 10 Kinetic Engg 10 KOEL 2 39805Kirloskar Br 2 26690LML Ltd 10 1190LampT 2 174060Lumax Ind 10 147990Lumax Tech 10 52635MampM 5 136785Maruti Suzuki 5 673020Motherson SS 1 41400Minda Inds 2 49565MRF 10 6545515Omax Auto 10 8265Rico Auto 1 5835Sona Koyo St 1 8210

SRF 10 176680Tata Motors 2 43085 TVS Motors 1 51670

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 8845Hindalco 1 19105Hind Zinc 2 25435JSW Ispat S 10 Jind Steel 1 11195JSW Steel 1 19715Jindal Saw 2 7975National Aluminium 5 6645SAIL 10 6040Tata Steel 10 43670Visa Steel 10 2750

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 25840Binani Industries 10 8485Birla Corp 10 77425India Cement 10 20970Prism Cement 10 12355JK Cement 10 107155Shree Cement 10 1973680

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DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

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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

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