Indian Auto Industry Update

25 Feb 2017

IndustryGujarat police foil attempt to lockdown Tata Nano plant detain 700

Interviews amp FeaturesTata Motors Volkswagen tie-up why Volkswagen when Tata owns Jaguar Land Rover

Maruti Baleno RS Vs Volkswagen Polo GT TSI Vs Fiat Abarth Punto Vs Ford Figo 15D

Cars SUVs MUVsHyundai to introduce 8 new products in India by 2020 CEO amp MD Y K Koo

Hyundai India to launch 3 new cars to take on Maruti Suzuki

Top 5 Selling SUVs in January 2017

Toyota India eyes to gain by launching smaller hybrid cars

Despite falling sales Honda eyes new plant buys 380 acres in Gujarat

Diesel continues to power sales of passenger vehicles

Honda WR-V Volkswagen Tiguan Jeep Compass and other upcoming SUVs in 2017

While Google and Uber fight Indian govt throws out red carpet for self-driven cars

Is the Nano heading towards a dead-end

VW Tata Motors to hasten talks in Geneva

Luxury CarsMercedes-Benz hopes for double-digit sales in India lines up 2017 launches

Mercedes-Benz has fingers crossed for 2017 after diesel ban note ban of 2016

First Limited Edition Porsche 911 R delivered for around Rs 3 crore

Commercial VehiclesVolvo eyes long haul transportation segment in India

Construction amp Agri MachineryMahindra Agri launches digital platform MyAgriGuru for farmers

23 WheelersIndia set to become largest market for KTM in 2017

E-BikesElectric Sport bike with a range of 500 miles soon

ComponentsMotherson Sumi Systems chief bags top EY award

Allied IndustriesEmissions Environment

Vintage car rally in Delhi gets NGT nod

Finance amp InsuranceStrong earnings growth to fuel Cholamandalam

Oil Lubricants amp Alternative FuelsOil clings to gains as stockpiles rise for seventh week

News MagazinesVolkswagen Arteon teased ahead of Geneva debut

Maruti Boosterjet engine A close look

Latest discounts on petrol Marutis

Toyota recalls Mirai to update software glitch

Tata Hexa vs Mahindra XUV500 comparison

SAIC-GM-Wuling Baojun 510 compact SUV details revealed

Kiaamprsquos hydrogen model to be ready by 2021

Sponsored feature Car of the Year - Maruti Suzuki Vitara Brezza

International NewsGeneral Motors demands non-compete clauses in return for Opel patents

Mercedes-Benz mulls North American potential for pick-up

Magna International profit misses estimates as costs rise

Aston Martins losses accelerate new DB11 brings year-end surge to sales

Volkswagens Porsche-Piech clan backs brand chief despite criticism

Volkswagen looks to cap executive pay bonuses

Opel works council to seek contact with PSA labour bosses

In tougher climate Chinese automaker cuts jobs shifts to green cars

When test-driving a new car take the technology for a spin

Shaking off dieselgate VW races back into profit

Porsche Audi lift Volkswagen to record underlying profit

EconomyIndias Q4 economic growth seen slowing to near three-year low Poll

Inflation key pillar of stability for Indian economy

Forex reserves down $57 mn to $363 bn due to dip in foreign currency assets

Closing

Industry

Gujarat police foil attempt to lockdown Tata Nano plant detain 700 PTISee this story in The Economic Times (Web Edition)

Ahmedabad Gujarat Police has foiled a bid to lockdown Tata Nano plant near here by detaining OBC leader Alpesh Thakor and hissupporters who were demanding jobs for local youths in industries in the State

Thakor on Wednesday had given a call to lockdown the plant at Sanand GIDC area as part of his agitation against industries whichhe claimed are not employing local youths

Thakor and his around 450 supporters were detained 3km away from the Sanand GIDC Ahmedabad Rural SP R V Asari said

We also detained around 250 people from different parts of the district who were headed to join a rally organised by ThakorAround 700 people were detained and later let off he said

The State Government had deployed a large police force in Sanand and surrounding areas following the threat given by ThakorConvener of OBC SC-ST Ekta Manch

Industries coming to Gujarat have to give 85 per cent employment in their plants to local youths as per a Government ruleHowever this rule is not being followed despite lakhs of Gujarat youths being unemployed Thakor had said

We demand the State Government put pressure on these industries to give 85 per cent jobs to local youths We will lockdownindustries which dont follow this rule he had said

Tatas Nano plant was shifted here from Singur in West Bengal after it faced protests over land acquisition in the eastern state Theplant was established here when Narendra Modi was Chief Minister of Gujarat

The facility produces only a limited number of the small car and Tata Motors manufactures other models at the planthttpautoeconomictimesindiatimescomnewsindustrygujarat-police-foil-attempt-to-lockdown-tata-nano-plant-detain-70057332285

Top

Interviews amp Features

Tata Motors Volkswagen tie-up why Volkswagen when Tata owns Jaguar Land Rover Arpit MahendraThe Financial Express (Web Edition)

Tata and Volkswagen are looking at jointly developing vehicles for the Indian market and are already in advanced stages of talksThe talks may be firmed up at the Geneva Motor Show in the month of March claims a report by Bloomberg The report also claimsthat there is no certainty for the deal to go through and the talks are right now open-ended While it is a regular practice in todaysage for carmakers to explore synergies in order to lower the rapidly increasing vehicles development costs this deal is veryinteresting and possibly has a lot at stake

An example of such an agreement that helped cut costs for two brands is the Renault and Nissan alliance To put things inperspective the Kwid was very well kitted but still Renault managed to keep the pricing competitive In fact the Kwid wasresponsible for placing the French car maker on the mass-market map in the Indian passenger car market Similarly the dealproved immensely beneficial for Nissan in keeping its pricing low and hence Datsun redi-Go too went on to become a best-seller forNissan

Why not JLR but Volkswagen

The first thing to question about this deal is the rationale behind this deal between a global giant and a domestic giant The answerlies in the problem area for both that turns out to be their passenger car sales in India While both companies are struggling in thelocal market for completely different reasons theres a lot more to this deal than it seems on the surface Synergies in this deal pointspecifically to technology related issues and Tata Motors already owns Jaguar Land Rover (JLR) which is at par with the globalcompetition in the luxury segment

So what is this technology that even JLR doesnt have access to but Volkswagen does

The answer lies in the rapidly shortening product lifecycles of vehicles today primarily due to the influx of smart devices andgrowing importance of connectivity which requires constant updates With Tata Motors struggling with its passenger car divisionsince years the company now finally seems to get some firm footing to rise However a few successful models cannot propel thecompanys journey into the horizon Knowing that Tata Motors recently announced to cut down its platforms from the present six tojust two one of which will be the Advanced Modular Platform (AMP) JLR operates in the premium space only and hence itsexpertise on modular platforms is restricted to that space only Plus the company has never tried making a low-cost car so it has noknow-how on the subject at all which is precisely what Tata Motors needs

In simple words modular platforms are flexible platforms which allow vehicles of various body styles and sizes to made on thesame platform resulting in the critical parts being common This not only saves a huge amount of money since there are lesserparts to develop it also allows the company to develop vehicles faster which is crucial for success today However the thing aboutmodular platforms is that theyre complex to design and expensive too Tata Motors being one of the youngest companies in theglobal car scene doesnt have the required technical know-how for the same

This is where Volkswagen one of the masters of making modular platforms comes into the picture With platforms such as theMQB Volkswagen is today selling cars with same underpinnings through different brands So you could end up buying a SkodaVolkswagen or even an Audi based on the same platform and with the same engines too Its a win-win situation for the consumerand the company as the consumer gets more features and newer models quickly at a lesser price and the company is happymeeting consumer demands on time

Whats in it for Volkswagen

So what is in it for a global giant resting on a mountain of technology that filed more than 6000 patents in 2015 alone The answeronce again lies in the problem area of Volkswagen which is the absence of a small car With its cheapest model starting at a priceof more than Rs 55 lakh Volkswagen loses out on the largest volume segment in the country Moreover theres not much thecompany can do since they do not have a platform which can spawn cars cheap enough to cater to the segment under rs 4 lakh orso This is where Tata Motors comes in with its experience of making small cars the jewel in its crown being the Nano which theworld was surprised with That the Nano never really took off is a different story but from a technical perspective the car was amassive statement from an Indian company and made popular the term frugal manufacturing

With Tata and Volkswagen joining hands the duo may be able to develop a modular platform for low-cost cars and crossovers thatwill go a long way in helping both companies improve their sales Developing such a platform is critical for both companies as bothhave been struggling for long to achieve their desired goals The deal is a bit more important for Volkswagen since the worldslargest carmaker commands only about 2 percent of market share in India a figure the board rooms in Wolfsburg Germany wontbe too amused with Moreover it doesnt have a platform for the kind of low-cost cars India demands The company earlierconsidered the Up platform for India but later shelved the plan due to it turning out to be too expensive Developing an entirely newplatform will entail massive investments increasing the risk for a company already grappling with the diesel emission scandal andhefty penalties

While this tie-up is being discussed its imperative for both companies to go ahead with the larger plan discussed in this story Inpresent circumstances though both companies seem fit to fulfil each others requirements With the market getting morecompetitive by the day Tata and Volkswagen need to act quickly in order to make it big in the future Even if this deal doesnt gothrough both companies will need to ensure they find a similar partner soon enough because the competition is quickly coming toterms with a modular platform-based product roadmap and as history suggests catching up isnt always an easy task in the Indianautomotive markethttpwwwfinancialexpresscomautocar-newstata-motors-volkswagen-tie-up-why-volkswagen-when-tata-owns-jaguar-land-rover564930

Top

Maruti Baleno RS Vs Volkswagen Polo GT TSI Vs Fiat Abarth Punto Vs Ford Figo 15D Deccan Chronicle (Web Edition)

Maruti Suzuki India Limited is set to introduce the Baleno RS in the Indian market on March 3 2017 The upcoming hot hatch willcompete with the likes of the Volkswagen Polo GT TSI and the Fiat Abarth Punto Maruti is likely to price the Baleno RS around theRs 8 lakh mark which would make it significantly cheaper than the Polo GT TSI (Rs 91 lakh) and the Abarth Punto (Rs 1033 lakh)However the the Ford Figo 15D Titanium Plus is priced in the Balenoamprsquos range and performs quite impressively Although itis a diesel hatchback the Figo is a fun-to-drive car Letamprsquos compare the Baleno RS with its rivals and see how it fares againstthem

DimensionsIn terms of dimensions the Baleno RS is the longest (3995mm) and widest (1745mm) car here While the Abarth Punto standssecond in terms of length the Polo GT TSI and Figo stand third and fourth respectively The Baleno RS also has the longestwheelbase (2520mm) and maximum boot space (339 litres) among the four cars The Abarth Punto has the second-longestwheelbase (2510mm) while the Figo stands third with 2491mm However the Figo is the tallest car here with 1525mm heightfollowed by the Baleno RS (1510mm) Abarth Punto (1505mm) and the Polo GT TSI (1469mm) In terms of ground clearance whilethe Figo has the highest (174mm) and the Abarth Punto the lowest (155mm) the Baleno RS and the Polo GT TSI have 170mm and165mm ground clearance respectively Although on paper the Baleno is the most spacious car it has less kerb weight compared tothe Abarth Punto and the Polo GT TSI

PerformanceAmong the four cars the Abarth Punto ampndash with a 14-litre T-Jet petrol engine which churns out 145PS of power and 212Nm oftorque ampndash has the most powerful engine However since the Figo is powered by a diesel engine it has the highest torque of215Nm among the four The Polo GT TSI has a 12-litre turbocharged petrol engine with power figures of 105PS175Nm TheBaleno RS will be powered by the 10-Litre three-cylinder Boosterjet petrol engine which produces 100PS of power and 150Nm oftorque ampndash the lowest torque and power figure among the four Although the Punto is the most expensive car here it has aconsiderable amount of extra power than its rivals Fiat claims that the Punto can reach from a standstill to 100kmph in 88 seconds

All four cars have some distinguishing features The Baleno RS is likely to be offered in the Alpha variant It will have a 70-inchtouchscreen infotainment system with support from Apple CarPlay and Android Auto and will also be equipped with disc brakes onall wheels (also offered on Abarth Punto) While the Polo offers cruise controls and a cooled glove box the Figo has six airbagsincluding side and curtain airbags In terms of looks the Punto does stand apart with the 16-inch alloy wheels and Abarth decals allover it and it is also the only car to offer rear AC ventshttpwwwdeccanchroniclecombusinessautos240217maruti-baleno-rs-vs-volkswagen-polo-gt-tsi-vs-fiat-abarth-punto-vs-ford-figo-15dhtml

Top

Cars SUVs MUVs

Hyundai to introduce 8 new products in India by 2020 CEO amp MD Y K Koo PTISee this story in The Economic Times (Web Edition)

Chennai Leading automaker Hyundai Motor has planned to expand its product line up in domestic market with the launch of eightnew products by 2020 a top official said today

During the National Dealer Conference in Seoul South Korea we had announced new products for the Indian market for the nextfour years from 2017-2020 for a strong market leadership with sustainable growth Hyundai Motor India Managing Director andCEO Y K Koo told reporters here

We will expand and strengthen our product line with eight new launches equipped with new technologies out of which three will benew segment products and five will be full model change apart from regular product enhancements and facelifts he said

Besides introduction of new models Koo said the company would introduce new technologies in domestic market such as mildand full hybrid automatic manual transmission and turbo gasoline engine

Stating that India ranks third in sales globally for Hyundai after China and United States he said We have a very strongcommitment towards Indian customers

Accordingly in Auto Expo in February 2018 we will showcase our strong hybrid IONIQ and in second half of 2018 of the three newsegment products we want to introduce a new family oriented concept and design led product followed by a sub-4 metre SUV infirst half of 2019

Referring to the company taking up digital campaign following the launch of upgraded hatchback Grand i10 the CEO said it wasfor the first time the company tried an innovative method for a national launch

I am happy to share that all of it was well received by our customers We got four lakh plus likes on (social networking site)Facebook in just 24 hours and as we speak we have crossed 71000 enquiries and bookings are nearly 8500 he said

On the Corporate Social Responsibility initiative he said the company has adopted 33 government-run ITIs and five polytechnics

Near our factory (in Sriperumbudur) we have completed three Dream Village projects with the last one being inaugurated on

February 3 2017

This year we have ambitious plans to adopt 60 villages in the Sriperumbudur block he saidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-to-introduce-8-new-products-in-india-by-2020-ceo57332353Hyundai plans to enter three new segmentsThe Hindu (Web amp Print Edition)httpwwwthehinducombusinessIndustryhyundai-plans-to-enter-three-new-segmentsarticle17362515eceHyundai to introduce 8 new products in India by 2020The Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-to-introduce-8-new-products-in-india-by-2020articleshow57333299cmsHyundaiamprsquos 4-year plan 3 new segments 8 carsThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomcompanieshyundai-4-year-planarticle9559231eceref=wl_newsHyundai to introduce 8 new products in india by 2020 CEOThe Pioneer (Web amp Print Edition)httpwwwdailypioneercombusinesshyundai-to-introduce-8-new-products-in-india-by-2020-ceohtmlHyundai Motor to launch eight new modelsThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinessfdi-inflow-zooms-18-to-46-bn-in-2016369124htmlHyundai to introduce 8 new products in India by 2020 YK Koo CEOThe Financial Express (Web amp Print Edition)httpwwwfinancialexpresscomindustryhyundai-to-introduce-8-new-products-in-india-by-2020-yk-koo-ceo565680Hyundai lines up eight new cars in four years to cater to Indian demandBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-lines-up-8-new-cars-in-the-next-4-yrs-117022400202_1htmlHyundai to introduce 8 new products in India by 2020 CEODaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-hyundai-to-introduce-8-new-products-in-india-by-2020-ceo-2333778

Top

Hyundai India to launch 3 new cars to take on Maruti Suzuki Business Standard (Web amp Print Edition)

Chennai Hyundai India Motor Limited (HMIL) has lined up eight new products including three new cars over the next three yearsto take on market leader Maruti across all segments in a big way The company has announced new models such as the full hybridIoniq a sub-4 metre compact SUV on the concept of Carlino a small family concept car above its entry product Eon in the Bsegment a new sedan (completely refurbished Verna) and a compact car in mid segment over the next two to three years Thecompany also lined up an upgradedfacelift versions of all existing models (including mild hybrids) to take on Ciaz Vitara Brezza ofMaruti City of Honda EcoSport of Ford and the likes of Alto Wagon R said YK Koo managing director and CEO of Hyundai MotorIndia

In his first major interaction in 2017 with the media here Koo said ampldquoWith India becoming No 3 in the world for parent in termsof volume it has been decided to capitalise with a slew of new segment products as well few upgradations for next three years tocompletely utilise our existing capacity in Chennai The company is ready to bring down its exposure on exports to exploit the hugepotential in Indiaamprdquo

Over the years the export component of the companyamprsquos total sales in India has come down from 40 to less than 25 nowand may go down further to meet rising domestic demand owing to new launches Having crossed the half a million sales mark inIndia in 2016 (500537 units sold) the company hopes to post a high single digit growth in 2017 on the domestic front and maycross 700000 mark in total sales in 2017 Koo said in response to a query

Interestingly the domestic sales in 2016 grew 52 while the exports declined by 34 to 161517 units With demonetisation casta major shadow the company could only grow by 29 in 2016 in total sales to 662 lakh units

In 2017 the company will launch two more products ampndash a compact and a mid-size sedan (a new Verna probably) which willbe followed with a full hybrid Ioniq in January Auto Expo 2018 This will be followed with a compact family car above Eon and mildhybrid of an existing model A sub-4 metre compact SUV will be early 2019 and upgraded versions of some other existing models inlater half of 2019 Koo pointed out Compact segment is an important one which contributes 51 to overall sales he added

To a question on tapping ride share operators like other OEMs Koo said ampldquoWe have started selling Xcent and Grand i10models to some ride sharing operators in a small wayamprdquohttpwwwfinancialexpresscomindustryhyundai-india-to-launch-3-new-cars-to-take-on-maruti-suzuki565891

Top

Top 5 Selling SUVs in January 2017 Deepanshu TaumarThe Economic Times (Web Edition)

New Delhi Utility vehicle (UV) is the only category in Indian automobile industry which is growing robustly despite diesel ban or

demonetisation This segment has grown as high as 3204 percent in the April-January period which is highest among all thecategories A total of 618427 units have been sold in the said period compared to 468236 units in the same period the previousyear

Similar growth trend was seen in the month of January also A total of 62264 units of UVs were sold in the month of January 2017posting a growth of 2447 percent compared to 50023 units in the same month last year The double-digit growth of the segment isprimarily driven by compact UVs like Maruti Suzuki Vitara Brezza Hyundai Creta and Innova Crysta

The interest of the consumer toward utility vehicles is very high especially Urban consumers Three four years back people used tobuy the sedan and small cars for a daily routine job and Utility vehicles for leisure activities In today time even if you have moneyparking space becomes the biggest challenge People are not able to get parking for two vehicles So obviously now urbancustomers want both benefits in one vehicle which he can use for the personal commuting and as well as weekend activities alsoThats why the whole concept of small SUVs have born in after the few launches in the segments The buyer in the segment isstraight away now buying UVs There are a lot of Urban buyers are buying these vehicles said Abdul Majeed Partner PwC

In the month of January Maruti Suzuki Vitara Brezza continues to rule the pole position at 8932 units The compact SUV fromMaruti Suzuki still has a pending order of 45000 units with a waiting period of 7 months Industry experts believe that the success ofVitara Brezza is credited to primary things one is that it is sold in the largest network and other is pricing

On the other hand Hyundai Creta rules 2016 in terms of grossing highest sales in utility vehicle segment Despite the increase insales Creta stands at second position with 7918 units in the month of January compared to 6589 units in the same month last year

Mahindra Bolero stands at third position with 6598 units slipping from second position last year when it sold 6160 units Bolero isthe only vehicle from Mahindra which feature in the top selling utility vehicles list despite the companys product portfolio consistingof 95 percent of UVs Industry experts believe that if OEMs do not innovate even after being the market leader in a particularsegment it can not sustain the market share Somehow the launch timing of Mahindra has not been right in the past However thecompany is working on new products which might crack the market in future

On the fourth slot is Maruti Suzuki Ertiga which sold 5198 units thereby seeing a marginal decline of 502 units when compared to aprevious year

Toyota Innova stood at the fifth position at 5013 units making a comeback when compared to the last year January month

Toyota has built the image of reliability with the Innova over many years Although the previous generations were minimal intermsof equipment level the ride quality and reliability make it a worthy choice With the new generation they have added themissing element- features and equipment We now have an automatic option better interiors with a premium feel with nocompromise on earlier USPsThe Crysta is clearly aimed at the private consumer who is looking for a luxurious ride withoutbreaking the wallet said Kaushik Madhavan Director - Automotive amp Transportation MENASA at Frost amp Sullivan

Innova has always been the best-selling utility vehicle along with Bolero and Ertiga Last year Toyota and many other OEMs facedthe heat due to the diesel engine ban with a capacity of 2000cc

The growth of utility vehicles will continue to happen provided companies keep on launching exciting products Consumers look forbetter features connectivity more value addition and for newer and better products If OEMs continue to innovate and providesomething new consumers will buyhttpautoeconomictimesindiatimescomnewspassenger-vehicleuvtop-5-selling-suvs-in-january-201757327330

Top

Toyota India eyes to gain by launching smaller hybrid cars Ajay ModiBusiness Standard (Web amp Print Edition)

New Delhi Japanese carmaker Toyota is keen to extend the hybrid technology to smaller and affordable vehicles in India Itscurrent hybrid offerings include two top-end luxury sedans Camry and Prius

ampldquoIn future we want to introduce smaller hybrids and complete our hybrid line-up So you will see a change inportfolioamprdquo Akito Tachibana managing director Toyota Kirloskar Motor told Business Standard

Last week the company introduced the hybrid Prius in India its second hybrid vehicle after the Camry

To be imported as a completely built unit (CBU) the Prius has an ex-showroom price of Rs 3896 lakh The Camry hybrid is pricedat Rs 3198 lakh Being a CBU the volumes of Prius

are expected to be small from the Camry hybrid which does about 1000 units a year

Globally Toyota has sold about a million hybrid vehicles but believes there is more to the market (in India) beyond just thenumbers

Tachibana said the hybrid concept is well accepted in the bigger car segment ampldquoWe aim to introduce the locally-producedC-segment vehicle in the future Hybridisation is the best situation in India But it faces emission and challenge of fuelefficiencyamprdquo he added

Commenting on the current pricing of such cars he said ampldquoUnfortunately hybrid technology today is expensive in comparison

to other fuels But after the introduction of BS-VI emission norms (scheduled for April 2020) the diesel engine would need asignificant upgradation This would make diesel cars expensive and the hybrid ones would be price competitiveamprdquo

Tachibana said it would be possible for hybrid cars in the C- and B- segments to compete with other engines in the future

ampldquoWe will expand our line-up from the top-end to lower segment with price competitivenessamprdquo

Toyota has entered into a partnership with Japanese carmaker Suzuki which dominates the Indian car market with about 47 percent share

The two would begin ampldquoconcrete examinationsamprdquo towards the realisation of the partnership in areas includingenvironmental technologies safety technologies information technologies and mutual supply of products and components

This would have ramifications for India which is poised to emerge as the third-biggest car market by 2020 Maruti Suzuki hadexperimented with mild hybrids in vehicles such as the multipurpose vehicle Ertiga and sedan Ciaz However it does not have afull-fledged hybrid offeringhttpwwwbusiness-standardcomarticlecompaniestoyota-india-eyes-to-gain-by-launching-smaller-hybrid-cars-117022200572_1html

Top

Despite falling sales Honda eyes new plant buys 380 acres in Gujarat PTISee this story in The Economic Times (Web Edition)

Mumbai Honda Cars has acquired 380 acres in Gujarat to set up a new assembly line though its two existing plants are running athalf the installed capacity of 240 lakh units as its sales fell over 25 per cent last year

Honda has an assembly line each in Greater Noida near Delhi and Tapukura in Rajasthan with a combined capacity of 240 unitsBut in 2016 its sales plunged to 158658 a steep 253 per cent decline from 2015 level when it had sold 212372 unitsAccordingly its market share fell to seventh slot from fourth

With this running rate it is highly unlikely that Honda will be able it to meet its earlier target of selling 300000 lakh cars in thecountry in 2017

We have just completed acquisition of around 400 acres to be precise 380 acres at Vithalapur in Gujarat though we have noimmediate plans to set up a plant there We have bought the land so that as and when we finalise the third plant we have the landready Honda Cars India chief executive Yoichiro Ueno said

He said this is done as they are confident of the long-term potential of India and are committed to this market With GDP clipping at7 per cent there isnt any reason to be otherwise and they want to participate in this growth story

Ueno however refused to offer the price they have paid for the land parcel But the company sources said they have paid aroundRs 1000 crore for the land parcel

Honda Cars India director and senior vice-president Raman Kumar Sharma told PTI that excluding this latest investment thecompany has pumped Rs 8000 crore into the country since its entry in the 1990s

Sharma said they bought the land from individuals and completed transactions earlier this month only and bought the landconsidering the challenges of land acquisition in the country coupled with rising realty prices it is way of derisking future volatilities

Vithalapur is about 80 km northwest of Ahmedabad where Hondas two-wheeler subsidiary Honda Motorcycle and Scooter Indiaruns the worlds largest scooters only plant with a 12 million annual capacity opened last February

Honda expanded capacity to more than 240000 units from 60000 in a short span A large part of the additional capacity was indiesel during the peak of diesel demand a couple of years ago But Ueno said they will go slow on diesel now as customerpreference have already shifted back to petrol following narrowing of the fuel price differenceshttpeconomictimesindiatimescomnewscompanycorporate-trendsdespite-falling-sales-honda-eyes-new-plant-buys-380-acres-in-gujaratarticleshow57335181cmsHonda buys 380 acres in Gujarat to set up new plantmint (Web amp Print Edition)httpwwwlivemintcomIndustryLLrbPigwBpcCfS0m0Sx1XJHonda-buys-380-acres-in-Gujarat-to-set-up-new-planthtmlDespite falling sales honda eyes new plant buys 380 acres in gujaratThe Pioneer (Web amp Print Edition)httpwwwdailypioneercombusinessdespite-falling-sales-honda-eyes-new-plant-buys-380-acres-in-gujarathtmlDespite falling sales Honda eyes new plant buys 380 acres in GujaratDeccan Chronicle (Web Edition)httpwwwdeccanchroniclecombusinesscompanies240217despite-falling-sales-honda-eyes-new-plant-buys-380-acres-in-gujarathtmlDespite falling sales Honda eyes new plant buys 380 acres inDaily News amp Analysishttpwwwdnaindiacommoneyreport-despite-falling-sales-honda-eyes-new-plant-buys-380-acres-in-2333905

Top

Diesel continues to power sales of passenger vehicles Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai Notwithstanding the diesel activism over the past one year the fuel continues to command more than 50 of allpassenger vehicle segments except the entry level A and the B segment hatchback

According to data the only big volume segments where diesel is less than 30 of the market is the entry level mini car marketcomprising popular models like Maruti Alto Tata Tiago Renault Kwid Maruti WagonR among others

In every other segment diesel continues to command the larger share of sales and the correction - from 2015 to 2016 - has beenonly 3-4 percentage points In the higher price tag segments diesels dominance continues to be overwhelming

According to the industry data even in the entry level A segment diesels share has grown from 1-5 due to the introduction ofdiesel models like Tata Tiago and Mahindra KUV100 In comparison diesels share in the bulge bracket B-segment hatchbackmarket has seen the sharpest erosion - down to 34 from 46 the year before It is the only segment where customers havemoved away from diesel

In contrast the sedan market is still diesel dominated with the fuel option commanding 56 and 66 respectively of the B-segmentsedan (Honda Amaze Hyundai Xcent) and C-segment sedan volumes (Honda Civic Hyundai Elantra Toyota Corolla)

The MPV and SUV market continues to be diesel driven with the fuel share seen to be higher among the more expensive modelsLuxury SUVs like Q5 X3 M Class among others are 100 diesel Even premium SUVs like SanteFe Rexton Endeavour Fortunerare 96 diesel though the fuel share has come down from 2015

The problem with diesel was largely restricted to the Delhi-NCR region and although a few other states talked about action nothingreally happened on the ground The reason diesel is more popular than petrol in higher end SUVs and MPVs is because ofperformance In smaller vehicles people are not looking for performance and use the car for city driving mostly so petrol suits thembetter That segment is also value-conscious so the diesel-petrol model price differential also pinches them As sentiments settledown diesel will continue to dominate higher end SUVs and MPVS said Abdul Majeed partner PwC Typically a diesel variant isat Rs 1 lakh pricier than its petrol counterpart

India is the only market other than Europe where diesel has a substantial presence despite narrowing of price gap between petroland diesel The real impact of diesel ban and resultant debate has been on the commercial hatchback segment said KumarKandaswami senior director - Deloitte Touche Tohmatsu India

Earlier that segment was predominantly diesel now there has been a shift towards gasoline and alternative drivetrains as well InSUVMPV segment he said Diesel continues to rule but in bulge bracket hatchback market which is 65 of the total passengercar volume diesel has taken a hit he addedhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsdiesel-continues-to-power-sales-of-passenger-vehicles57332893

Top

Honda WR-V Volkswagen Tiguan Jeep Compass and other upcoming SUVs in 2017 Ronak ShahThe Economic Times (Web Edition)

About few years back the sub-compact SUV segment was a dead segment with less than 1 market share and as per industryreports The segment now contributes to over 41 of market share in the Utility vehicle space So sniffing high volume growth andunderstanding the trend that the customer is now inclined towards SUVs almost every car maker is lining up at least one SUV

From sub-4 meter SUV Ford Ecosport to compact SUVs like Maruti Suzuki Vitara Brezza Renault Duster Hyundai Creta to thelikes of Toyota Fortuner Ford Endeavour or the high ends Audi Q7 BMW X5 Mercedes-Benz GLS Volvo XC 90 every single SUVhas been a successful model for its respective manufacturers in the Indian market

Over 618 lakh units of UVs were sold in the period between April 16 - Jan 2017 and the major chunk of it is contributed by the salesof SUVs

Car makers like Nissan Volkswagen Skoda currently doesnamprsquot have any high-end SUVs in its product portfolio and has linedup some big launches for 2017 Below is the list of SUVs coming to India in 2017

1 Honda WR-VHonda WR-V will be the first cross utility vehicle to be launched in India in March 2017 The car does look like a grown up version ofHonda Jazz and will also share the same platform as Jazz Honda WR-V is expected to have 12 litre petrol and 15 litre dieselengine units However the carmaker may tune it to match the performance of the other crossovers placed in the market This willalso be Honda Cars second launch after Honda City and will take on the likes of Hyundai active i20 Toyota Etios CrossVolkswagen Polo Cross and Fiat Avventura

2 Datsun Go CrossFirst showcased at 2016 Auto Expo Datsun GO Cross gets a tall stance built body and skid plates which was shown on the conceptare likely to be carried on the production variant as well We expect Datsun to launch the car just before the festive season thisyear The car is based on the Datsun Go+ MPV platform and the company will target to price the car aggressively

3 Volkswagen TiguanVolkswagen India recently announced its 2017 line up of new product launches and the first product by the company will be its SUV

Volkswagen Tiguan Based on the MQB platform the 2nd generation of Volkswagen Tiguan is expected to be launched in 2017 andwill be locally assembled at the companyamprsquos plant in Aurangabad The SUV will get 20L TDI diesel engine which is likely tochurn out 240 PS of power and 500 Nm of torque which will be mated to a 7-Speed DSG gearbox

4 Skoda KodiaqBased on the new generation Audi Q7 Skoda Kodiaq SUV will be launched in India by September 2017 Itamprsquos the first everSUV from Skoda and its named after an Alaskan bear Kodiaq The SUV will get the Volkswagenamprsquos MQB platform and willhost the same engine which we have seen on the Skoda Octavia with different tuning Expect Skoda to price the Kodiaq between25-30 lakh (ex-Showroom)

5 Jeep CompassJeep Compass SUV which is based on the amplsquosmall wide 4X4 architectureamprsquo will be locally manufactured at FiatamprsquosRanjangaon facility The company has already invested $280 million at its plant to roll out the Jeep compass SUV The SUV will belaunched in India in August 2017 and will be priced between Rs 20-25 lakh (Ex-Delhi) India is likely to get both petrol and dieselengines on offer with a 7-Speed gearbox India will also be a global hub for right-hand drive vehicles and the SUV will be exportedto other RHD markets

6 Audi Q2Audi India recently announced that the company will launch 10 new products in 2017 including a couple of models which werenever launched in India before Audi Q2 might be one the product The smallest Q model from the German car maker was unveiledat the 2016 Geneva Motor Show and is based on the MQB platform that also is used on the Audi A3

The SUV will follow the Q family of design which we have seen on the new generation Audi Q7 and the Audi Q5 globally Indiamight also get the same engines used in the Audi A3 sedan The 14L TFSI petrol engine and 20 TDI diesel engine With the AudiQ2 the company will be looking to target the first buyers in this segment Audi aims to be the number 1 luxury car maker in India andwill be aggressive in the Indian market in its business strategy and product portfolio We also expect another SUV Audi Q5 to launchin India this year

Renault Kaptur sub-compact SUVCrossover vehicle will be launched in India by the 3rd quarter of the next financial year RenaultIndia is pushing to achieve at least 80 of localisation on its new product We also expect BMW X7 Land Rover Discovery to belaunched this year or might debut at the 2018 Auto Expo

Mahindra is also working on a new cross over based on SsangYongamprsquos X100 platform which will also feature a new 15Lpetrol engine Mahindra has still not announced the launch timeline of this product

Nissan will launch a facelift on it Terrano SUV and will also be launching its X-Trail Hybrid sometime later this year

Tata Nexon sub-4 meter SUV might also break covers this year and Hyundai Motor India will debut a new SUV most likely at the2018 auto expo which will be placed below Hyundai Creta and might a sub-4 meter SUV which will rival to Ford Ecosporthttpautoeconomictimesindiatimescomnewspassenger-vehicleuvhonda-wr-v-volkswagen-tiguan-jeep-compass-and-other-upcoming-suvs-in-201757329284Volkswagen Tiguan and Passat spied in the wildThe Statesman (Web Edition)httpwwwthestatesmancombusinessvolkswagen-tiguan-and-passat-spied-in-the-wild-1487916615html

Top

While Google and Uber fight Indian govt throws out red carpet for self-driven cars Rajat Arora amp Sharmistha MukherjeeThe Economic Times (Web amp Print Edition)

New Delhi India could soon see driverless cars on its roads as proposed amendments to the motor vehicles law will empower thegovernment to permit the testing of such vehicles an area in which companies such as Google Tesla and Uber are heavilyengaged

The government will allow testing of these vehicles on a case-by-case basis once the law is in place a top roads ministry officialtold ET

The move will allow Indian carmakers and technology firms to join the global race to develop self-driving cars Tata Elxsi the TataGroups design and technology firm has been planning to test driverless cars The company declined to comment for this report

The new provision is part of the Motor Vehicles (Amendment) Bill 2016 which had grabbed headlines for its focus on safety andhefty penalties for traffic violations

In order to promote innovation and research and development in the fields of vehicular engineering mechanically propelledvehicles and transportation in general the central government may exempt certain types of mechanically propelled vehicles fromthe application of the provisions of this Act reads a clause in the amendment

The Bill introduced in Parliament in August last year has since been referred to a parliamentary standing committee

Once cleared any innovation in transport sector such as semiautonomous and fully autonomous vehicles both passenger andcommercial could be tested in India said the official cited above

Such tests will require the permission of the transport department of the union roads ministry the person said

While conditions are currently not conducive for driverless cars in the country the changes will help prepare the ground said Abdul

Majeed partner at PwC

May be in future semi-autonomous or autonomous technology can find applications in limited scale in the farm sector or on fixedroutes in the public transportation space There will not be regulatory hurdles in those instances said Abdul Majeed of PwC

Globally carmakers and technology companies including Tesla Motors Chinas Baidu Google Uber Mercedes Ford and GeneralMotors are working on driverless cars which are already being tested on city roads across the world Incidentally Google hasaccused Uber of stealing technology used in the vehicles

Tesla Motors CEO Elon Musk has pledged he will produce a vehicle that will drive itself from Los Angeles to New York by the end of2017 Swedish automaker Volvo has formed a partnership with Uber to test driverless XC90s for ride-sharing purposes Uber testedits first fleet of driverless Volvo XC90s fitted with Uber software in Pittsburg last September

The taxi aggregator subsequently had plans to run a pilot in California but the department of motor vehicles there revoked theregistration of Ubers 16 autonomous vehicles because the company allegedly refused to apply for appropriate permits

Apart from its tie-up with Uber Volvo is separately gearing up to launch its Drive Me programme which will involve the testing of100 driverless cars in Gothenburg by the end of 2017

The company has plans to make autonomous vehicles commercially available by 2020-21httpeconomictimesindiatimescomnewseconomypolicyplanned-amendments-to-motor-vehicles-law-to-permit-testing-of-self-driving-vehiclesarticleshow57337663cms

Top

Is the Nano heading towards a dead-end Sohini DasBusiness Standard (Web amp Print Edition)

Ahmedabad As Sanand continues to make the Tiago now expected to touch a production of 5000 units a month the flagshipproduct of the site the Nano has almost faded into the background

Take a look at these numbers Sanand produced only 515 Nanos in January and sold even lesser around 391 units Cumulativelybetween April 2016 and January 2017 it produced 7472 units down 62 per cent from 19686 units in the year before period A totalof 7105 Nanos were sold during the April-January period in FY17 down 62 per cent

An Ahmedabad-based dealer who did not want to be named said new launches from the companys stable including the Tiagoand now the Hexa have drawn considerable footfalls to the showrooms In fact the company saw its sales surge 44 per cent to104395 units for the compact segment which as per SIAM includes the Indica Indigo CS Zest Bolt and the Tiago

The enquiries about the Nano seemed to have slowed down The AMT variant had triggered good response and even today thereis demand for the AMT version as a second car in the family and amongst college students however there is no euphoria he said

When asked if there has been any communication from the company on whether the Nano was to be discontinued the dealer saidnothing immediate was on the cards There is some demand for the car in the taxi segment and Tata Motors might just want to tapthat he added

While the Nano had always struggled to pick up momentum with the launch of automatic manual transmission (AMT) and otherpeppy city variants sales had seen some revival signs in 2015 The GenX Nano that sports a power steering stylish interiors andcomes with an AMT variant was launched in May 2015 Tata Motors ended FY16 selling 21012 Nanos up from 16901 in FY15

Sales however started falling after that and so far have not shown any signs of revival

Will Tata now focus on high- margin-modest-volume cars instead of the Nano that was pushed as a low-margin-high volume car

A company spokesperson explained As we have stated earlier the hatchback segment is very important for us and the regulationsand customer preferences are going to play a major role in defining various sub-segments within this segment We already have awell-defined approved PV strategy in place that will look at not only the best way of addressing the segments requirements but anoverall perspective of the portfolio and you will see the action happening from our sidehttpwwwbusiness-standardcomarticlecompaniesis-the-nano-heading-towards-a-dead-end-117022400327_1html

Top

VW Tata Motors to hasten talks in Geneva The Hindu (Web Edition)

Tata Motors and the worldamprsquos largest automaker Volkswagen are likely to give a concrete shape to their ongoingamplsquoopen-endedamprsquo talks for partnership at the Geneva Motors Show scheduled for next month

The two companies are understood to have been holding discussions for a while over the possibility of joining hands and findingsynergies keeping in view the technological developments such as autonomous driving and shared mobility along with stricteremission norms challenging the automotive industry

When contacted a Volkswagen group spokesperson said that it is committed to the Indian market as the country is an integral part

of its growth strategy ampmdash especially among the emerging markets

ampldquoTo enlarge the product portfolio with tailor-made solutions for example in India Volkswagen Group is discussing anddefining these proactively with potential partners as well as between the brands of the Group It is therefore premature to make anyfurther disclosures at the momentamprdquo

With its future programme amplsquoTOGETHER ampmdash strategy 2025amprsquo Volkswagen Group empowers its brands with newresponsibilities in the respective regions the VW spokesperson added

Similarly a Tata Motors spokesperson said ampldquoAs prevalent in the automotive industry we regularly have discussions withdifferent companies to explore future collaborations but we do not have any specific announcements at presentamprdquo

Industry sources said that the current discussions between the two companies are ampldquowide ranging and open endedamprdquowith possibilities of technical collaboration and joint venture

ampldquoWhat is likely to happen in Geneva is that the two companies might agree on which direction to move ahead through apartnershipamprdquo a source said

Senior leaders from both the companies are involved in the talks another source added

The Geneva International Motors Show will be held in the first half of next month Tata Motors is expected to unveil its sports car atthe showhttpwwwthehinducombusinessIndustryvw-tata-motors-to-hasten-talks-in-genevaarticle17355790ece

Top

Luxury Cars

Mercedes-Benz hopes for double-digit sales in India lines up 2017 launches PTISee this story in The Economic Times (Web Edition)

Mumbai The countrys top luxury carmaker Mercedes-Benz which sold 13231 units last year is hopeful of a double-digit growth in2017 as it expects the note ban impact to ebb soon

With the effects of re-monetisation gradually reducing we are hopeful that we will be able to maintain our sales momentumDespite grave challenges like demonetisation and diesel ban we achieved significant sales figures last year by selling 13231units Merc India managing director and chief executive officer Roland S Folger said

He said the optimism comes from the overall pickup in the auto industry as seen in January sales

After a record breaking sale in 2015 at 13503 units the figures dipped a tad in 2016 to 13231 units due to the diesel and notebans

On new launches Folger without putting a number said We will continue our product drive to excite and grow the market We willbe introducing the long wheel base E-Class this month Last year the company had launched 13 models one more than originallyplanned

We will continue our aggressive stance in terms of product launches and network expansion in 2017 Folger said

Whether Merc will have more locally-made models this year he said Merc already has the largest number of locally manufacturedmodels and one of the highest content localisation at 60

We will continue our localisation drive depending on the market requirement he said adding the company will launch productsacross body shapes and SUVs will be one of them Mercs SUV portfolio grew a robust 20 in 2016 and we see this trendcontinuing he added

Last year the GLE Class emerged as the highest selling SUV in its portfolio followed by the GLA and GLS Class Folger saidadding the C-Class sedan remains the largest selling model for the company followed by the E-Class and the CLA Classhttpautoeconomictimesindiatimescomnewsindustrymercedes-benz-hopes-for-double-digit-sales-in-india-lines-up-2017-launches57333147

Top

Mercedes-Benz has fingers crossed for 2017 after diesel ban note ban of 2016 Hindustan Times

Mercedes Benz India took hits in 2016 not once but twice First it was the ban on heavy diesel vehicles in the Delhi-NCR at thestart of the year and then high-value notes got scrapped

The countryamprsquos largest luxury carmaker sold 13231 units in 2016 after record breaking 13503 units in 2015 Now Mercedes

Benz India boss hopes double-digit growth in 2017 when he expects the impact of demonetization to fade away and that GST willaccelerate sales

ampldquoDemonetisation and GST will be foundations of sustainable growthamprdquo Roland S Folger Mercedes-Benz Indiamanaging director and chief executive had told HT in December

ampldquoWith the effects of re-monetisation gradually driving in we are hopeful that we will be able to maintain our sales momentumDespite grave challenges like demonetisation and diesel ban we achieved significant sales last yearamprdquo Roland S FolgerMercedes-Benz India managing director and chief executive said in a conversation with PTI on Thursday

Folger had said ampldquo2016 was a year of surprises challenges and lost opportunitiesamprdquo but had hopes pinned on 2017 formore growth

Last year the company had launched 13 models one more than originally planned The auto industry has seen an overall pickup inJanuary sales which drives the German giant to do better in 2017

ampldquoWe will continue our aggressive stance in terms of product launches and network expansion in 2017amprdquo Folger saidbut stopped short of telling the number of new Mercedes models coming to India this year

Indian car industry has been riding on the SUV-wave for almost half-a-decade now and Folger believes SUVs have some inherentadvantages which are best suited for this market

Mercedesamprsquo SUV portfolio grew a robust 20 in 2016 and we see this trend continuing he added

He also said amplsquoSUVisationamprsquo of the market will continue saying ampldquowe want to believe that it should remain in thetrend at least for now Indians have shown their affinity towards SUVs hence the belief becomes strongeramprdquohttpwwwhindustantimescomautosmercedes-benz-has-fingers-crossed-for-2017-after-diesel-ban-note-ban-of-2016story-FQlv1WXlllbTmI3PBdQaTKhtml

Top

First Limited Edition Porsche 911 R delivered for around Rs 3 crore PTISee this story in The Economic Times (Web Edition)

Mumbai High performance sports car Porsche said it has delivered the first Limited Edition 911 R making it one of the 991 unitsproduced globally

The new 911 R is a purist sports car with naturally aspirated engine and manual transmission a statement from the company saidadding there is no unit available for sale in the near future

The company did not announce the price saying its not available for sale but market sources said the buyer has shelled out close toRs 3 crore excluding taxes

Born on the track and advanced over the past five decades the Porsche 911 is a heritage model The new 911 R pays tribute to theroad-homologated racing car from 1967

Porsche India director Pavan Shetty said the 911 R epitomises the Porsche brand with the design DNA of a classic 911 whileperforming as a racing car should The 911 has set the standard for generations after the ground-breaking model was firstintroduced in the 1960s

He said the two-door sports car which features a 500 hp naturally aspirated engine and six-speed sports transmission mounted ona six-cylinder 4-liter engine was delivered to a Bengaluru customer

The 4-liter engine is rear-mounted and is similar to the 911 GT3 RS and can touch 100 km barrier in 38 seconds and can achieve atop speed of 323 kmhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsfirst-limited-edition-porsche-911-r-delivered-for-around-rs-3-crore57333096Porsche brings Limited Edition 911 R priced at around Rs 3 croreThe Hindu (Web amp Print Edition)httpwwwthehinducombusinessIndustryporsche-brings-limited-edition-911-r-priced-at-around-rs-3-crorearticle17361797ecePorsche brings Limited Edition 911 R priced at around Rs 3 croreThe Indian Express (Web Edition)httpindianexpresscomarticlebusinesscompaniesporsche-brings-limited-edition-911-r-priced-at-around-rs-3-crore-4542129 Porsche 911 R delivered to Indian customerAutocar India httpwwwautocarindiacomauto-newsporsche-911-r-delivered-to-indian-customer-404280aspx

Top

Commercial Vehicles

Volvo eyes long haul transportation segment in India

PTISee this story in The Economic Times (Web Edition)

New Delhi Swedish commercial vehicles major Volvo is eyeing long haul transportation segment in India with GST rollout expectedto spur growth of the category

The company which makes premium trucks for specialised sectors like mining buses and construction equipment also aims to cutlogistics cost by achieving greater efficiency and minimising wastage

With GST coming in and changes in taxation there will be positive changes in the transport sector and we would like to play a rolefor instance in the long haulage transport which would be more effective now with cross-border traffic between various statesVolvo Group Chief Sustainability Officer and Chairman of the Board of Volvo India Niklas Gustafsson told

Currently he said due to the long wait for commercial vehicles at state borders for paying entry taxes it is not economically viableto operate such large long haul trucks

The company believes it can be part of the solution for transporting goods over long distances he added

The GST would replace a plethora of cascading central state inter-state and local taxes with a single nation-wide value-added taxon goods and services

The government now expects to roll out GST by July 1 after revising its April 1 2016 target

Elaborating further on the companys roadmap Volvo India Managing Director Kamal Bali said that so far it only had presence inmining segment as far as its trucks were concerned

In mining sector value proposition of Volvo trucks is very strong Our efficiency and productivity was 30 per cent more thancompetition but when it came to long haul transportation due to interstate borders the advantage disappeared because of the longwait at the borders

With GST roll out round the corner promising seamless movement of trucks across state borders Volvo trucks would be able tocover a lot of distance

Today trucks in India do an average of around 250 km daily and that can go up to as high as 800 kms That is where Volvotechnology will come into play Bali said

The company already has the trucks which can do long distance haulage of goods in the country he added

Besides the next possible step in India is to check wastagelogistics cost in India is 13 per cent of the GDP which is very high Theglobal average is around 7-8 per cent so I think efficiency will play a vital role Gustafsson said

Bali said the company is doing a lot of work in IT and technology area and big part of its vehicle engineering and design ishappening at Bengaluru

Also Volvo group is sprucing up Eicher range in the heavy duty trucks segmentits happening both ways -- the synergies betweenEicher and Volvo group he added

Volvo Group has a joint venture with Eicher Motors in India -- VE Commercial VehiclesWhen asked about the impact of demonetisation on the company Bali said There was a temporary impact for 1-2 months but thetrucking segment bounced back in Januaryhttpautoeconomictimesindiatimescomnewsindustryvolvo-eyes-long-haul-transportation-segment-in-india57327588Volvo eyes long haul transportation segment in IndiaThe Hindu Business Line (Web Edition)httpwwwthehindubusinesslinecomcompaniesvolvo-eyes-long-haul-transportation-segment-in-indiaarticle9558678eceVolvo targets long haul transportation segment in indiaThe Pioneer (Web amp Print Edition)httpwwwdailypioneercombusinessvolvo-targets-long--haul-transportation--segment-in-indiahtmlVolvo eyes long haul transportation segment in IndiaDeccan Herald (Web Edition)httpwwwdeccanheraldcomcontent598016volvo-eyes-long-haul-transportationhtml

Top

Construction amp Agri Machinery

Mahindra Agri launches digital platform MyAgriGuru for farmers PTISee this story in The Economic Times

Mumbai Mahindra Agri Solutions a wholly-owned subsidiary of Mahindra amp Mahindra has announced the launch of MyAgriGuruan advisory platform for farmers that has been introduced as a mobile app

We have launched mobile app MyAgriGuru a 24x7 advisory platform for farmers Developed in English and Hindi currently the

app has been launched across India and is available on Android Delivering Farm Tech Prosperity has always been a key businessdriver and a long-term vision for us at Mahindra We aspire to positively impact the lives of 75 million farmers by 2025 MahindraAgri Solutions MD amp CEO Ashok Sharma said in a statement here

Mahindra is working with Indian Meteorological Department to source weather forecast for a five-day period in order to ensure thatthat crucial farming activities are aligned with the climatic conditions

It has also associated with Commodity Exchange - NCDEX in order to share real-time prices of various mandis across the countryIt will empower farmers to compare prices and seek the best across states

Sharma said MyAgriGuru furthers the Governments vision to digitise the agriculture sector as a part of its umbrella program ofDigital India It will also play a significant part in achieving the Governments target to double the farmer income by the year 2022This app will enable our farmers to make informed decisions at every stage of the farming process which will boost both agriculturalproductivity and farm incomes substantially

Key features of this mobile app include crop agri-buzz market price and weather it saidhttpautoeconomictimesindiatimescomnewsautomotivefarm-equipmentmahindra-agri-launches-digital-platform-myagriguru-for-farmers57332483

Top

23 Wheelers

India set to become largest market for KTM in 2017 Ketan ThakkarThe Economic Times

Mumbai India is set to become the largest market for KTM Europes largest two-wheeler maker in 2017 which is part owned by thehomegrown Bajaj AutoLast year India was the number two market for KTM at 36000 units just 1000 units behind the United States

But with the company launching its range of Duke bikes (Duke 200 at Rs 143 lakh Duke 250 at Rs 173 lakh and Duke 390 at Rs225 lakh ex-showroom New Delhi) on Thursday India is expected to close 2017 with sales of approximately 50000 units

Amit Nandi president - pro biking Bajaj Auto while declining to forecast the position for KTM this year said India was a very closenumber 2 market for KTM in 2016

The gap was very wide five years ago The companyamprsquos aim is to be the number 1 in KTMamprsquos global sales Bajaj Autoowns about 47 in KTM

ampldquoIndiaamprsquos role is set to grow for KTM With the revamping of the entire line-up and the addition of Duke 250 we areeyeing a strong double digit growth this year tooamprdquo said Nandi

The Duke 250amprsquos entry ampmdash part of KTMamprsquos global portfolio ampmdash into India has been timed well to take on thenew competition from TVS-BMW which is set to hit the market in the second half of 2017

KTM has been one of the fastest growing two-wheeler brands in India with a compounded annual growth rate of 48 in past fiveyears and is expected to do well this year toohttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesindia-set-to-become-largest-market-for-ktm-in-201757323272

Top

E-Bikes

Electric Sport bike with a range of 500 miles soon Ronak ShahSee this story in The Economic Times

New Delhi With increasing focus on electric mobility the industry is now trying to achieve more performance oriented electrictwo-wheelers which can give more speed and longer battery life We saw Terra and Tork Motorcycles debuting with electric bikeslast year and now American electric sports bike maker Lightning Motorcycles is working towards the production of an electric sportsbike with a range of over 500 miles

In a media interview Richard Hatfield Head of Lightning Motorcycles said that the company in collaboration with Battery InnovationCenter located in Indiana USA will work together to achieve such similar goals

The innovation centre works with various auto-makers and government agencies to help them develop test and commercializebatteries quickly These batteries need to be reliable safe and lightweight

ampldquoWe work with companies like Lightning to pair them with cutting-edge energy storage makers to make things like the

500-mile ride possibleamprdquo said David Roberts the companyamprsquos president ampldquoWe think that with the technology as itstands right now the ride is entirely achievableamprdquo

American electric motorcycle company Lightning Motorcycles first built its electric sport bike in 2006 and three years later thecompany managed to break the worldamprsquos land speed record for an electric-powered bike

The company has already tested its electric sports bike between San Francisco and Los Angeles and competed the 500-mile ride ina single charge

Tesla holds the record of longest electric range among the commercially available vehicles At an EPA (Environmental ProtectionAgency) rating of 315 miles it is expected that Tesla will bring its Model S at the given EPA range

Richard Hatfield in an interview to Forbes said ampldquoWe see ourselves as following in the footsteps of Tesla and accomplishingthe San Francisco-to-Los Angeles run would show that range anxiety is becoming a thing of the pastamprdquo

Experts believe that sourcing batteries that generate power similar to that of a petrol engine will be difficult but it will be importantfor automakers to source that if vehicles need to be powered by greener sourceshttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcycleselectric-sport-bike-with-a-range-of-500-miles-soon57324306

Top

Components

Motherson Sumi Systems chief bags top EY award The Financial Express

New Delhi Vivek Chaand Sehgal of Motherson Sumi Systems the flagship company of Samvardhana Motherson Group was onFriday named the EY Entrepreneur of The Year 2016 NandanNilekani was honoured with the Lifetime Achievement Award for hisinvaluable contribution to the Unique Identification Authority of India (UIDAI) the Aadhaar initiative which is a pioneering citizenidentification programme unparalleled in scope and scale worldwide As the Honorary Advisor to the National PaymentsCorporation of India (NPCI) he has also helped create the ecosystem for digital financial services in India The awards werepresented by Piyush Goyal minister of state (independent charge) for the ministry of power coal new and renewable energy andmines and Nirmala Sitharaman minister of state (independent charge) ministry of commerce amp industry

Goyal and Sitharamanalso presented awards across nine categories in the presence of over 400 guests including eminent businessleadershttpwwwfinancialexpresscomindustrymotherson-sumi-systems-chief-bags-top-ey-award565907Vivek Chaand Sehgal named EY Entrepreneur of the Year 2016minthttpwwwlivemintcomCompaniesbPjAn8QUUXM8oLe2AYfirKVivek-Chaand-Sehgal-named-EY-Entrepreneur-of-the-Year-2016htmlAward for Motherson chairmanThe Telegraphhttpswwwtelegraphindiacom1170225jspbusinessstory_137575jspWLDzc2N-JkgMotherson Sumiamprsquos Vivek Sehgal bags EYamprsquos amplsquoentrepreneur of the yearamprsquo awardThe Hindu Business Linehttpwwwthehindubusinesslinecomcompaniesmotherson-sumis-vivek-sehgal-bags-eys-entrepreneur-of-the-year-awardarticle9559211eceref=wl_news

Top

Allied Industries

Emissions Environment

Vintage car rally in Delhi gets NGT nod PTISee this story in The Economic Times

New Delhi The 51st edition of The Statesman Vintage and Classic Car Rally to be held on the coming Sunday has received ago-ahead from the National Green Tribunal

The NGT agreed to make an exception to its order banning vehicles older than 15 years from plying on Delhi roads a statementissued by The Statesman said here

The NGT granted permission for the conduct of the annual Rally between February 24 and 26 it said

The rally will be flagged off from Statesman House at 9 am and will culminate at the Dhyan Chand National Stadium where trophies

will be distributed at 3 p m

More than 90 entries have been received with the oldest being a 1913 Rolls Royce the statement saidhttpautoeconomictimesindiatimescomnewsindustryvintage-car-rally-in-delhi-gets-ngt-nod57325562

Top

Finance amp Insurance

Strong earnings growth to fuel Cholamandalam Sheetal Agarwal Business Standard

Mumbai Cholamandalam Investment and Finance Company (Cholamandalam)s focus on the niche segment of light commercialvehicles or LCV lending has made it stand out among peers and led to a 58 per cent rise in the share price in the past one yearFocus on big-ticket fleet operators as well as first mover advantage in this segment have aided its growth profitability as well asasset quality In fact at 38 per cent the companys gross non-performing assets (NPA) ratio is amongst the lowest in the NBFCspace Though not strictly comparable other NBFCs operating in the vehicle finance space have higher gross NPA ratio of 6-11 percent

Given its higher exposure to the riskier segment of loan against property (LAP) or home equity as the company calls it low assetquality ratios are a key positive Cholamandalams home equity segment (29 per cent of assets under management) has grown at ahealthy clip in recent times and enabled it to diversify its lending portfolio However disbursements in this segment fell sequentiallyin the latest December quarter - partly on account of demonetisation Notably LAP segment as a whole has become less attractivegiven that higher competition has started pulling down yields for most players This would remain a key monitorable especially onthe asset quality front Most analysts though believe the company can manage these pressures efficiently citing its earlier trackrecord

Its plans to tap growth in the under-penetrated segment of affordable home loans coupled with its presence in the small andmedium enterprises (SME) segment will enable further diversification of Cholamandalams loan book

Given the prospects of achieving strong growth and profitability in the next couple of years on the back of continued traction invehicle finance (68 per cent of assets under management) as well as other businesses most analysts are positive on the stock

At current levels of Rs 1013 the scrip is trading at about 3 times FY18 estimated book value which is higher as compared to itshistorical average one-year forward price to book ratio of about 18 times However the company could raise funds in FY18 which inturn could boost the book value and lead to normalisation of the price to book ratio With the street building in healthy earningsCAGR of 20-22 per cent over the next couple of years as given the healthy expansion in return ratios it could also aid valuations

A change in the borrowings mix favourable interest rate regime fixed-rate vehicle finance portfolio improving leverage andprovisions already as per 90 days norm will continue to drive return on average assets for Cholamandalam says Darpin Shah ofHDFC Securities He has a target price of Rs 1279 on the stock implying upside potential of 26 per cent from current levels Theconsensus target price as per Bloomberg is Rs 114123httpwwwbusiness-standardcomarticleopinionstrong-earnings-growth-to-fuel-cholamandalam-117022400577_1html

Top

Oil Lubricants amp Alternative Fuels

Oil clings to gains as stockpiles rise for seventh week ReutersSee this story in The Economic Times

Tokyo Oil prices held gains on Friday on data showing US stockpiles rose for a seventh straight week but at a pace that was wellbelow expectations and news of oil being sold out of storage in Southeast Asia

US West Texas Intermediate was unchanged at $5445 a barrel by 0526 GMT pulling back from early losses WTI was on track fora weekly gain of about 2 per cent which would be its biggest so far this year

Brent crude was up 3 cents at $5661 and was on track for a weekly gain of about 14 per cent

US crude inventories rose 564000 barrels in the week to February 17 up for a seventh week although below analystsexpectations for an increase of 35 million barrels the Energy Information Administration (EIA) said

The Organization of the Petroleum Exporting Countries and producers including Russia have pledged to cut production by around18 million barrels per day (bpd) to tackle a global glut that has kept prices depressed since 2014

While OPEC appears to be sticking to its deal producers that were not part of the deal particularly US shale drillers have

increased output driving the growth in inventories in the United States the worlds biggest oil consumer

ampldquoCurrent oil prices are neither sustainable for OPEC or the industryamprdquo AB Bernstein said in a note on Friday ampldquoAssuch inventories will have to fall which we expect will be clearer in the spring after the seasonal buildamprdquo

Signs are emerging that this is happening in Asia with traders selling oil held in tankers anchored off Malaysia Singapore andIndonesia Reuters reported on Friday

More than 12 million barrels of oil has been taken out of storage in tankers berthed off Southeast Asian countries this monthshipping data in Thomson Reuters Eikon shows

Traders have been benefiting from a market feature known as contango where prices for later delivery are higher than those forimmediate dispatch But the future premium is falling and future prices may slip below spot prices known as backwardation

ampldquoTightening fundamentals will push the crude market into backwardation in the coming monthsamprdquo BMI Research said ina note This ampldquowill benefit participants in the paper market but hamper the profits of oil traders who are unable to exploit thecash and carry arbitrageamprdquohttpwwwthehindubusinesslinecommarketscommoditiesoil-slips-as-stockpiles-rise-for-seventh-weekarticle9558565eceref=wl_news

Top

News Magazines

Volkswagen Arteon teased ahead of Geneva debut Autocar India

Volkswagen has released two preview images of the Arteon in the run-up to its public debut at the Geneva motor show The imagesshow the new design of the caramprsquos LED headlights and taillightsThe four-door fastback model is essentially a successor to the Passat CC and the newer CC but gets broader shoulders and moredistinctive design features such headlights that feed directly into the grille The car will sit above the Passat in Volkswagenamprsquosinternational line-up and rival the BMW 4-series Gran Coupeacute

Inside many parts are shared with the Passat but the Arteon gets extra space and is optionally available with VolkswagenamprsquosActive Info Display digital instrument display

No production specifications have been revealed but prototypes of the car used a European-spec 191hp 20-litre TSI petrol engineand a US-spec 272hp 20-litre petrol engine After the Arteons launch Volkswagens familiar range of turbocharged four-cylinderpetrol and diesel engines will be added to its range with the most potent European petrol unit producing 280hp

The Arteon will also get a new seven-speed DSG dual-clutch automatic gearbox and introduce new driver assist features to theVolkswagen rangehttpwwwautocarindiacomauto-newsvolkswagen-arteon-teased-ahead-of-geneva-debut-404271aspx

Top

Maruti Boosterjet engine A close look Autocar India

Maruti is set to introduce its first turbo petrol in India with the launch of the Baleno RS this March To be called Boosterjet the10-litre three-cylinder engine will produce 102hp The new turbo motor extracts significantly more power from a smaller cubiccapacity by increasing the amount of fuel burnt within the same cubic capacity And what also gives torque a boost at low enginespeeds is that it makes use of direct injection However this technology is by no means first in segment VW and Ford already havethe 12 TSI and 10-litre Ecoboost engines on offer respectively

The Boosterjet engine will be a pretty compact and light unit The air intake ports have been shortened and the exhaust manifoldintegrated into the cylinder head to save weight The turbocharger and intercooler however add to its overall size

The turbo itself is a fixed geometry unit that is driven on exhausts gases and spins to 217000rpm to supply more air into theengine More air means more fuel burned and that translates into more power This turbo uses a wastegate valve that opens at lowand mid- speeds to reduce boost and prioritise fuel efficiency and closes at high speeds to increase boost for maximumperformance Air from the turbo is cooled via an intercooler before it enters the combustion chamber and so it remains densethereby increasing the volume

The direct-injection technology sees fuel being injected directly into the combustion chamber at high pressure (200psi) This isunlike Marutiamprsquos other conventional petrols where the air-fuel mixture is introduced in the intake manifold The injectors havesix-hole nozzles for better spray characteristics while the combustion chamber and piston architecture are optimised to enable abetter amplsquotumbling effectamprsquo that aids combustion

With direct injection and turbocharging working in sync the Boosterjet will have a relatively flat band of max torque (150Nm) from1700-4500 rpm giving it a very strong mid-range Top-end too is expected to be good Driving with a light foot sticking to the low

and mid-range should ensure good fuel economy but accelerate and that figure drops significantly Due to quality of fuel availablein India the Boosterjet has been detuned from 111hp in order to run on regular 91 octane As a pre-emptive measure Maruti hasalso mandated the use of an additive every 20000km to tackle formation of excessive soot and carbon deposits in the manifold

With the Boosterjet powering the Baleno RS that will weigh around 930-950kg we expect a power-to-weight ratio of over 100hp pertonne making it one of the fastest Marutis ever Also this engine could soon find its way in the Ciaz Brezza and Ertiga To see howit performs in the real world wait for our first drive of the Baleno RShttpwwwautocarindiacomauto-newsmaruti-boosterjet-engine-a-close-look-404278aspx

Top

Latest discounts on petrol Marutis Autocar India

A fresh month brings with it a revised list of incentives from dealers to entice prospective buyers for new cars So if you are lookingto purchase a petrol Maruti this month heres a list of some of the discounts you can expect at the nearest dealership This listhowever doesnamprsquot apply to Marutiamprsquos premium Nexa dealership chain

Maruti AltoThe Alto has been a top-seller for quite some time now and itamprsquos not difficult to see why It is priced well is fuel-efficient peppyenough and backed by Marutiamprsquos strong network It can be had with discounts of up to Rs 45000 The Alto800 LXI petrol andCNG models are available at a cash discount of Rs 25000 along with an exchange benefit of Rs 20000

The more powerful Alto K10 comes with benefits worth Rs 40000 (Rs 20000 cash discount + Rs 20000 exchange bonus) for allmanual variants while the AMT models get benefits worth Rs 45000 This includes a cash discount of Rs 25000 and an exchangebonus of Rs 20000

Maruti CelerioThe Celerio the car that made AMT popular in India can be had with up to Rs 45000 off The petrol manual variants offer a cashdiscount of Rs 20000 backed by an exchange bonus of Rs 25000 The AMT models get a lower cash discount of Rs 15000though they do get an additional discount of Rs 5000 Exchange bonus stays unchanged The CNG variants get up to Rs 40000off on the sticker price

Maruti SwiftOne of Marutiamprsquos bestsellers the Swift continues to be a strong seller despite its age Maruti is offering benefits worth Rs25000 only on its popular hatchback

Maruti Swift DzireQuirky looks aside the Dzire is hugely popular and provides a fuss-free ownership experience The compact sedan continues toremain Marutiamprsquos best sellers despite newer rivals and an all-new model expected in the coming months It has a cashdiscount of Rs 10000 and an exchange bonus of Rs 15000 making the deal more amplsquoDzire-ableamprsquo

Maruti WagonRThe breadbox design of the WagonR serves a purpose it makes the cabin of the WagonR airy and spacious In all the WagonRserves the purpose as a city runabout having good interior space a fuel-efficient engine and a fuss-free ownership experiencenow with a touch of style from the discontinued Stingray in the new top trim The AMT versions give your left foot somemuch-needed rest

The AMT variants get a cash discount of Rs 25000 exchange bonus of Rs 15000 and an additional discount of Rs 5000 whichmakes the total benefit stand at Rs 45000 The petrol MT variants lose the additional discount of Rs 5000 but have the same cashdiscount of Rs 25000 and exchange bonus of Rs 15000 CNG models are offered with benefits up to Rs 35000

Maruti ErtigaDespite its compact exterior the Ertiga can seat seven people in relative comfort Its competitive pricing decent engines and thestrong Maruti brand are an added bonus It gets a cash discount of Rs 10000 and an exchange bonus of the same amount makingtotal benefits stand at Rs 20000 on both the petrol and the CNG variants

Maruti CiazThe Ciaz is Marutiamprsquos answer to the Honda City it is spacious and has comfortable interiors The engines arenamprsquotparticularly exciting but that doesnamprsquot seem to be a big deal when you take the price of the Ciaz into consideration A cashdiscount of Rs 15000 and an exchange bonus of Rs 30000 further sweeten the deal

Maruti EecoThe Maruti Eeco is a good buy if you must have seven seats and are on a shoestring budget It carries an exchange bonus of Rs10000 with the 5-seat CNG variants getting a cash discount of Rs 10000 as well

Disclaimer - Discounts are subject to change depending on dealership location and availability of models Additional discountsmentioned above are subject to availability of the model at dealershipshttpwwwautocarindiacomauto-newslatest-discounts-on-petrol-marutis-400384aspx0

Top

Toyota recalls Mirai to update software glitch

Autocar India

All Toyota Mirai models are being recalled after it was found a software glitch could lead to voltage of the hydrogen fuel-celldrivetrain to exceed maximum limits The full run of 2843 customer cars are affected and being recalled to have a software updateto address the problem

A Toyota spokesman told our sister publication Autocar UK that the issue only arises in the unique circumstance when a driveraccelerates hard after the car has been travelling downhill for more than one minute using cruise control

When this happens there is a risk the output voltage of the fuel-cell boost converter can exceed maximum levels forcing a systemshut down

The spokesman confirmed no known incidents have been caused by the issue and that the recall would fully rectify the problemOwners of vehicles are being contacted by Toyota individually

The Mirai offers a range of more than 480kmhttpwwwautocarindiacomauto-newstoyota-recalls-mirai-to-update-software-glitch-404264aspx

Top

Tata Hexa vs Mahindra XUV500 comparison Autocar India

Letamprsquos start with a request a plea even Forget the Tata Aria Itamprsquos something Tata Motors wants you to do and afterspending some extended time with the new Tata Hexa itamprsquos something weamprsquod encourage as well Yes the similarsilhouette and a few carry-over bits are hard to ignore but the sheer depth of improvement thatamprsquos gone into this car elevatesit to something far greater than a mere facelift of the Aria

In the interest of balance however weamprsquod also like to remind you of what Mahindra did to the XUV500 in 2015 No namechange or drastic engineering overhaul here ampndash just a more conventional facelift but the raft of little changes both cosmeticand technical ironed out so many of the caramprsquos niggles that it finally felt like the car it always should have been and this reallyshowed that Mahindra was listening to feedback

And finally just a reminder that the last time Tata and Mahindra went head-to-head in this segment the Hyundai Creta RenaultDuster AWD Honda Mobilio Hyundai Tucson and Toyota Innova Crysta werenamprsquot around to complicate matters but they arenow so our local heroes have that much harder to work if they want to impress buyers Despite that this is still a grudge matchbetween two rival Indian carmakers and this head-to-head test is the one that will settle it

Strike a poseAs we said before if thereamprsquos one visual factor thatamprsquos been carried over from the Aria to the Hexa itamprsquos theMPV-like glasshouse which unfortunately etches the word crossover ampndash not SUV ampndash indelibly into your brain But youcanamprsquot fault Tata for not trying it does look a lot more SUV-like The bonnet is taller and more upright now with a clamshellopening squared-off edges rather than soft round ones and a nice hexagonal pattern to the upper and lower grilles And greyplastic cladding ampndash itamprsquos everywhere On the bumpers along the sides lining the wheel arches and around the rear andwe particularly like the LED parking lights that poke out of the front bumper At the sides Tata has been wise to stay away fromexcessive cuts and creases and stick with straight lines cladding and a lovely chrome strip along the window line with theamplsquoHexaamprsquo badge notched into a amplsquofinamprsquo on the C-pillar You also get rather fetching 19-inch wheels but theylook a bit sunken in the massive wheel wells The rear is perhaps the least interesting angle but it too has a few nice details likethe thick band of chrome faux diffuser and twin hexagonal tailpipes

While Tataamprsquos designers added drama to liven up a dull design Mahindraamprsquos designers actually ampndash thankfullyampndash toned the XUV500amprsquos styling down a notch and it really works The new grille now sits flush with the headlampsthemselves imbued with a new layout and LED accents The front bumper is new and the gimmicky amplsquocheetahwhiskersamprsquo have mercifully given way to simpler amplsquoslitsamprsquo that house the fog lamps On the sides all thatamprsquosnew are the alloys which again look more modern and at the back youamprsquoll find a thick chrome strip on the tailgate and fewertribal motifs in the tail-lamp glass The interesting bit is that though the Hexa has the more traditional SUV ladder-frameconstruction itamprsquos the monocoque XUV500 that has the more traditional SUV look

Good luxeThe XUV500amprsquos subtle-fication continues on the inside where the polarising plum-grey-black-and-beige colour scheme hasbeen scrapped for a more conventional beige-and-grey The dials glow a cool shade of blue now and their shroud is betterintegrated with the dash The result is that it looks a lot more mature now and it better disguises some of the poor plastics of whichthere are still quite a few such as the air con vents and the dashboard top itself Still it remains a well-thought-out interior with lotsof useful storage bays and cubbyholes (the door pockets are a touch too slim though) and we really like the larger touchscreentheyamprsquove used for the infotainment However despite all the changes it still lacks that richness or feel-good factor that youexpect from a car in this segment

There was only so much Tata could do with the Hexaamprsquos exterior but on the inside theyamprsquove really gone to town Thedashboard design is so fresh you can barely associate it with any other Tata and fit and finish has taken a quantum leap forwardThereamprsquos a nice mix of glossy black and dark matte silver placed tastefully around the cabin and it does a much better job ofimparting a premium feel than the Mahindra Some might find the all-black colour scheme a touch too dour especially given thesheer vastness of the cabin but itamprsquos balanced out by the smart design and it also helps disguise some of the panel gapsHowever get to a toll booth and youamprsquoll notice one big flaw in the design thereamprsquos no place to put your change Yes theco-driver gets two gloveboxes and a recess above them but the driver just gets one cupholder and that will end up being used for

their phone tickets wallet change or an actual cup The door pockets are at least big enough to house litre bottles and there is asmall bin under the armrest but a few more cubbyholes wouldnamprsquot have gone amiss

Vanity vansFrom the driveramprsquos seat the Hexa feels every bit the old-school ladder-frame SUV which is to say itamprsquos a bit of a climbinto the cabin youamprsquore sat very high up and the steering wheel is angled a bit more forward than in a regular car Generalvisibility is very good but thereamprsquos also a slight blind spot around the A-pillar and youamprsquoll notice thereamprsquos no roomfor your clutch foot let alone a dead pedal thanks to the seriously wide transmission tunnel

The XUV500 is a bit friendlier that way with a lower more car-like driving position and though forward visibility is good the viewout the back is poor thanks to the tiny rear window The gear lever falls easier to hand and the ergonomics just feel a bit morenatural The seats are really good too with ample support lumbar adjustment and six-way electrical adjustment for the driver TheHexaamprsquos seats arenamprsquot powered but they are superior in every other respect Not only do they offer better support inevery direction but their cushions feel plusher and softer than the Mahindraamprsquos

This continues in the second row where again the XUVamprsquos seats are in no way bad but the Hexaamprsquos are just betterMiddle-row passengers in the Tata have the advantage of pull-up sun blinds and theyamprsquoll also like the additional set of ACvents that sit between the front seats (the XUV only gets a pair in the B-pillars) Although theyamprsquoll like them a little less when itcomes to tumbling forward the heavy middle row because the vent console gets in the way and blocks the seats from folding all theway The XUV appears to have a bit more space in the second row but thatamprsquos actually down to its better use of verticalspace It is placed quite a bit higher than the first row so not only do your legs get a bit more room to stretch out you also get abetter view forward

Both SUVsamprsquo middle rows split recline fold and tumble for convenience but when it comes to accessing the third row theXUV500 has an edge as itamprsquos lower to the ground and thereamprsquos more room to wiggle yourself through Owing to its hugerear wheel arches that eat into the door area clambering into the back of the Hexa is quite a task but once youamprsquore thereagain itamprsquos these seats made with materials used in European luxury cars that feel plusher Thereamprsquos no great spaceadvantage in either car you can free up a bit more knee room in both by adjusting the middle rowamprsquos backrest angle but justthe shape of the seating area and the softer cushions make the Tataamprsquos third row the nicer place to be in

In the luggage department itamprsquos really no contest The XUV500 with all its rows up has almost no boot space to speak of andyouamprsquod be lucky to get even one small soft bag in whereas in the Hexa you can easily fit a medium-size suitcase onceyouamprsquove hauled it over the rather tall loading lip And how does the Mahindra claw back an advantage Equipment Sure theTata has got goodies like a 10-speaker JBL sound system and a USB charging point for the second row but its touchscreen issmall and not very responsive The XUVamprsquos larger updated touchscreen is slick ampndash a huge improvement on the first oneampndash and packs in loads of features including a detailed fuel computer and tyre-pressure monitoring Itamprsquos also got anumber of other equipment advantages like keyless entry and go navigation telescopic steering adjustment a mild-hybrid systemand most of all a sunroof

Running the runwayJust as with the way they look these two couldnamprsquot be more different to drive and thatamprsquos because theyamprsquore sodifferently constructed In the Tata Corner you have the companyamprsquos hydroformed amplsquoX2amprsquo ladder-frame platformarmed with a longitudinally-placed engine and rear-biased 4x4 From Mahindra you have a significantly lighter monocoque chassiswith a transversely-mounted motor and front-biased AWD What they have in common on paper at least is the use of 22-litrediesel engines and six-speed manual gearboxes They both get automatic options too but thatamprsquos a comparison for anothertime

Tataamprsquos latest amplsquoVaricor 400amprsquo iteration of this motor punches out a meaty 156hp and 400Nm which is a fair bitmore than Mahindraamprsquos 140hp and 330Nm so of course the Hexa is quicker right Wrong Owing mostly to its immensenear-23-tonne weight (almost 500kg more than the XUV) the Tata is almost 2sec slower to 100kph than the Mahindra and at120kph theyamprsquore a full 36sec apart The other thing you have to consider is that the Hexaamprsquos motor does all its work inthe first half of its rev band and then itamprsquos best to shift up The XUVamprsquos motor in comparison is a lot freer revving andyou wouldnamprsquot mind winding it open to its redline if youamprsquore in a hurry However despite all that weight the Tata Varicor400amprsquos ocean of torque and shorter gearing means it fares better in roll-on or in-gear acceleration which helps in overtakingNeither SUV is very refined but the Tata comes out on top not just on engine noise but overall insulation as well road and windnoise are far better shut out

Both cars make for great highway cruisers with their tall sixth gears and pretty solid road manners (the Hexa feels better planted athigh speeds) but the differences really show in town or on a mountain road You can feel every one of the Hexaamprsquoskilogrammes thanks to its heavy hydraulic steering that makes U-turns a lot of work Then thereamprsquos the heavy gearshift whichhas a wide gate and doesnamprsquot slot in easily and thatamprsquos after youamprsquove gotten past the clutch which feels heavy andnot at all progressive This amplsquostepamprsquo in the clutch pedalamprsquos travel means itamprsquos hard to get off the line smoothlyand making progress at crawling speeds is a jerky affair although selecting the available amplsquoDynamicamprsquo mode unique tothe Tata helps this a bit The Mahindra isnamprsquot perfect either with a slightly clunky gearshift of its own but at least the shiftaction is light Also light is the electric power steering which makes it so much easier to manoeuvre in traffic

Introduce the prospect of a mountain road and things get a bit more complex The XUV500amprsquos monocoque chassis freerrevving engine lower centre of gravity and light steering initially seem like the recipe for a corner carver but you soon realise thatthe steering is disconcertingly inconsistent in the way it weighs up Thereamprsquos a huge amount of torque steer too so you canfeel the steering fighting in your hands when powering out of corners which means the XUV doesnamprsquot steer into cornerspredictably On the same stretch of road the Hexa feels big cumbersome and top-heavy However the tyres offer up a lot of gripand combined with the more solid-feeling steering it does at least give you a lot of confidence if not excitement

Where the Hexa really hits a home run however is ride quality It manages to pummel out all manner of road imperfections at allspeeds The Mahindra can get a bit choppy at times which youamprsquoll feel the most in the third row and it will crash over sharpbumps that the Tata will just sail over

Homegrown heroesSo itamprsquos close Very close Ever since the Tiago weamprsquove known Tata is onto something big with its upcoming wave ofnew models and the Hexa really takes the brand into new properly premium territory Thatamprsquos something Mahindra did toowhen it launched the XUV500 and that original formula has since been refined with great effect The XUV500 doesnamprsquot feel aswell-built and in terms of comfort itamprsquos not quite as good as the Tata Still it does manage to outshine it in some crucialareas like ease of driving fuel efficiency and equipment

Despite our plea at the start to forget the Aria itamprsquos the Hexaamprsquos links to its past that let it down Its weight and heavysteering make it cumbersome to drive in town and foibles like the clutch and gearbox donamprsquot help either But where Tata hasgotten things just right is on the all-important feel-good factor Whatamprsquos more at Rs 1749 lakh (ex-showroom Delhi) the HexaXT 4x4amprsquos price just slips under the XUV500 W10 AWDamprsquos by Rs 11000 though itamprsquos important to rememberthese prices are only introductory The Hexa is more refined and superbly built with lots of detailing and the interiors especially theseats are something for Tata to really be proud of It scores high on space and comfort and its tough underpinnings give it ago-anywhere ability In a hotly contested segment where image presence and premium feel play a very important role these arethe things that matter more and thatamprsquos why the Hexa is our pickhttpwwwautocarindiacomauto-newstata-hexa-vs-mahindra-xuv500-comparison-404269aspx0

Top

SAIC-GM-Wuling Baojun 510 compact SUV details revealed Autocar India

General Motorsamprsquo SAIC-GM-Wuling joint venture recently launched the Baojun 510 a small SUV that will compete in one ofChinaamprsquos fastest growing and most contested segments

Baojun is one of Chinaamprsquos fastest growing vehicle brands In 2016 Baojun deliveries increased 485 percent to a record688390 units Its portfolio ranges from small cars to multi-purpose vehicles (MPVs) and SUVs and is targeted at value-consciousconsumers across China

Since its debut at Auto Guangzhou 2016 in November the Baojun 510 has received attention for its dynamic youthful and modernexterior Its aggressive pricing of RMB 54800 to RMB 69800 (Rs 557000 to Rs 710000) is meant to appeal to young first-timebuyers

Some of the Baojun 510amprsquos highlights include LED daytime running lights optimised body proportions black-and-bright-brownsurfaces inside the cabin and quality materials To ensure high quality of NVH levels the carmaker says 28 improvements weremade in the Baojun 510 with high-quality sound insulation adopted in 34 areas

The Baojun 510 comes with a semi-open panoramic sunroof air-conditioning with automatic constant temperature control keylessentry push-button start cruise control and heated and folding outside rear view mirrors that can be adjusted electronically Its80-inch LCD screen incorporates a reverse camera and can be connected to usersamprsquo smartphones

All models are powered by a 15-litre engine and six-speed manual transmission The Baojun 510 is also available with ElectronicStability Control (ESC) dual front airbags side airbags and a tyre pressure monitoring system

SAIC-GM-Wuling says its latest SUV went through more than 400000km of testing in extreme conditions on and off the roadampndash which was equivalent to 160000km of daily use ampndash while the engine was put through over 10000 hours of simulatedtesting The Baojun 510 also underwent extensive chassis tuning Engineers optimised the body structure for added comfort andsolid handling

SAIC has been planning to enter India and has set its eyes on buying GMamprsquos Halol plant in Gujarathttpwwwautocarindiacomauto-newssaic-gm-wuling-baojun-510-compact-suv-details-revealed-404260aspx

Top

Kiaacirceurotrades hydrogen model to be ready by 2021 Autocar India

Kia is working on a hydrogen fuel-cell car which will go on sale before the end of 2021 Speaking to our sister publication AutocarUK ahead of the Geneva motor show Kiaamprsquos head of marketing in Europe Artur Martins confirmed that development of a newfuel cell car was under way

Although he stopped short of confirming any specifics about the new car Martins said it would be a bigger model which would becapable of housing conventional combustion engines as well as hybrid and electric options and crucially a fuel cell too

The model will get its own distinctive look to signify its eco credentials ampldquoIt is not clear what kind of body style the cars willhave but it will be dedicated models rather than using an existing donor car as we do now with the ix35amprdquo said Kias head offuel cell research Dr Sae-Hoon Kim He pointed at the Toyota Mirai highlighting the benefits of a bespoke fuel cell car most notablybecause of the ability to design with extra cooling requirements in mind

Kias upcoming next-generation hydrogen fuel stack will be similar in size to a 20-litre combustion engine But despite being 15percent more compact and lighter it will deliver around 10 percent more performance Range between refuelings is expected to bearound 805km and top speed around 169kph

Homegrown heroesSo itamprsquos close Very close Ever since the Tiago weamprsquove known Tata is onto something big with its upcoming wave ofnew models and the Hexa really takes the brand into new properly premium territory Thatamprsquos something Mahindra did toowhen it launched the XUV500 and that original formula has since been refined with great effect The XUV500 doesnamprsquot feel aswell-built and in terms of comfort itamprsquos not quite as good as the Tata Still it does manage to outshine it in some crucialareas like ease of driving fuel efficiency and equipment

Despite our plea at the start to forget the Aria itamprsquos the Hexaamprsquos links to its past that let it down Its weight and heavysteering make it cumbersome to drive in town and foibles like the clutch and gearbox donamprsquot help either But where Tata hasgotten things just right is on the all-important feel-good factor Whatamprsquos more at Rs 1749 lakh (ex-showroom Delhi) the HexaXT 4x4amprsquos price just slips under the XUV500 W10 AWDamprsquos by Rs 11000 though itamprsquos important to rememberthese prices are only introductory The Hexa is more refined and superbly built with lots of detailing and the interiors especially theseats are something for Tata to really be proud of It scores high on space and comfort and its tough underpinnings give it ago-anywhere ability In a hotly contested segment where image presence and premium feel play a very important role these arethe things that matter more and thatamprsquos why the Hexa is our pickhttpwwwautocarindiacomauto-newstata-hexa-vs-mahindra-xuv500-comparison-404269aspx0

Top

SAIC-GM-Wuling Baojun 510 compact SUV details revealed Autocar India

General Motorsamprsquo SAIC-GM-Wuling joint venture recently launched the Baojun 510 a small SUV that will compete in one ofChinaamprsquos fastest growing and most contested segments

Baojun is one of Chinaamprsquos fastest growing vehicle brands In 2016 Baojun deliveries increased 485 percent to a record688390 units Its portfolio ranges from small cars to multi-purpose vehicles (MPVs) and SUVs and is targeted at value-consciousconsumers across China

Since its debut at Auto Guangzhou 2016 in November the Baojun 510 has received attention for its dynamic youthful and modernexterior Its aggressive pricing of RMB 54800 to RMB 69800 (Rs 557000 to Rs 710000) is meant to appeal to young first-timebuyers

Some of the Baojun 510amprsquos highlights include LED daytime running lights optimised body proportions black-and-bright-brownsurfaces inside the cabin and quality materials To ensure high quality of NVH levels the carmaker says 28 improvements weremade in the Baojun 510 with high-quality sound insulation adopted in 34 areas

The Baojun 510 comes with a semi-open panoramic sunroof air-conditioning with automatic constant temperature control keylessentry push-button start cruise control and heated and folding outside rear view mirrors that can be adjusted electronically Its80-inch LCD screen incorporates a reverse camera and can be connected to usersamprsquo smartphones

All models are powered by a 15-litre engine and six-speed manual transmission The Baojun 510 is also available with ElectronicStability Control (ESC) dual front airbags side airbags and a tyre pressure monitoring system

SAIC-GM-Wuling says its latest SUV went through more than 400000km of testing in extreme conditions on and off the roadampndash which was equivalent to 160000km of daily use ampndash while the engine was put through over 10000 hours of simulatedtesting The Baojun 510 also underwent extensive chassis tuning Engineers optimised the body structure for added comfort andsolid handling

SAIC has been planning to enter India and has set its eyes on buying GMamprsquos Halol plant in Gujarathttpwwwautocarindiacomauto-newssaic-gm-wuling-baojun-510-compact-suv-details-revealed-404260aspx

Top

Kiaacirceurotrades hydrogen model to be ready by 2021 Autocar India

Kia is working on a hydrogen fuel-cell car which will go on sale before the end of 2021 Speaking to our sister publication AutocarUK ahead of the Geneva motor show Kiaamprsquos head of marketing in Europe Artur Martins confirmed that development of a newfuel cell car was under way

Although he stopped short of confirming any specifics about the new car Martins said it would be a bigger model which would becapable of housing conventional combustion engines as well as hybrid and electric options and crucially a fuel cell too

The model will get its own distinctive look to signify its eco credentials ampldquoIt is not clear what kind of body style the cars willhave but it will be dedicated models rather than using an existing donor car as we do now with the ix35amprdquo said Kias head offuel cell research Dr Sae-Hoon Kim He pointed at the Toyota Mirai highlighting the benefits of a bespoke fuel cell car most notablybecause of the ability to design with extra cooling requirements in mind

Kias upcoming next-generation hydrogen fuel stack will be similar in size to a 20-litre combustion engine But despite being 15percent more compact and lighter it will deliver around 10 percent more performance Range between refuelings is expected to bearound 805km and top speed around 169kph

The Sorento SUV is a likely frontrunner to receive this hybrid technology Martins added that despite it being Kiaamprsquos halomodel a fuel cell version of the upcoming Stinger sports saloon isnamprsquot planned He also confirmed that if the new model wassuccessful it would ampldquomake sense to start applying it to other productsamprdquo opening the door for more fuel cell modelsfrom Kia in the future

Kia already has a fuel cell car in its model range ampndash the Borrego FCEV SUV The companyamprsquos ambitious CO2 reductiontarget will result in 70 percent of the firmamprsquos current line-up of engines being replaced over the next four years as well as thelaunch of seven hybrid plug-in hybrid (PHEV) battery-electric and fuel cell cars More efficient multi-speed transmissions are alsobeing developed

According to reports last year Kia has been exploring an entry into the Indian market for several years The company is yet toidentify a location for its first factory in the country and its only after this big hurdle is cleared that a formal announcement on itsentry into India can be expectedhttpwwwautocarindiacomauto-newskia8217s-hydrogen-model-to-be-ready-by-2021-404221aspx

Top

Sponsored feature Car of the Year - Maruti Suzuki Vitara Brezza Autocar India

How Autocar India chose the amplsquoCar of the Year 2017amprsquo

If there was an award for amplsquoWord of the Yearamprsquo the unanimous decision would have beenamplsquodemonetisationamprsquo

The Autocar Awards were instituted in India in 2002 Autocar UK our sister publication has been part of the European Car of theYear Awards since its inception in 1964 So behind the Autocar Awards is nearly 40 years of learning

When it comes to choosing the Car of the Year (COTY) from such a diverse basket the trick is not to compare apples and orangesYou compare a luxury car in the framework of luxury cars and judge how it compares to others in its category You judge an electriccar or a sportscar against the purpose it was designed for and then decide who moved the goalposts the most in its category And itis the car that makes the maximum difference in its class that is the winner

The call to crown a car or a bike with the coveted Autocar Award is not made from the heart it is a process thatamprsquos objectivemeasurable and quantifiable This objective view has earned the Autocar Awards its reputation and credibility and made it the mostgenuine of all awards in the Indian auto industry

We do it by ensuring every decision by our panel of judges is based on cold facts and hard figures The data is acquired usingAutocar Indiaamprsquos top-of-the-line computerised equipment and satellite-based systems They measure and tabulate each andevery parameter of a caramprsquos performance with gunpoint accuracy

Our methodology is the analysis of an exhaustive list of parameters with the objective of picking a single decisive winner Each ofour jury members is an expert in evaluating cars and the major body of our panel has remained unchanged for several years andthis gives consistency to our ratings and verdicts

The responsibility of that is handled by a panel of experienced judges To put the cars to the test we have Hormazd Sorabjeeeditor of Autocar India Shapur Kotwal editor-in-chief of What Car India Renuka Kirpalani editor of the Autocar show championracing driver Narain Karthikeyan and car historian Manvendra Singh

And now itamprsquos time to call on the winner of the Car of the Year 2017

Vitara Brezza The winning package

Autocaramprsquos Car of the Year winner is not just a winner on the award stage but also in the consumersamprsquo mind The MarutiSuzuki Vitara Brezza is flying out of the showrooms to the top of the SUV sales charts And itamprsquos not difficult to see why

Take a closer look at the Vitara Brezza and youamprsquoll see why itamprsquos a winner all the way The bold and muscular stance isan eye grabber While Maruti Suzuki has built the Vitara Brezza to a cost it has not been stingy in loading it up with the goodiesconsumers want Dual- tone colours plush seat fabrics and textured upper dashboard look premium and add prestige to the car

The Vitara Brezza also wins points for the equipment on offer The goodies include the SmartPlay touchscreen infotainment unitthat supports Apple CarPlay and Mirror Link while Android compatibility is on its way You also get mood lights keyless entrypush-button start cruise control auto headlights rain-sensing wipers power-folding mirrors reverse camera and dual airbags andABS Other equipment on offer include dual gloveboxes with the upper one cooled electrically adjustable ORVMs tilt steering and aheight-adjustable driveramprsquos seat

The space inside is very good for a compact SUV and Maruti Suzuki engineers must be applauded for arriving at a finely judgedbalance between luggage and passenger space Itamprsquos the latter that has been given priority and this can be seen in back seatspace which is sufficient for three Thereamprsquos adequate legroom and plenty of headroom for most average-sized adults and thegenerous width makes sitting three abreast fairly comfortable ampndash you donamprsquot have to overlap shoulders There is also aflip-down armrest with integrated cupholders and a neat little hook in the back of the driveramprsquos seat for a small shopping bag orhandbag The door pockets are quite generous and can hold one-litre bottles Other storage areas include a front centre slidingarmrest with a storage area a co-driver side under seat tray and an overhead sunglasses holder The boot is well-shaped andreasonably large If more carrying space is what you need the boot can also be extended into a very handy flat floor by lifting the

rear seat base and folding down the 6040 split seatbacks

The Vitara Brezzaamprsquos Fiat-sourced DDiS 200 engine makes 90hp and 200Nm of torque that has powered a wide range of carsand earned notoriety for its noticeable turbo lag at low revs On the Vitara Brezza however the turbo lag isnamprsquot aspronounced past the 2000rpm mark there is a surge of power all the way to about 5000rpm just shy of the redline of 5300rpmwhich is quite high for a diesel With this the Vitara Brezza is very comfortable cruising on highways In start-stop city traffic thelight and progressive clutch makes driving easy

Handling suspension duties is the pretty standard setup of MacPherson struts at the front and a torsion beam at the rear the groundclearance is rather generous and taking rough roads or even the occasional off-road track is never a worry Whatamprsquos nice isthat the ride is firm and well-composed which is primarily due to a stiffer almost European-like suspension setup

Itamprsquos a Maruti Suzuki and using the efficient Fiat-sourced diesel good fuel economy is what you would expect and the VitaraBrezza does deliver The ARAI figure at 243kpl is the highest in its segment by a decent margin

The Vitara Brezza has been a stunning success for Maruti Suzuki and itamprsquos not hard to understand why Itamprsquos a brilliantlyconceived product that best suits the tastes of the modern Indian car buyer and is undoubtedly impressive in many areas TheVitara Brezzaamprsquos well-balanced attributes makes this car a one-size-fits-all option thatamprsquos hard to beat

The Vitara Brezzaamprsquos basket of goodiesSafety first with dual airbagsFlexible interiors with 6040 split and foldable rear seatsFloating roof design with contrasting colourMaximum space with comfortable shoulder and headroomSMARTPLAY infotainment system with Apple CarPlay and satellite navigationTilt steering for comfortable driving positionFrugal and reliable DDiS 200 engineRain-sensing automatic wipersCruise control and Bluetooth hands-free controlCockpit style instrument cluster with mood lightsSlated front grille with chrome finishamplsquoBull Hornamprsquo LED light guides with projector headlampshttpwwwautocarindiacomauto-featuressponsored-feature-car-of-the-year---maruti-suzuki-vitara-brezza-404263aspx0

Top

International News

General Motors demands non-compete clauses in return for Opel patents ReutersSee this story in The Economic Times

Frankfurt General Motors has told PSA Group it would only sell licences for the manufacture of Opel cars to the French company ifit agreed not to sell them in North America Russia or China German magazine Der Spiegel reported

Without saying where it got the information the magazine said under such an agreement Opel would only be allowed to sell newmodels in those three markets following a possible tie-up with PSA but not existing ones such as electric car Ampera-e

PSA declined to comment on the report Opel was not immediately available for comment

PSA the Paris-based maker of Peugeot and Citroen cars and Detroit-based General Motors confirmed on February 14 they werein talks over a PSA-Opel tie-up to create Europes second-largest carmaker by sales after Volkswagenhttpautoeconomictimesindiatimescomnewsindustrygeneral-motors-demands-non-compete-clauses-in-return-for-opel-patents57332738

Top

Mercedes-Benz mulls North American potential for pick-up ReutersSee this story in The Economic Times

Stuttgart Daimlers Mercedes-Benz Vans division is looking closely at a growing demand in the United States for mid-sized pick-uptrucks to see whether there is market potential to launch its X-Class model there divisional head Volker Mornhinweg said on Friday

Mercedes-Benz Vans has already developed a mid-sized pick-up truck to be sold in South America and Europe but has so farshied away from launching it in the United States because customers there have traditionally preferred full-sized vehicles

However a recent shift in the United States back towards mid-sized trucks was encouraging Mornhinweg said at a newsconference in Stuttgart

In the past year the mid-sized truck market has come back a bit General Motors is launching a mid-sized truck We are watching

developments very closely and we will take a decision at the appropriate time Mornhinweg said

Asked where Mercedes might build the pick-ups for sale in the United States Mornhinweg said that its current production capacityin Argentina was unlikely to be sufficient to serve the US market A new production site in the United States was likely to beconsidered he addedhttpautoeconomictimesindiatimescomnewsindustrymercedes-benz-mulls-north-american-potential-for-pick-up-trucks57330133

Top

Magna International profit misses estimates as costs rise ReutersSee this story in The Economic Times

Canadian auto parts maker Magna International reported a lower-than-expected quarterly profit as costs rose

Aurora Ontario-based Magna said the cost of goods sold jumped 77 percent to $790 billion in the fourth quarter ended December31

Magna which is primarily an auto parts supplier also assembles cars under contract from motor vehicle manufacturers Its biggestcustomers include General Motors Volkswagen BMW and Ford Motor

Vehicle assembly sales in the quarter fell about 30 percent to $439 million

The company said it expects total 2017 sales to be between $360 billion-$377 billion compared with sales of $3645 billion in2016

Net income attributable to Magna rose to $478 million or $124 per share in the fourth quarter from $476 million or $117 pershare a year earlier

Excluding items the company earned $131 per share missing the average analysts estimate of $136 according to ThomsonReuters IBES

Magnas total sales rose 8 percent to $925 billion beating estimates of $923 billionhttpautoeconomictimesindiatimescomnewsauto-componentsmagna-international-profit-misses-estimates-as-costs-rise57332674

Top

Aston Martins losses accelerate new DB11 brings year-end surge to sales ReutersSee this story in The Economic Times

London British luxury carmaker Aston Martin reported a sharp rise in losses on Friday failing to turn a profit for the sixth yearrunning but said the launch of the DB11 its first new model since restructuring caused sales to surge at the end of 2016

The company said the 27 percent increase in pre-tax losses to 1628 million pounds ($200 million) last year was largely due to theimpact of the lower pound on financing costs and a writedown on old tooling and IT equipment

But the 104-year old firm made famous by fictional secret agent James Bonds 1960s DB5 sports car said sales rose nearly 50percent in the final quarter as its new DB11 model hit major markets

Aston Martin which posted a 19 percent increase in full-year sales to 3687 cars has lagged behind rivals such as Ferrari andMcLaren in recent years and is now updating its range of luxury sports cars to widen its appeal

The company owned mainly by Kuwaiti and Italian private equity firms is also building a new plant in Wales as part of a 200million-pound ($250 million) investment to increase its range with a new crossover SUV model the DBX

Chief Executive Andy Palmer told Reuters that with the boost in demand expected from the introduction of the DB11 and other newmodels the firm expects to return to profitability by next year

I think its fairly easy to see the transformational effect the DB11 has on the brand Obviously thats going to be reiterated manytimes over now with Vantage and Vanquish replacements he said

When I talk about 2018 that was basically the end of the renewal of the core products and we will be profitable if not before

The firm which builds all of its cars in Britain and mostly for export said the roughly 15 percent fall in the pound against the euroand the dollar since Brexit had overall been overwhelmingly positive for the companyhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsaston-martins-losses-accelerate-new-db11-brings-year-end-surge-to-sales57335910

Top

Volkswagens Porsche-Piech clan backs brand chief despite criticism

ReutersSee this story in The Economic Times

Hamburg Volkswagens embattled brand chief Herbert Diess still has the backing of the clan that controls the carmaker despite hisrecurring clashes with labour leaders over cost-cutting plans sources said

Volkswagens labour bosses earlier this month had accused Diess of breaking promises made under a turnaround plan agreed inNovember and halted cooperation with brand management on issues including overtime work cost savings and apprenticeships

But the Porsche and Piech families which control a majority of Volkswagen common stock through the family-owned holdingcompany Porsche stand behind the 58-year-old engineer despite the quarrelling two people familiar with the matter told Reuters onFridayhttpautoeconomictimesindiatimescomnewsindustryvolkswagens-porsche-piech-clan-backs-brand-chief-despite-criticism57329459

Top

Volkswagen looks to cap executive pay bonuses Andreas Cremer amp Jan SchwartzBusiness Standard

Reuters Volkswagen is shaking up its executive pay with a cap on earnings it said on Friday as it looks to quell widespread angerover bonuses paid even as the carmaker suffered record losses in the aftermath of the emissions scandal in 2015

Under new rules approved by the supervisory board on Friday Volkswagen will cap total pay for its chief executive at 10 millioneuro ($106 million) and other top managers at 55 million euro

Volkswagen became the target of fierce criticism from the German public and shareholders after its managers only reluctantlyaccepted a cut to bonus payments of about 30 per cent Bonuses were based partly on Volkswagenamprsquos performance over theprevious two years

The company did not give details on how remuneration under its revamped policy will compare with last yearamprsquos pay beyondsaying that ampldquotheoretical maximum compensation will decline by as much as 40 per centamprdquo Volkswagen is due to publishlast yearamprsquos executive remuneration on March 14

Former Chief Executive Martin Winterkorn was paid 73 million euro in 2015 two thirds of which was from bonuses and thecompany aims to shift the emphasis towards fixed salaries

Eligibility for bonuses will be tightened under the new forward-looking system which will allow for up to a 30 percent increase infixed salaries VW said

Managers will lose their annual bonuses if the automotive groupamprsquos operating profit stays below 9 billion euro compared witha current threshold of 5 billion euro and if the return on sales remains at 4 per cent the company saidLong-term bonuses meanwhile will track share price performance it added citing recommendations from Germanyamprsquoscorporate governance code

Volkswagen has taken the axe to executive remuneration in the past

In 2009 executive pay was cut by 60 percent after profit plunged by 80 percent In 2012 it adjusted the compensation scheme tolimit the annual bonus for the CEO and top management after Winterkornamprsquos pay nearly doubled to 175 million eurohttpwwwbusiness-standardcomarticleinternationalvolkswagen-looks-to-cap-executive-pay-bonuses-117022500047_1html

Top

Opel works council to seek contact with PSA labour bosses ReutersSee this story in The Economic Times

Frankfurt Opels European works council said it had agreed to open a line of communication with its counterpart at PSA Group asthe French carmaker holds talks over a tie-up with the company

PSA the Paris-based maker of Peugeot and Citroen cars and General Motors confirmed on February 14 they were in talks over aPSA-Opel tie-up to create Europes second-largest carmaker by sales after Volkswagen

The news has sparked criticism in Germany and Britain amid fears of possible job losses

Opels European works council in a joint statement with Opel on Friday called on GM to fulfill all agreements and commitmentsnecessary for the success of the sites and the future companyhttpautoeconomictimesindiatimescomnewsindustryopel-works-council-to-seek-contact-with-psa-labour-bosses57332615

Top

In tougher climate Chinese automaker cuts jobs shifts to green cars ReutersSee this story in The Economic Times

Beijing Chinese automaker Qoros founded 10 years ago has cut jobs and is shifting its focus to faster-growth electric cars inresponse to increased competition in the worlds largest car market

In previously unreported cuts Qoros which is backed by nearly $1 billion each from Chery Automobile and Israeli-funded KenonHoldings has shed more than a fifth of its workforce - down to 1910 from 2450 two years ago a spokesman said

Four former Qoros employees said the cuts included the recent loss of around 80 engineering contractors and workers mostly moreexpensive non-Chinese hires and senior staff

Qoros has won quality plaudits for its petrol cars including its Qoros 5 sport-utility vehicle launched last year but it now highlightssome of the risks that auto start-ups face as competition intensifies and a slowing Chinese economy weighs on car sales

You tend to drink your own Kool-Aid and believe whatever forecast you had Then you grow and grow and grow and before youknow it you have a monster Dan Cohen vice chairman said in an interview I see this happening now in some other (start-up)companies

Theres tougher competition all around

Established Chinese automakers such as Geely Automobile Holdings and Great Wall Motor are catching up with global rivals inquality those global automakers are increasingly competing with cheaper models and dozens of local electric car start-ups crowd anew energy market aggressively promoted by the government

Shanghai-based Qoros has lost around 95 billion yuan ($14 billion) since it was founded and has missed sales targets by somemargin

It has recently held talks with Chery on how to reduce costs said one recently laid-off employee who didnt want to be named as heseeks new employment

Qoros is leveraging Cherys larger scale to seek better deals in buying parts and the two companies are considering launchingadditional platforms that can rapidly be put into mass production Cohen said

Chery shares resources with all its partners which include a joint venture with Jaguar Land Rover in research productionmanufacturing and personnel related to parts a spokeswoman told Reuters adding Both shareholders of Qoros will continue asbefore to support its development

Cohen said Qoros must more aggressively pursue advances in battery electric and plug-in hybrid cars as well as autonomousdriving to stay competitive

Qoros eventually will be an NEV (new energy vehicle) company thats 100 percent sure he said

FUNDING ADVANTAGEElectric vehicles are simpler to build - a manufacturer can easily order a battery and electric motor from a third-party and put it in astandard car frame But if its that simple rivals can do the same increasing the competitive pressure said Yale Zhang managingdirector of consultancy Automotive Foresight

Chinas government is pushing battery and plug-in hybrid cars to reduce pollution and boost local automotive technology Sales inthis segment have grown more than sixfold since 2014

In terms of survival Qoros may have a funding advantage over other electric car start-ups which are mainly backed by venturecapitalists who will be quicker to pull the plug if sales targets are missed Zhang said

The Qoros investors are different The Israeli investor looks very generous and the local investor is a state-owned enterprise henoted

Idan Ofer an Israeli businessman who is the principal shareholder of Kenon inherited half of his fathers business empire and hasshown an appetite for risk - investing in an electric car charging station venture called Better Place that went bankrupt in 2013 andspecialist deep-water driller Pacific Drilling SA whose US market value has slumped with the price of oil

Ofers net worth has more than halved since 2013 to $3 billion according to Forbes

A third-party representative for Kenon declined to comment

Cohen who worked for Ofer prior to joining Qoros said Kenon remains committed to the automaker despite stock exchange filingsthat say Kenon is looking to reduce its exposure to Qoros

For now Cohen says Qoros will continue to upgrade its petrol vehicles and expects sales to increase by more than 50 percent thisyear to at least 37000 vehicles but future products will mostly be NEVs It has previously said it had hoped to be selling 150000cars a year by 2015 or 2016

Qoros hopes to almost double its dealerships this year to 200 the spokesman said with Cohen acknowledging its current network

has been too small and often in the wrong locations

Cohen said he expects Qoros to be profitable by 2018httpautoeconomictimesindiatimescomnewsindustryin-tougher-climate-chinese-automaker-cuts-jobs-shifts-to-green-cars57329621

Top

When test-driving a new car take the technology for a spin APSee this story in The Economic Times

Detroit Car shopping isnt just about kicking the tires anymore Its also about testing the technology

The rapidly evolving in-car infotainment and navigation systems can be bewildering for all but the most tech-savvy car buyers Theaverage vehicle on US roads is 11 years old that means many people last went car shopping before iPhones were invented

Car buyers should make sure they can pair their phone with a car play music from their phone make a hands-free call and use thenavigation system before they leave the dealer lot experts say

They should make sure volume knobs climate controls and other technology is intuitive and displayed the way they like Somedrivers want volume controls on the steering wheel for example while others prefer a knob on the dashboard

Safety technology is also changing rapidly and buyers should familiarize themselves with what the car can and cant do Somevehicles will brake automatically to avoid a collision while others flash a warning and help the driver pump the brakes but wontbring the car to a full stop

Spend some time in the parking lot sitting in the car and just messing with it says Ron Montoya senior consumer advice editor forthe car shopping site Edmundscom

The issue is a serious one for the auto industry Consumers complaints about phone connectivity navigation and infotainmentsystems have lowered vehicle dependability scores in annual rankings from JD Power and Consumer Reports Poor showings insuch rankings can put a dent in sales Car shopping site Autotradercom has found that as many as one-third of buyers will choosea different brand if they think a vehicles tech features are too hard to use

To combat that some brands are setting up technology help desks at dealerships and boosting employee training In 2013 GeneralMotors Co formed a staff of 50 tech specialists to help deal with an increase in questions from customers about new technologyThose specialists train US dealers to pair customers phones set up in-car Wi-Fi and set preferences like radio stations

When he takes customers for test drives Paul Makowski pairs his own phone with the car and has customers make a call streammusic and do other tasks He uses his own phone so customers dont worry that their data will be shared with the dealership

Some people fear the technology and decline it all but we still go over it They dont leave here not knowing what their car has tooffer says Makowski the sales manager for Ed Rinke Chevrolet Buick GMC in Center Line Michigan

Here are some tips for taking a tech test drive

1 Take your time Test driving the technology should take at least 45 minutes says Brian Moody the executive editor atAutoTradercom Find out whether your phone is compatible with the car and learn how to pair it

Call a friend and ask if the sound is clear Make sure the car understands your voice commands Enter an address into thenavigation system or if the car has the capability download an address to the car from your phone Moody says its better to learnall these tasks at the dealership than on the road

2 Update your phone Make sure your phone has the latest operating system when you go shopping New cars will be mostcompatible with updated phones

3 Decide what you like Six percent of new cars sold last year had Apple CarPlay and Android Auto which display many of yourphones apps on the touchscreen Thats expected to rise to 50 percent by 2020 according to IHS Markit The familiar interface ofthose systems can make it easier to transition to in-car technology

But Montoya says there are some shortcomings Apple CarPlay doesnt support the Waze traffic app or Google maps for exampleand if you want to change a radio station you have to scroll out of Apple CarPlay and back to your cars radio You should decidewhat system is best for you

4 Shop around Even if youve settled on a vehicle it never hurts to test drive something else You may find for example that youprefer climate controls on a touchscreen instead of on dashboard knobs or that one vehicle has easier-to-use buttons on thesteering wheel for making calls or adjusting volume It might expose you to something better Montoya says

5 Dont forget safety Lane departure warning systems backup cameras and blind-spot detection systems work differentlydepending on the car Some lane departure systems buzz the seat if you drift out of your lane for example while others beeploudly Thats something you might hear or feel a lot so choose the technology you prefer

6 Buy what you need Not everyone wants to stream Spotify and chat with Siri while theyre driving If youre in that categorychoose a stripped-down model so youre not paying for features you dont need Montoya says For example a Toyota Camry starts

has been too small and often in the wrong locations

Cohen said he expects Qoros to be profitable by 2018httpautoeconomictimesindiatimescomnewsindustryin-tougher-climate-chinese-automaker-cuts-jobs-shifts-to-green-cars57329621

Top

When test-driving a new car take the technology for a spin APSee this story in The Economic Times

Detroit Car shopping isnt just about kicking the tires anymore Its also about testing the technology

The rapidly evolving in-car infotainment and navigation systems can be bewildering for all but the most tech-savvy car buyers Theaverage vehicle on US roads is 11 years old that means many people last went car shopping before iPhones were invented

Car buyers should make sure they can pair their phone with a car play music from their phone make a hands-free call and use thenavigation system before they leave the dealer lot experts say

They should make sure volume knobs climate controls and other technology is intuitive and displayed the way they like Somedrivers want volume controls on the steering wheel for example while others prefer a knob on the dashboard

Safety technology is also changing rapidly and buyers should familiarize themselves with what the car can and cant do Somevehicles will brake automatically to avoid a collision while others flash a warning and help the driver pump the brakes but wontbring the car to a full stop

Spend some time in the parking lot sitting in the car and just messing with it says Ron Montoya senior consumer advice editor forthe car shopping site Edmundscom

The issue is a serious one for the auto industry Consumers complaints about phone connectivity navigation and infotainmentsystems have lowered vehicle dependability scores in annual rankings from JD Power and Consumer Reports Poor showings insuch rankings can put a dent in sales Car shopping site Autotradercom has found that as many as one-third of buyers will choosea different brand if they think a vehicles tech features are too hard to use

To combat that some brands are setting up technology help desks at dealerships and boosting employee training In 2013 GeneralMotors Co formed a staff of 50 tech specialists to help deal with an increase in questions from customers about new technologyThose specialists train US dealers to pair customers phones set up in-car Wi-Fi and set preferences like radio stations

When he takes customers for test drives Paul Makowski pairs his own phone with the car and has customers make a call streammusic and do other tasks He uses his own phone so customers dont worry that their data will be shared with the dealership

Some people fear the technology and decline it all but we still go over it They dont leave here not knowing what their car has tooffer says Makowski the sales manager for Ed Rinke Chevrolet Buick GMC in Center Line Michigan

Here are some tips for taking a tech test drive

1 Take your time Test driving the technology should take at least 45 minutes says Brian Moody the executive editor atAutoTradercom Find out whether your phone is compatible with the car and learn how to pair it

Call a friend and ask if the sound is clear Make sure the car understands your voice commands Enter an address into thenavigation system or if the car has the capability download an address to the car from your phone Moody says its better to learnall these tasks at the dealership than on the road

2 Update your phone Make sure your phone has the latest operating system when you go shopping New cars will be mostcompatible with updated phones

3 Decide what you like Six percent of new cars sold last year had Apple CarPlay and Android Auto which display many of yourphones apps on the touchscreen Thats expected to rise to 50 percent by 2020 according to IHS Markit The familiar interface ofthose systems can make it easier to transition to in-car technology

But Montoya says there are some shortcomings Apple CarPlay doesnt support the Waze traffic app or Google maps for exampleand if you want to change a radio station you have to scroll out of Apple CarPlay and back to your cars radio You should decidewhat system is best for you

4 Shop around Even if youve settled on a vehicle it never hurts to test drive something else You may find for example that youprefer climate controls on a touchscreen instead of on dashboard knobs or that one vehicle has easier-to-use buttons on thesteering wheel for making calls or adjusting volume It might expose you to something better Montoya says

5 Dont forget safety Lane departure warning systems backup cameras and blind-spot detection systems work differentlydepending on the car Some lane departure systems buzz the seat if you drift out of your lane for example while others beeploudly Thats something you might hear or feel a lot so choose the technology you prefer

6 Buy what you need Not everyone wants to stream Spotify and chat with Siri while theyre driving If youre in that categorychoose a stripped-down model so youre not paying for features you dont need Montoya says For example a Toyota Camry starts

at $23050 but the EnTune infotainment package which includes hands-free calling and other features costs $775 extrahttpautoeconomictimesindiatimescomnewsauto-technologywhen-test-driving-a-new-car-take-the-technology-for-a-spin57327133

Top

Shaking off dieselgate VW races back into profit AFPSee this story in The Economic Times

Wolfsburg (Germany) German auto giant Volkswagen today said it raced back into the black in 2016 as car sales hit an all-timehigh in the latest sign of its dieselgate scandal fading into the rearview mirror

VW reported a net profit of 51 billion euros ($ 54 billion) last year recovering from a stinging 16-billion-euro loss in the immediateaftermath of the emissions cheating revelations in 2015

While the past fiscal year posed major challenges for us despite the crisis the groups operating business gave its best-everperformance chief executive Matthias Mueller said in a statement

The VW group -- which includes the brands Porsche Audi and Skoda -- beat analyst expectations with record revenues of 2173billion euros up nearly two percent on the year before

Underlying or operating profit rose to 71 billion euros from a loss of 406 billion in 2015 it said

Despite the damage to its reputation by the dieselgate scandal the group delivered 103 million vehicles in 2016 driven by strongdemand in Europe and the Asia-Pacific region

The record result meant VW overtook rival Toyoto to become the worlds topselling carmaker

For 2016 the group said it planned to raise the dividend payout from 011 euros to 2 euros for preferred shareholders and from017 euros to 206 euros for ordinary shareholders

Looking ahead VW said it expected the upward trend to continue in 2017 pencilling in a moderate increase in car sales and afour-percent rise in revenues

As the figures show Volkswagen is very solidly positioned in both operational and financial terms This makes us optimistic aboutthe future Mueller said

The VW group plunged into crisis after it admitted in September 2015 to installing software in 11 million diesel engines worldwidedesigned to dupe emissions tests to make the cars seem less polluting than they were

The controversy which triggered mass recalls and a sea of legal complaints pushed VW into the red for the first time in more than20 years in 2015 due to the provisions it had to set aside to cover the costs of the crisis

The group today said it added another 44 billion euros to the pot in the last quarter of 2016 bringing the total amount set aside forre-fits buy-backs fines and compensation to 226 billion euros

Volkswagen took a major step towards resolving some of its legal woes last month when it agreed to plead guilty to criminal chargesin the United States including fraud

The group has so far committed to paying out more than $ 22 billion in fines and compensation to drivers dealers and authorities inthe US where some 600000 cars were equipped with the defeat devices

But it has not offered any compensation to the millions of European drivers affected to the dismay of EU officials who have piledpressure on VW to show the same generosity as in the UShttpeconomictimesindiatimescomnewsinternationalbusinessshaking-off-dieselgate-vw-races-back-into-profitarticleshow57337763cmsShaking off dieselgate Volkswagen races back into profitThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesshaking-off-dieselgate-volkswagen-races-back-into-profit-4542371

Top

Porsche Audi lift Volkswagen to record underlying profit ReutersThe Financial Express

Wolfsburg Record Audi and Porsche sales helped Volkswagen swing to a record underlying profit in 2016 although a bigger thanexpected charge from the diesel emissions scandal meant it missed estimates for its operating profit Sales of the Germancarmakeramprsquos luxury brands lifted underlying operating profit before special items 14 percent to 146 billion euros ($155 billion)in 2016 after the company reported its biggest ever loss in 2015 VW forecast broadly stable earnings this year

Underlying profit was broadly in line with forecasts for the worldamprsquos biggest car manufacturer by volume sales which hiked itsdividend more than expected after group sales rose to new highs with an 81 percent jump in fourth quarter deliveries

Volkswagen (VW) is struggling with the fallout from its admission 17 months ago that it rigged US diesel emissions tests a scandalthat some analysts have estimated may cost it more than $30 billion in fines compensation and vehicle refits

VW has since embraced a costly shift to more electric vehicles and last year eclipsed Toyota as the worldamprsquos top-sellingcarmaker with record deliveries of 103 million

ONE-OFF CHARGESAlthough group sales fell 4 percent in January on the back of national holidays and a tax hike on small-engine cars in China itsbiggest market VW forecast an underlying operating margin of between 6 and 7 percent for 2017 compared with the 67 percent itachieved last year

But the damage from the emissions cheating affair took its toll with VW booking bigger-than-expected one-off charges of 75 billioneuros in 2016 of which 64 billion were related to the emissions-test rigging scandal Analysts had on average forecast the costwould be 42 billion euros in total

Including those charges VW made a 2016 operating profit of 71 billion euros missing a consensus forecast of 105 billion eurosbut a big swing from a loss of 41 billion euros in 2015VWamprsquos Chief Executive Matthias Mueller said the carmaker was now well set for the years aheadampldquoAs the figures show Volkswagen is very solidly positioned in both operational and financial terms This makes us optimisticabout the futureamprdquo he said in VWamprsquos results statementhttpwwwfinancialexpresscomindustryporsche-audi-lift-volkswagen-to-record-underlying-profit565788

Top

Economy

Indias Q4 economic growth seen slowing to near three-year low Poll ReutersSee this story in The Economic Times

Bengaluru Indias economy is expected to have slowed sharply to a near three-year low in the final three months of 2016 asdemand wilted following Prime Minister Narendra Modis surprise decision to ban high-value currency notes a Reuters poll ofeconomists showed

Modis announcement on November 8 ordering the removal of 500-rupee and 1000-rupee notes took out around 86 percent of thecurrency in circulation putting activity on the skids in a predominantly cash-reliant economy

The poll of 30 economists taken over the past week showed Indias gross domestic product growth slowed to 64 percent annually inthe October-December quarter Several economists were uncertain about the full impact of the currency ban

In July-September Indias economic growth had accelerated to 73 percent from a year ago making it the fastest-growing majoreconomy in the world

That title will be lost to China if the Reuters consensus is met putting the countrys growth at its lowest since March 2014 withChinas economy having grown 68 percent during the same period

GDP is going to underestimate the actual impact of demonetization simply because the major impact will be on the informal sectorwhich does not get captured in the quarterly estimates said Nikhil Gupta economist at Motilal Oswal

The governments currency ban aimed at fighting tax evasion corruption and forgery has caused huge disruption to daily lifeleaving farmers traders and companies relying on cash transactions in disarray

Services activity plunged into contraction following the currency ban and still hasnt recovered fully while factory activity alsodeclined in December before returning to modest growth in January

Although there is no clear evidence yet of the impact of demonetisation economists were undecided on how long its effects willdrag on Indias GDP growth

A slight majority 13 of 34 economists expect the current quarter growth to be dented because of the cash crunch 12 expect theimpact to prolong for at least the first half of this year

Seven economists said it will last until September the remaining two said it will last beyond that - at least one more year before theeconomy can fully brush off the impact

Around two-thirds of the respondents however agreed the bigger challenge to GDP growth in the Indian economy is lacklustrecapital spending in the private sector with five citing lower credit takeoff in the banking sector

Earlier this month the Reserve Bank of India kept its policy rate on hold at 625 percent and unexpectedly signalled an end to itslongest easing cycle since the global financial crisis citing inflation as a bigger threat to the economy

It is expected to keep interest rates on hold until at least the second half of next yearhttpautoeconomictimesindiatimescomnewsindustryindias-q4-economic-growth-seen-slowing-to-near-three-year-low-poll57328765

Top

Inflation key pillar of stability for Indian economy PTISee this story in The Economic Times

New Delhi The Reserve Banks neutral stance keeping core inflation in focus seems prudent and sends a signal that it remains akey pillar of stability for the Indian economy says a report

In the recent monetary policy meeting conducted on February 8 RBI Governor Urjit Patel said that one of the main reasons for notcutting the policy interest rates is core inflation being sticky

Sahil Kapoor Chief Market Strategist Edelweiss Broking said high inflationary expectations rise in healthcare and education costsare main drivers for core inflation being sticky and structural changes would be required to bring down core inflation

Most of stickiness in core is structural in nature apart from inflationary expectations A neutral stance will enable the central bank toanchor inflationary expectations better Kapoor said in a research note

He further noted that the RBIs neutral stance sends a signal that inflation remains a key pillar of stability for Indian economy andaccordingly it may choose to stay on hold

RBI may choose to stand pat and see through the effect of the loose monetary policy which it practiced over the last 2 yearsKapoor noted

The Reserve Bank in its policy review meet on February 8 kept key interest rate unchanged at 625 per cent and said that it isawaiting more clarity on inflation trend and impact of demonetisation on growth

The next meeting of the MPC is scheduled on April 5 and 6 2017httpautoeconomictimesindiatimescomnewsindustryinflation-key-pillar-of-stability-for-indian-economy57328910

Top

Forex reserves down $57 mn to $363 bn due to dip in foreign currency assets PTISee this story in Business Standard Mumbai Indias foreign exchange reserves declined by $568 million to $36273 billion in the week to February 17 on account of dipin foreign currency assets (FCAs) the Reserve Bank said on Friday

In the previous week the reserves had fallen by $3609 million to $36278 billion

A major component of the overall reserves FCAs dropped by $591 million to $33972 billion in the reporting week RBI said

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

Gold reserves remained unchanged in the week at $19248 billion the apex bank said

The special drawing rights with the International Monetary Fund marginally rose by $09 million to $1443 billion Indias reserveposition with the Fund too increased by $14 million to $2317 billion RBI saidhttpwwwbusiness-standardcomarticlepti-storiesforex-reserves-down-56-8-mn-to-362-73-bn-117022400735_1html

Top

Closing

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