Indian Auto Industry Update

06 Feb 2017

IndustryUnion Budget 2017: Big opportunity for auto industry; here's why

Union Budget 2017: Here's who will gain in auto industry

Vehicle scrap policy to go to GST Council post Cabinet nod: Nitin Gadkari

Gadkari plans to set up 27 auto industrial clusters to attract biz

Anand Mahindra speaks about Mahindra Groups connection with arts and culture

Maharashtra govt allocates Rs 7.8 crore for vehicle testing at 50 RTOs

Three-day auto expo begins in Nashik

Interviews & FeaturesCommercial vehicle market is not about foreign brands anymore, says Ravindra Pisharody, executive director, (commercialvehicles), Tat Motors

Tata Hexa vs Mahindra XUV500: Who wins the battle of the beasts

Five Things you don't know about Maruti Suzuki Baleno RS

Cars, SUVs, MUVsCompact UVs drive PV sales as demand drops for cars: Ind-Ra

Maruti now owns one half of the auto market

Diesel variants of Maruti Suzuki Celerio discontinued

Maruti violence: Attempt to exaggerate crime, says lawyer

Renault Kwid 1L price & spec comparison with rivals

Hyundai Motor India invests over Rs 2 cr to upgrade villages in Tamil Nadu

New Honda City launch date announced; bookings open

Punch and fun: KUV 100 M&M

'Toyota Kirloskar stopped making BS 3 vehicles more than a year ago'

Can not tell right now Nano's road ahead: Tata Motors

Shifting gears, Tata Motors remains non-committal over Nano's future

Luxury CarsWe want to better ourselves and outpace industry growth: Tushar Kumar, CEO, Silver Arrows Automobile

All you need to know about Tata Motor's Rs 25 lakh sportscar TAMO Futuro

Commercial VehiclesMahindra recalls Bolero Maxi Truck Plus model in India

Commercial vehicle firms build inventory to meet demand

Construction & Agri Machinery2/3 WheelersE-Bikes

Hero Electric Flash launched at Rs.19,990

ComponentsIndian foundry industry looks to double turnover in 3 years

Allied IndustriesTyre industry unhappy with Budget proposals

Tyre makers hike prices amid note ban slowdown

Tyre makers may now feel the pinch after Donald Trump's tariff threat

Govt in talks with BIS to upgrade helmet standards

Helmet compulsory for two-wheeler riders from May 1: Puducherry CM

Emissions / Environment15-year old commercial vehicles may soon be off the road

Upgrade current emissions testing procedures: CSE

Carmakers cry foul over rollout of BS-IV; raises issue of inventory

Finance & InsuranceGPPL plans to ink JV with Spanish giant

Oil, Lubricants & Alternative FuelsNews Magazines

New Mercedes-AMG E63 Estate revealed ahead of Geneva

2017 BMW 5-series Touring revealed

Maserati Ghibli facelift to debut in 2018

Tata Tiago long term review, second report

2019 Porsche 911 to do away with naturally aspirated engines

International NewsToyota, Suzuki near technology partnership agreement: Nikkei

Hyundai Motor plans Pakistan venture with billionaire Mansha

First big German customer sues Volkswagen in diesel affair

Ex Volkswagen chairman Ferdinand Piech testifies in Martin Winterkorn probe

Ford F-150 Raptor Now On Its Way To Customers In China

Takata taps KSS as final bidder for restructuring deal

Defective air bags found in repaired BMWs, spurring fresh recall

Constructive meeting with Trump: GM CEO

Peugeot to assemble two car models in Kenya

Maserati North America recalls at least 39,381 vehicles

EnBW, Bosch to collaborate for developing batteries

Polish new car registrations post best January in 16 years

Lithuania builds 'dream' Tesla factory with Minecraft video game

China imposes administrative penalties on seven new energy vehicle makers

EconomyJaitley’s fiscal pledge, easing inflation make case for a rate cut on February 8, say ET poll participants

Disinvestment receipts to touch Rs 45,000 crore: Arun Jaitley

Closing

Industry

Union Budget 2017: Big opportunity for auto industry; here's why The Financial Express (Web & Print Edition)(Feb 06)

New Delhi: A pro-people Budget with a specific focus on rural development, capacity enhancement, infrastructure augmentation,and aiming for the evolution of next-generation technology in some areas. This is how the Budget FY18 presented by financeminister Arun Jaitley will be described in due course of time. Although it might not have announced any direct benefits for theautomobile industry, it surely has provided a big scope of opportunity for it.

Some of the highlights of the Budget from the point of view of the automobile industry include a major focus on improvinginfrastructure including development of roads, decrease in corporate tax rate for MSMEs, reduction in personal income tax at thelower level, and allocation towards funding of the electric and hybrid vehicle programme through the FAME scheme.

The focus shown by the government on the development of roads itself is a major announcement, which will directly benefit theautomobile industry and also lead to development of the next generation of vehicles. This is particularly expected to push updemand for commercial vehicles, and the rise in sales of commercial vehicles has a direct correlation with the development ofcertain sectors, resulting in growth of the overall economy.

The reduction in corporate tax rate for MSMEs will give relief to the tier-2 and tier-3 automobile component manufacturers and help

them make investments for future expansion. The step is expected to fuel R&D at a very significant level.

From the consumer point of view, lower taxes are always good news. With more money to spend, the consumer sentiment is on thepositive side. This is expected to boost sales of consumer vehicles and two-wheelers to an extent. More than in the metro cities, thepositive impact of this step will be seen in tier-2 and tier-3 markets and rural areas.

A noteworthy step is in the direction of promoting cleaner and safer vehicles through development of electric and hybrid vehicles.The allocation of Rs 175 crore for this purpose is an incentive for automotive players.

The government will also create a better ecosystem for skill development. Automotive industry, which employs a large number ofpeople, would benefit from this measure, and enhance the technical and managerial talent of the available pool of human resource.

However, the auto industry had some major expectations from the Budget, which remain unfulfilled. For example, the long-standingdemand for incentive-based fleet modernisation scheme has again not found support in the Budget. Moreover, there was a genuinecase for continuation of 200% weighted deduction on R&D expenses for auto industry, which remained unacknowledged. Ifapproved, it would have been a big shot in the arm for companies working in this direction.

That there is no announcement over vehicle scrapping policy is a dampener. Replacement of older vehicles is a basic requirementto ensure a clean environment. It also leads to development of safer and advanced vehicles.

The importance of auto industry is well known. We drive growth, connect people, and help people meet their aspirations and earn alivelihood. India has one of the fastest growing auto industries in the world and we have immense capability as well as capacity togrow. The mix of labour which exists here itself is a big reason for us to explore new horizons. Being a participant in the nationalgrowth is a matter of pride and the auto industry has been fulfilling its role for decades.

An industry like this must be given the right importance through all possible measures, including favourable policies to ensure thatwe focus on our key role of making India a shining example of the right kind of development. A right policy is a matter of time andBudgets perhaps are the best way to ensure that policies are formed in order to promote a specific industry and address a particularcause.

Sugato Sen is deputy director general, Society of Indian Automobile Manufacturers (SIAM)http://www.financialexpress.com/budget/union-budget-2017-big-opportunity-for-auto-industry-heres-why/538965/

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Union Budget 2017: Here's who will gain in auto industry Kavan MukhtyarThe Financial Express (Web & Print Edition)(Feb 06)

New Delhi: The current financial year has been a roller-coaster ride for the automotive industry. The year began with a positivedemand momentum, but the industry also faced headwinds. The tax collection at source (TCS), ban on diesel vehicles above2000cc in Delhi NCR, and finally demonetisation had an adverse impact on sales.

Automotive industry had ‘great expectations’ from this year’s Union Budget. But there were no directmeasures for the industry. However, a lot of the structural initiatives announced will have derived benefit for the industry. Some ofthese are:

* The focus on increasing farm credit to Rs 10 lakh crore will have a positive effect on the tractor segment. The two-wheelersegment will also benefit as a result of better credit flow to the farming and rural sectors;

* Rural investment outlay has been increased by 24% to Rs 1.87 lakh crore. This will have a multiplier effect on rural income acrossvarious demographic segments. Automotive and farm equipment segment will see demand uptake;

* Aggressive growth targets to increase capital expenditure on infrastructure, affordable housing is expected to increase demand forcommercial vehicles;

* Reduction in personal income tax rate for individuals earning between Rs 2.5 lakh and Rs 5 lakh will have some mild positiveimpact on the two-wheeler and compact car segment;

* The policy initiatives to improve the availability of credit and lower interest rates will likely support positive consumer sentiment;

* Investment in railway and driving integrated multi-modal logistics will be an interesting opportunity for the automotive industry toreview their logistics network and optimise cost;

* Continued emphasis on skill development is a welcome step. Automotive industry should work together to leverage theseresources to build the pipeline of technical and managerial talent. Availability of skilled human resources will build thecompetitiveness of the automotive industry in the longer term.

The Budget was silent on some of the automotive industry expectations that may be addressed through subsequent policyinitiatives:

* Older vehicle fleets are known to be the highest polluters. End-of-life vehicle scrappage incentive should be considered toencourage modernisation of the vehicle fleet. This step will be favourable for the environment and also provide impetus to the

automotive and component industry demand;

* Governments the world over have invested in supporting the demand and building the recharging infrastructure for hybrid andbattery electric vehicles (xEV). The government can act as a catalyst for the development of the xEV industry in India;

* India has one of the highest levels of road fatality. The government should consider adoption of advanced safety technologiesthrough regulatory intervention;

* Incentives to promote innovation and R&D will strengthen the industry. Support for automotive electronics like the one under theM-SIPS should be further expanded to attract global companies to invest in India.

The automotive industry is one of the most robust sectors within manufacturing. It has a significant multiplier effect on the economyand is an employment generator. Its technology-intensive and globalised nature provides plenty of headroom for growth. To ensurethe success of Make-in-India, the government must aim to prioritise the healthy development of the automotive industry.http://www.financialexpress.com/budget/union-budget-2017-heres-who-will-gain-in-auto-industry/538961/

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Vehicle scrap policy to go to GST Council post Cabinet nod: Nitin Gadkari PTISee this story in: The Economic Times (Web & Print Edition)(Feb 6)

New Delhi: Government is keen on implementing vehicle policy that aims at scrapping 15-year old commercial vehicles in the firstphase, and it will send the proposal to GST Council after Cabinet nod, Union Minister Nitin Gadkari said.

Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to push 28 million decade old vehicles off theroads.

"We (Ministry) will try to bring the policy as early as possible. We will make a presentation before the Cabinet Secretary on February9 and then before the PMO. After the Cabinet nod, a presentation will be made before GST Council," Road Transport, Highwaysand Shipping Minister Gadkari said.

Gadkari said that the PMO is keen on the proposal as once it is implemented pollution would be checked considerably as 65 percent of the pollution is caused by heavy vehicles which have completed 15 years.

He said a presentation has already been made before the Finance Minister Arun Jaitley.

The proposal is to provide relief of about Rs 5 lakh to people who purchase new commercial vehicle of about Rs 15 lakh, if theysurrender their over 15-year old commercial vehicle.

"We propose a discount of about Rs 2 lakh from manufacturers at the time of purchase while about Rs 2.5 lakh concession in taxesby state and central governments for those purchasing new commercial vehicle on surrender of old," Gadkari said, adding that taxconcession would be based on GST Council decision.

Once the proposal is accepted, he said it is bound to result in Rs 10,000 crore boost in tax revenue as the automobile sector willbenefit from it.

He said that the automobile sector is projected to grow by 22 per cent and it will be a "win-win situation" for all.

The automobile sector turnover will grow from Rs 4.5 lakh crore to Rs 20 lakh crore after policy implementation, the minister said.

He added that recycling units would be set up at industrial clusters under the government's ambitious Sagarmala project andautomobile parts made from scrapped aluminium, steel and copper etc would be cheaper.

The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehiclesbought on or before March 31, 2005, numbering about 28 million.http://auto.economictimes.indiatimes.com/news/policy/vehicle-scrap-policy-to-go-to-gst-council-post-cabinet-nod-nitin-gadkari/56982289

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Gadkari plans to set up 27 auto industrial clusters to attract biz Deccan Herald (Web Edition)(Feb 05)

New Delhi: The Ministry of Shipping has prepared a plan to set up 27 industrial clusters at ports in different parts of the countryaimed at attracting global automobile parts manufacturers.

A total of Rs 8 lakh crore will be invested for these industrial corridors in the next five to eight years, and the government expectsthat it will generate 40 lakh direct and another 60 lakh indirect jobs, Union Transport and Shipping Minister Nitin Gadkari said here.

The government will spend another Rs 5 lakh crore to provide the road and railway connectivity to these clusters, the minister said.

Old vehicles can be transported to automobile manufacturing hubs set up in ports and they can be recycled into finished products.“Besides, these hubs can also import old vehicles from other countries for scrapping and manufacturing new products. It willhelp us in Make in India, and a global leader in automobile parts manufacturing,” he said.

Besides, there industrial clusters will also have units related to petrochemicals, cement, furniture-based industries, electronics,apparel, and other sectors.

The projects have been formulated as part of the National Perspective Plan (NPP) for the Sagarmala programme, which is anambitious project for port-led development of India’s coastal cities.

Gadkari also said that the government will identify the cities to create multi-modal transport hubs.

These transportation hubs will bring together all modes of public transport — rail, air, roads and waterways. With airports andrailway stations situated at different parts in most of the cities, the government wanted to integrate with each other to helpcommuters and ease the traffic congestion in urban areas.

The Ministry of Road Transport has launched pilots for multi-modal in Varanasi and Nagpur, and once they are completelyoperational, the government will expand this to other cities too. This integrated travel approach will help in reducing trafficcongestion, and also bring down logistics costs.http://www.deccanherald.com/content/594787/gadkari-plans-set-up-27.html

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Anand Mahindra speaks about Mahindra Groups connection with arts and culture Mohua DasThe Economic Times (Web Edition)(Feb 6)

It wasn’t by accident or epiphany that an automobile manufacturing corporation and the arts became kindred spirits. Aheadof the 7th Mahindra Blues Festival, chairman and managing director of the Mahindra Group, Anand Mahindra sitting in hiscavernous office in Colaba, explains: “It was a purposeful and well-thought idea linked to our corporate credo – todrive positive change and enable people and communities across the world to rise.”

The conversation that follows is peppered with the expression ‘rise’, a winning mantra in the Mahindra lexicon after itbecame word buddies with their products and services in 2009 to knit aspirations of consumers with their cultural fabric.

Over the years, the multinational conglomerate has played a key role in setting cultural agendas and discovering new ground acrosscommunities in the space of art and culture – be it the blues festival that has seen a meteoric rise, the decade-old MahindraExcellence in Theatre Awards (META) that brought a renewed sense of dedication to theatre, the Mahindra Sanatkada LucknowFestival aimed at bringing back Lucknowi tehzeeb or the recently launched Kabira Festival to reflect on equality and dignity in a timeof division.

While the group’s cultural patina has been strongly linked to their aspiration to become one of the world’s 50 mostadmired brands, it wasn't just a “transactional” motive; Mahindra is quick to point out.

“We are admired today not only because of our geographical reach but also because of our empathy with consumers. Youcannot ignore the cultural life of a consumer if you want to reach that point where one believes that you are interested in their lives.Mahindra co-creates with its consumers, authentic cultural movements that have a deeper connection,” he says,emphasizing on the weight of not just the pocketbook but the quality of life that gives the brand its distinct identity.

There are several ways in which their priorities have made way for the arts. The Kabira Festival launched in Varanasi lastNovember for instance, was born out of a need to unify people.

“It was a time in the world when divisions were becoming more evident than links between people. Kabir, the poet was ahumanist who united people and we felt that he would be the ideal and iconic artform to showcase and rise above ourthoughts,” explains Mahindra.

If META’s purpose was to rejuvenate and reintroduce dominant art forms that were withering away, the blues festival helpedbridge blues patrons from the Mississippi to Mumbai. “Our strongest customers come from the area that spawned the blues.By propagating a dying artform which belongs to America and making it big in Asia, you establish a deeper connect,” hesays.

“Today, we’re not just a tractor company from another country but an integral part of the American landscape,”which Mahindra believes will win plaudits under the new regime for being identifiable. “A large company has the capability oftransforming an artform or cultural activity and putting it on the centrestage,” believes Mahindra who has a robust team,consistently looking out for neglected art and emerging talents.

Yet, it is philanthropy that continues to define corporate social responsibility in India. “See, we’re not the only voice inthe wilderness. The most robust brands for the future are those creating mutual empathy with people,” stresses Mahindrawhen quizzed on why the larger corporate community has not been able to embrace the cultural narratives of the country and take itto new heights.

But for those keen on articulating their business philosophy through the arts, he has a message. “There is no better way tobuild a brand and express who you are than to embrace the arts. Despite digital technology, you cannot reach out only virtually

unless you have an art that links you. So, find an art form that is authentically aligned to your values and that will become a trueespousal of the art and mean something to your consumers, too.”

Mahindra’s myriad interests -- films, photography, blues, bungee jumping and kabaddi -- may have stood him in good steadbut the brand’s culture trip has been beyond his personal predilection, he maintains. “My daughter is a wannabefilmmaker and hopefully the genes have been passed on. I’m happy to be part of the audience!” he signs off.http://auto.economictimes.indiatimes.com/news/industry/anand-mahindra-speaks-about-mahindra-groups-connection-with-arts-and-culture/56982243

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Maharashtra govt allocates Rs 7.8 crore for vehicle testing at 50 RTOs Somit SenThe Economic Times (Web Edition)(Feb 6)

Mumbai: The state government on Saturday sanctioned Rs 7.83 crore for setting up 250-metre brake test tracks at 50 regionaltransport offices (RTOs) across the state. This will include new test tracks to be built at Tardeo, Andheri, Borivli and Wadala RTOsin the city.

This could be good news for citizens as the tracks will ensure only fit vehicles are allowed to operate and those not "road worthy"are taken off the streets.

The test tracks will be used to check the fitness of commercial vehicles such as autorickshaws, taxis, school buses, tourist busesand heavy goods vehicles, officials said. This is being done as per directives of the Bombay high court.

A V Shenoy of the Mumbai Transport Forum said: “The funds should be utilised for proper technical testing of vehicles. Ihave been complaining in the past that RTOs do not have a foolproof mechanism for annual inspection of vehicles”

Officials from Tardeo RTO welcomed the move, but said there were some “hurdles” in acquiring land for the test track."Apart from sanctioning the money, the government should also assist us in getting adequate space to set up theinfrastructure,” an official said.http://auto.economictimes.indiatimes.com/news/industry/maharashtra-govt-allocates-rs-7-8-crore-for-vehicle-testing-at-50-rtos/56982460

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Three-day auto expo begins in Nashik The Economic Times (Web Edition)(Feb 05)

Nashik: A three-day auto expo begand here on Friday and got encouraging response on the first day with over 8,000 footfall.

Around 25 automobile companies from MUV-luxurious cars, super bikes to commercial vehicles have showcased their recent newlaunches at Nashik Auto Show 2017 being held on 36,000 sq ft land at Thakkar's dome here.

Karan Grover, an organiser said, "This is the second edition of the North Maharashtra's biggest auto expo being held from Friday toSunday. The first edition of the expo was held in April last year. This is the second edition and we expecting around 40,000 visitorsduring the expo and 8,000 visitors visited on the very first day on Friday.

He said, "All the fresh launches from national and international automobile companies have been showcased in the expo."http://auto.economictimes.indiatimes.com/news/industry/three-day-auto-expo-begins-in-nashik/56969346

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Interviews & Features

Commercial vehicle market is not about foreign brands anymore, says Ravindra Pisharody, executive director, (commercial vehicles),Tat Motors Shahkar AbidiDaily News & Analysis (Web Edition)(Feb 06)

Ravindra Pisharody, executive director (commercial vehicles) at Tata Motors, is excited about the company's foray intoHydrogen-run bus segment. An alumnus of IIT Kharagpur and IIM Calcutta, Pisharody speaks with Shahkar Abidi about thecompetition, future technologies and challenges faced by the industry, among others.

How has the demonetization impacted the commercial vehicles (CV) segment?

The effect of demonetization has eased, but things are not as normal as they used to be earlier. The sales figures in January remain

good and as always, there is some pre-buying in February-March.

The competition seems to be eating into the market share of Tata Motors's CV division with players like Ashok Leyland improvingtheir position. What are you doing to safeguard the market share?

The situation in the past 4-5 years has been very unsteady. Now the question is whether we should really be chasing the marketshare at any cost?

A lot of capacity expansion of CV industry in India took place during the 2009-12 period. Also, the three German companies set upshop in India then. Further, Ashok Leyland inaugurated their Pantnagar facility around 2013. They expanded the capacity and gottax benefits. So, suddenly we had a situation in 2013 where the capacity is 200,000 or 300,000 but the demand was 140,000.

While the market dived by half, capacity doubled. On the other side, we completed the capacity expansion of Lucknow plant in2007-09 and actually benefited from that. We suffered by deferring the investment as the market recovered after 2009.

The competition got desperate and tried to get some volumes going. The soft commodity pricing during that period helped and itbecame a buyers' market. To give you more perspective, we should not forget the buzz which was there in 2012-13. It was aroundthis time that Bharat-Benz went on record to say that its brands will show to Indian companies what trucking business is all about,but none of that happened. The last two years is not about these companies anymore.

Their numbers have stagnated while some Indian JVs no longer exist. Coming back to Ashok Leyland, there are some factors thatwent strategically in their favour. We have analysed from their publicly available balance-sheet that the excise duty they pay as apercentage of their truck capacity is 5% while we are paying 9-10%. Good for them, as that is not by chance but by their consciousdecision to invest in the plant. We got similar benefit with Ace and Magic for many years. But in an unsteady market, we need tolook at segment separately as total CV market, whether it is 45% or 47%, has no meaning. We believe we have very important roleto play as an industry leader. If we go for the market share at any cost, then the situation will get worse and we will drag the industryfurther down. Still, despite the unsteady market, we are protecting 55-56% market share. Hence, to sum up, I would like to say thatwe don't need to chase the market share at any cost.

Though India is among the fastest growing automobile markets, in real terms, buses form a very small part of the CV category. Doyou think buses have a larger role to play in the mass transport business and whether things are improving on the ground?

Buses form just 10% of the total CV business in India and just 1% of the total registered vehicles, which is a very small number.Look at big Chinese cities like Beijing, Shanghai and city-state like Singapore which have terrific bus-based transportation servicesystem, which is not the case in Indian cities, unfortunately. But then, there are some good signs coming along the way as, duringthe last Budget, there was specific mention of making bus permit more liberal, though we have not seen much of action in thatregard.

Do you think hybrid- and electric-based vehicle fuel may make transportation eco-sensitive?

LNG-based fuel has a lot of potential because LNG terminals are already coming up along some of the coastal areas of the country.It is better and more efficient than CNG and the vehicle can even ply to a greater distance.

Do you think the electric vehicles can also become a norm for cargo carriage in distant future?

Cargo is an industry where the goods need to be transported as soon as possible. The vehicle stops every now and then at thesignals, which will make plying it on pure electric less feasible. Though, technologically, it is not impossible. Hence, the hybrid wouldcome as more handy as it regenerates the electricity during the plying. Also, the electric vehicle has limits as far as speed isconcerned.http://www.dnaindia.com/money/interview-commercial-vehicle-market-is-not-about-foreign-brands-anymore-says-tata-motors-2313121

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Tata Hexa vs Mahindra XUV500: Who wins the battle of the beasts Gavin D’SouzaHindustan Times (Web Edition)(Feb 05)

Forget the Tata Aria. That’s something Tata Motors wants you to do, and, if you spend some time with the new Hexa, youwould relies that it isn’t too much to ask for. Yes, it sports a similar silhouette and a few carry-over bits, but the sheer depthof improvement that’s gone into this car makes it far greater than a mere facelift of the Aria.

On the other hand, Mahindra too updated the XUV500 in 2015. No name change or drastic engineering overhaul here – justa more conventional facelift; but the raft of little changes, both cosmetic and technical, ironed out so many of the car’sniggles that it finally felt like the car it always should have been.

But which one of these homegrown premium SUVs should you buy?

The posersIf there’s one visual factor that’s been carried over from the Aria to the Hexa, it’s the MPV-like glasshouse. Butthat said, the Hexa does look a lot more SUV-like. The bonnet is taller and more upright now, it’s got a nice hexagonalpattern to the upper and lower grilles, and there’s grey plastic cladding everywhere! You also get rather fetching 19-inchwheels but they look a bit sunken in the massive wheel wells.

While Tata’s designers added drama to liven up a dull design, Mahindra’s designers actually toned the

XUV500’s styling down a notch, and it really works. The headlamps get a new layout and LED accents, the front bumper isnew –the gimmicky ‘cheetah whiskers’ have mercifully been given amiss – and there are newmodern-looking alloys. Interestingly, although the Hexa has the more traditional SUV ladder-frame construction, it’s themonocoque XUV500 looks more like an SUV.

Luxury quotientThe XUV500’s interior features a nice beige-and-grey theme, the instrument dials glow in a cool shade of blue, and some ofthe poor plastics around the cabin are better disguised. The result is that it looks a lot more mature than older versions of theXUV500. It’s quite a practical cabin too, with lots of useful storage bays and cubbyholes, and many will like the largertouchscreen infotainment system on the newer model. However, despite all the changes, it still lacks that richness or feel-goodfactor that you expect from a car in this segment.

There was only so much Tata could do with the Hexa’s exterior, but on the inside, they’ve really gone to town. Thebrand new dashboard design is like nothing ever seen on a Tata, and fit and finish has taken a quantum leap forward. As a result,this cabin does a much better job of imparting a premium feel than the Mahindra. However, get to a toll booth and you’llnotice one big flaw in the design; there’s no place to put your change. Yes, the co-driver gets two gloveboxes and a recessabove them, but the driver just gets one cupholder. 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 wouldn’t have gone amiss.

Vanity vansIt’s a bit of a climb into the Hexa’s cabin, you’re sat very high up and the steering wheel is angled a bit moreforward than in a regular car. General visibility is very good, but there’s also a slight blind spot around the A-pillar, andyou’ll notice there’s no room for your clutch foot, 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 ergonomics feel a bit more natural, the seats are really good too, and offera host of electrical adjustment for the driver. The Hexa’s seats aren’t powered, but they are superior in every otherrespect. Not only do they offer better support overall, their cushions too feel plusher.

This continues in the second row, where, again, the XUV’s seats are in no way bad, but the Hexa’s are just better.Middle-row passengers in the Tata have the advantage of pull-up sun blinds, and they’ll also like the additional set of ACvents that sit between the front seats. The XUV appears to have a bit more space in the second row, but that’s because it isplaced quite a bit higher than the first row. So, not only do you get a bit more room to stretch out, you also get a better view forward.

Both SUVs’ middle rows split, recline, fold and tumble for convenience, but when it comes to accessing the third row, theXUV500’s lower stance make it the easier one to get into. However, once you’ve, clambered into the back of theHexa, you’ll realise that it’s clearly got the plusher seats. Also, the shape of the seating area and the softer cushionsmake the Tata’s third row the nicer place to be in.

In the luggage department, it’s really no contest. The XUV500 with all its rows up has almost no boot space to speak of,whereas in the Hexa, you can easily fit a medium-size suitcase. And how does the Mahindra claw back an advantage? Equipment.Sure, the Tata has got goodies like a 10-speaker JBL sound system and a USB charging point for the second row, but itstouchscreen is small and not very responsive. The XUV’s larger updated touchscreen is slick and packs in loads of features,including a detailed fuel computer and tyre-pressure monitoring. Its equipment list also includes keyless entry and go, navigation,telescopic steering adjustment, a mild-hybrid system and, most of all, a sunroof.

Running gearJust as with the way they look, these two couldn’t be more different to drive, and that’s because they’re sodifferently constructed. Where the Hexa uses an industrious ladder-frame body and a rear-biased 4x4 system, the Mahindra gets asignificantly lighter monocoque chassis with a front-biased AWD. What they have in common here, on paper at least, is the use of2.2-litre diesel engines and six-speed manual gearboxes.

Tata’s latest ‘Varicor 400’ motor punches out a meaty 156hp and 400Nm, which is a fair bit more thanMahindra’s 140hp and 330Nm, so of course, the Hexa is quicker, right? Wrong. Owing mostly to its immense, near-2.3-tonneweight (almost 500kg more than the XUV), the Tata is almost 2sec slower to 100kph than the Mahindra. However, despite all thatweight, the Hexa’s motor offers oceans of pulling power, which helps in overtaking. Neither SUV is very refined, but the Tatacomes out on top, not just on engine noise, but overall insulation as well.

Both cars make for great highway cruisers with their solid road manners (the Hexa feels better planted at high speeds). But intown-traffic, you can feel every one of the Hexa’s kilogrammes thanks to its heavy hydraulic steering that makes U-turns a lotof work. Then there’s the heavy gearshift, which doesn’t slot in easily, and that’s after you’ve gottenpast the heavy clutch. The Mahindra isn’t perfect either, with a slightly clunky gearshift of its own, but at least the shift actionis light. Also light is the electric power steering, which makes it so much easier to manoeuvre in traffic.

On slightly tougher mountain roads, however, it’s the heavier Hexa that feels a lot more confidence-inspiring to drive than thelighter, lower XUV500. The Hexa’s tyres offer a lot of grip, and, it’s also got a more solid-feeling steering.

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, and it will crash over sharp bumps that the Tata will just sail over.

Hero HuntingIt’s a really close battle that we have here. What’s clear is that the Hexa really takes the Tata brand into new, properlypremium territory. That’s something Mahindra did too when it launched the XUV500, and that original formula has sincebeen refined with great effect. That said, the XUV500 doesn’t feel as well-built, and, in terms of comfort, it’s not quiteas good as the Tata. Still, it does manage to outshine it in some crucial areas, like ease of driving, fuel efficiency and equipment.

What lets the Hexa down is its weight, heavy steering, clutch and gearbox which make it cumbersome to drive in town. But where

Tata has gotten things just right is on the all-important feel-good factor. What’s more, at Rs 17.49 lakh (ex-showroom, Delhi),the Hexa XT 4x4’s price just slips under the XUV500 W10 AWD’s by Rs 11,000, though it’s important toremember these prices are only introductory. The Hexa is more refined and superbly built, it scores high on space and comfort, andits tough underpinnings give it a go-anywhere ability. In a hotly contested segment where image, presence and premium feel play avery important role, these are the things that matter more, and that’s why the Hexa wins this shootout.http://www.hindustantimes.com/autos/tata-hexa-vs-mahindra-xuv500-who-wins-the-battle-of-the-beasts/story-hjTU1KcjfX94uX8i1sQ68O.html

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Five Things you don't know about Maruti Suzuki Baleno RS The Financial Express (Web Edition)(Feb 06)

Maruti Suzuki will launch its much-awaited performance hatchback, the Baleno RS soon. The specifications sheet of the hatchbackwas earlier revealed, which shows that Baleno RS will be powered by the 1.0 litre Boosterjet engine. Once launched, the Baleno RSwill compete with the likes of the Volkswagen Polo GT TSI and Punto Abarth and like the standard Baleno, the RS version would besold only through the Nexa Dealership. Here are the most important things to know about the upcoming performance hatchback

EngineThe Baleno RS will be powered by a 1.0 litre three cylinder Boosterjet petrol engine unit that will produce 100 hp of power at 5,500rpm and 150 Nm of torque between 1,700 and 4,500 rpm. The engine will be mated to a 5-speed manual transmission and this isthe company's first turbocharged petrol engine in India. In comparison, the Volkswagen Polo GT TSI is powered by a 1.2 litreturbocharged petrol engine that produces 104 hp of power and 175 Nm of torque. The unit is mated to 7-speed DSG automaticgearbox. Although, there won't be an automatic transmission in the Baleno RS immediately, the company may offer one later.

DesignThe Baleno RS will carry the same design language like the standard versions of the Baleno, however, there will be some cosmeticchanges. These changes may also include projector headlamps with LED daytime running lamps, LED tail lamps, integrated turnindicators on ORVMs (Outside rear View Mirrors) and 16 inch alloy wheels. In addition, the hatchback will get the revised bumpersand rain sensing wipers, automatic climate control, reverse parking sensors with camera.

DimensionsThe Baleno RS will measure 3,995 mm in length, 1,745 mm in width, 1,510mm in height, 2,520 mm wheel base, 114 mm groundclearance and fuel capacity of 37 litres. The kerb weight Baleno RS will be 950 kg, which will be lighter than the Volkswagen PoloGT TSI that stands at 1109 kg. Stopping power on the Baleno RS will be taken care by disc brakes at all wheels.

Expected PriceIt is expected that Maruti Suzuki might bring Baleno RS at a price tag around Rs 8 lakh to Rs 10 lakh and may undercut theVolkswagen Polo GT TSI which is available at a price of Rs 10 lakh , ex-showroom, Delhi.http://www.financialexpress.com/auto/car-news/five-things-you-dont-know-about-maruti-suzuki-baleno-rs/538288/

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Cars, SUVs, MUVs

Compact UVs drive PV sales as demand drops for cars: Ind-Ra PTISee this story in: The Economic Times (Web Edition)(Feb 6)

New Delhi: Robust demand for compact utility vehicles like Maruti's Vitara Brezza and Hyundai Creta is driving up overall passengervehicle sales in India even as those of cars continue to be in a slow lane.

According to a report by India Ratings and Research (Ind-Ra), during the April to December period of current fiscal, UV volumesgrew by 33 per cent as compared with a mere 2.5 per cent for cars, while the overall growth rate for passenger vehicles (PVs) stoodat 8.6 per cent.

"The key contributors to higher demand for utility vehicles (UVs) are shifting preferences among buyers to aspirational productssuch as UVs and more options available in the segment," the report said.

Buyers having earlier opted for larger UVs are migrating towards compact UVs given the regulatory challenges such as the ban onregistration of new large diesel passenger vehicles (PVs) in the National Capital Region which has hurt large diesel UVs inparticular, it added.

In addition, attractive price points and availability of both petrol and diesel variants have also fuelled demand for compact UVs, thereport said.

"Buyers shifting preferences to UVs from cars is evident from the reduction in the proportion of car sales to PV segment volumes to69.3 per cent in April to December 2016 from 73.4 per cent in the corresponding period of the previous year," it added.

The surge in UV sales volumes can in turn be attributed to the success of the new compact UV models like Maruti Suzuki India's

(MSI) Vitara Brezza and Creta from Hyundai Motor India Ltd (HMIL).

MSI and HMIL have reported 124 per cent and 70.5 per cent year-on-year growth in volumes respectively in UV sales in April toDecember 2016 period.

"In line with the increased volume contribution from UVs, the share of UVs in total domestic PV volumes has increased to almost 25per cent in April-December 2016 from 21 per cent in FY16," the report said.

On the other hand, Mahindra & Mahindra which does not have much presence in the car segment reported an increase in UVvolumes at a modest growth rate of 4.4 per cent.

"Considering that the rural-centric Bolero model has traditionally accounted for over 30 per cent of Mahindra's UV volumes, thecompany's sales was impacted due to demonetisation," the report said.

In general, UVs entail higher margins than cars and companies generating high revenue growth through UVs are expected to seeimprovement in operating margins in financial year 2016-17, it added.http://auto.economictimes.indiatimes.com/news/industry/compact-uvs-drive-pv-sales-as-demand-drops-for-cars-ind-ra/56982490Compact SUVs drive sales as demand for cars dropsThe Times of India (Web Edition)http://timesofindia.indiatimes.com/auto/miscellaneous/compact-suvs-drive-sales-as-demand-for-cars-drops/articleshow/56986148.cmsCompact UVs drive PV sales as demand drops for cars: Ind-Ra Business Standard (Web & Print Edition)http://www.business-standard.com/article/pti-stories/compact-uvs-drive-pv-sales-as-demand-drops-for-cars-ind-ra-117020500277_1.htmlCompact UVs drive PV sales as demand drops for cars: Ind-RaFinancial Chronicle (Web Edition)http://www.mydigitalfc.com/news/compact-uvs-drive-pv-sales-demand-drops-cars-ind-ra-910Compact UVs drive PV sales as demand drops for cars: Ind-RaDaily News & Analysis (Web Edition)http://www.dnaindia.com/money/report-compact-uvs-drive-pv-sales-as-demand-drops-for-cars-ind-ra-2312684Compact UVs drive PV sales as demand drops for cars: India Ratings and ResearchThe Financial Express (Web Edition)http://www.financialexpress.com/industry/compact-uvs-drive-pv-sales-as-demand-drops-for-cars-india-ratings-and-research/538593/

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Maruti now owns one half of the auto market Sharmistha MukherjeeThe Economic Times (Web & Print Edition)(Feb 6)

New Delhi: Maruti Suzuki accounted for one in every two passenger vehicles sold in India in January, achieving the feat for thesecond time this fiscal year as the automaker further consolidates its position at the top of the local market.

Riding high on the success of premium hatchback Baleno and compact SUV Vitara Brezza, the local unit of Japan’s SuzukiMotor made 50.4% of all cars, utility vehicles and vans sold in India the past month. The company’s market share was45.9% a year earlier, while its all-time high was 52%, recorded in November 2016.

The numbers are of dispatches from factories to dealerships — automakers in India don’t report retail sales. With thecash crunch post demonetisation easing and customers returning to dealerships, Maruti sent more cars to the dealers in the pastmonth. As many as eight of the 10 top-selling models in the country had the Maruti Suzuki tag on them in January.

Maruti’s sales rose nearly 26% in January. It outpaced industry passenger vehicle sales growth of 14.5%, which was thefastest in four months. Manufacturers sold more than 2.65 lakh passenger vehicles in January, according to sales numbers releasedby automakers and industry estimates. The comparison got a little help from the low base from the year-earlier month, when theindustry was reeling under a court-imposed ban on large diesel-powered vehicles in the National Capital Region.

January being the first month of the year, carmakers conventionally take to replenishing their stocks, inflating their numbers for themonth.

But vehicle makers ET spoke to asserted that the retail sales too were healthy last month with most markets coming back tonormalcy after the overhang of demonetisation. At Maruti, except for compact sedan, sales rose in each of the market segments inwhich it has a presence. In the utility vehicle segment, Maruti’s volume doubled, thanks to strong demand for the Brezza.

Korean auto major Hyundai — the only other carmaker to have featured on the top 10 list, with two models — postedgrowth of 10.5% in the past month, selling 42,017 units, and expects the momentum to continue over the next few month.“Year 2017 looks promising with the entire industry optimistically looking forward for positive growth... The Union Budget willgive boost to the economy, especially rural, with focus on infrastructure creating a robust business environment,” the salesand marketing head at its India unit, Rakesh Srivastava, said. Seven out of top nine carmakers that reported sales for Januaryposted strong double-digit growth, with the exception of Mahindra & Mahindra and Honda Cars India, which registered a decline ofaround 9% each.

VG Ramakrishnan, managing partner at consultancy firm Avanteum Advisors LLP, credited new product launches forMaruti’s performance. “In the last couple of months, the company has launched three products successfully. Thateight of the country’s top 10 models are from Maruti Suzuki’s product portfolio itself stands testimony to their market

share during the month,” he said. “The company has always got right its product positioning and pricing. They have aphenomenal brand appeal. There is nobody who can beat them in the near future.” But Ramakrishnan added that thecompany may see competition stiffen once Koran Kia and Japanese Daihatsu enter the Indian market, even though Maruti will stillbe well prepared to address the challenge.

Puneet Gupta, associate director at IHS Automotive, said Maruti’s attempts to reinvent itself helped the company stay aheadof rivals.http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/maruti-now-owns-one-half-of-the-auto-market/articleshow/56989702.cms

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Diesel variants of Maruti Suzuki Celerio discontinued Ronak ShahThe Economic Times (Web Edition)(Feb 6)

New Delhi: India's leading car manufacturer Maruti Suzuki discontinued the sales of lower variants of its S-Cross last week andlooks like the company has also stopped the sales of the diesel variants of its small hatch Celerio. The official product website ofCelerio now only features the petrol and CNG variants of Celerio.

In the period April-December 2016 Maruti Suzuki sold about 69,344 units of its small hatch but majority of its sales are dominatedby the petrol and CNG variants.While there is no official statement from the company yet, reports suggest that due to the lack ofresponses and poor sales of diesel variants of Celerio might have prompted Maruti Suzuki to at least stop the productiontemporarily.

Maruti Suzuki Celerio diesel was first launched in June 2015 at a starting price of Rs. 4.65 lakh (ex-Delhi) and was powered by theDDiS 125 engine which was indigenously developed by Maruti Suzuki. The engine generates 47 hp of power and 125 Nm of torque.Maruti Suzuki claims a mileage of 27.62 kmpl on Celerio.

Maruti Suzuki had invested around Rs. 900 crore for the development of the smaller diesel engine.

Maruti Suzuki might be updating the DDiS 125 diesel engine to comply it with the BSIV regulation norms which requires addition ofdiesel particulate filters, selective catalytic reduction (SCR) and other components which helps in reduction of emissions.This mightalso be one of the reasons why the production of Celerio has been halted.

In an exclusive interview to ETAuto, RC Bhargava, Chairman, Maruti Suzuki had said, "After 2020, the price of diesel cars will risefurther, and the smaller diesel cars actually will go out of production because a diesel car that costs Rs 5 lakh now, will cost a lakhmore after Euro VI norms come into play. The equivalent petrol cars will still be about Rs 4 lakh. So, people will not buy diesel."http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/diesel-variants-of-maruti-suzuki-celerio-discontinued/56979821

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Maruti violence: Attempt to exaggerate crime, says lawyer The Hindu (Web & Print Edition)(Feb 06)

Gurugram: Presenting arguments on behalf of the accused workers in the Maruti violence case at a local court here on Saturday,senior advocate of the Punjab and Haryana High Court R. S. Cheema said that there was a “planned and concerted attemptto exaggerate the crime” and added that the court must rely on “scientific and medical evidence” to decide thematter.

Referring to the evidence on record, Mr. Cheema argued in the court of Additional District and Sessions Judge R. P. Goyal that theinjuries to most of the victims in the case were “swelling, tenderness and caused by blunt objects” and were the resultof stampede, jostling and pushing around inside the company's premises during the incident.

Weapons of offenceMr. Cheema also presented before the court the alleged weapons of offence: door beams and shockers, to bring home the pointthat the injuries caused by these weapons would have been lethal, but there were no serious injuries to the victims.

The advocate added that most of the injuries were caused to non-vital organs and those inflicted on vital organs such as the chestwere not serious.

‘Witnesses partisan’Mr. Cheema, who appeared pro bono in the case, further contended that it was wrong to conclude that the workers formed anunlawful assembly and even if it was so accepted, they had no object to cause death.

The lawyer said that the witnesses in the case were partisan and the police had failed to carry out an honest investigation and thecourt, therefore, must rely on scientific evidence.

Fire at the plantReferring to the fire at the company’s premises during the incident, Mr. Cheema said that there was no evidence ofman-made fire and blocking of door to the meeting hall to burn the management officials. The lawyer further said that there was no

scientific evidence to show as to how the fire actually broke out and whether it was a human act.

Mr. Cheema also read out the statements of several prosecution witnesses in the case to prove that it was not a case of a“sustained stand-off” and that “things moved fast on the particular day”.

The advocate said that as per the statements of the prosecution witnesses, negotiations were being conducted on the day ofincident and that “things were under control” till 7 p.m.

‘No criminal conspiracy’Mr. Cheema strongly refuted the criminal conspiracy charges levelled against the accused workers saying that there was no scopefor conspiracy at all.

He said that conspiracy must precede the crime. “The criminal conspiracy is not remotely conceived here,” said Mr.Cheema, who represents 18 accused in the Maruti violence case.

The next hearing in the case is scheduled for February 14.http://www.thehindu.com/news/cities/Delhi/Maruti-violence-Attempt-to-exaggerate-crime-says-lawyer/article17195368.ece

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Renault Kwid 1L price & spec comparison with rivals Ronak ShahThe Economic Times (Web Edition)(Feb 05)

New Delhi: The entry level car segment will soon see the entry of Datsun Redi-go’s new 1L engine and the addition of anAMT gearbox.

The competition starts from the base variants which have 800cc engine and Maruti Suzuki Alto has been dominating this space foryears.

The market size for micro hatchback segment is about 35,000-40,000 units a month. Maruti Suzuki Alto has been in market since2000 and in Feb 2016 the company announced Alto sales surpassing the 3 million mark.

Over the years’, rival brands did attempt to enter the space who managed to sell a few cars but couldn’t dethrone themighty Maruti Suzuki Alto. Hyundai brought in the Eon which also got the 1L engine later, Datsun Go and lately the Renault Kwidand Datsun Redi-Go.

The 1L engine on these cars are becoming a popular buy among the customers. A bit more powerful engine with a good mileage isalways a sell and the companies are focusing to bring in those variants with the option of AMT gearboxes to add the convenience.

Maruti Suzuki Alto K10 the powerful variant of Alto sheds about 67 hp and 90 Nm of torque and the company claims a mileage of24.07 kmpl and the car also get the Maruti Suzuki auto-gear shift (AGS) technology which also claims the same mileage. RenaultKwid’s 1L engine also gives out 67 hp of power and 91 Nm of torque. The 1L engine on the Kwid was introduced a fewmonths later after the introduction of Kwid in the country and has been one of the most successful cars for the company.

The powerful variant of the Kwid also gets the AMT option which is of course a rotatory dial below the infotainment system and notthe usual gear shift which we see on the Alto. Datsun Redi-Go 1L variant will be introduced in the market by June 2017. The car willshare the same 1L engine as the Renault Kwid but we must wait and see if Datsun also brings in the rotatory dial or brings back thestick.

The cars are all competitively price. CMFA platform on the Renault Kwid feels a bit roomier from inside whereas the same platformhas increased some height on the Datsun Redi-Go. Maruti Suzuki Alto K10 has proved to be the leader in the segment and willcontinue to dominate the market going forward.

Renault Kwid is also the only car in the segment to get the 7-inch touch screen infotainment system with navigation borrowed fromRenault Duster which adds to that premium quotient.

In the period April-December 2016, Maruti Suzuki has sold over 1.80 lakh units of Alto (Alto 800 and Alto K10 included), Renaulthas managed to increase its market share to over 4.5% in the Indian car market with the help of Renault Kwid and has sold about82,473 units in the same period and is looking to cross the 1 lakh unit mark by the end of ongoing financial year.

Datsun Redi-Go was launched in India in July 2016 and in the period July-Dec 2016 the company managed to sell 20,114 units inthe domestic market. We expect the 1L variant on the Datsun Redi-Go to be launched in June 2017.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/renault-kwid-1l-price-and-spec-comparison-with-rivals/56967667

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Hyundai Motor India invests over Rs 2 cr to upgrade villages in Tamil Nadu The Economic Times (Web Edition)(Feb 05)

Chennai: Hyundai Motor India Foundation, the Corporate Social Responsibility arm of Hyundai Motor India (HMIL), has nearly

invested Rs 2 crore to upgrade Vallakottai and Mevaloorkuppam villages in Kancheepuram district, informed the automaker in anofficial statement.

Recently, the company, under its 'The Dream Village Project', transformed Madhuramangalam village in the same district.

Madhuramangalam is a 418 family strong village, located about 29 km away from HMIL. New bus shed, renovation of schoolfacilities including construction of toilets and installation of RO drinking water facilities, tiling of floors, renovation of the PDS shopand Self Help Group building were some of the key areas for upgradation. That apart, 200+ trees have been planted to green it andvillagers have been taught to harvest rain water.

YK Koo said that “The Dream Village Project has been designed on the pillars of sustenance and empowerment. I believethat those living in villages are as capable of making a difference to the society as their urban counterparts, provided they are giventhe right infrastructure and support. Hence we have focused on making these villages self-reliant.”http://auto.economictimes.indiatimes.com/news/industry/hyundai-motor-india-invests-over-rs-2-cr-to-upgrade-villages-in-tamil-nadu/56967414

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New Honda City launch date announced; bookings open PTISee this story in: The Hindu (Web Edition)(Feb 6)

New Delhi: Honda Cars India has commenced bookings for the new version of its mid-sized sedan City which will be launch in thecountry on February 14.

The company has started pre-bookings for the new version of the popular model at all authorised Honda dealerships with a bookingamount of Rs. 21,000.

The new version of the sedan comes with a host of new features, including a new LED package, enhanced safety package and aAVN infotainment system, among others.

“The Honda City has been our most successful model ever since the start of operations in the country. It commandstremendous loyalty among customers and we are extremely excited to add another chapter to the success story of the model withthe launch of the new Honda City 2017,” Honda Cars India president and CEO, Yoichiro Ueno, said in a statement.

Sharing details, Honda Cars India senior vice president Jnaneshwar Sen said the new version of the car with added features wouldbe even more compelling package for a customer.

“Besides exterior and interior changes, we have also introduced additional safety features on the model,” he said.

The car would, however, come with similar engine options — 1.5 litre petrol and 1.5 litre diesel powertrains — as theprevious edition.

First introduced in India in January 1998, the Honda City is among the most popular sedans in the country and has a cumulativecustomer base of over 6.5 lakh owners.

The fourth generation Honda City, since its launch in January 2014, has sold 2.24 lakh units in the country.http://www.thehindu.com/business/Industry/New-Honda-City-launch-date-announced-bookings-open/article17197231.ece

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Punch and fun: KUV 100 M&M

S. M. UmairThe Hindu (Web & Print Edition)(Feb 06)

In January last year, Mahindra & Mahindra Ltd. (M&M Ltd.) launched its compact SUV KUV100. The car with its unique shape andsize got some attention and made some decent sales. In the past one year, it sold over 42, 000 units with around 5,000 units amonth for most of the time. However, in the past couple of months there has been a dip in sales with around 2,000 units a monthbeing sold now. To give it a push, M&M Ltd. has come out with the anniversary edition of KUV100 which is more stylish and sporty.

The more stylish KUV100 is available in the K8 variant with two options for dual tone exterior colour – Flamboyant Red or aDazzling Silver body with Metallic Black roof. The SUV stance, which was much debated earlier, has been enhanced in thisanniversary edition with larger sized 15” alloy wheels and a dynamic design. The interiors get a new sporty black andpremium theme. In addition to this, the K6 & K6+ variant will now be available with spider design 14” alloy wheels.

In addition to this, customers also get options to personalise their KUV100 with four accessory kits, namely sporty exterior andinterior kits and premium exterior and interior kits. Each kit comprises multiple accessories to enhance the style quotient of theKUV100.

Speaking on the introduction of anniversary edition of KUV100, Pravin Shah, President & Chief Executive (Automotive), M&M Ltd.,

said, “ The KUV100 has the appeal of an SUV and the practicality of a compact car, making it a compelling value proposition.We have introduced the new avatar of the KUV100 with dual tone exterior colour, sporty and premium black interiors and biggerdynamic design alloys wheels along with various accessory kits. We are confident that it will further build on the KUV100’sstyle quotient and make it a popular choice amongst the youth.”

However, the KUV100 anniversary edition continues to sport the same engine and should drive the same way. The petrol version isequipped with 1.2 litre engine that makes 82 bhp of peak power and 115 Nm of peak torque and is mated to a 5-speed manualgearbox. The diesel has a 1.2-litre turbocharged engine unit that makes 77bhp of peak power and 190 Nm of peak torque. Thediesel is also mated to a 5-speed manual and comes in front wheel drive set up. The KUV100 does not get an automatic or AMTgearbox like the TUV300 does. And you do feel it missing.

We drove the car on its completion of one year looking for answers for the rise and fall of its sales. The car has decent space in thefront and at the back. With a unique addition of an extra seat for the third person in the front it scores high on practicality. The seatsare comfortable even though they are flat with no great thigh support. The headroom is in abundance while the leg room is just fine.

Further, there is easy shifting of gears and there is some punch and fun in the drive. What I dislike is the rear view that you get whilereversing the car. The design is such that it isn’t easy to figure out what’s at the back. Also, the tall stance of the carwas no match for the small sized alloys which have been improved upon in the latest anniversary edition. It would have been morebeneficial if there was an option of automatic transmission like we get in Ignis. However, KUV100 scores well on practicality, iscomfortable and offers you good space. The KUV100 price starts at ₹ 4.58 lakh (ex-showroom, Delhi) and its new avatar will beavailable on the top end K8 variant for ₹6.37 lakh (ex-showroom, Delhi) .http://www.thehindu.com/life-and-style/motoring/Punch-and-fun/article17194856.ece

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'Toyota Kirloskar stopped making BS 3 vehicles more than a year ago' K GiriprakashThe Hindu Business Line (Web & Print Edition)(Feb 6)

Bengaluru: Amidst growing concern among automakers about the high inventory levels ahead of April 1 deadline of phasing outnon-BS-IV vehicles, Toyota Kirloskar Motor has said that it has stopped manufacturing them a year ago.

Toyota Kirloskar was one of the worst hit because of a ban on diesel vehicles above 2000 cc in the Delhi-NCR region in December2015. But the Supreme Court lifted the ban in August 2016 though it imposed a green cess of one per cent on the ex-showroomprice of the vehicles.

“Toyota Kirloskar Motors Pvt Ltd had stopped the manufacture of BS 3 vehicles more than a year ago as we believe inproviding state of the art technology in our vehicles in the country’s fight against pollution,” Toyota Kirloskar Motorco-partner and Vice-Chairman, Vikram Kirloskar told BusinessLine.

Kirloskar said all their vehicles currently being sold are BS 4 compliant. Further in line with the government plans, Toyota Kirloskarwill introduce BS 6 fuel compliant vehicles as soon as such fuel is available in the country. “Our commitment to beingenvironment-friendly both in our products and in our processes has stood the test of time,” he added. Last week, SIAM(Society of Indian Automobile Manufacturers) claimed that its members had an inventory of non-BS-IV vehicles of about 7.5 lakhtwo-wheelers, 45,000 three-wheelers, 20,000 passenger vehicles and 75,000 commercial vehicles. The SIAM spokespersons saidthat a large inventory was because of the effect of demonetisation which had considerably slowed down the sale of vehicles.Therefore, it was extremely difficult to meet the April 1 deadline for phasing out non-BS-IV vehicles. However, EPCA (EnvironmentPollution Control Authority) has insisted that no non-BS-IV vehicles should be allowed to be registered from April 1, 2017.

The vehicle manufacturers will be forced to sell all their inventory in the next two months to adhere to the April 1 deadline.

Sources in the Oil Ministry had said earlier that BS-IV fuel will be available across most parts of the country by April 1. This measureis expected to further reduce the emissions of carbon monoxide, hydrocarbon, oxides of nitrogen and Sulphur which are found lessin BS-IV compliant fuel.http://www.thehindubusinessline.com/companies/toyota-kirloskar-stopped-making-bs-3-vehicles-more-than-a-year-ago/article9522987.ece

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Can not tell right now Nano's road ahead: Tata Motors PTISee this story in: The Economic Times (Web Edition)(Feb 6)

Mumbai: Remaining non-committal over the future course of Nano, Tata Motors said the decisions will be taken in alignment withthe board as the time and the need appears.

As it prepares to be future ready, Tata Motors is finding it difficult to answer queries on whether the Nano will be a part of thejourney ahead as the issue is proving to be a sensitive one involving those at the top level of the Tata group.

Although the company has adopted a new passenger vehicles (PV) strategy with an aim to achieve "sustainable financial

performance" and to be amongst the top three PV makers in India by 2019, its top management is shy to elaborate what role willRatan Tata's dream project play going forward.

Tata Motors has said that it would reduce the number of PV platforms to just two from the current six by 2018 when it shifts to whatit called as 'Advanced Modular Platform (AMP)' to "deliver 7-8 product variants from two platforms for greater coverage and sizableeconomies of scale".

"I can't tell you right now because these are decisions in line with the PV strategy. These decisions are going to be taken inalignment with the board as the time and the need appears," Tata Motors MD and CEO Guenter Butschek said when asked if Nanowill be a part of the company's future by 2018.

He said the new PV strategy was presented to the board of directors of the company in the middle of last year.

The board is provided update on the progress made on a regular basis, Butschek said, adding "so it (board) is fully encouraged and(is) behind this strategy..."

Under the new PV strategy the company is looking for economies of scale, reduce capital expenditure through the less number ofplatforms and address more segment of the market where it is not present currently that will lead to higher profitability.

Yet the issue of Nano is something that hangs uneasy with the company's senior management. Ousted Tata Sons Chairman CyrusMistry had alleged that Nano project was responsible for the losses of over Rs 1,000 crore.Nano has been one of the point of contentions between Tata and Mistry, who had also alleged Tata Motors is unable to shut downthe loss making small car due to "emotional reasons" and doing so would also stop the supply of "gliders" to an entity that makeselectric cars in which Tata has a stake.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/cant-tell-right-now-nanos-road-ahead-tata-motors/56982528Nano's road ahead in doubt as Tata Motors remains non-committalBusiness Standard (Web Edition)http://www.business-standard.com/article/companies/nano-s-road-ahead-in-doubt-as-tata-motors-remains-non-committal-117020500244_1.htmlNano's road ahead remains in doubt as Tata Motors switch gearsThe Times of India (Web Edition)http://timesofindia.indiatimes.com/auto/miscellaneous/nanos-road-ahead-remains-in-doubt-as-tata-motors-switch-gears/articleshow/56982740.cmsNano future hangs fireThe Telegraph (Web Edition)https://www.telegraphindia.com/1170206/jsp/business/story_134221.jsp#.WJfUBmOqBkgPath ahead for Nano not clear: Tata Motors CEOThe Hindu (Web Edition)http://www.thehindu.com/todays-paper/tp-business/Path-ahead-for-Nano-not-clear-Tata-Motors-CEO/article17199309.eceCan't tell right now nano's road ahead, says Tata MotorsThe Pioneer (Web & Print Edition)http://www.dailypioneer.com/business/cant-tell-right-now-nanos-road-ahead-says-tata-motors.htmlCan't tell right now Nano's road ahead: Tata MotorsAsian Age (Web & Print Edition)http://www.asianage.com/business/companies/050217/cant-tell-right-now-nanos-road-ahead-tata-motors.htmlCan't tell right now Nano's road ahead: Tata MotorsDeccan Herald (Web Edition)http://www.deccanherald.com/content/594911/cant-tell-right-now-nanos.html

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Shifting gears, Tata Motors remains non-committal over Nano's future PTISee this story in: Daily News & Analysis (Web Edition)(Feb 06)

Remaining non-committal over the future course of Nano, Tata Motors said the decisions will be taken in alignment with the boardas the time and the need appears.

As it prepares to be future ready, Tata Motors is finding it difficult to answer queries on whether the Nano will be a part of thejourney ahead as the issue is proving to be a sensitive one involving those at the top level of the Tata group. Although the companyhas adopted a new passenger vehicles (PV) strategy with an aim to achieve "sustainable financial performance" and to be amongstthe top three PV makers in India by 2019, its top management is shy to elaborate what role will Ratan Tata's dream project playgoing forward.

Tata Motors has said that it would reduce the number of PV platforms to just two from the current six by 2018 when it shifts to whatit called as 'Advanced Modular Platform (AMP)' to "deliver 7-8 product variants from two platforms for greater coverage and sizableeconomies of scale". "I can't tell you right now because these are decisions in line with the PV strategy. These decisions are goingto be taken in alignment with the board as the time and the need appears," Tata Motors MD and CEO Guenter Butschek said whenasked if Nano will be a part of the company's future by 2018.

He said the new PV strategy was presented to the board of directors of the company in the middle of last year. The board isprovided update on the progress made on a regular basis, Butschek said, adding "so it (board) is fully encouraged and (is) behindthis strategy..." Under the new PV strategy the company is looking for economies of scale, reduce capital expenditure through theless number of platforms and address more segment of the market where it is not present currently that will lead to higherprofitability.

Yet the issue of Nano is something that hangs uneasy with the company's senior management. Ousted Tata Sons Chairman CyrusMistry had alleged that Nano project was responsible for the losses of over Rs 1,000 crore. Nano has been one of the point ofcontentions between Tata and Mistry, who had also alleged Tata Motors is unable to shut down the loss making small car due to"emotional reasons" and doing so would also stop the supply of "gliders" to an entity that makes electric cars in which Tata has astake.

Butschek said the company's presence in the entry level hatchback segment, where Nano is positioned right now, is somethingwhich needs to be decided as it is a very competitive segment. Stating that in the next few years the segment is going to witness alot of change in terms of regulations related to safety and emissions, he said the question is whether there is a need to be in thesegment or not and that is "indeed a question which is pending".

Industry analysts said while the company has decided to move on the advance modular platform, "the strategy raises someconcerns regarding the future of some of Tata Motors' existing nameplates, most notably the Nano". "A move to a new platform forthe Nano would be likely to increase prices, potentially rendering it uncompetitive. At the same time, stricter regulations in the areasof crashworthiness and emissions will make it difficult for the nameplate to continue on the old platform," IHS Markit PrincipalAnalyst (World Markets Automotive) Anil Sharma said.

In the meantime, Nano sales continued to be on a downward spiral. During the April-December period this fiscal, it sold 6,714 unitsas compared to 17,258 units in the same period last fiscal, down 61 per cent.http://www.dnaindia.com/money/report-can-t-tell-right-now-nano-s-road-ahead-tata-motors-2312647

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Luxury Cars

We want to better ourselves and outpace industry growth: Tushar Kumar, CEO, Silver Arrows Automobile The Economic Times (Web & Print Edition)(Feb 6)

For long, Mercedes Benz has been associated with luxury, opulence, craftsmanship and innovation. And it is this legacy that TusharKumar, CEO, Silver Arrows Automobiles Private Limited, Ghaziabad, wants to continue by forging ahead as an unmatchedMercedes-Benz dealer.

Kumar's work mantra is to give excellent service through innovative procedures.Excerpts of the interview:

What is the story behind a name like Silver Arrows?

It was my dream to be faster than everyone else in the game. I was inspired by the tale of a white racing car, a Mercedes-Benz W25, standing on the grounds of the Nürburgring in 1934. It got disqualified for being overweight. A technician decided to scrape offthe top coat of the paint to reduce its weight, and keep it within the recommended weight limit of 750kg. When the sun hit the car, itmade the silvery aluminium surface glisten from under the layer of paint.That's how an eternal symbol was created.

What made you open another showroom in Ghaziabad?

The demographics and psychographics indicate a growing population of young customers.So, we too would like to be available atthe click of a button.

Are you happy with the response?

We have seen phenomenal growth and have sold 3,000 cars and done more than 30,000 after-sales in three years.The market willgrow eventually as we are confident that Uttar Pradesh will progress.Aspiring consumers' access to the luxury car segment is one ofthe biggest advantages we have.

Have you set a target?

We look at bettering ourselves and outpacing industry growth. We are conveniently located in Hotel Asoka too, and are closer to thecustomers in South Delhi as well.

Thirteen per cent of our buyers are women entrepreneurs or white-collared top brass who like to drive in luxury.Through our mobileapp, customers can even pay the service bill considering India's current cashless theme.

How does Silver Arrows have an edge over others?

Our focus is on after-sales services and satisfaction.Customers choose to come to us for other facilities as well. As a brand, we areready with Euro 6 compliance.

Isn't pricing a factor?

We are available across price brands -Rs.15 lakh to Rs.32-35 lakh and above. We do have a line-up of new generation cars, CLA orGLA and a used-car segment.

Do we have the infrastructure to support fast cars?

Infrastructure doesn't have much to do with fast cars becoming functional. It's the way we are brought up and issues such asstringent licensing that need to be considered to bring about a change at all levels .http://auto.economictimes.indiatimes.com/news/aftermarket/next-gen-we-want-to-better-ourselves-and-outpace-industry-growth/56992899

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All you need to know about Tata Motor's Rs 25 lakh sportscar TAMO Futuro The Financial Express (Web Edition)(Feb 05)

Tata Motors has launched its new performance sub-brand TAMO and a new Passenger Vehicle (PV) strategy under which thecompany will unveil its first product, the Futuro on 7th March, 2017 before the upcoming Geneva Motor Show. TAMO, the companysays, “will act as an incubating centre of innovation towards new technologies, business models and partnerships in order todefine future mobility solutions.”

Expected to be launched in 2018, the Tata Futuro will be the first sportscar by Tata Motors and is expected to be priced around Rs25 lakh, ex-showroom, Delhi. According to the company, the car will be “a stunning-looking car for the money” and willbe designed in-house. The Tata Futuro is a two-seater sportscar and will be produced in limited numbers, 250 units initially.

The Tata Futuro will use lightweight body construction, which could be a mix of both, carbon-fibre and aluminium along with newtechnologies and innovations. Tata Motors currently uses six vehicle platforms but the TAMO will use only two in favour of a leanand efficient operating approach. The Futuro will be based on the flexible Advanced Modular Platform (AMP) to reduce the overallweight and will weigh around 700 kg. This will give the car a respectable power-to-weight ratio and will further aid the low emissionsand fuel efficiency of the car. The AMP platform is capable of producing a wide range of vehicles ranging from a hatchback to asportscar.

The company has not yet confirmed the powertrain details but we expect the Futuro to be powered by a mid-mounted 1.2 Revotronturbocharged engine which will be tuned to produce power figures between 150 hp and 180 hp. TAMO will not operate a separateretail chain, like Maruti Suzuki's premium outlet – NEXA, and all its products will be sold through the regular Tata Motorsdealerships.

The TAMO Futuro will play a key role in reshaping the brand perception of Tata Motors as the company tries to move to highervehicle segments and more matured international markets. While the Futuro will be produced in limited numbers, technologies usedin it will later trickle down to mas-market vehicles of Tata Motors, benefiting the overall passenger vehicles division in terms of rapidand cost-effective technology development and deployment.http://www.financialexpress.com/auto/car-news/all-you-need-to-know-about-tata-motors-rs-25-lakh-sportscar-tamo-futuro/536710/

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Commercial Vehicles

Mahindra recalls Bolero Maxi Truck Plus model in India PTISee this story in: The Economic Times (Web Edition)(Feb 05)

New Delhi: Home grown auto major Mahindra & Mahindra (M&M) is recalling an unspecified number of its utility vehicle Bolero MaxiTruck Plus in the country to fix defective fluid hose.

The Mumbai-based company has announced a "proactive inspection" of a fluid hose on Bolero Maxi Truck Plus vehicles,manufactured in September and October 2016, M&M said in a regulatory filing.

"This is in keeping with the company's customer centric approach. The inspection and subsequent rectification will be carried outfree of cost for Bolero Maxi Truck Plus DI customers, who will be individually contacted by the company," it added.

The company, however, did not reveal as how many units of the model were impacted.

Last year in September, the company had recalled certain number of its new generation Scorpio and NuvoSport SUVs to rectifyfaulty fluid hose in engine compartment.Earlier, it had also recalled an unspecified number of SsangYong Rexton SUV due to a suspected fault with the rear driveshaft.http://auto.economictimes.indiatimes.com/news/commercial-vehicle/lcv/mahindra-recalls-bolero-maxi-truck-plus-model-in-india/56975086Mahindra recalls Bolero Maxi Truck Plus model in IndiaDaily News & Analysishttp://www.dnaindia.com/money/report-mahindra-recalls-bolero-maxi-truck-plus-model-in-india-2312111Mahindra recalls Bolero Maxi Truck Plus model in Indiamint (Web Edition)http://www.livemint.com/Companies/FDcHg8eS1CAAFJhmpkD4eN/Mahindra-recalls-Bolero-Maxi-Truck-Plus-model-in-India.htmlMahindra recalls Bolero Maxi Truck Plus model in IndiaThe Financial Express (Web Edition)http://www.financialexpress.com/industry/mahindra-recalls-bolero-maxi-truck-plus-model-in-india/537892/Mahindra recalls Bolero Maxi Truck Plus model in India

Business Standard (Web Edition)http://www.business-standard.com/article/pti-stories/mahindra-recalls-bolero-maxi-truck-plus-model-in-india-117020400572_1.html  

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Commercial vehicle firms build inventory to meet demand T E Narasimhan Business Standard (Web & Print Edition)(Feb 05)

Chennai: Anticipating a surge in demand ahead of the implementation of BS-IV emission norms from April 1, commercial vehicle(CV) makers are building inventory. After a tough December quarter, they expect a better March quarter.

According to industry sources, 30,000 to 40,000 units have been kept as inventory to meet the demand. With the new norms, aprice rise of close to 10 per cent is expected on vehicles, beside the servicing issues for newer technology ones.

E-mails in this regard sent to companies including Ashok Leyland, Mahindra and Tata Motors were not answered.

However, Leyland’s management in a recent analyst call said it expected this demand rise before the new norms and waspreparing.

An analyst who was part of the call recalled the management had indicated a preparatory inventory of around 11,000 vehicles.

Kamal Bali, managing director (MD), Volvo India, said after a temporary fall due to the effects of demonetisation for two months,both the light and medium and heavy duty segments of the CV industry were expected to stage a strong recovery in the Marchquarter.

This is traditionally considered a strong quarter for the CV industry for various reasons, including the benefits of depreciation thatthese companies stand to enjoy before the next financial year begins.http://www.business-standard.com/article/companies/commercial-vehicle-firms-build-inventory-to-meet-demand-117020400744_1.html

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Construction & Agri Machinery

2/3 Wheelers

E-Bikes

Hero Electric Flash launched at Rs.19,990 Deccan Chronicle(Feb 05)

The Hero Electric Flash has been propelled in India at a starting cost of Rs.19,990 (ex-showroom, Delhi). Accessible containerIndia, this section level offering has been focused at first-time bike purchasers.

The Hero Electric Flash gets a conspicuous design with a wide headlamp on the apron. The indicators are integrated on thehandlebar. The alloy wheels and the glossy paint give the scooter a trendy look. Apart from underseat storage, the Flash also gets aluggage box to improve its utility.

The Flash rides on telescopic front forks and a rear monoshock. Both performance and range have taken a back seat to make theFlash cost effective and light.

The 250 watt electric motor can propel the Flash to up to 25kmph. The motor is powered by a 48-volt 20Ah battery, which gives theFlash a range of 65km. The Flash tips the scales at 76kg which should make it easy to use for first-time riders.

The Hero Electric Flash is available in two dual-tone paint schemes silver / black and red/black. For now, the Flash doesn’thave any competition in the Indian market.http://www.deccanchronicle.com/business/autos/040217/hero-electric-flash-launched-at-rs19990.html

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Components

Indian foundry industry looks to double turnover in 3 years PTISee this story in: The Economic Times(Feb 6)

Kolkata: The Indian foundry industry is expecting to double the revenue over the next 2-3 years with immense opportunities given inthe Budget, an industry member said.

However, cost push and uncertainty over the policies in the US for foundry and casting imports remain a matter of concern.

"...Indian foundry industry is expected to double its revenue over the next 2-3 years with the huge opportunity which will be unlockeddue to big push in railway infrastructure in the budget, defence and revival of automotive sector," Institute of Indian Foundrymen(IIF) President Anil Waswani told .

Curently, the annual revenue of Indian foundry industry stands at USD 18 Billion of which USD 2.7 billion comes from exports.

The Budget, however, did not provide some relief from import duty burden on met coke and metal scrap, he said.

Moreover, we are keeping our fingers crossed on unfolding of the US policies about their long import of foundry and casting fromIndia when we are hearing about 'Make in USA', Waswani said.

The Indian Foundry Industry had been growing steadily in the last few years and became the 3rd largest caster in the world. Itemploys two million people directly and indirectly.

Demonetisation has impacted the foundry industry for sourcing domestic metal scrap, he said.

"Normally, pig iron which is also used by our industry as raw material is costlier than metal scrap but due to demonetisation, pricesurpassed pig-iron price due to short supply of scrap," he added.http://auto.economictimes.indiatimes.com/news/auto-components/indian-foundry-industry-looks-to-double-turnover-in-3-years/56982352

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Allied Industries

Tyre industry unhappy with Budget proposals The Hindu Business Line(Feb 05)

Kochi: The tyre industry has expressed concern over exclusion of rubber and tyres from the list of items on which duty inversion hasbeen addressed.

“A big push to the infrastructure spending is a big positive for the automotive tyre sector as the growth in tyre is closely linkedto the growth in economy. Infrastructure investment means more movement of goods and that translates into increased demand fortyres, especially commercial vehicle tyres,” said KM Mammen, chairman, Automotive Tyre Manufacturers Association(ATMA).

The tyre industry was pinning hopes on long-pending correction of inverted duty on natural rubber, he said.Duty variation

“Regrettably, tyres or rubber have not been included in the list of items where duty inversion has been addressed. Correctinginverted duty on rubber is important to increase competitiveness of the tyre sector. Currently, the import duty on natural rubber is 25per cent, while the duty on import of tyres is around 7 per cent,” Mammen added.

Kamal K Chowdhury, president, All India Rubber Industries Association, said, “In view of the government’s emphasison domestic manufacturing, we were hopeful that inverted duty would be corrected. However our hopes have been dashedagain.”http://www.thehindubusinessline.com/news/news/article9522060.ece

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Tyre makers hike prices amid note ban slowdown T E NarasimhanBusiness Standard(Feb 05)

Chennai: Tyre companies have increased prices by two to five per cent on rising raw material costs and margin pressures. Butretailers said this was not the right time to do so because sales were down due to demonetisation.

While prices of car and truck tyres have been raised by two-three per cent, those for two- and three-wheelers have been raised by

two-five per cent. Retailers said the hikes came amid a 30-40 per cent decline in sales due to demonetisation. They also did notagree with the reasons cited by manufacturers for the price hikes.

Some tyre makers did not respond to queries but other companies confirmed the price increases. A few companies increased pricesearly this week and more are planning to do so before February 11. Ceat said it had hiked prices by one per cent in January.“We are witnessing a significant increase in raw material prices — both natural rubber and crude oil-based. We areevaluating the course of action for the remaining two months of the quarter,” said Arnab Banerjee, executive director,operations, Ceat.

Another industry executive said rubber prices in January 2016 were Rs 97 a kg and this had increased to Rs 137 in January 2017and now to Rs 160. Compared to last year, prices have climbed 50 per cent. In the last one month, prices rose 17 per cent.

Demonetisation has been felt more in smaller towns where transactions are mainly in cash. The aggressive growth in Chinese tyresales in the replacement market has slowed down as the business was conducted entirely in cash. Indian tyre makers will have timetill the second quarter because Chinese tyres are unlikely come into the market before that.

Industry representatives said prices of Chinese tyres were Rs 5,000-6,000 lower than those made in the country. The price hikeswould open the gap and provide an advantage to cheaper Chinese tyres, they added.http://www.business-standard.com/article/companies/tyre-makers-hike-prices-amid-note-ban-slowdown-117020400596_1.html

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Tyre makers may now feel the pinch after Donald Trump's tariff threat Krishna KumarThe Economic Times(Feb 6)

Kochi: The Trump effect seems to be rubbing off on the Indian tyre industry. Following US President Donald Trump’s tariffthreat on tyres from China, there is likely to be a simultaneous surge in imports of Chinese tyres in India.

The Trump effect, coupled with the fact that natural rubber prices have climbed another 7% to touch Rs 160 per kg during the weekkeeping in step with global market trends, is likely to force the local tyre industry to raise the prices of tyres.

Apart from natural rubber, which accounts for around 40% of the raw material components of tyres, other principal ingredients likechemicals have also become costly with crude oil prices rising, leaving tyre makers no choice but to hike prices. Some tyrecompanies have raised tyre prices 2%-5%.

“We are forced to increase prices a bit as natural rubber and all the chemicals used in tyres have become costly,” saidVikram Malhotra, director, marketing, JK Tyres. He expects imports of Chinese tyres to swell if the US imposes tariff on tyres fromChina.

“Already imported Chinese tyres account for over 30% of the replacement segment of truck radial tyres in India. If the USimposes tariff on Chinese tyres, then its flow into India may increase further. The government is yet to accede to our demand forlevy of anti-dumping duty on Chinese tyres,” he said

However, a section of tyre dealers feel that tyre manufacturers did not roll back prices when natural rubber prices hit its nadir a yearago.

“Interestingly, when natural rubber prices went up to Rs 240 per kg in 2010-11 and when crude oil prices touched $115 perbarrel, tyre makers jacked up prices by 22% to 30%. But they did a meagre reduction of about 2% to 3.5% when NR prices touchedRs 90 per kg and crude oil prices slumped to $37 a barrel a year ago,” said SP Singh, convener of the All India TyreDealers’ Federation.

The tyre industry has been demanding a hike in import duty of finished rubber goods, including tyres, and was expecting thegovernment to carry out the hike in the recent Union budget.

“The tyre industry was pinning its hopes on the long-pending correction of inverted duty on natural rubber. Correctinginverted duty on rubber is important to increase competitiveness in the tyre sector. Currently, import duty on natural rubber is 25%while duty on import of tyres is just one-third at around 7%” said KM Mammen, chairman, Automotive TyreManufacturers’ Association.

Meanwhile, brokers say natural rubber will continue to remain around Rs 160 per kg despite a correction on Friday when it fell to Rs159 per kg.http://economictimes.indiatimes.com/industry/auto/news/auto-components/tyre-makers-may-now-feel-the-pinch-after-donald-trumps-tariff-threat/articleshow/56990132.cms

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Govt in talks with BIS to upgrade helmet standards The Hindu

New Delhi: With two-wheelers outnumbering any other type of vehicle on Indian roads and accounting for the highest number ofroad accident deaths, the Ministry of Road Transport and Highways (MoRTH) is in talks with the Bureau of Indian Standards (BIS)

for upgrading the quality standards of helmets.

“In 2014, about 34% of all road accident deaths were of riders/passengers on two-wheelers, while bicyclists accounted for3% and pedestrians 9%. At present, people who ride a bike or scooter use poor quality helmets. A distinctly marked helmet fortwo-wheelers will help reduce risk of accident deaths in a big way,” said Abhay Damle, joint secretary of MoRTH, whileinaugurating a-day long seminar on Motor Vehicle Act and Road safety organised by an NGO, CUTS International.

Stronger and lighterThe government is looking at a distinctive BIS mark for helmets to be sold in the market. Mr. Damle added that due to humidweather and faulty designs of helmets, the government is trying to adopt designs and models of helmets that are comfortable fortwo-wheeler riders.

“The compliance to wearing seat belt is more in comparison to helmets. Why are people reluctant to wear a helmet? Weneed to design ones that are light and easy to carry,” Mr. Damle said.

Validity increased“Apart from the helmet, the government has also made provisions in the New Amended Motor Vehicle Act (MVA) to increasevalidity of renewing of driving license for persons above 50 years for 10 years from present five years years, and for commercialdrivers to five years from present three years. Similarly for fitness certificate so less people visit the transport offices,” saidMr. Damle.

‘Separate law & regulation’“The much-awaited MVA, which has provisions for higher penalties and road safety features, has been delayed and is matterof concern. The best solution for a country like India is to separate the MV Act and road safety regulations as bringing in a law takesdecades in India. The strict regulations can help in bringing down road accidents,” said K K Kapila, chairman of theInternational Road Federation (IRF).http://www.thehindu.com/news/cities/Delhi/Govt-in-talks-with-BIS-to-upgrade-helmet-standards/article17195339.eceGovt in talks with BIS for quality upgrade of helmetsThe Times of Indiahttp://timesofindia.indiatimes.com/business/india-business/govt-in-talks-with-bis-for-quality-upgrade-of-helmets/articleshow/56959775.cms

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Helmet compulsory for two-wheeler riders from May 1: Puducherry CM PTISee this story in: The Economic Times(Feb 6)

Puducherry: Concerned over the increase in road accidents in Puducherry, the territorial government has announced that wearingof helmets by two-wheeler riders will be compulsory from May 1.

Addressing reporters here, Chief Minister V Narayanasamy said the territorial government was concerned over the rise in roadaccidents in the Union Territory.

"Hence, it is absolutely necessary to make helmet-wearing compulsory and the mandate will come into force from May 1 this year,"he said.

During 2016 alone, out of the 710 road accidents 60 were fatal and the victims were found to be riding the vehicles without usinghelmets, he pointed out.

On law and order situation in Puducherry, the Chief Minister said law and order was being maintained well in Puducherry.

Organised crimes are being dealt with effectively and the vigilant police has been responsible for the good law and order situationhere, he added.

"Lt Governor Kiran Bedi is also keen to ensure that law and order was kept up properly in the Union Territory," he noted.

He also said women's security was on the top of the agenda of the police department.

Director General of Police SK Gautam who was present at the press meet said, none can escape the mandate which would bestrictly enforced from May 1.http://auto.economictimes.indiatimes.com/news/industry/helmet-compulsory-for-two-wheeler-riders-from-may-1-puducherry-cm/56982791

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Emissions / Environment

15-year old commercial vehicles may soon be off the road PTISee this story in: Daily News & Analysis

Government is keen on implementing vehicle policy that aims at scrapping 15-year old commercial vehicles in the first phase, and itwill send the proposal to GST Council after Cabinet nod, Union Minister Nitin Gadkari said.

Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to push 28 million decade old vehicles off theroads.

"We (Ministry) will try to bring the policy as early as possible. We will make a presentation before the Cabinet Secretary on February9 and then before the PMO. After the Cabinet nod, a presentation will be made before GST Council," Road Transport, Highwaysand Shipping Minister Gadkari said.

Gadkari said that the PMO is keen on the proposal as once it is implemented pollution would be checked considerably as 65% ofthe pollution is caused by heavy vehicles which have completed 15 years.

He said a presentation has already been made before the Finance Minister Arun Jaitley.

The proposal is to provide relief of about Rs 5 lakh to people who purchase new commercial vehicle of about Rs 15 lakh, if theysurrender their over 15-year old commercial vehicle.

"We propose a discount of about Rs 2 lakh from manufacturers at the time of purchase while about Rs 2.5 lakh concession in taxesby state and central governments for those purchasing new commercial vehicle on surrender of old," Gadkari said, adding that taxconcession would be based on GST Council decision.

Once the proposal is accepted, he said it is bound to result in Rs 10,000 crore boost in tax revenue as the automobile sector willbenefit from it.

He said that the automobile sector is projected to grow by 22% and it will be a "win-win situation" for all.

The automobile sector turnover will grow from Rs 4.5 lakh crore to Rs 20 lakh crore after policy implementation, the minister said.

He added that recycling units would be set up at industrial clusters under the government's ambitious Sagarmala project andautomobile parts made from scrapped aluminium, steel and copper etc would be cheaper.

The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehiclesbought on or before March 31, 2005, numbering about 28 million.http://www.dnaindia.com/money/report-vehicle-scrap-policy-to-go-to-gst-council-post-cab-nodgadkari-2312622

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Upgrade current emissions testing procedures: CSE PTISee this story in: The Economic Times(Feb 05)

New Delhi: The current practice of pollution under control (PUC) is "rudimentary and ineffective", a green body has said whileasking the government to take steps to upgrade the current emissions testing procedures and make vehicle manufacturers liable foremissions performance.

Centre for Science and Environment (CSE) in its analysis - 'Is India prepared to prevent manufacturing defects and frauds invehicles that compromise their emissions performance on roads?' - in the backdrop of the Volkswagen emissions scandal termed itas a "serious" public health issue in India as air pollution has emerged as the fifth largest killer.

"The current PUC norms are not only too lenient to fail a vehicle, they cannot test tiny particles and NOx from in-use vehicles. Laxnorms and poor enforcement make the PUC programme very ineffective. This needs an overhaul. Monitoring of emissions fromdiesel vehicles is particularly weak. This can lead to uncontrolled emissions of toxic particulates and nitrogen oxides," it said in itsanalysis.

It said that the automobile industry must commit to portable emissions monitoring to check real driving emissions when Euro VIstandards are enforced.

The government must fix manufacturers' responsibility for emissions performance of vehicles during their useful life on the roadwhile manufacturers must declare certified as well as on-road emission levels, it said.

"This is a serious public health issue in India where air pollution has emerged as the fifth largest killer and vehicles are responsiblefor very high exposures to toxic pollution in cities," it said.

Citing the "biggest corporate frauds in the global automobile industry the Volkswagen defeat device case" CSE said such scenarioshave gone nearly unnoticed in India.

Even though Volkswagen cars have been found to be erring, there is no official action nor is there any attempt to ensure that othermodels do not emit more than their certification levels.

"This exposes a serious weakness in our emissions regulations that compromise emissions performance of vehicles. This makesIndia extremely vulnerable as it is rapidly motorising and dieselising without a strong compliance framework. This month, evenChina has gone ahead to recall 2.0 litre Volkswagen diesel cars," its analysis said.

"The current practice of pollution under control programme (PUC) is rudimentary and ineffective. It is not designed to addresscomplex emissions control systems in new vehicles.

"This cannot screen inherent technical flaws and frauds for which manufacturers are responsible that compromise the emissionsperformance in the real world," it said.http://auto.economictimes.indiatimes.com/news/industry/upgrade-current-emissions-testing-procedures-cse/56965101

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Carmakers cry foul over rollout of BS-IV; raises issue of inventory Jayashree NandiThe Economic Times(Feb 05)

New Delhi: A meeting called by the SC-mandated Environment Pollution Control Authority on a countrywide rollout of BS-IV normsby April 1 saw plenty of fireworks on Friday with the Society of Indian Automobile Manufacturers raising the issue of inventory ofnon-BS-IV vehicles.

SIAM claimed it has an expected pending inventory of about 7.5 lakh two-wheelers, 75,000 commercial vehicles (trucks and buses),45,000 three-wheelers and 20,000 passenger vehicles as on April 1, 2017. EPCA, at a meeting held in October 2016, had directedthat vehicle manufacturers exhaust their stock of non-BS-IV vehicles before April 1.

SIAM’s executive director KK Gandhi (technical), however, on Friday said: “It’s impossible for us to meet thisApril 1 deadline because of market forces and the impact of demonetisation. We cannot do anything about the pending inventory.The IIT-Kanpur’s emissions inventory shows diesel vehicles are responsible for only 2% of emissions.”

Gandhi added that the “law of the land says that the industry will manufacture only BS-IV-compliant vehicles April 1, 2017,onwards; you (EPCA) changed the rule in October.”

He was referring to an August 19, 2015, notification of the ministry of transport, which mainly said that only BS-IV-compliantvehicles will be manufactured from April 1, but didn’t comment on whether the registration of non-BS-IV vehicles would beallowed after that.

Gandhi said the pending vehicles would have to be “scrapped” if EPCA didn’t allow them to be sold. EPCAresponded by saying that the industry was eyeing a “scrappage policy” to boost sales.

EPCA once again directed NCR governments to ensure that no non-BS-IV vehicle be allowed to be registered from April 1.

“You have 75,000 trucks left. This is unacceptable. Do you know that moving to BS-IV can give us a reduction of 80% in PMemissions from these vehicles? You should have ramped down production since you were told in advance. Is EPCA now going tostand for automobile manufacturers’ profits?” asked Sunita Narain, a member of EPCA. Bhure Lal, head of EPCA,said: “We gave you six months’ notice. That’s substantial.”

A Delhi government official who was at the meeting claimed the transport department had tried to procure 4,000 “cleanbuses” but manufacturers had, instead, suggested that they buy BS-III buses. “They had placed tenders for DTCbuses but there were issues with rates. I think they wanted the buses at the same rates as the previous order. The commercialnegotiation didn’t work out,” Gandhi later told reporters.

EPCA members said at the current rate of sales, manufacturers can sell their 20,000 passenger vehicles and 7.5 lakh two-wheelersin a month or so. But for three-wheelers and commercial vehicles, EPCA will hold a meeting with manufacturers to discuss thebreakup of pending inventory.

Under section 5 of the environment protection Act, EPCA has the powers to issue orders on violation of various environmentalstandards. Incidentally, Vishnu Mathur, Director General of SIAM is also a member of EPCA.http://auto.economictimes.indiatimes.com/news/industry/carmakers-cry-foul-over-rollout-of-bs-iv-raises-issue-of-inventory/56965062

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Finance & Insurance

GPPL plans to ink JV with Spanish giant Hrithik Kiran BagadeDeccan Herald(Feb 05)

Bengaluru: Lubricants major GP Petroleums (GPPL) has envisaged a novel ‘Make in India’ approach in a bid toincrease market share in the country’s automotive lube space, and is planning a JV with Spanish lubricants giant Repsol.

The company, a subsidiary of UAE-based $3-billion Gulf Petrochemicals, began retailing Repsol’s products in India in Aprillast year, and has a royalty agreement to use the latter’s brand name and technology in selling its products.

Talking to DH, GPPL CEO Hari Prakash M said, “Our flagship brand ‘Ipol’ has a big name in the industriallubricants’ space, even as it is a mass market automotive brand. In terms of volume, our portfolio consists of 90% industriallubricants, with the remaining 10% being automotive lubricants. Also, where auto lubricants are concerned, our market share isbarely 1%.”

Accordingly, GPPL aims to increase its market share in the automotive space to 5% over 10 years, along with a sizeable mix ofautomotive lubricants at 40% of its total portfolio, along with a growing industrial share of 60%.

“Instead of pumping in more resources and technology into our own brand, we decided to connect with the best brands in theworld. That’s where Repsol came into the picture,” Hari said.

Wanting to tap the growing auto market, Repsol tied up with GPPL last year. “We insisted that we’ll not buy and sell,but will ‘Make in India’. Repsol’s team audited our plant (in terms of R&D, equipment, and safety), and allowedus to produce its products, adhering to its high-quality formulations.”

GPPL’s plants at Vasai (near Mumbai) and Daman have a total capacity of 80,000 kl per year. Repsol’s range, whichwill be made at Vasai, may be produced to the tune of 1,000 litres in the first year, doubling in production based on demand infuture.

Since six months, the company has doubled Repsol’s monthly sales run-rate at 150 kl. “Last year, we started withmotorcycle oil in April, launching oils for (petrol and diesel) passenger cars in November, and diesel engine oils for commercialvehicles in December. This year, we have a complete package,” Hari said.

Tying up with a global brand has opened mammoth prospects of growth for GPPL. “It was last year that Repsol said thatit’s eyeing a JV with GPPL. We also signed an agreement permitting us to sell their wares in neighbouring countries like SriLanka, Nepal, and Bhutan. Through the JV, they will put their full muscle power behind us in terms of technology, production,portfolio, and also getting in OEMs to work with us,” he said, not divulging further details.http://www.deccanherald.com/content/594793/gppl-plans-ink-jv-spanish.html

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Oil, Lubricants & Alternative Fuels

News Magazines

New Mercedes-AMG E63 Estate revealed ahead of Geneva Autocar India(Feb 06)

Mercedes has revealed the new AMG E63 Estate. Capable of hitting 0-100kph in 3.5sec in range-topping S 4Matic+ guise, it is0.2sec faster than the Audi RS6 Avant.

Using the same twin-turbocharged 4.0-litre V8 engine as the sedan, the standard E63 4Matic+ has 571hp and 748Nm of torque.The most popular model, however, is expected to be the range-topping E63 S 4Matic+, which has added turbocharger boostpressure and other power-enhancing tweaks, allowing it to produce 611hp and 849Nm.

The engine also has a cylinder deactivation system fitted as standard that Mercedes-AMG claims helps to improve efficiency.

Similar to other recent AMG models, including the E63 sedan, the driver can pick from four driving modes – Comfort, Sport,Sport Plus and Individual. The S 4Matic+ version also comes with a fifth driving mode, Race, which is designed especially for drivingon circuits.

The E63 Estate gets a nine-speed SpeedShift MCT automatic gearbox, featuring a so-called wet start-off clutch and steeringwheel-mounted shift paddles. Further driveline developments include a mechanical differential lock for the E63 4Matic+ andfaster-acting electronic differential lock on the E 63 S 4Matic+.
Both models will be available only with AMG's Performance4Matic+ four-wheel-drive system.

Despite having four-wheel drive, AMG offers a so-called Drift mode on the S 4Matic+. Activated by shift paddles, it prompts thefour-wheel drive system to deliver drive exclusively to the rear wheels, remaining engaged until the driver deactivates it.

Echoing the E63 sedan, the model’s styling is intended to set it further apart from regular E-class Estate models than theprevious generations. It is also 27mm wider, with the wheel arches accommodating the greater track width and larger wheels on thefront axle.


As the most practical E63, the estate version offers boot capacity of 640 to 1,820 litres, which Mercedes claims is the largest in theperformance estate segment. Its rear seat has a new feature: it can be positioned at a 10-degree steeper angle to create an extra30 litres of boot volume. The seats can also be folded down electronically in a 40:20:40 split.

Set to make its global debut at the Geneva motor show, the Mercedes-AMG E63 Estate will on sale in international markets thisApril. From launch, the S 4Matic+ will be available only as an 'Edition 1' special model. This has grey or black paintwork,

AMG’s Night Package and light grey strips above the side sill panels. It also gets 20-inch wheels painted in matt black withgloss rims.http://www.autocarindia.com/auto-news/new-mercedes-amg-e63-estate-revealed-ahead-of-geneva-404110.aspx

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2017 BMW 5-series Touring revealed Autocar India(Feb 06)

BMW has revealed the new 5-series Touring in pictures ahead of its debut at the Geneva motor show in March.

The Mercedes-Benz E-class Estate and Audi A6 Avant rival is 36mm longer, 8mm wider and 10mm taller than the outgoing 5-seriesTouring and sits on a 7mm longer wheelbase. The increase in dimensions means passengers benefit from more head, shoulder andlegroom. BMW says the new model has enough space for three child seats to be fitted across the rear bench.

The new 5-series Touring’s boot has a 570-litre capacity with the rear seats up and 1,700 litres with the seats folded. Therear bench has a 40/20/40 split. The car also features a power-operated tailgate as standard, with ‘hands-free’opening available as an option.

Despite being larger and more spacious, the car is around 100kg lighter than its predecessor.Set to launch internationally in July, the 5-series Touring will be available with a choice of two diesel engines and two petrol units. A2.0-litre four-cylinder 520d is capable of producing 191hp, while the 3.0-litre straight-six 530d has 265hp on offer. BMW’sxDrive four-wheel drive is an option on the 530d.

The petrol line-up includes the 530i and 540i xDrive. The former uses a 2.0-litre four-cylinder unit with 251hp and the latter a 340hpstraight-six. On the latter, xDrive is offered as standard and is the quickest derivative at launch. According to BMW, it can cover the0-100kph sprint in 5.1sec.

The 520d comes with a six-speed manual gearbox as standard, but an eight-speed Steptronic automatic is optional. All othermodels get the automatic gearbox.

Air suspension is fitted as standard at the rear axle, and that means the new 5-series Touring can carry loads of up to 730kg– an increase of 120kg over its predecessor’s capability. The car will get the option of dynamic damper control, rollstabilisation and active steering, as well as M Sport suspension on xDrive models.

The cabin will feature the same kit as the 5-series sedan, including an 8.8-inch infotainment touchscreen with BMW’s latestiDrive software. The system can be controlled via touch, gesture or voice commands. An inductive phone charging point, AppleCarPlay and a Wi-Fi hotspot also feature.

Safety kit and driver assist features include collision warning and pedestrian warning with city braking, cross traffic warning, activeside-collision protection and lane control assistant, which can maintain the car’s path in a motorway or autobahn lane atspeeds of up to 209kph.http://www.autocarindia.com/auto-news/2017-bmw-5-series-touring-revealed-404092.aspx

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Maserati Ghibli facelift to debut in 2018 Autocar India(Feb 06)

The Maserati Ghibli will be facelifted internationally in 2018 with light visual updates and new trim levels.

The camouflaged development car spotted reveals that the BMW 5-series and Mercedes E-class rival will get restyled bumpers atboth ends and a new front grille.

Little change is expected inside because the model was recently updated with a new infotainment system and dashboard design.However, the trim levels are likely to be revised to match those offered in the larger Quattroporte.

Like its sibling, the Ghibli will gain GranLusso and GranSport trims, which will replace the current car’s Luxury and Sporttrims.

The car’s 3.0-litre V6 diesel and petrol powertrains were recently given extra power, so will most probably arrive unchangedfor 2018. The diesel now produces 275hp, while the petrol offers up to 410hp and can accelerate the car from 0-100 in 5sec.http://www.autocarindia.com/auto-news/maserati-ghibli-facelift-to-debut-in-2018-404106.aspx

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Tata Tiago long term review, second report Autocar India(Feb 06)

In our first report, I extolled the Tiago’s amazing quality and how Tata’s big reliability bogey had finally beenconquered. But I spoke too soon.

Within days of penning (or should I say typing) the last report, the infotainment system went kaput. The display went blank and noamount of prodding the power button or tapping the screen could make it come alive. The infotainment system is possibly the thirdmost difficult thing to live without in a car (I would rate the horn and air con as first and second), and so an appointment with thenearest Tata service centre was booked immediately. The Tiago’s first visit to the workshop at 3,700km was an unscheduledone.

The system was quickly fixed and the car was returned in a day, but, acutely aware of how hard Tata Motors has been working tomake its cars bug free, I was curious to know what went wrong. Apparently, it’s a software malfunction which simply hangsthe infotainment system, and, as with your phone, you need to reboot the system. But how? Simply take out the fuse and put it backin! Easier said than done because to access the fuse box means unfastening the dash panel under the steering. A friendly Tatatechnician showed us how to do it but it’s a job best done in the workshop. This seems to be a common problem with theTiago’s Harman system and until a software update comes along, it’s good to have this DIY knowledge. Iwon’t hold this against Tata Motors, because, for a company historically plagued with quality issues, it has come a long, longway and niggles like this are becoming more the exception than the norm. And since that glitch, the infotainment system is workingflawlessly. Fingers crossed.

Otherwise, it’s been business as usual for the Tiago, which has gone about daily life in Mumbai without a fuss. Thesuspension is still one of the best bits of the Tiago and it silently and efficiently smoothens out ridges and ruts. It’s awell-known fact that Mumbai’s roads seriously shorten the lifespan of any car, but I have to say that the Tiago doesn’thave a squeak or a rattle and still feels new. But it’s not ‘new’ anymore. There are quite a few Tiagos on theroad and many of them in Sunburst Orange which seems to be a popular choice of colour with the Hyundai i10 and Ford Figo aswell.

Fuel efficiency has been remarkably good, especially for a car weighing 1,012kg. And adopting a relaxed driving style, I squeezedout 12.7kpl which is impressive when you consider I never used ‘Eco’ mode. This dullest of driving modes makes thecar painful to drive, especially since the ECU calibration of this engine is not fully sorted. There are lots of flat spots and a hesitantpower delivery, which actually takes away from the driving experience as does the gearshift, which is a bit rubbery.

So, while the Tiago may not be a particularly exciting car to drive, it surely is a happy commuter.http://www.autocarindia.com/auto-reviews/tata-tiago-long-term-review-second-report-404114,0.aspx

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2019 Porsche 911 to do away with naturally aspirated engines Autocar India(Feb 06)

The eighth-generation Porsche 911 line-up which includes the GT3 will only use turbocharged six- cylinder, marking the end ofnaturally aspirated units in the line-up.

The standard models are set to get an extra 10-15hp over today’s Carrera and Carrera S when they arrive in internationalmarkets in 2019. Meanwhile, the GT3 will deliver 507hp.

A hybrid 911 will also be introduced to the range in 2020. It will run the flat-six with an electric motor providing limited all-electric andperformance-boosting functions.

Recently spotted testing for the first time in the Arctic Circle, the 992-generation 911 remains the same length as today’s 991model, but the width of the car is set to increase slightly due to wider tracks. There’s also only a slight increase inwheelbase.

The 992 will be based on what is billed as a new modular sports car platform, although in reality it is similar to the current 991platform. With a modified rear end, it will be used under the next-generation versions of the entry-level Boxster and Cayman modelsand could also influence the design and engineering of future Audi R8 and Lamborghini Huracán models.

The eighth-generation 911 will have vastly improved active aerodynamics with a full-width rear wing. An active front spoiler is also apossibility.

While the current facelifted 911 range has benefited from a number of weight savings, the 992 will receive even more, thanks to agreater proportion of high-strength steel and aluminium. However, carbon-fibre will not be used in the structure of the standardmodels and will instead be reserved for high-end models such as the GT2 and GT3.

Four-wheel-drive versions will also become more efficient due to new electronic control software.

The interior, meanwhile, is expected to closely reflect that found in the second-generation Panamera which is set to launch in Indianext month.http://www.autocarindia.com/auto-news/2019-porsche-911-to-do-away-with-naturally-aspirated-engines-404107.aspx

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International News

Toyota, Suzuki near technology partnership agreement: Nikkei ReutersSee this story in: The Economic Times(Feb 05)

New Delhi: Japan's Toyota Motor Corp and Suzuki Motor Corp are nearing a partnership agreement to develop technology,including self-driving, the Nikkei business daily reported on Saturday.

The two Japanese automakers could announce a deal as soon as Monday, the Nikkei reported. The partnership will also coverareas such as development and procurement, which includes applications for information technology and sharing sources for partsin Japan and abroad, the Nikkei said.

Suzuki and Toyota's unit Daihatsu Motor will continue to sell automobiles under their separate brands to avoid risks related toantitrust laws. The companies will collaborate in ways that steer clear of antitrust risk, the business daily reported.

Toyota and Suzuki said in October that they plan to explore a possible partnership, citing technological challenges and the need tokeep up with consolidation in the global auto industry.

Suzuki and Toyota did not immediately respond to requests for comment outside regular business hours.http://auto.economictimes.indiatimes.com/news/industry/toyota-suzuki-near-technology-partnership-agreement-nikkei/56965359Toyota, Suzuki poised to unveil partnership on MondayThe Indian Expresshttp://indianexpress.com/article/business/companies/toyota-suzuki-poised-to-unveil-partnership-on-monday-4509821/

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Hyundai Motor plans Pakistan venture with billionaire Mansha Faseeh Mangi / BloombergSee this story in: Business Standard(Feb 05)

Hyundai Motor, South Korea’s biggest automaker, plans to partner with billionaire Mohammad Mian Mansha’s NishatMills to start assembling cars in Pakistan as vehicle sales accelerate in the $271-billion economy.

Nishat Mills’ venture, which includes Hyundai and Sojitz, will assemble passenger and one-ton commercial vehicles inPakistan, the company said in a stock exchange filing in Karachi on Friday. Nishat wants to finalise the agreement after a feasibilitystudy within four months, Norez Abdullah, an adviser to Nishat’s automobile and power division, said by phone from Lahore.

The South Korean company joins Renault and Kia Motors in planning to assemble vehicles in Pakistan to take advantage of PrimeMinister Nawaz Sharif’s proposal to offer incentives such as lower levies to lure carmakers. Passenger car sales in Pakistanclimbed 19 per cent to 180,079 vehicles in the year to June, the highest since 2007, as the economy expanded at the fastest pacein a decade.

“There is a huge vacuum in the auto sector,” Abdullah said. “There aren’t enough options beingdelivered by Japanese auto carmakers for the past 20 years. People have started to look abroad for choices.”

Pakistan’s automobile market is dominated by Japanese automakers such as Toyota Motor, Honda Motor and Suzuki Motor.Suzuki’s local unit plans to invest $460 million on a second plant that may start production by end of 2018, according to ane-mailed statement by Pakistan’s finance ministry on December 15.

Mansha’s Nishat Mills is Pakistan’s largest textile exporter, while his MCB Bank is the nation’s second-largestbank by market value. Nishat Mills shares rose 2 per cent to 169.52 rupees, the highest in a week, at the close of trading in Karachi.http://www.business-standard.com/article/international/hyundai-motor-plans-pakistan-venture-with-billionaire-mansha-117020500031_1.htmlHyundai to assemble cars in Pak. The Hinduhttp://www.thehindu.com/todays-paper/tp-business/Hyundai-to-assemble-cars-in-Pak./article17196008.ece

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First big German customer sues Volkswagen in diesel affair ReutersSee this story in: The Financial Express(Feb 06)

Hamburg: Fish distributor Deutsche See is suing Volkswagen for misrepresenting a fleet of vehicles it leased as environmentallyfriendly, becoming the first major German customer to sue Europe’s biggest car maker over its diesel-test cheating.

Volkswagen already faces numerous lawsuits from individual owners, regulators, states and dealers, many of them in the form of

class-action cases in the United States. This is the first case brought by a corporate customer in its home market.

Bremerhaven-based Deutsche See, which leases about 500 vehicles from Volkswagen, said it had been unable to reach anout-of-court settlement. Talks had broken down after Volkswagen replaced the relevant managers with lawyers and PR managers.

German tabloid Bild am Sonntag said Deutsche See was suing for 11.9 million euros ($12.8 million). Deutsche See was notimmediately reachable to comment on the sum.“Deutsche See only went into partnership with VW because VW promised the most environmentally friendly, sustainablemobility concept,” said a statement from Deutsche See, which won a sustainability prize in 2010.

Volkswagen said on Sunday it had not yet seen the charge and so could not comment on it.

Deutsche See said it had filed its complaint for malicious deception at the regional court in Braunschweig, nearVolkswagen’s Wolfsburg headquarters. The court was not reachable on Sunday to confirm it had received the case.

Volkswagen admitted in September 2015 it had used software to cheat diesel-emissions tests in the United States.http://www.financialexpress.com/industry/first-big-german-customer-sues-volkswagen-in-diesel-affair/538794/

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Ex Volkswagen chairman Ferdinand Piech testifies in Martin Winterkorn probe ReutersSee this story in: The Economic Times(Feb 05)

Frankfurt: Volkswagen's former Chairman Ferdinand Piech, who left the company following a showdown with ex-Chief ExecutiveMartin Winterkorn in 2015, has testified to prosecutors investigating Winterkorn's involvement in the carmaker's diesel scandal,according to Winterkorn's lawyer.

"Winterkorn learned a few days ago of the existence of more detailed testimony by the former chairman, Prof. Dr. F. Piech," alawyer for Winterkorn said in an emailed statement, adding that Winterkorn did not know any details about what Piech toldprosecutors.

The prosecutor's office was not reachable for comment on Friday.

Piech, the carmaker's former chief executive and chairman who spearheaded its global expansion, quit in April 2015 after more thantwo decades at Volkswagen's helm following a power struggle with then-CEO Winterkorn.

Prosecutors in Braunschweig near Volkswagen's Wolfsburg headquarters said last week they were investigating Winterkorn oversuspicions of fraud, citing indications that Winterkorn may have known about Volkswagen's cheating on emissions tests sooner thanhe has said publicly.http://auto.economictimes.indiatimes.com/news/industry/ex-volkswagen-chairman-ferdinand-piech-testifies-in-martin-winterkorn-probe/56966890

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Ford F-150 Raptor Now On Its Way To Customers In China The Economic Times(Feb 05)

Dearborn: Ford has started shipping its all-new 2017 F-150 Raptor to its customers in China, marking the first time any U.S.-builtF-Series truck has been officially exported to China.

“Ford is one of America’s top exporters, and F-150 Raptor’s appeal and unmatched off-road performance hasearned the truck a loyal following around the globe,” said Joe Hinrichs, Ford president, The Americas. “Export toChina enables us to bring a new group of enthusiasts into the Ford family.”

Exported as a four-door SuperCrew model, the second-generation F-150 Raptor leverages is new technologies, including amilitary-grade, high-strength, aluminum-alloy cab, while its muscular body is uniquely composite. The all-new Raptor features anexclusive high-output version of the 3.5-liter EcoBoost® engine mated with 10-speed automatic transmission and advancedsix-mode Terrain Management System.

“Raptor’s unique looks and capability have generated amazing buzz at every auto show we’ve brought it toaround China,” said David Schoch, Ford group vice president and president, Ford Asia Pacific.

“F-150 Raptor is another example of our commitment to offer a wide range of vehicles for customers in China –everything from SUVs to high-performance cars and trucks.”

F-150 Raptor is one of more than 12 new Ford Performance vehicles coming by 2020. It joins Ford GT, Focus RS, Shelby GT350and Shelby GT350R in a growing Ford Performance lineup.”

Ford F-150 Raptor is built at Dearborn Truck Plant in North America.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/uv/ford-f-150-raptor-now-on-its-way-to-customers-in-china/56970108

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Takata taps KSS as final bidder for restructuring deal ReutersSee this story in: The Economic Times(Feb 05)

Tokyo / Detroit: Takata Corp has selected Chinese-owned Key Safety Systems (KSS), a US-based auto parts supplier, as the finalbidder to extend financial support for the Japanese airbag maker, three sources with knowledge of the process have told Reuters.

The steering committee leading the selection process told Takata's automaker clients that it has tapped KSS, owned by China'sNingbo Joyson, to provide financial support for the company, the sources told Reuters on Saturday. Both Takata and KSS declinedto comment.

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective airbag inflators that have been linked to at least 16 deaths globally.

Previously, Reuters and other media had reported that autoparts suppliers including Sweden's Autoliv Inc had been in the running tobid for Takata.

Takata set up a steering committee last year to lead the process of finding a backer, appointing investment bank Lazard ltd as anadvisor on the search.

Established in 2004, Ningbo Joyson produces a range of car parts from steering wheels to electronic control units, and countsautomakers Volkswagen, Ford Motor Co, and General Motors Co among its customers. It has been expanding its global operations,acquiring German supplier Preh Group in 2011 and KSS last year.

Few DetailsA successful bid could see KSS take some form of control over Takata, which continues to struggle with the financial and corporatefallout of the automotive industry's biggest-ever product recall, which began in 2008.

Reuters had previously reported that KSS was preparing to bid for Takata with private equity firm Bain Capital.

With around 100 million of its potentially defective airbag inflators slated for recall, the company has sought help from rivalsincluding Autoliv and Japan's Daicel Corp to supply replacement parts.

Last month, the company agreed to plead guilty to criminal wrongdoing in the United States, where the majority of airbag-relateddeaths have occurred, which resulted in a $1 billion fine. It also faces civil lawsuits.

Other people with knowledge of the restructuring process said no decision has been made on the details of Takata's restructuring.

Potential bidders for Takata have favoured a court-led turnaround of its Japanese operations, which would cap their exposure toTakata's existing liabilities, estimated by some analysts to be as high as $10 billion for recall costs alone.

Such an option could deal a huge blow to shareholders, including the founding Takada family, a major investor. Last week, thecompany in a statement said it opposed a court-led restructuring, which it says could disrupt its supply-chain and impact its ability topay suppliers.

The company is considering a bankruptcy filing for its US unit TK Holdings, sources told Reuters.

Separate sources have told Reuters that automakers, which have been footing most of the recall costs, remain divided over whethera restructuring process should be court-ordered or a privately-arranged agreement.

While a court-ordered process would ensure transparency in identifying Takata's liabilities and offer automaker clients legal coverwhen convincing shareholders to approve any deal, sources say carmakers may stand to recoup more recall costs from Takataunder a turnaround plan arranged out-of-court.

A senior executive at Honda Motor Co, Takata's biggest customer, on Friday declined to comment on its preference for arestructuring plan, but said any agreement should make the stable supply of replacement parts a priority.http://auto.economictimes.indiatimes.com/news/auto-components/takata-taps-kss-as-final-bidder-for-restructuring-deal/56966828

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Defective air bags found in repaired BMWs, spurring fresh recall Ryan Beene | BloombergSee this story in: Business Standard(Feb 05)

BMW is recalling about 230,000 vehicles in the US after discovering that some may have been fitted with defective Takata air-baginflators during repairs, such as after a crash in which the devices deployed.

The affected vehicles used air bags manufactured by Petri, a German partsmaker bought by Takata in 2000. If those vehicles

needed a replacement air-bag module, Takata PSDI-4 inflators would have been used, BMW spokeswoman Rebecca Kiehne said.

The faulty Takata inflators can explode in a crash and spray vehicle occupants with metal shards. The defect has been linked to atleast 17 deaths worldwide and prompted one of the largest automotive recalls in history.

Michael Brooks, acting executive director at the Center for Auto Safety, a Washington-based advocacy group, says otherautomakers could be at risk of a similar situation if Takata parts were used to restore deployed air bags. He urged the NationalHighway Traffic Safety Administration to investigate.

“NHTSA should request information from all manufacturers that have Petri air bags, at a minimum,” Brooks said.“If the Takata air bags have been replacing Petri air bags, they have to figure out the entire population of affected vehiclesand have them inspected and replaced if necessary.”

Messages left with NHTSA were not immediately returned. The affected BMWs were manufactured earlier than the ones alreadyunder recall for defective air bags, and brings the total to 1,568,247, Kiehne said. Some of the vehicles were previously under recallfor passenger-side Takata inflators, she said.

The newly affected vehicles include certain 2001-2002 X5 SUVs, 2000-2002 3 Series and 2001-2003 5 Series models. Motoristscan check the recall status of their vehicle at www.safercar.gov.

BMW dealers will inspect the affected vehicles and replace any Takata air-bag inflators they discover, Kiehne said BMW learned ofthe issue after an owner of a 2000 3 Series asked the company to identify the type of inflator in the vehicle, according toBMW’s recall notice posted on the NHTSA’s website.

The automaker later discovered that “at some point in its lifetime” a Takata PSDI-4 air bag inflator was installed in thevehicle as a repair part, BMW said in its chronology.

Approximately 14,600 Takata inflators were shipped to the US for use as replacements or spare parts from 2002 to 2015, BMW saidin the recall notice. A large portion of those may have been installed on vehicles already covered by Takata recalls, but some mayhave been fitted to the earlier population, BMW said.http://www.business-standard.com/article/international/defective-air-bags-found-in-repaired-bmws-spurring-fresh-recall-117020400818_1.html

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Constructive meeting with Trump: GM CEO IANSSee this story in: The Economic Times(Feb 6)

Washington, The chairwoman and CEO of General Motors has described her meeting with US President Donald Trump and agroup of executives of major corporations as "constructive", a media report said.

The meeting discussed the nation's economic policies on Friday, Efe news reported.

"I'm pleased to have been part of a very constructive discussion on how we can all work together on policies that support a strongand competitive US economy," said Mary Barra in a statement.

After the meeting, GM announced it will invest $47 million in two production plants in the US "to prepare for future productprograms".

GM added that "the combined investments will result in 230 retained jobs in the US".

The investments would be made in plants at Spring Hill, Tennessee, and Bay City, Michigan.

The investment of $27 million in Spring Hill - which currently produces the Cadillac XT5 and Buick Acadia - will allow the plant toassemble a "right-hand-drive crossover for export to Australia as the Holden Acadia".

The investment of $20 million in the Bay City plant, which produces components for the motors of the Chevrolet, Buick, GMC andCadillac brands, would allow it to start up future engine programmes.

Like other car manufacturers, GM has been slammed in the past by Trump for producing vehicles in Mexico and then exportingthem to the US.

Since Ford announced the cancellation of a $1.6 billion investment in Mexico, and other manufacturers like Fiat Chrysler (FCA) andToyota committed themselves to invest in the US, Trump has temporarily withheld his criticism of carmakers.http://auto.economictimes.indiatimes.com/news/industry/constructive-meeting-with-trump-gm-ceo/56980742

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Peugeot to assemble two car models in Kenya ReutersSee this story in: The Economic Times(Feb 05)

Paris: France's PSA Group, the maker of Peugeot, Citroen and DS cars, said on Saturday it had signed a contract to startassembling two car models in Kenya.

PSA, which wants to reduce its dependence on European sales, will assemble the Peugeot 508 and 3008 models from kits ofpre-assembled modules with local partner URYSIA, its long-standing Kenyan importer and distributor.

The venture will initially produce about 1,000 vehicles annually, PSA said. The Peugeot brand previously assembled vehicles in theeast African country between 1974 and 2002.http://economictimes.indiatimes.com/news/international/business/peugeot-to-assemble-two-car-models-in-kenya/articleshow/56973216.cms

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Maserati North America recalls at least 39,381 vehicles APSee this story in: The Economic Times(Feb 6)

Maserati North America is recalling at least 39,381 vehicles after it discovered two separate defects that could cause fires.

In certain 2014-2017 Quattroporte, Ghibli, and Levante vehicles, the luxury automaker says that adjusting the front seat may causethe seat wiring harness to rub against metal points, which could eventually lead the seat to malfunction.

In rare cases, it could result in an electrical short and risk of fire. The company expects to begin the recall of 39,381 vehicles for thedefect on March 21.

In a separate case, Maserati said that certain 2014-2015 Quattroporte and Ghibli vehicles have fuel lines that may leak fuel. Itexpects to begin the recall of 10,879 vehicles for the defect on Feb. 28.http://auto.economictimes.indiatimes.com/news/industry/maserati-north-america-recalls-at-least-39381-vehicles/56982368

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EnBW, Bosch to collaborate for developing batteries ReutersSee this story in: The Economic Times(Feb 05)

Frankfurt: German utility EnBW on Friday said it would cooperate with car supplier Bosch on the development of batteries for theenergy market, highlighting the importance of storage technology across industries.

In a first step, the companies will form a project company to build battery modules for EnBW's power plant in Heilbronn, Germany,aiming to stabilise the energy grid in times of demand swings, a major problem in times of increased supply from wind and solar.

No financial details were disclosed.http://auto.economictimes.indiatimes.com/news/auto-components/enbw-bosch-to-collaborate-for-developing-batteries/56967001

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Polish new car registrations post best January in 16 years ReutersSee this story in: The Economic Times(Feb 05)

Warsaw: New car registrations in Poland in January rose by 17.2 percent year on year to 41,935, their highest January level in 16years, data published by the Samar research institute showed on Friday.

New registrations fell 15.4 percent month on month, Samar said. They have grown in annual terms for 22 consecutive months,mostly led by corporate purchases, he said.

"Currently, corporate buyers are the driving force of registrations. They bought 27 percent more passenger cars in January than ayear ago," Samar said in a statement.

Top-selling car models were the Skoda Fabia and Skoda Octavia, produced by Skoda, the Czech subsidiary of Volkswagen,followed by the Opel Astra, produced by Germany's Adam Opel, part of General Motors.http://auto.economictimes.indiatimes.com/news/industry/polish-new-car-registrations-post-best-january-in-16-years/56968922

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Lithuania builds 'dream' Tesla factory with Minecraft video game AFPSee this story in: The Economic Times(Feb 6)

Vilnius: Lithuanian entrepreneurs eager to woo Tesla Motors to their shores have built an entire factory to impress the electriccarmaker... inside the Minecraft video game.

Responding to a plan announced last year by Tesla CEO Elon Musk to build a second factory in Europe, 40 gamers used thepopular online building game to construct a virtual replica -- in just 35 hours -- of the company's battery production plant.

But this time, instead of the original site in the US state of Nevada, the plant was located in the Baltic EU state.

The gamers then posted a 2:28-minute video on YouTube, showing off their model, which is complete with solar energy panels andelectricity generators.

"Welcome to the dream," reads a caption seen in the 3D video as the viewer is shown through the virtual plant.

It appears the gamers knew how to appeal to the tech geeks at Tesla, which tweeted on Saturday: "Lithuania knows the way to ourheart".

Lithuanian entrepreneur Vladas Lasas, who was behind the initiative, said his nation of three million faces tough competition from atleast 10 European countries.

"We have teams to build a virtual factory in less than a week. And we could have real teams working in real factories within a coupleof years," he told AFP on Saturday.

Lasas said the new "gigafactory" would provide a significant boost to the Lithuanian economy, and could help curb emigration byyoung people to richer Western EU states.

Tesla has another plant in the Netherlands.

Lithuanian Economy Minister Mindaugas Sinkevicius hailed the initiative and said "it was only the beginning in the effort to haveTesla in Lithuania".

"This non-governmental initiative proves that our IT specialists are not only talented but also inventive enough to surprise the world,"he said.http://auto.economictimes.indiatimes.com/news/industry/lithuania-builds-dream-tesla-factory-with-minecraft/56982393Lithuania builds Tesla factory with MinecraftThe Times of Indiahttp://timesofindia.indiatimes.com/auto/miscellaneous/lithuania-builds-tesla-factory-with-minecraft/articleshow/56985457.cms

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China imposes administrative penalties on seven new energy vehicle makers ReutersSee this story in: The Economic Times(Feb 05)

Beijing: China has imposed administrative penalties on seven "new energy" vehicle makers for producing and selling vehicles withbatteries that had lower power capacity than advertised.

The companies are China Youngman Automobile Group Co, SAIC Tangshan Bus Ltd, Lifan Group Corp, Zhengzhou Nissan,Shanghai Sunwin Bus, Nanjing Special Auto Manufacturing and Chongqing Hengtong Bus, the Ministry of Industry and InformationTechnology said in a statement on its website on Saturday.

The government has accused dozens of carmakers of breaking rules on green car subsidies, casting a pall over China's drive tosupport the industry and combat heavy pollution, which affects large swathes of the country.

China has spent billions of dollars in subsidies for the production of such vehicles. The plan has helped ramp up sales of electricand plug-in hybrids.http://auto.economictimes.indiatimes.com/news/industry/china-imposes-administrative-penalties-on-seven-new-energy-vehicle-makers/56971165

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Economy

Jaitley’s fiscal pledge, easing inflation make case for a rate cut on February 8, say ET poll participants Saikat DasThe Economic Times(Feb 6)

Mumbai: The Reserve Bank of India is likely to cut the policy rate by a quarter percentage point, with the government adhering tofiscal prudence amid growth optimism and easing inflation, according to an ET poll of 18 market participants. RBI is scheduled toannounce the monetary policy on February 8, a week after the Budget was unveiled.

"A conservative fiscal policy, easing inflation trajectory and short-term risks to growth keep the door open for further easing," saidRadhika Rao, a Singapore-based economist at DBS Bank. "The government plans to adhere to fiscal discipline while also makingroom for inclusive growth policies."

Finance minister Arun Jaitley’s pledge to bring the fiscal deficit back on track despite some deviation in the next fiscal yearhas encouraged expectations of further moderation in the policy. Added to that is the government’s plan to step up spendingon infrastructure. "Budget’s underlying philosophy on fiscal prudence too has underscored a strong case for RBI rate cut,"said Shubhada Rao, chief economist, Yes Bank. "Together with easing monetary policy and fiscal expenditures towards capex, thisshould push up the country’s growth."

The key concerns weighing on the six RBI monetary policy committee members in seeking to push growth won’t be inflationbut overseas factors, analysts said. These include US policy changes, rate increases by the US Federal Reserve andChina’s growth outlook "RBI's biggest challenge this year will be to strike a right balance between supporting growth andincreased external uncertainties," said Anubhuti Sahay, chief India economist at Standard Chartered. "Retail inflation is unlikely topose any challenge with easing food prices and contained core inflation (excluding gold)… Increased infrastructure and ruralallocation are key positives from the Budget."

The central bank left rates unchanged at the last policy announcement on December 7, despite widespread expectations of a ratecut. Wednesday’s policy statement will also be keenly parsed for anything RBI has to say about demonetisation, which wasannounced on November 8. With the window for deposits of old notes at banks having closed on December 30, the central bank willhave a better understanding of how much cash has come into the system.

BOND WORRYDomestic debt securities could well lose their sheen in the event of the Federal Reserve raising rates, thus narrowing the differentialwith Indian bonds, adding to RBI’s policy complications.

During the fiscal, the benchmark bond yield has dipped by 110 basis points, pushing prices up. One basis point is one hundredth ofa percentage point. Retail inflation, a key trigger for rate actions, has been in line with RBI’s 5% target for March end. TheConsumer Price Index dropped to 3.4% in December from 6% in July 2016.

Banks, meanwhile, have slashed lending rates across the board, emboldened to pass on RBI’s previous rate cuts asdeposits of demonetised notes have left the system flush with funds. Overall system liquidity is running at more than Rs 5 lakhcrore, according to India Ratings, against a deficit nearly a year ago. But with remonetisation picking up, that’s expected torecede ahead of the fiscal year-end as withdrawal limits are eased, shoring up market rates, experts said.

"With commercial banks already having cut their lending rates by about 80-90 bps (basis points) in one clip earlier this year, it isunlikely that they will reduce the rates any further without the policy rate being lowered further," Kaushik Das, Mumbai-basedeconomist at Deutsche Bank, said in a note.

In the current financial year, the central bank has collectively slashed the repo rate, at which banks borrow short-term funds fromRBI, by half a percentage point to 6.25%.

"There has already been significant lending rate transmission, which is expected to persist in the near future," said SaugataBhattacharya, chief economist at Axis Bank.http://economictimes.indiatimes.com/news/economy/policy/jaitleys-fiscal-pledge-easing-inflation-make-case-for-a-rate-cut-on-february-8-say-et-poll-participants/articleshow/56989378.cms

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Disinvestment receipts to touch Rs 45,000 crore: Arun Jaitley PTISee this story in: Daily News & Analysis(Feb 05)

With less than two months to go for the current financial year to come to a close, Finance Minister Arun Jaitley has exudedconfidence that receipts from PSU disinvestment will touch Rs 45,000 crore in 2016-17.

About Rs 30,000 crore have been raised through minority share sale by way of OFS, share buyback and CPSE ETF, so far in thecurrent fiscal. "It's true this government does not make a song and dance about disinvestment. I fix a target in every Budget...thisyear, I am going to touch Rs 45,000 crore in one year," he said at a panel discussion on TV channel Times Now. Referring to hisBudget Speech, Jaitley said that he had announced listing of a large number of PSUs on the stock exchanges.

"So, PSUs which are not listed, will now be going into the stock exchange...(and) once they go into stock exchange again willnecessarily entail disinvestment of each one of them, and some of them are huge," the Finance Minister said. In his Budget speechon February 1, the Finance Minister had also said that the government will put in place a revised mechanism and procedure toensure time-bound listing of identified CPSEs as listing will foster greater public accountability and unlock their true value.

The government aims to raise Rs 72,500 crore through disinvestment of PSUs, including listing of three railway PSUs -- IRCTC,IRFC and IRCON -- during 2017-18. Besides, the government also plans to sell its stake in five PSU general insurance companieswhich is expected to fetch about Rs 11,000 core.

Fiscal 2016-17 is the seventh year in a row when the government would not be meeting the disinvestment target fixed in theBudget. As much as Rs 56,500 crore was budgeted to be raised through PSU disinvestment in the current fiscal.http://www.dnaindia.com/money/report-disinvestment-receipts-to-touch-rs-45000-crore-jaitley-2312248

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