Indian Auto Industry Update August 4th, 2011

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Indian Auto Industry Update

04 Aug 2011

Industry

Sale of land: HM in Mamata crosshairs

Tata Motors bond risk jumps as interest rates damp growth

Interviews & Features

Turbocharged race

Ferrari: Racing is in its blood

Cars, SUVs, MUVs

GM to introduce five new models by 2012

GM launches Chevrolet Beat in Kerala market

Audi launches the new A6 sedan

Audi to enter used car business by year-end

Nissan India aims to triple sales to 40k cars in FY12

Volume game: Nissan plans small car in Rs 2-4 lakh range

BMW launches initiative to help create sustainable cities

Commercial Vehicles

Premium trucks on fast track

Ashok Leyland sales up 16% in July

Ashok Leyland-Nissan revive greenfield project

Tata Motors to train truck drivers in sales push

GM India ropes in new director to beef up its commerical vehicles business

Construction & Agri Machinery

BEML opens Thai front with Rs 120-crore deal

2/3 Wheelers

E-Bikes

Components

Wabco-TVS renamed Wabco India

Allied Industries

Ceat Q1 net loss at Rs 41.90 cr



Emissions / Environment

Finance & Insurance

Oil, Lubricants & Alternative Fuels

International News

Quake-hit Suzuki Q1 profit falls 20%

Now, Toyota related information on your smartphone

Business Magazines

Economy

Rupee sheds 13 paise against dollar

Sensex sheds 169 points on growth concerns

Closings Last Financial Closings......

Industry

Sale of land: HM in Mamata crosshairsProbal BasakBusiness Standard (Web & Print Edition)

Kolkata: The Mamata Banerjee government is likely to issue a showcause notice to C K Birla Group’sautomobile company, Hindustan Motors (HM), for allegedly understating by Rs 200 crore the sale of excessland at its factory site in 2007.

Government sources say they also believe the company gave a false picture of what it proposed to do withthe money from the sale. HM says the charges are untrue.

According to government sources, the state was informed of a Rs 85-crore projected revenue from the saleof excess land in the country’s oldest automobile factory, though HM had allegedly sold the land toBangalore-based Shriram Properties for the development of an integrated information technology townshipfor Rs 285 crore.

This was for 314 acres at its Uttarpara plant in Hooghly district, an official said.

The development seems linked to Chief Minister Mamata Banerjee’s decision to seek details of all unusedland in the possession of various government departments and industrialists, to create a land bank inBengal.

“The chief minister has examined the file. She has asked the departments concerned to take necessaryaction. As of now, it has been decided to send a showcause notice. Prior to that, the government will meetthe company officials to discuss the matter,” a source said.

“The allegations are not only about projecting lower revenue. According to the company’s proposal, the fundwas supposed to be utilised for revival of the plant and payment of workers’ dues, which did not happen.”

An HM spokesperson said: “What they will do is up to the government. A meeting will take place some timethis week. Whatever the government asks, we will tell them. There is no showcause notice as of now.”



He also denied any irregularities in transfer of land. “Whatever information had to be given, we have given itto the state government. It is not proper to discuss it in the public domain. It is strange that questions arebeing raised four years after the deal has happened. Had we done something wrong, the (earlier)government would have taken some action,” he said.

HM’s Uttarpara plant, which produces the Ambassador car, is built on 427 acres. It had a total of 741 acresin its possession till the sale. The proposal to sell the remaining 314 acres was pending before the state

government for more than three years.

Since the Uttarpara land had been vested with the West Bengal government, the company needed approvalfor alternative usage. Finally, in 2006, it got approval from the Left Front government to sell the land. HMentered into an arrangement in 2007 with Shriram Properties to develop a township.

According to government sources, HM, in its proposal, projected Rs 85 crore revenue from the sale, of which Rs 70 crore was to be utilised to revive the plant and Rs 15 crore to repay dues to its workers. Thetownship has not taken off, as the developer is yet to receive clearances from the government.http://www.business-standard.com/india/news/saleland-hm-in-mamata-crosshairs/444816/

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Tata Motors bond risk jumps as interest rates damp growthThe Financial Express (Delhi Print Edition)

The cost of insuring debt of Tata Motors against default is rising the most among global carmakers,underscoring the risk of surging interest rates to an economy that’s grown an average 8.6% since 2006.Five-year credit-default swaps on the Mumbai-based owner of Jaguar and Land Rover have more thandoubled to 528 basis points this year, according to data provider CMA, which is owned by CME Group Inc.Similar contracts on Turin, Italy-based Fiat’s debt have climbed 143 basis points, the second-worstperformance among 13 manufacturers, while those for Renault, France’s second-biggest carmaker, haveadvanced 55. Car sales are sliding in India as the central bank’s moves to rein in the fastest inflation of themajor emerging markets boosts borrowing costs in a country where 66% of the population lives on less than$2 a day.

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Interviews & Features

Turbocharged raceThe Economic Times (Delhi Print Edition)

Depending on whom you ask or what you read, China has between 100 and 250 carmakers. Joint ventureswith the global biggies dominate the top 10 — think General Motors (GM), Volkswagen (VW), Toyota, Ford,

Nissan, Hyundai — and a rash of domestic players makes up the rest of the pack. The sheer number of players may not come as a surprise considering China is the largest car market in the world — in 2010, 13.8million units were sold.

The Indian car market is roughly a seventh of the Chinese one, and at last count, there were a little over 20major players — mostly multinational — in the race with close to 40 brands. The difference: the top three arenot global leaders by any yardstick. There’s no Toyota, GM, VW — the global one-two-three — at the top of the India grid. Rather, there’s Maruti, the affiliate of world No 9 Suzuki at pole position, followed by HyundaiMotors (No 8 globally) and home-grown manufacturer Tata Motors in third spot.

What’s more, the top three rather remarkably control almost 70% of the Indian car market, with the Detroit

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http://www.business-standard.com/india/news/saleland-hm-in-mamata-crosshairs/444816/



giants GM and Ford (globally No 2 and No 4, respectively) relegated to 6th and 7th position, Toyota at No 5and VW at No 8. Much of this, of course, has to do with Suzuki’s early entry into India, via a joint venturewith the government in the early 1980s when the competition at that time was sparse and outdated. Ford,GM, Toyota and Honda began Indian operations over a decade ago but have met with limited successthanks largely to their top-down approach of first launching cars at the higher end of the market wheremargins are fatter but volumes slim.A situation in which global leaders are also-rans with market shares in single digits is unimaginable in most

other parts of the world.

But that situation may not hold for too long back home. For, even though growth in car sales fell by 15% inJuly to touch a two-year low, global auto majors are convinced about prospects in the long haul. AbdulMajeed, auto practice leader at PricewaterhouseCoopers (PwC) expects the Indian car market to more thandouble to five million from 2.2 million units in five years.

ON THE GROWTH PATHIn contrast, growth in developed markets is subdued. In the Eurozone, growth in car sales is expected todecline by 2-4% in 2011. The saviour for global Big Auto, as in the case in many other industrial categories,is of course the much-touted cluster of developing economies. The July skid notwithstanding, car sales arestill expected to grow by 10-12% in India in 2011. “The growth story is intact. This (drop in July) is just atemporary blip. All car manufacturers need to expand operations,” says Sandeep Singh, deputy managingdirector, Toyota Kirloskar Motor, the joint venture in which the Japanese giant holds 89%. “If inflation istamed, interest rates will come down. There is a huge opportunity and we have to move fast with our

expansion plans,” he adds.The world’s largest carmaker by sales, Toyota, intends to boost its share of emerging markets from 40% in2010 to 50% in two to three years on the back of growing sales of fuel-efficient small vehicles. That in a linesums up the name of the game for the auto majors: ramp up capacities at the entry levels with affordableand snazzier models. “The Indian market is much bigger for us now than in the past,” says HiroshiNakagawa, managing director of Toyota Kirloskar Motor.

The renewed focus on the mass market — more than half of the cars sold in India are compacts andhatchbacks — promises to change the name of the game. VW, one of the newer entrants into India — itbegan operations in 2007 — has achieved what many of its global counterparts could not do in more than adecade: a market share of 3% in four years. It has done so by launching competitively-priced models -theVento that was priced lower than the hitherto bestselling Honda City in the mid-size segment; and the Polopremium hatchback is VW's cheapest car in India.Emboldened, VW is now thinking big — very big. Says John Chacko, Volkswagen Group’s chief representative and president and MD, Volkswagen India: “We want to be amongst the top three in India by

2018. Globally we rank third with a market share of 11%. I am sure with a market share of 11% in India wecan be amongst the top three.” Chacko acknowledges that it’s going to be a “long journey,” and that heneeds to get “a whole range of products, the right products and achieve high localisation levels” if he has toget into the top three.

If VW does climb five places, it will also mean that one of the leaders, if not all three, will have to face up to asignificant erosion in share. For, it’s not only VW that can be spotted in their rear view mirrors. Detroit giantsGM and Ford are also threatening to get their act together. What's more, Nissan (ranked No 6 in the world)and Renault have joined the race. The likes of Peugeot-Citroen, Kia, Chrysler and Proton are all itching toget foot to pedal, and finalising their India blueprints.“There is demand but we are all constrained by capacity,” says Michael Boneham, managing director, FordIndia. Perhaps no longer. A week ago the US auto giant announced that it would invest close to $1 billion ina second factory in Sanand in Gujarat to assemble vehicles and make engines.

If Ford has decided to bite the bullet after 13 years in the country, it may have something to do with somenew-found success. Struggling with just a 1.5% market share till a year ago, Ford bounced back smartly tomore than double its share to 3.54%. The success ingredient: The small car Figo, which accounts for threefourths of all cars Ford sold in July. More variants of the Figo are in the works even as the Detroit major recently launched the premium sedan Fiesta. But Ford is clear that that compacts is where the action is — itwill launch eight new such products in 12-18 months.

ROOM FOR ALLSlowdown or no slowdown, the slugfest promises to be fascinating. After all, if the top three control over twothirds of the market, the top five lord over 85% of it; add No 6, 7 & 8 and the share shoots up to close to95%. In effect, this means that there are at least a dozen players slugging it out for a thin sliver of the pie. Is



it going to be worth their while?

“That more than 12 players are fighting for less than 5% market share is not going to kill anybody. There isroom for every car maker,” maintains Neeraj Garg, head of VW’s passenger car business in India. Industryexperts feel that the top two —Maruti Suzuki and Hyundai — are unlikely to be displaced in the next four tofive years. “There is no killer product in the pipeline to sway the market otherwise,” says VG Ramakrishnan,senior director, automotive, at Frost and Sullivan, a management consulting firm. Maruti with a solid 41%

overall market share and a near-complete portfolio may be in an even sweeter spot.

“Maruti has the scale, new products and is currently the most efficient manufacturer in India,” says HormazdSorabjee, editor of Autocar India. “At least for the next 8-10 years, Maruti will continue to be the dominantplayer as India is a lead market for Suzuki, much more important than Japan,” he adds.

Indeed, Suzuki’s ability to transfer R&D quickly will go a long way in helping Maruti stay on top. “Our abilityto put models in the market that reflect customer needs in shorter periods at a low cost of ownership willmake the difference,” says RC Bhargava, chairman, Maruti Suzuki. “We may lose market share over a 10-year period but our volumes will grow,” he adds. Over the past decade, Maruti’s share has slipped by 14percentage points from 55% in 2000.

Maruti’s sales have fallen by more than a fourth in July, with the discontinuation of popular hatchback Swiftcontributing to that fall. But with a new version of that model set for launch, India’s largest car maker mayhave a new ace up its sleeve.

Another masterstroke from Maruti could well prove to be a plan to re-introduce its one-time breadand-butter entry-level brand, the Maruti 800. Analysts point out that the new-look 800 will comply with the new emissionnorms, and will be priced lower than the Alto — taking it closer into the territory of the world’s cheapest car,the Tata Nano. Hyundai too is planning to launch a car below its current base model, the Santro.

Tata Motors may well be the most vulnerable of the top three, what with the Nano not yet delivering hugevolumes. Sales in July fell to 3,250 from a peak of 10,000 a few months ago. Overall, Tata’s share inpassenger cars has dropped from 18% in fiscal 2007 to 12.66% in the April-June 2011 quarter.

“Of the top three, Tata Motors seems to be on the weakest wicket. The Nano has not given them therequired market share,” says Maruti’s Bhargava. “The passenger vehicle segment of Tata Motors is under pressure as the lead time for product development is too long,” adds Autocar’s Sorabjee. Tata Motorsofficials were unavailable for comment.

The biggest beneficiaries are the new kids on the block. In the first six months of 2011, points out VW’sGarg, the top three have grown volumes by 14%, 21% and 9% respectively, but their market shares havedropped cumulatively by 3.8%. In the same period Toyota, VW and Ford have collectively gained 4.4%,adds Garg. “This has to happen in any emerging market where a market leader starts losing share as thenumber of players increase,” he explains.

VW for its part has more than doubled its market share from 1.6% a year ago. As a group, VW is presentwith entire range of brands: there’s Audi at the luxury end; and Skoda, which extends from the masssegment (with the Fabia) to the luxury (the Superb). Between January and June, the three brands grew by500% with sales of nearly 38,000 units, says Chacko.

Toyota has been present in India since 1999 when it launched utility vehicle Qualis. Over the years, itcaptured consumer mind space with bestselling brands like the Corolla, Innova, Camry and Fortuner. Yetthese brands addressed only 12% of the Indian car bazaar. The more recent launches of the mid-size sedanEtios and small car Liva have changed the name of the game-now Toyota can pull in close to half of thecountry’s potential car buyers.

That’s a significant shift for Toyota, from the higher end to the mass market. “We have entered a newsegment with new customers and aspirations,” acknowledges Toyota Kirloskar’s Singh. “Etios will now beour flagship product as it was developed and adapted for India. And for the next two years our focus will beon the compact segment (where the Liva is positioned),” adds Singh. Toyota intends to increase dealershipsfrom 159 to 175 by the end of 2011, 40-45% of them in tier-II markets.

SMALL PACKAGESThe advantage for brands like VW and Toyota is that they are distinctly more aspirational than a Maruti. The



flip side, however, is that nobody knows — and straddles — the small car segment as well as Maruti does.And that’s the segment that every car maker with mass market ambitions is attempting to crack. GM is therewith the Beat, which is now in diesel too, and Ford with Figo (petrol and diesel). And Honda Siel, a distantNo 10, is banking on the Brio compact to score some gains.

So where does that leave a Johnnie-come-lately like a Renault? The French auto major dissolved a jointventure with the Mahindras last April, and started independent operations this May. The market share game

is not priority for Renault at this point in time; establishing the brand over the next 12 months is.

To that end Renault recently launched the Fluence sedan in the Rs 15 lakh price bracket. “Brand Renault isnot well established in India. With the launch of the Fluence we are showing Renault’s capabilities in design,styling, innovation, technology and value-formoney products,” says Marc Nassif, MD, Renault India.

Renault plans to follow up with the launch of the SUV Koleos this year; in 2012, it will launch mass marketcars, including a hatchback, the affordable SUV Duster and another yet unnamed car. “In two years, we willlaunch mass market products and have 100 dealership outlets in 70 cities, so 2013 will be the first fullyfunctional year and we expect to sell 100,000 cars by 2014,” explains Nassif. That's when he says Renaultwill reach a critical mass in the Indian market. “Phase two of our operations will take us to a goal of reachinga 5% market share,” adds Nassif. In South America and Brazil, the company got a 5% share in 8-10 years.

Renault may be a late entrant but its advantage may well be that it won’t have to traverse as long learningcurve as the likes of the Detroit majors, Honda and Toyota had to. Meantime, other global majors like

Peugeot-Citroen are looking to kickstart their India operations.

“New entrants have outlined an aggressive strategy with several new launches lined up in the next three tofour years. Cost and product differentiation will hold the key,” says PwC’s Majeed. It’s going to be a no-holds-barred skirmish for share in one of the world’s fastest growing markets. Who ends up on the victoriousside is a matter of conjecture as of now, but there’s little doubt about one big winner in this battle: the spoilt-for-choice Indian consumer.“Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved"

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Ferrari: Racing is in its bloodShapur KotwalHindustan Times (Web Edition)

New Delhi:Loud styling, outlandish claims and even louder exhausts make supercar clubs an exciting bunch.Shouting ‘look at me’ is intrinsic to such beasts, and is something a lot of the car owners really want.Racing heritage

Maserati, however, is the most understated of the lot. Few sportscar buyers are aware that the brand has amotorsport and Grand Prix racing heritage to die for; and almost no one remembers its great mid-enginedsupercars of yesteryear. Now resurrected by Ferrari, it shares most of the supercar giant’s components, andthough clubbed with Alfa Romeo today, its proximity to Ferrari still exists. The MC Stradale is currently thefastest and most powerful Maserati. It looks purposeful with its lowered suspension, race car-inspired frontsplitter and gorgeous 20-inch wheels finished in matte black.

Roomy interiorsIt’s very attractive on the inside with Alcantara-lined race seats, generously splattered carbon fibre trimmingand a partial roll-cage. The Stradale tips the scales at a mere 1,770kg, which is light for a car of this sizetoting a V8 in its belly. Based on one of Ferrari’s finest engines, this F430-based motor spins to 7,500rpm,makes a potent 450bhp and in the right mode, rasps and yowls menacingly. There is a big differencebetween this variant and Maserati’s standard GranTurismo (GT) model.

Breaches 300 kphSelecting race mode tightens things up. Gears now shift up with a pleasing ‘bang’ in 0.06 of a second and 0-100kph can be blitzed through in just 4.6 seconds. So keep your right foot in and you’ll cross the 300kph



barrier with élan. Autocar India

Maserati GranTurismo MC StradalePrice: Rs 1.37 crore (est ex-showroom Delhi)Top speed: 301kphL/W/H: 4,933/1,915/1,343mmWheelbase: 2,942mm

Kerb weight: 1,770kgTurning circle: 10.5mEngine: V8, 4,691cc, petrolPower: 450bhp at 7,000rpmTorque: 52.00kgm at 4,750rpmGearbox: Sequentialrobotised manual gearboxFuel tank: 90 litresBoot: 320 litresTyres: Pirelli PZero Corsa 255/35-ZR 20 (f),295/35-ZR 20 (r)

VerdictMore involving, more rewarding to drive, and more complete, GranTurismo MC Stradale is easily the bestMaserati to have hit the road or track in a long, long time. And, the best part is that this car doesn’t ride too

badly either, perfect for our roads. At an estimated Rs 1.37 crore (ex-showroom Delhi), it is expensive, butyou do get a lot out of the car.http://www.hindustantimes.com/business-news/auto/Racing-is-in-its-blood/Article1-728882.aspx

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Cars, SUVs, MUVs

GM to introduce five new models by 2012

AgenciesSee this story in: The Indian Express (Web Edition)

Chennai: The first light commercial vehicle from US automobile giant General Motors will be rolled out in thefirst quarter of 2012, a top company official said today.

With the foray into the commercial vehicle space, General Motors would be the latest to enter into thiscategory after auto majors Tata Motors, Mahindra and from Ashok Leyland-Nissan.

General Motors India Vice-President P Balendran said the company proposes to launch five new models inthe next 18 months in the domestic market.

"In the next 18 months, we plan to introduce five new products. The models will be a hatchback, sedan, anutility vehicle, a van and Euro-IV version of (SUV) Tavera," he told reporters after unveiling the ChevroletBeat diesel variant in the Tamil Nadu market.

"The first product will be a utility vehicle to be rolled out during the first quarter of next year. It can be sub-one tonne category," he said without elaborating.He said General Motors India is on a massive expansion plan in both plants at Halol in Gujarat andTalegaon in Maharashtra and has invested USD 1 billion (about Rs 5,000 crore) till date.

The LCVs would be rolled out from the Halol plant along with hatchbacks Spark, Aveo-UVA, mid-size sedanAveo, premium sedan Optra, Sports Utility Vehicle Tavera and premium SUV Captiva.

However, for manufacturing engines, General Motors India has set up the first power-train plant in Talegaonat a cost of USD 230 million. It would be the first flexi-plant for the company to produce both petrol and

http://www.hindustantimes.com/business-news/auto/Racing-is-in-its-blood/Article1-728882.aspx

http://www.hindustantimes.com/business-news/auto/Racing-is-in-its-blood/Article1-728882.aspx



diesel engines for small passenger cars.

Balendran replied in the affirmative when asked if GM would introduce a diesel variant of its popular sellingChevrolet Spark, saying it would be decided by the "success" of the Beat diesel variant.

Since the launch of the car on July 25 countrywide, the company has got bookings of over 5,250 units, hesaid.

He said GM has set a target of selling in excess of 5,000 units of the Diesel variant in the domestic marketthis year. With the car market remaining "sluggish" due to hike in interest rates and increase in fuel prices,Balendran hoped GM would clock sales of 1.40 lakh units this year compared to 1.10 lakh in 2010.

"The passenger car business reported a negative 15 per cent growth in July. I hope it would start improvingin the festive season," he said.

The Beat Diesel equipped with one litre engine,launch launched today is priced at Rs 4.37 lakh for the baseversion and the top variant is priced at Rs 5.55 lakh (ex-showroom Chennai).

Tamil Nadu and Kerala constitutes 20 to 25 per cent of sales for General Motors India. North Indiacontributes majority of sales at 35 per cent and the West 25-30 per cent, he added.http://www.indianexpress.com/news/gm-to-introduce-five-new-models-by-2012/826636/0

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GM launches Chevrolet Beat in Kerala marketPTISee this story in: The Economic Times (Web Edition)

Kozhikode (Kerala): General Motors, India's fifth largest car maker,on Wednesday launched the ChevroletBeat, equipped with a one litre 'Smarttech' diesel engine specifically designed for the Indian market, inKerala.

The compact car would come in three versions, priced between Rs 4.29 lakh to Rs 5.45 lakh, Karl Slym, GM

India President and Managing Director told reporters here.

"Offering a diesel engine developed for Indian consumers in our most popular model is a mementousachievement for GM India', he said, adding the Beat diesel would set a new industry benchmark and be awinner with local car buyers.

He said the Beat Diesel sports the 1.0 XSDE Smarttech engine developed specifically for India by the GMTechnical Centre, Bangalore in collaboration with GM Power-train Europe.

"We have taken the expertise from Europe, the hub of diesel technology,but at the same time engaged our engineers in India to make sure we do not give a completely European engine. The engine delivers 62.5 PSof power and a mileage of 24 km a litre," he said.

Slym claimed that the three-year/100,000 km engine and vehicle warranty on offer is the mostcomprehensive in the mini-diesel segment.

He said GM India was also rapidly expanding its dealership and service network to support demand. GMIndia is currently present in 220 locations across 186 cities in the country, he said.

General Motors India has completed 16 years of operation in India and offers products under Chevroletbrand, introduced in 2003. Last year, about 4.25 million Chevrolets were sold in over 120 countries.

The company offers the Captiva, Optra, Cruze, Aveo, AVeo U-VA, Spark, Beat and Tavera for sale in Indiafrom its manufacturing facilities in Halol, Gujarat and in Talegaon, Maharshtra.http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/gm-launches-chevrolet-beat-

http://www.indianexpress.com/news/gm-to-introduce-five-new-models-by-2012/826636/0

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/gm-launches-chevrolet-beat-in-kerala-market/articleshow/9468035.cms

http://www.indianexpress.com/news/gm-to-introduce-five-new-models-by-2012/826636/0




in-kerala-market/articleshow/9468035.cmsGM launches diesel Chevrolet Beat in Kerala marketFinancial Chronicle (Web Edition)http://www.mydigitalfc.com/cars/gm-launches-diesel-chevrolet-beat-kerala-market-594

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Audi launches the new A6 sedanIANSSee this story in: The Economic Times (Web Edition)

New Delhi: German automobile manufacturer Audi Wednesday launched a new variant of its executive classsedan Audi A6 in the price range of Rs 37.7 lakh to Rs 47 lakh.

"The launch of the new Audi A6 is in line with our top down strategy for India," said Michael Perschke, head,Audi India.

According to Perschke, the new A6 combines new technologies and fuel efficient engine.

"The new A6 is available with wide array of innovation like lightweight technology, adaptive air suspension,LED headlamps," Perschke said.

The Audi model range in India includes Audi A4, Audi A6, Audi A8, Audi A7 Sportback, Audi Q5, Audi Q7,Audi RS5, and the super sports cars Audi R8 and Audi R8 Spyder.http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/audi-launches-the-new-a6-sedan/articleshow/9468938.cmsAudi A6 takes on Merc and BMW in luxury launch...Hindustan Times (Web & Print Edition)http://www.hindustantimes.com/business-news/auto/Audi-A6-takes-on-Merc-and-BMW-in-luxury-launch/Article1-729025.aspx

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Audi to enter used car business by year-endHeena KhanThe Hindu Business Line (Web Edition)

New Delhi: Audi, the German luxury car maker, plans to get into the used car business in India by the year-end. The company expects this business to account for 10 to 20 per cent of its new car sales.

“By the end of this year, we will start our used car business under the Audi Approved Plus brand,” Audi IndiaHead, Mr Michael Perschke, told reporters here.Audi A6 launch

The company on Wednesday launched the new version of its executive class sedan, A6, priced between Rs37.7 lakh and Rs 47 lakh (ex-showroom Delhi). The four variants will be available in all 13 Audi dealershipsacross India.

Assembled at its Aurangabad facility, the car claims a mileage of 21 kmpl.Expansion drive

The company will be expanding its dealer's network from 13 to 18 by the end of 2011.

“By 2011, we will have 18 dealers pan-India, with plans for new dealerships in markets like Coimbatore,


http://www.mydigitalfc.com/cars/gm-launches-diesel-chevrolet-beat-kerala-market-594

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/audi-launches-the-new-a6-sedan/articleshow/9468938.cms


http://www.hindustantimes.com/business-news/auto/Audi-A6-takes-on-Merc-and-BMW-in-luxury-launch/Article1-729025.aspx




http://www.mydigitalfc.com/cars/gm-launches-diesel-chevrolet-beat-kerala-market-594







Indore and Lucknow among others,” Mr Perschke said.

“This would mean 600 extra jobs for our India operations by 2013. We will be hiring skilled talent at threelevels – corporate, dealership and production,” he said.Doubling output

With the launch of the new sedan, the company plans to double the production of Audi from its Aurangabad

plant.

“From September, we will start double shifts, which will increase our annual output to 6,000 units from thecurrent 3,000 units in a single shift,” Mr Perschke said.

Audi India investment figure was put at €30 million, of which around €20 million has been utilised so far.Sales target

The company is targeting sales of over 5,000 units this year, up from 3,003 cars sold last year. It sold 3,145units in the January-July period against 1,626 units in the same period last year, up 93 per cent.

“Our target is to have 25 per cent Indian luxury car market share by 2015 and we are on track,” Mr Perschkesaid.Product range

This year, excluding the new A6, the company has launched five models in 13 different engines – Audi A8 L,Audi R8 V10, Audi R8 Spyder, Audi A7 Sportback and Audi RS5.

Mr Perschke said that Audi was also considering bringing cars in the lower segment by emulating a top-down approach.http://www.thehindubusinessline.com/companies/article2319071.ece?homepage=trueAudi eyes used-car biz in IndiaThe Statesman (Web Edition)http://www.thestatesman.net/index.php?option=com_content&view=article&id=378635&catid=40Audi to start used car business in India by year-endFinancial Chronicle (Web Edition)http://www.mydigitalfc.com/cars/audi-start-used-car-business-india-year-end-591Audi to start used car business in India by year-endThe Economic Times (Web & Print Edition)http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/audi-to-start-used-car-

business-in-india-by-year-end/articleshow/9467606.cmsAudi to start used car biz in IndiaMail Today (Delhi Print Edition)

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Nissan India aims to triple sales to 40k cars in FY12ReutersSee this story in: Financial Chronicle (Web Edition)

Mumbai:The unit of Japanese car maker Nissan Motor is aiming to triple sales to 40,000 vehicles by the

end of this fiscal year, helped by the launch of its mid-sized sedan 'Sunny', its India head said.

The company has also planned to export components worth $100 million out of India to its globalmanufacturing facilities and reiterated its plans to double production capacity from its plant in Chennai to400,000 per year.

"This fiscal year we have a very aggressive plan to even triple sales which will be reaching about 40,000.Sunny will make a big contribution," Kiminobu Tokuyama, Managing Director of Nissan Motor India, said atthe unveiling of its Sunny mid-sized sedan on Wednesday.

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The company aims to launch the model by October this year, Tokuyama said, adding that the company is ontrack to open 100 dealerships by the end of 2012 from 40 dealerships nationwide currently.

Nissan Motor India's sales in July rose 59 percent to 1,593 vehicles, driven by sales of its Micra hatchback,and it sold about 13,000 cars in the last fiscal year that ended in March.

Last week, Ford Motor Co said it plans to build a $900 million production plant in India, doubling its

investment in the country, as the U.S. carmaker seeks to catch up with rivals in the second-fastest growingauto market in the world.

Foreign car makers have been making inroads into the local market and are increasingly using India as ahub to make and export small cars.http://www.mydigitalfc.com/cars/nissan-india-aims-triple-sales-40k-cars-fy12-611Nissan India aims to triple sales to 40,000 cars in FY-12The Economic Timeshttp://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/nissan-india-aims-to-triple-sales-to-40000-cars-in-fy-12/articleshow/9468105.cms

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Volume game: Nissan plans small car in Rs 2-4 lakh rangeRoudra BhattacharyaThe Hindu Business Line (Web & Print Edition)

Mumbai: In order to garner higher volumes in the domestic market, Nissan is working on a new small car inthe Rs 2-4 lakh range.

This model is likely to compete with Maruti's Alto, Chevrolet Spark and the Hyundai Santro.

“We're seriously studying the launch of a small car below the Micra. We see great opportunity in the smallcar segment,” said Mr Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India.

Separately, Nissan is also working on an MPV with joint venture partner Ashok Leyland. To be launched

next year, this will compete with the Toyota Innova.

The Japanese automaker is currently gearing up for the launch of its fifth model in the country — the Sunnysedan. To be available at dealers from October, the sedan will initially be sold with a 1.5 litre petrol engine.However, the car which is based on Micra's V platform, will also see a diesel variant later.

Mr Tokuyama said Nissan is looking to triple sales by the end of this fiscal to 40,000 units as it expandsdealerships and both the Micra and Sunny gives it higher volumes.

“The Sunny will later be exported to West Asia and Africa. We exported 90,000 units of the Micra since lastOctober, while selling 18,000 units domestically till date,” he said.

Since the launch of the Micra in July 2010 and March this year, the company sold 13,000 units in all. Nissanalso sells the X-Trail SUV, Teana premium sedan and the 370Z sports car in India. While all these areimported as built units from Japan, the Micra is built at a plant in Chennai which it runs with alliance partner

Renault.

Nissan also expects to export $100 million worth of components to its global production facilities from Indiathis fiscal.http://www.thehindubusinessline.com/companies/article2319009.eceNissan India unveils 'Sunny' sedan, is planning small car The Times of India (Web & Print Edition)http://timesofindia.indiatimes.com/business/india-business/Nissan-India-unveils-Sunny-sedan-is-planning-small-car/articleshow/9470197.cmsNissan Motor unveils Sunny

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The Hindu (Web & Print Edition)http://www.thehindu.com/business/companies/article2319362.ece...Nissan brings SunnyHindustan Times (Web & Print Edition)http://www.hindustantimes.com/News-Feed/auto/Nissan-brings-Sunny/Article1-729026.aspxNissan India unveils 'Sunny' sedanThe Indian Express (Web Edition)

http://www.indianexpress.com/news/nissan-india-unveils-sunny-sedan/826708/Nissan India plans small car The Tribune (Web Edition)http://www.tribuneindia.com/2011/20110804/biz.htmNissan Motor India unveils mid size car ‘Nissan Sunny’Deccan Herald (Web Edition)http://www.deccanherald.com/content/181121/nissan-motor-india-unveils-mid.html Nissan India unveils Sunny sedan, planning small car Financial Chronicle (Web Edition)http://www.mydigitalfc.com/cars/nissan-india-unveils-sunny-sedan-planning-small-car-623Nissan India unveils 'Sunny' sedan, is planning small car The Economic Times (Web Edition)http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/nissan-india-unveils-sunny-sedan-is-planning-small-car/articleshow/9469885.cms

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BMW launches initiative to help create sustainable citiesIANSSee this story in: The Economic Times (Web Edition)

New Delhi: German automobile major BMW on Wednesday said it will start an unique initiative in Mumbaiand cities around the world to address the problems arising out of increasing population and inadequatefacilities and come up with solutions to create sustainable metros.

The BMW-Guggenheim initiative is designed as a mobile laboratory, which will explore new ideas and help

in the creation of solutions to make city life easier.

"We wanted one venue of the first cycle of the lab to be in Asia and after careful deliberation, we selectedMumbai. A vibrant, diverse city, it is the most populous city in India and the world," said Richard Armstrong,director of Solomon R. Guggenheim Museum which will conduct the research with the automobile major.

"It will be an endlessly rewarding place to explore and create dialogue around a range of urban issues," headded.

The six-year project aims to cover nine major cities worldwide on a mobile lab which will travel three cities inphases. The first phase will cover New York, Berlin and Mumbai.

"The theme for cycle 1 is confronting comfort. Will explore how urban environments can be made moreresponsive to people's needs, how people can feel at ease in an urban environment," BMW said in astatement.

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http://www.thehindu.com/business/companies/article2319362.ece

http://www.hindustantimes.com/News-Feed/auto/Nissan-brings-Sunny/Article1-729026.aspx

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Commercial Vehicles

Premium trucks on fast trackLijee PhilipThe Economic Times (Delhi Print Edition)

Mumbai: Sales of premium trucks are replicating the successful run enjoyed by top-end passenger cars, as

transporters see sense in buying larger and more fuel-efficient vehicles to keep pace with a fastgrowinginfrastructure sector.

A slew of high-end truck-makers such as Daimler, Volvo, Mahindra Navistar, Scania and homegrown TataMotors Prima and Ashok Leyland’s U truck are vying for a share of the premium pie that is expected to grow50% this year.

Experts said sustained export growth, expansion of highways and need for better logistics will see sales of high-end commercial vehicles touching 11,000 in 2011. Premium trucks handle better, are safer,comfortable and more fuel-efficient. Priced between . 20 lakh and . 70 lakh, these high-end trucks sold over 7,000 units in 2010, growing nearly five-fold in three years.

Right now, these trucks form a fraction of the total commercial vehicle sales, which grew 14% to 1.72 lakhunits during April to June. “High-end truck sales are growing at a faster pace, but the base is still low,” saidAmol Sandil, EVP, Hino Motors India.

Sales of tippers, tractor-trailers, multi-axle and rigid trucks are up, following an increase in container freight,mining and construction activity.

Experts said, sales growth of high-end trucks will see some products in the market — at present, such as16- and 20-tonne medium- and heavy-commercial vehicles — being replaced by 25-, 35-and 40-tonnevehicles.

“Transporters are becoming revenue-oriented, instead of costoriented,” Mahindra Navistar MD Nalin Mehtasaid, adding that the fleet operators are now looking at carrying more load and doing more distance and notworrying about price and fuel cost. “Fleet operators’ buying behavior is changing from acquisition cost tototal cost of ownership,” said Somnath Bhattacharjee, EVP-sales, marketing and aftermarket president,Volvo Trucks. Truck drivers, too, have started demanding more comfort, safety and quality. “Operators buythese trucks for driving comfort at top speeds. Driver fatigue is also very low in these trucks due to thereengineered cabins,” Ashok Leyland executive director Rajiv Saharia said.

With infrastructure in an expansion mode, high-end truck firms are looking to further their product portfolio inthe Indian market, where Tata Motors and Ashok Leyland together hold 80% market share. Global truckbrands such as Volvo, Daimler, Scania and MAN have set up production facilities in India and aredeveloping customised products to gain market share in emerging nations such as India and China.However, some fleet operators are skeptical about the return on investment. A Mumbai-based operator saidit was still a niche product for certain high-end applications.“Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved"

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Ashok Leyland sales up 16% in JulyPTISee this story in: The Hindu Business Line (Web & Print Edition)

Chennai: Commercial vehicle manufacturer Ashok Leyland has reported a 16 per cent jump in sales at7,834 units in July 2011, up 16 per cent compared to the corresponding month of the previous year.

The company, a flagship of the Hinduja Group, said in a statement that it had sold 6,747 units in July 2010.

However, for the April-July 2011 period, total sales marginally dipped to 27,111 units from 28,147 units.



Total sales in the domestic market in July stood at 6,774 units against 6,022 units, while exports grew 46 per cent to 1,060 units from 725 units.

Total sales of vehicles in the domestic market during April-July dipped to 23,512 units from 25,482 units.

Exports from April to July 2011 soared to 3,599 units from 2,665 units in the same period last year, it added.

http://www.thehindubusinessline.com/companies/article2319114.eceAshok Leyland reports 16% jump in sales in JulyFinancial Chronicle (Web Edition)http://www.mydigitalfc.com/companies/ashok-leyland-reports-16-jump-sales-july-601Ashok Leyland reports 16 per cent jump on its sales in July 2011The Economic Times (Web Edition)http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/ashok-leyland-reports-16-per-cent-jump-on-its-sales-in-july-2011/articleshow/9471913.cmsAshok Leyland reports 16 per cent jump in sales in JulyHindustan Times (Delhi Print Edition)Ashok Leyland sales up 16% at 7,834 vehicelsThe Financial Express (Delhi Print Edition)

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Ashok Leyland-Nissan revive greenfield projectThe Economic Times (Web Edition)

Pune: Ashok Leyland and Nissan are reviving their greenfield project at Sriperumbudur after having put it onice for the past few years. This project is targeted at the equal joint venture's plans for growth in theautomotive sector beyond FY 16, regarded as Phase II.

At present, the joint venture is focusing on the three-platform lineup of small commercial vehicles, the first of which was displayed about a fortnight ago in Chennai.

"The second platform, which will roll out in 15-18 months from now, will be made by Nissan while the third

platform will be made by Ashok Leyland," Dr V Sumantran, executive vice chairman, Hinduja Automotivesaid.

The ALIL-Nissan joint venture was initially to have been a greenfield facility but due to delays in landallotment and the subsequent global financial slowdown, the two partners chose to optimise existingfacilities. Hence, the first three shared platforms, led by the recently unveiled Leyland Dost commercialvehicle, will be made at the respective existing locations of the two auto OEMs. While the Dost is beingmade at ALIL's existing plant at Hosur, the second platform will be made at Nissan's plant near Chennai andthe third shared platform at Hosur. Engine manufacturing will follow the same plan since the JV has aseparate agreement for powertrains.

"Nissan will position the vehicle it manufactures for personal use while Ashok Leyland will position it for thecommercial segment. At a later date, we will also offer a personal version. Yes, there could be some overlapwith the proposed General Motors offering which is based on Wuling design," Dr Sumantran said. He addedthat the personal use vehicle will be the Nissan NV200 van, which was launched last year in Japan, which

will take ALIL into the below-7 tonne segment where it currently lacks a product.

This three-common platform-different-positioning strategy will mean that the JV will produce, for either OEM,vehicles that can seat from seven to 14 to 25 people. After which, Ashok Leyland's existing range takesover, Dr Sumantran said.

Referring to the greenfield plant, Dr Sumantran said the slowdown forced them to use existing facilities.Originally, the proposed investment had been pegged at Rs. 2400 crore, while the two partners made dowith just half the amount at their existing plants. Now, with a greenfield project again on the agenda, Dr Sumantran maintained that they would invest a lot less. "We have achieved volumes with a smaller


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investment so our investment in Phase II will also be small," he said.

While admitting that more players are eyeing this segment, Dr Sumantran maintained that the JV vehicleswill be positioned in a more upscale segment. "The market is shifting upwards while being cost conscious.The trend is that five years from now, standards will rise and vehicles oriented as SUVs for people carrierswill become monocoque vans," he said.http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/ashok-leyland-nissan-revive-

greenfield-project/articleshow/9468150.cmsAshok Leyland-Nissan Sriperumbudur plant to kick in for phase 2 productsThe Hindu Business Line (Web Edition)http://www.thehindubusinessline.com/companies/article2318769.ece

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Tata Motors to train truck drivers in sales pushYuga ChaudhariDaily News & Analysis (Web Edition)

Mumbai: Want to sell trucks? Train the drivers first. Or so Tata Motors, India’s largest truck maker, seems tobelieve. The company is joining hands with quasi-government institutions, NGOs, truck distributors andtraining institutes to train drivers.

There is a severe dearth of skilled truck drivers in India, which is estimated to have around 5 million truckdrivers today. The country has a high fatality rate and is the second-worst in the world in terms of truckaccidents.

As per industry estimates, around 2 million drivers a year would be needed from 2014. Even if 50% of this isconsidered towards fleet replacement, an additional 1 million drivers would be required every year.

That’s a tall order, given that all the ITIs together produce barely 20,000 drivers a year today.

Tata Motors expects the move to help plug the void and spur sales growth for truck makers like itself. Itsinitiative alone will churn out 3.4 million drivers over the next ten years.

“To maintain the growth momentum of the industry we decided to take up this skilling initiative under CSR(corporate social responsibility). It will not only help the society but also the business in general,” said GSUppal, industrial relation CSR administrative head, Tata Motors.

The first pilot for the project is due to begin at Jabalpur this month, followed by one at Ujjain.

The company plans to open at least 10 centres by the end of this year.

The exercise is likely to be keenly watched by others in the private sector as Tata Motors paves the way for a system where brand owners voluntarily become a part of skill development.

In many ways, the Tata Motors endeavour will do what is already being done byMicrosoft (Microsoft certifiedcourses), Sun (for Java), Oracle (database courses and even the Oracle University), Cisco (router education) and IBM (DB2 and AIX courses).

As of now, no commitment has been proffered by the National Skill Development Corp to Tata Motors, but if the end result is in line with the body’s objectives, a partnership could be in the offing.

Besides, this could gradually be developed into a policy where each brand owner decides to convert one (or more) of the government’s ITIs into centres of excellence in India.

When brand owners promote their technology, it allows for better and more rapid skill development. Thus, aSiemens (or Schneider or Anchor) could be encouraged to promote courses for electricians, while Finolex(or Prince) could be certifiers of courses for plumbing and so on.

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Tata Motors already runs a drivers’ training institute in Punjab. The centre, opened in 2009, offers anexhaustive one-year training programme for drivers.

The company is also in talks with Tamil Nadu, Gujarat, Maharashtra, Haryana and Himachal Pradeshgovernments for setting up similar institutes.

“But we realised that the problem is so huge that this initiative may not be sufficient. We had to think of adifferent model, which is quicker and more cost-efficient. Taking this ahead, we worked on some newtraining modules with Ernst & Young,” said Uppal.

Tata Motors’ 45-day training programme, designed with inputs from Austrian driver-training firm Huber Ebner, will involve third party agencies — skill development agencies, NGO, etc — which will invest in thehardware, such as trucks and driving track.

According to Uppal, around nine agencies have shown interest in the project and the company has tied upwith Avron Skill Development, Indigram, Be-Able and Ambuja Foundation.

Tata Motors will facilitate this training though its fleet operators and dealers, who will help in gettingstudents. It is also in talks with large fleet operators who are facing a shortage of drivers.

To make the model sustainable, the 45-day course will charge a nominal fee. For the pilot project, a fee of

Rs4,500 will be charged for training on light commercial vehicles and Rs7,500 for heavy commercialvehicles.

Tata Motors also plans to facilitate placement of trainees.“We need a system that can produce at one lakh certified drivers each year, which is likely to go up to 5 lakha year,” said a person associated with the skills development industry.

Ashok Leyland and Volvo are also training drivers. Ashok Leyland, in fact, has a large driving track near Ennore where it trains truck drivers. But these are small efforts yet, based in single locations.

“The need of the hour is to scale up quickly to 1,000 locations to start with, and take it up to 50,000locations,” said the person, who did not want to be quoted for the story.

This would mean adopting franchisees who will promote the business in each state and sending the bestdrivers to a driving track where they can be tested for on-ground performance.

That’s just the model Tata Motors proposes to follow. It plans to announce an all-India franchisee schemewhere investors will take part of the fees from each student and in turn provide the infrastructure and do theon-ground marketing to rope in students.

Much of the content delivery and simulation software could be through distance-learning systems (andpossibly cloud technology). Within the Tata group, CMS is already doing this with around 80 odd centres,and VSAT connectivity is already being provided by TataNet, a division of Nelco.

Some four years ago, Tata Motors was also exploring whether it could become the outsourcing agency for the government to issue truck driving licences, said a source.

This may not have been cleared by the government because of legal reasons, but it is quite possible thatdrivers certified by the company will automatically get a driving licence. Also, these drivers may find easyacceptability, both in India and overseas.http://www.dnaindia.com/money/report_tata-motors-to-train-truck-drivers-in-sales-push_1572042

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GM India ropes in new director to beef up its commerical vehicles businessGouri Agtey Athale

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The Economic Times (Web Edition)

Pune: General Motors India, the passenger car maker about to enter the utility vehicle segment, has ropedin Ashutosh Khosla as its director, sales and marketing, commerical vehicles. Mr Khosla, who was withPiaggio Vehicles till recently with the same portfolio, will be based in Pune.

Karl Slym, president and managing director, GMI, said, "We have recently inducted Mr Khosla to head the

commercial vehicle business. We plan to introduce utility vehicles, for passenger and goods carrier purposes, from SAIC's portfolio, starting from next year," he said, the first of which will roll out of theTalegaon plant in the first half of next year.

He went on to say, "We have called them commercial vehicles but they will be more utility vehicles, capableof carrying people or goods. They will come in varying sizes, allowing customers to use them to carry either goods or people," Mr Slym said.

Indications are that the multi-utility vehicles will be based on Wuling's platform, will roll out of both, theTalegaon and Halol, Gujarat plants. Wuling is part of GM's JV in China with SAIC, with the latter holding a50% stake in GMI. These multi-utility vehicles are expected to be sub 1 tonne to 1 tonne payload carrierswhile in numbers of people, they could carry seven-12 people. GMI officials stressed that all products in thecountry will be badged Chevrolet, whether they come from GM's of SAIC's portfolio.

Referring to the forthcoming launch of its commercial vehicles, Mr Slym said these vehicles will be sold

through their existing dealer network. "Only on the outskirts of a town we might need new dealers," he said,where the showroom need not be a large one, as a passenger car dealership usually has. Small townswould be handled by the existing dealer offering the entire range of products, he said.“Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/general-motors-india-ropes-in-new-director-to-beef-up-its-commerical-vehicles-business/articleshow/9465893.cms

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Construction & Agri Machinery

BEML opens Thai front with Rs 120-crore dealThe Hindu Business Line

Bangalore: Bharat Earth Movers Ltd (BEML) on Tuesday announced its entry into the Thailand andneighbouring market with a Rs 120-crore contract. It would distribute its products through Paragon CompanyLtd in Thailand, Myanmar, Laos and Cambodia. The products include dump trucks, excavators, loaders,motor graders and dozers, a release said. BEML's CMD, Mr V.R.S. Natarajan, handed over 21 units of 100-tonne dump trucks to Electricity Generating Authority of Thailand (EGAT) at a ceremony in Bangkok onTuesday. EGAT will deploy the trucks in its lignite mines. BEML currently exports to 55 countries and hasoperations in Brazil, China, Malaysia and Indonesia.http://www.thehindubusinessline.com/companies/article2319073.ece

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2/3 Wheelers

E-Bikes

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Components

Wabco-TVS renamed Wabco IndiaPTISee this story in: The Hindu Business Line

Chennai: Auto-component manufacturer Wabco-TVS Ltd today said the company has been renamed WabcoIndia Ltd.

The name change comes in the wake of the company’s agreement with Sundaram-Clayton Ltd after acquisition of equity shares of Clayton Dewandre Holdings from TVS Group for the new name, a companypress release here said.

Wabco Holdings, which is a global technology leader and tier-one supplier to the commercial vehicleindustry, acquired a majority ownership in Wabco-TVS India in 2009.

“We are proud of our TVS heritage as it has helped us to build strong relationships with customers acrossIndia for over 40 years,” the Wabco India Wholetime Director, Mr P. Kaniappan, said.

The Wabco Chairman and CEO, Mr Jacques Esculier, said Wabco India was committed to sustain itssuccess as a premier supplier and will continue to localise new technologies while setting new globalstandards for service levels.

Wabco India manufactures conventional braking products, advanced braking systems and related productsfor commercial vehicles. It has three factories located in Ambattur, Mahindra World City near Chennai, andin Jamshedpur.

In 2010-11, the company reported Rs 899 crore revenues and currently has over 1,100 employees, thestatement added.http://www.thehindubusinessline.com/companies/article2319210.eceWabco-TVS renamed as Wabco India LtdFinancial Chronicle (Web Edition)http://www.mydigitalfc.com/companies/wabco-tvs-renamed-wabco-india-ltd-617Wabco-TVS (India) to be renamed WabcoThe Financial Express

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Allied Industries

Ceat Q1 net loss at Rs 41.90 cr PTISee this story in: The Hindu Business Line

New Delhi: Tyre maker Ceat Ltd today posted a net loss of Rs 41.90 crore for the first quarter ended June

30, 2011.

The company had reported a net profit of Rs 13.87 crore in the same period last financial year, Ceat said ina filing to the BSE.

Net sales of the company rose to Rs 1,072.59 crore for the first quarter ended June 30, 2011, comparedwith Rs 772.22 crore in the same period the previous fiscal.

“Escalating raw material prices, especially natural rubber and lower capacity utilisation in the first quarter after commencement of production in the new plant at Halol (Gujarat) have impacted the profitability for the


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quarter,” it said.

Shares of Ceat were trading at Rs 96 on the BSE in late afternoon trade, down 2.24 per cent from itsprevious close.http://www.thehindubusinessline.com/companies/article2319034.eceCeat Q1 net loss at Rs 41.90 cr The Indian Express

http://www.indianexpress.com/news/ceat-q1-net-loss-at-rs-41.90-cr/826693/Ceat Q1 net loss at Rs 41.90 croreFinancial Chroniclehttp://www.mydigitalfc.com/companies/ceat-q1-net-loss-rs-4190-crore-605Ceat posts Q1 net loss of Rs. 41.90 cr Mail today Ceat first quarter net loss at Rs 41.90 cr The Financial Express

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Emissions / Environment

Finance & Insurance

Oil, Lubricants & Alternative Fuels

International News

Quake-hit Suzuki Q1 profit falls 20%

AgenciesSee this story in: The Indian Express

Tokyo: Osamu Suzuki-led Suzuki Motor Corp posted a 20 percent drop in quarterly operating profit onWednesday after the March 11 earthquake hampered production, and stuck to its annual guidance for asmall profit rise driven by the Indian market.

* Q1 operating profit 25.6 bln yen vs consensus 13.8 bln yen

* Keeps full-year oper profit forecast at 110 bln yen

* Q1 net profit up 24 pct on one-off special profit

Suzuki, like other Japanese automakers, is looking to make up for production lost due to the March disaster in the second half of the business year, with plans to increase output for the full year.

The bigger worry for the maker of Swift and Alto cars is a slowdown in demand in its largest and mostprofitable market, India, where competition is also intensifying with global giants such as Toyota Motor Corpand Ford Motor Co entering the small-car segment.Last week, local unit Maruti Suzuki India Ltd beat estimates with an 18 percent rise in first-quarter net profit,but warned of a challenging environment for car demand as interest rates and fuel prices rise.

Suzuki's April-June operating profit was 25.57 billion yen ($331.5 million), down from 31.95 billion yen a year earlier but nearly double the consensus estimate of 13.8 billion yen in a survey of seven analysts byThomson Reuters I/B/E/S.


http://www.indianexpress.com/news/ceat-q1-net-loss-at-rs-41.90-cr/826693/

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http://www.indianexpress.com/news/ceat-q1-net-loss-at-rs-41.90-cr/826693/

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First-quarter net profit rose 24 percent to 18.73 billion yen as it booked a one-off extraordinary profit, it said.

Suzuki kept its full-year operating profit forecast at 110 billion yen, up 2.9 percent from last year, and netforecast at 50 billion yen. A poll of 19 analysts by Thomson Reuters I/B/E/S put the annual operating profit at105.7 billion yen.

Suzuki made headlines recently by lashing out at its top shareholder, Volkswagen AG, for seeminglyundermining its independence through a fine-print entry in the German automaker's annual report thatcategorised Suzuki as an associate over which it could significantly influence financial and operating policydecisions.

Volkswagen, in response, denied that it was trying to send a coded message to assert its control, butadmitted that plans to cooperate had sputtered, forcing a review of their 18-month-old partnership.

Shares in Suzuki are down about 10 percent in the year to date, faring worse than a 6.5 percent fall inTokyo's transport sector subindex .

Before the results were announced, Suzuki ended down 2 percent at 1,739 yen on a broad sell-off inJapanese stocks.http://www.indianexpress.com/news/quakehit-suzuki-q1-profit-falls-20/826548/0Suzuli Q1 falls 20% on Quake, keeps forecast

Hindustan Times

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Now, Toyota related information on your smartphoneNYTSee this story in: The Economic Times

New York: Toyota Motor Sales U.S.A. is adopting interactive bar codes across all its marketing socellphone-carrying customers can quickly access sales promotions, vehicle quotes, videos, safety tips andsimilar information.

With the new ToyoTag, a logo inside a ring, Toyota says customers - potential and otherwise - can snap theimage and receive product-related content and other company information using either a standard mobilephone or a smartphone. Those with iPhones or Android devices can download a SnapTag reader to receiveToyota's content.

"The ToyoTag allows customers to engage with us wherever and whenever they want information," saidMichael K. Nelson, interactive communications marketing manager for Toyota. The new tag, he said, willprovide one-on-one interactions with customers at all stages of interest in its products.

The company, which is creating its ToyoTag marketing in house, teamed up with SpyderLynk, a Denver amobile marketing technology provider. In 2008, SpyderLynk introduced the SnapTag, which uses 2-D mobilebar code technology, and the company customizes the tag's look and content for each client.

Coke, Bud Light and the Marines have all experimented with SnapTags. By chance, Nelson came across a

tag last year as Toyota began exploring a comprehensive mobile marketing program.

"I was watching football one Sunday last fall," said Nelson, "and I saw the SnapTag being used in a BudLight commercial. I knew right away that we could brand it."

Although some studies predict that about half of the American public will own smartphones by the end of 2011, Nelson said he did not want to ignore the rest.

"That's why SnapTag was perfect for us," he said.

http://www.indianexpress.com/news/quakehit-suzuki-q1-profit-falls-20/826548/0

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Nelson said he contacted SpyderLynk the next morning and worked with them to use the SnapTagtechnology to create a logo in which the center of the ring is swapped out depending on what Toyota istrying to convey. For example, to rebut some of the negative publicity it received from braking problems onsome models, Toyota placed a ToyoTag in some newspapers to direct people to the National HighwayTraffic Safety Administration website to read the government's report on the issue and Toyota's response.

Toyota also has experimented with the ringed logos by including them at auto shows so phone users could

learn more about its prepaid maintenance plan. It also tried them in some newspaper advertising for itspopular Prius hybrid and for fundraising for tsunami relief in Japan.

After evaluating these initiatives, Toyota worked with Saatchi & Saatchi, part of the Publicis Groupe, thisspring to redesign the interactive logo, and this week announced its rollout for the ToyoTag. The companydid not disclose its marketing budget, but according to Kantar Media, Toyota spent $1.87 billion for all itsadvertising in the company's past fiscal year, which ended March 31.

Toyota's first step will be expanding its ringed logos across social media, at this summer's action-sports DewTour, by sponsoring a best-athlete voting contest as well as a scavenger hunt where participants who snapa tag receive a video response from a tour celebrity.

Starting this fall with the introduction of its 2012 models, Toyota plans to tie its new branding to the rollout of its new Prius line and to some of its other popular models like the Tacoma truck.

The company will imbed information in car brochures so users can receive interactive content like videos, or links to apps that allow customizing or building a new vehicle. Most companies that have tested two-dimensional codes in advertising have yet to embrace such tag marketing, opting instead to experiment withone-off campaigns.

It is challenging for companies, said Miles Austin, who writes the independent blog Fill the Funnel, to createan interactive experience that is "fat-finger friendly, which means easy-to-use big buttons, and offers videothat resonates and is not just another website."

Companies also run the risk that "not enough people are familiar with this kind of technology to engage withthese types of features and contents," said George Guildford, an account manager with a British-based PRagency. The advantage, he added, "is that since the links used are trackable, brands can clearly see howeffective and successful the campaign has been."http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/now-toyota-related-information-on-your-smartphone/articleshow/9475895.cms

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Business Magazines

Economy

Rupee sheds 13 paise against dollar

PTISee this story in: The Hindu Business Line

Mumbai: Moving in line with the equity market, the rupee dropped further by 13 paise to Rs 44.40 per USdollar in early trade today on persistent dollar demand from banks and importers on the back of a higher dollar in the overseas markets.

The rupee resumed lower at Rs 44.37/38 per dollar on the Interbank Foreign Exchange, as against itsprevious close of 44.27/28 per dollar, and moved down further to Rs 44.40 per dollar before quoting at Rs44.32/33 per dollar at 10.30 a.m.

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/now-toyota-related-information-on-your-smartphone/articleshow/9475895.cms






The domestic currency hovered in a range between Rs 44.30 per dollar and Rs 44.40 per dollar duringmorning deals.

Sustained dollar demand from banks and importers in view of the higher dollar in the overseas markets andweak equity markets mainly affected the rupee value against the American currency, a forex dealer said.

In the New York market, the Senate approval of the US debt bill gave the dollar much needed relief yesterday, although the greenback stayed weak against the Swiss franc.http://www.thehindubusinessline.com/industry-and-economy/banking/article2318523.ece

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Sensex sheds 169 points on growth concerns

PTISee this story in: The Hindu Business Line

Mumbai: The Bombay Stock Exchange benchmark Sensex today slumped below 18,000 mark to its lowestin over six weeks, shedding 169 points as funds sold banking, auto and heavy machinery stocks due toworries over a slowing domestic growth amid a weak global trend.

The BSE 30-scrip index, which had lost 204 points in the last run, touched the intraday low of 17,859.50before closing 169.34 points down at 17,940.55, a level last seen on June 16.

RIL and Infosys were down by 1.19 per cent and 0.76 per cent, respectively. ICICI Bank and HDFC Bank fellon concerns over sticky inflation and rising interest rates which might dent their revenue on fall in loandemand.

Interest rate-sensitive auto and realty stocks also suffered losses on concerns over rising borrowing costs.

Brokers said trading sentiment turned bearish after telecom major Bharti Airtel posted poor results for thefirst quarter of this fiscal and the Prime Minister’s Economic Advisory Council lowered the country’s yearlygrowth forecast to 8.2 per cent from 9 per cent.

Sentiment at home was also influenced by a weak Asian market and lower opening of European stocks onsovereign debt worries after it emerged that Italy had approached the European Union to settle a potentialdebt crisis at home after yields on Italian bonds touched the highest in euro history.

US data showing decline in consumer spending in June further dampened the sentiment.

Similarly, the broad-based National Stock Exchange index Nifty dropped below 5,400 level before endingdown by 51.75 points at 5,404.80.http://www.thehindubusinessline.com/markets/stock-markets/article2318495.ece

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Closings

Last Financial Closings......

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Sensex 17,940.55 (-169.34)

NSE 5,404.80 (-51.75)

US$ spot Rs.44.26

US$ Y.77.112

US$ 6 months Rs.45.59

Yen Rs.57.40

Euro spot Rs.63.39

LIBOR 6months %

Call %

Aluminium (per kg) (Mum) Rs.112.31

Aluminium Ingot Rs.- - - -Copper (per kg) Rs.428.55

Gold (10gm) Rs.23,955

Lead (per kg) Rs.111.96

Mild Steel Ingots (Mumbai) Rs.31400.00

Nickel (per kg) (Mumbai) Rs.1059.81

Nickel Cathode Rs. - - --

Silver (1kg) Rs.59845.00

Sponge Iron (per tonne) Rs. - - -

Steel Flat (per tonne ) Rs. - - - -

Steel Long GVD (per tonne) Rs.- - - -

Steel Long BVN (per tonne) Rs.- - - -

Tin (per kg) Rs.- - - -

Zinc (per kg) (Mumbai) Rs.104.81

Zinc Ingot Rs.

Rubber Rs.20870

Crude Oil (WTI)

Crude Oil(Brent)

$113.93 (-2.75)

Scip on BSEFace Value

(Rs) Last TradedValue (Rs.)



Apollo Tyres 1 72.70

Asahi Ind 1 79.90

Amara Raja B 2 244.10

Ashok Leyland 1 25.25

Bajaj Auto 10 1455.40

Bharat Forge 2 303.50

Denso 1 63.70

Eicher Motor 10 1345.95

Escorts 10 93.45

Exide Ind 1 150.25

Force Motors 10 692.95

Gabriel India 1 48.05

Hero Honda 2 1804.45

Hind Motors 5 17.55

Hi-Tech Gear 10 124.70

Jay. Bh. Maruti 5 68.75

Jamna Auto 10 138.75

JK Tyres & Inds 10 99

Kinetic Motors 10 17.35

Kinetic Engg 10 128.95

KOEL 2 123.90

Kirloskar Br: 2 159.50

LML Ltd 10 11.15

L&T 2 1658.70

Lumax Ind 10 328

Lumax Tech 10 180.85

M&M 5 710.90

Maruti Suzuki 5 1215.15

Motherson SS 1 228.10

Minda Inds 10 226.90

MRF 10 7034.10

Omax Auto 10 43.35

Rico Auto 1 13.40

Sona Koyo St 1 16.95

SRF 10 312.25

Tata Motors 10 927.75



TVS Motors 1 53.15

Scip on BSE

Face Value

(Rs)

Last Traded

Value (Rs.)

Bhushan Steel 2 380.40

Essar Steel 10 - - - -

Hindalco 1 165.70

Hind Zinc 2 135.30

Ispat Inds 10

Jindal Steel 1 556.20

JSW Steel 10 709.60

Jindal Saw 2 143.90

National Aluminium 10 73.85

SAIL 10 120.95

TISCO 10 563.10

Visa Steel 10 57.85

Scip on BSEFace Value

(Rs) Last TradedValue (Rs.)

Ambuja Cement 2 129.25

Binani Industries 10 158.05

Birla Corp 10 323.85

India Cement 10 67.90

Prism Cement 10 45.15

Saurashtra Cement 10 15.80

Shree Cement 10 1734.35

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Documents

Indian Auto Industry Update August 4th, 2011