India

Automobile Industry Updates

In this issue:

Press Release Mahindra Posts Highest Ever Monthly Utility Vehicles Sales Mahindra in JV with Chinese firm M&M sees gains for tractors in farm loan push Specialized vehicles demand drives CV market: F&S survey Chinese biggies want to enter Indian car market

Mahindra gets order for 15,000 Xylo in three months M&M Ltd signs pact with SBBJ for vehicle finance

Huge idle capacities now haunt carmakers

Tata Motors still counting Nano booking numbers

Indian carmakers miss the highway to China

Ford to source engine blocks from domestic vendor Vectra, Russian co Kamaz in heavy-duty truck JV Maruti chalks out Rs 1,200-cr KB engine up gradation plan

Hema Engineering in JV with Verlicchi Group

Daimler Trucks buys out Indian JV partner Hero

Tata, Maruti looking for engineers at Auto Congress

Radial tyre brands ride ban on Chinese imports

Automobile Industry Updates

Issue No 2

April 2009

Press Release

Mahindra Posts Highest Ever Monthly Utility Vehicles Sales

Mahindra & Mahindra Ltd. (M&M Ltd.) announced domestic sales of 25748 units in

March 2009 - its highest ever automotive sales figures. These figures also denote the

highest ever monthly sales this year. The company sold a total of 26209 vehicles

(Domestic + Exports) in March 2009, as against 24682 vehicles (Domestic + Exports)

sold in March 2008.

More

Mahindra in JV with Chinese firm

Mahindra Group in association with China-based Jiangsu Yueda Yancheng has rolled

out its 125 HP tractor at Yancheng, China, recently. Mahindra Group Vice Chairman

and Managing Director Anand Mahindra and Yueda Group Chairman Hu Youlin

inaugurated the new JV company, Mahindra Yueda Yancheng Tractor Company,

(MYYTCL), Mahindra stated in a release here.

More

M&M sees gains for tractors in farm loan push

Mahindra & Mahindra (M&M), India's top tractor manufacturer by volumes, is

anticipating a revival in demand in FY10 on the back of wider disbursal of farm credit

by public sector banks, low interest rates and good monsoon. The company sees a 3-

5% growth for the domestic tractor market during the current fiscal as against flat

growth in the last fiscal

More

Specialized vehicles demand drives CV market: F&S survey

The commercial vehicles market in India is set to experience significant changes with

the hub and- spoke model of transportation. With burgeoning road infrastructure

development, commercial vehicle (CV) sales would be driven by a focus on

application specific CVs such as medium and heavy commercial vehicles (medium

and HCVs) for long distance transportation and light commercial vehicles (LCVs),

typically the sub-3.5-tonne vehicles, for last mile connectivity.

Firm natural rubber may spur imports Speculation’ stretches rubber to Rs 100/kg JK Tyre To Go Ahead With Rs.500 Crore Expansion Plans Tyre makers seek Govt help to check rubber prices Soaring rubber price worry Tyre companies

New Product Mahindra unveils Bolero Stinger at Autocar Performance Show news Mahindra-Renault looking at expanding beyond Logan Audi introduces new Audi A6 in India Honda to launch Jazz in June at Rs 5.5 lakh onwards

Tata’s' 'world truck' to roll out by May-end The Ritz' heart rolls out!

Industry Competition Toyota small car may sport Rs 5-7 lakh tag Leyland may review LCV JV with Nissan

MRF bags HAL order for helicopter tyres

Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09

Apollo Tyres offers to buy Dutch tyre maker

International Updates Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board

Volkswagen Golf bags World Car of the Year

Bridgestone to increase radial passenger tire production capacity in China

Bridgestone to pay fine over int'l price cartel

More

Chinese biggies want to enter Indian car market

The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery

Automobile and Great Wall Motors are planning to enter India soon through joint

ventures, senior company officials told TOI at Shanghai Motor Show. Chinese

carmakers are shifting focus from their main markets like US and Europe as volumes

there are shrinking due to the global slowdown. At the same time, India's rising status

as one of the fastest-growing car markets in the world, spells opportunities.

More

Mahindra gets order for 15,000 Xylo in three months

Auto major Mahindra and Mahindra (M&M) has received huge bookings for its multi-

utility vehicle Xylo in the last three months, a top official said here on Wednesday.

"In the last three months, 15,000 Xylo were booked. In the last month alone, we have

sold 2,954 units," Vivek Nayer, senior vice-president (marketing-automotive sector) of

M&M, told reporters.

More

M&M Ltd signs pact with SBBJ for vehicle finance

Auto maker Mahindra & Mahindra (M&M) on Tuesday said it has entered into an

agreement with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance. The

bank would finance the entire range of M&M vehicles including utility vehicles, pick-

ups and passenger cars.

More

Huge idle capacities now haunt carmakers

The failure of Indian car market to expand in size has left many car makers with huge

idle capacities. After a year of flat sales in the domestic market along with grim

exports, the huge expansion plans executed in the past three years, entailing a $5

billion investment, are heading for a tailspin. While all car makers are grappling with

idle capacities, the mid-rung companies like Honda Siel Cars, Ford Motor India,

General Motors and Mahindra Renault are hit hard, though market leader Maruti

Suzuki and others such as Hyundai Motor India also remained moderately unutilised.

More

Tata Motors still counting Nano booking numbers

The booking for the world's cheapest car Nano launched by the Tata has ended but

the numbers are still being counted, a Tata Motors spokesperson said. The market

estimates on the bookings vary from as few as a couple of lakhs to over one million.

Tata motors itself has not given any information so far. The spokesperson said the

company is still compiling the number and the exercise may take a few days.

More

Indian carmakers miss the highway to China

In the middle of the action, a major Chinese carmaker is holding a press conference

in a packed hall, full of mainly Chinese journalists.

The carmaker is outlining its plans for growth and a new venture with a western

company. The Chinese journalists clap at the end of the hour-long war-like speech in

Mandarin. The handful of western journalists looks bewildered. As does a senior

official of the Chinese carmaker‘s new western partner.

More

Ford to source engine blocks from domestic vendor

FORD India has identified a domestic vendor to produce engine blocks for its brands

like Fiesta, Ikon and the upcoming small car. This move would substantially reduce

its import dependence.

More

Vectra, Russian co Kamaz in heavy-duty truck JV

The $800-million Vectra Group, which makes the Tatra range of trucks, has formed a

joint venture with Russian truck maker Kamaz to manufacture the latter‘s range of

heavy duty trucks in India at an initial investment of $13 million (around Rs 65 crore).

Vectra had picked up majority stake in Czech Republic-based Tatra in 2007. Vectra

will produce 5,000 trucks over the next 2-3 years at its Hosur plant, which will be

partly modified to make the Kamaz range.

More

Maruti chalks out Rs 1,200-cr KB engine up gradation plan

Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200

crore to replace engines of existing models with a new light-weight fuel-efficient one

that will conform to a new national emission standard to come in place next year.

The new fuel-efficient engine will also help Maruti to compete with new cars like

Honda‘s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which will be launched in

the domestic market soon.

More

Daimler Trucks buys out Indian JV partner Hero

Daimler will pay 16 million euros ($21.2 million) for the remaining 40 per cent in its

Indian heavy truck joint venture after dwindling finances forced local partner Hero

Group to focus on its core business of motorcycles.

More

Tata, Maruti looking for engineers at Auto Congress

India's top two car manufacturers are scouting for auto engineers at the World

Congress of the Society of Auto Engineers (SAE) in Detroit next week. The SAE in a

media release on Thursday listed out Tata Motors and Maruti Suzuki as among the

ten companies which would be talking with prospective candidates at the SAE 2009

World Congress Career Fare in Detroit on April 20-21

More

Radial tyre brands ride ban on Chinese imports

The restriction on imports of radial tyres from China by the government has come as

blessing for the Indian tyre industry. Leading tyre manufacturers, such as Ceat Tyres

and JK Tyres, among others, have ramped up production during the fourth quarter

ended March 31, and are expecting more than 15 per cent growth in sales volume in

the truck tyre segment.

More

Firm natural rubber may spur imports

With natural rubber prices witnessing a sharp spiral, the tyre industry is planning to

import the commodity in a major way. Natural rubber prices have jumped 33 per cent

in just five weeks. The gap between the global and domestic prices has widened as

the current Indian price for the benchmark RSS-4 grade is higher by Rs 13-14 per kg

than the global one. So, import is an attractive option for tyre majors to expand

inventory in the light of an improvement in car and two-wheeler tyre sales.

More

Speculation’ stretches rubber to Rs 100/kg

As prices for RSS-4 (ribbed smoked sheet grade 4) rubber hit Rs 100 a kg during the

weekend, there was a unanimous opinion about the current run in the commodity.

That is, prices of natural rubber have been driven up 48 per cent in two months and

36 per cent in a month by sheer speculation.

More

JK Tyre to Go Ahead With Rs.500 Crore Expansion Plans

The fast growth of Indian economy and increasing disposable income among the

consumers has stimulated exceptional growth in the passenger car industry. India is

now Asia's fourth largest vehicle market which is doing much better than its global

peers.

More

Tyre makers seek Govt help to check rubber prices

Alarmed by the increase in speculative activity in natural rubber futures trading, the

Automotive Tyre Manufacturers Association (ATMA) has sought immediate

intervention of the Government.

More

Soaring rubber price worry Tyre companies

Natural rubber prices are soaring to Rs 100 a kg level again. And nobody knows why.

That is the most surprising factor as far as rubber prices are concerned. If you talk to

market analysts, the fundamentals are the same and the demand is also without

much change. Still natural rubber prices climbed up to Rs 100 a kg this week from Rs

70 in March first week.

More

New Product

Mahindra unveils Bolero Stinger at Autocar Performance Show news

Utility vehicle major Mahindra & Mahindra Ltd (M&M) today unveiled the Bolero

Stinger – a customised concept at the `Autocar Performance Show 2008' in Mumbai.

Built on the Bolero platform, the Bolero Stinger combines its striking exterior with

powerful performance. The vehicle is powered by a 97hp CRDe engine and is

available in the 2WD BS3 variant.

M&M also created a special 4x4 track at the show to demonstrate the superior

offloading capability of Mahindra's utility vehicles.

More

Mahindra-Renault looking at expanding beyond Logan

Renault and Indian auto major Mahindra and Mahindra, which jointly manufacture the

sedan Logan in India, will expand their product portfolio to better utilise the capacity

at their Nashik plant in Maharashtra.

"We are currently assessing the viability of four to five Renault cars to be

manufactured in the facility and will finalise the models with Mahindra," Ashish

Sinharoy, Renault India's senior vice president of corporate affairs, told IANS.

More

Audi introduces new Audi A6 in India

German luxury car-maker Audi on Thursday launched its business sedan Audi A6 in

the Indian market. Audi A6, with four engine variants, would be available at Audi

dealerships pan-India from May 4 onwards, the statement said.

More

Honda to launch Jazz in June at Rs 5.5 lakh onwards

After a decade long operations in India, the largest player in the mid-size cars, Honda

Siel Cars (HSCI) is entering the high volume hatchback category with its small car

Jazz, a top company executive said. The car will have a new 1.2 litre engine

developed exclusively for the Indian market, carrying highest fuel efficiency in its

segment.

More

Tata’s' 'world truck' to roll out by May-end

TATA Motors is understood to be working full throttle on the global launch of its high-

profile ‗world truck‘ by the end of May 2009. The

Country‘s largest CV maker is expected to gradually phase out its existing heavy and

medium-range trucks, replacing them with the world truck, two officials close to the

development said.

More

The Ritz' heart rolls out!

The Maruti-Suzuki Ritz may still be a short while away from being launched, but it's

power plant is live and kicking already. On April 14 2009, the Indian car maker

revealed the brand new K12M engine to the world. Manufactured within Maruti's

Gurgaon facility in a special new engine plant, the K12M is the second of a family of

modern engines. Its smaller sibling, the K10B was the first - and now does duty in the

ultra-compact A-Star small car.

More

Industry Competition

Toyota small car may sport Rs 5-7 lakh tag

Toyota Kirloskar Motor, the Indian subsidiary of the Japanese auto giant, has

revealed the pricing segment for the compact car it plans to launch next year.

In an exclusive chat with ET, the company, which is the Indian venture of Toyota

Motor, the world‘s biggest car manufacturer by volumes, also plans to jack up its

production to 5,000 units a month by July, and double sales and servicing manpower

by 2010.

More

Leyland may review LCV JV with Nissan

With the commercial vehicle segment showing very little signs of a revival, Ashok

Leyland, India‘s second largest truck maker, is ―reviewing‖ its collaboration with

Nissan Motor of Japan to manufacture light commercial vehicles.

Last year, Ashok Leyland struck a deal with Nissan to form three joint venture

companies to manufacture light commercial vehicles, power trains and for technology

development for a total investment of Rs 2,400 crore. The project was supposed to

have a debt-equity ratio of 1:1 with each partner bringing in about Rs 600 crore each.

Under the revised plan, which is currently at the works, the capital investments are

likely to be downsized sharply.

More

MRF bags HAL order for helicopter tyres

In a major boost to its technical capabilities, MRF is set to be the first Indian tyre

company to produce helicopter tyres for the Indian defence sector. The company has

secured orders from Hindustan Aeronautics (HAL), military aircraft manufacturer, to

make tyres for Chetak range of military helicopters.

More

Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09

Undeterred by an over 50 per cent fall in its net profit in the last fiscal, tyre maker

Apollo Tyres today said it will invest Rs 700 crore in 2009-10 mainly for completion of

its Chennai Greenfield facility.

More

Apollo Tyres offers to buy Dutch tyre maker

Delhi-based Apollo Tyres, the country's second-largest tyre producer, has offered to

acquire 100 per cent stake in Vredestein Banden B.V, a Netherland-headquartered

premium tyre making for an undisclosed sum.

More

International updates

Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board

Navistar continues to blaze new trails through the hybrid landscape, becoming the

first truck and bus manufacturer to receive total hybrid vehicle certification from the

California Air Resources Board (CARB) for improving fuel economy and overall

emissions.

The innovative integration of an optimized engine and hybrid system makes total

vehicle certification of the International Dura Star Hybrid box van and utility truck, and

the IC Bus CE Series hybrid bus a reality.

More

Volkswagen Golf bags World Car of the Year

During a ceremony at this year's New York Auto Show, an independent jury of 59

handed the prestigious World Car of the Year award to Volkswagen's new MK VI

Golf.

The VW Golf was first introduced back in 1975 as a compact family car. It has had an

illustrious life spanning 35 years so far, and has gone on to become the third largest

selling car in the world.

More

Bridgestone to increase radial passenger tyre production capacity in China

Bridgestone has announced that it will increase radial passenger tyre production

capacity at Bridgestone Wuxi Tire in China, in response to the expected medium-to-

long term increase in demand for radial passenger tires in the Chinese market.

More

Bridgestone to pay fine over int'l price cartel

Japan's top tire maker Bridgestone Corp. said Thursday it will pay a fine of 58.5

million euro‘s as ordered by the European Commission in January for forming a price

cartel to sell marine hoses used to transport oil.

More

Back to Top

Press Release

Mahindra Posts Highest Ever Monthly Utility Vehicles Sales

3 April 2009

ZIGWHEELS

Mahindra & Mahindra Ltd. (M&M Ltd.) announced domestic sales of 25748 units in

March 2009 - its highest ever automotive sales figures. These figures also denote the

highest ever monthly sales this year.

M&M automotive sector's total domestic volumes, not including the joint ventures, for

the month of March 2009 stand at 25748 units, as against 23128 units in March 2008.

This translates to a whopping 30 per cent jump in sales as compared to the same

period last year. This includes the highest ever monthly sales for the Scorpio, Bolero

and the Pik-Up which stood at 19973 units for March 2009 as against 15366 units for

the same period last year.

Apart from this, the newly launched XYLO has also showing a great response by

recording impressive sales of 3171 units for March 2009.

The company sold a total of 26209 vehicles (Domestic + Exports) in March 2009, as

against 24682 vehicles (Domestic + Exports) sold in March 2008.

M&M's YTD domestic volumes for the period up to March 2009 stand at 220215

units, as against 218977 units for the same period last year.

Back to Top

Mahindra in JV with Chinese firm

7 April 2009 The Economic Times

Mahindra Group in association with China-based Jiangsu Yueda Yancheng has rolled

out its 125 HP tractor at Yancheng, China, recently.

Mahindra Group Vice Chairman and Managing Director Anand Mahindra and Yueda

Group Chairman Hu Youlin inaugurated the new JV company, Mahindra Yueda

Yancheng Tractor Company, (MYYTCL), Mahindra stated in a release here.

"This JV between M&M and Yueda Groups will combine Indian entrepreneurial and

managerial skills with Chinese competitiveness and efficiency and will contribute

substantially towards realising our ambition to be the leading tractor manufacturer in

the global market," Mahindra said.

The JV has a plant with a capacity of manufacturing 38,000 tractors at Yancheng.

This is the second tractor venture of Mahindra in China, in addition to Mahindra's

current tractor business namely, Mahindra China Tractor Company Ltd (MCTCL).

With MCTCLs Feng Shou and MYYTCLs Jinma brands, Mahindra's tractor

operations in China position it well to exploit the fast growing market, the release

said.

Back to Top

M&M sees gains for tractors in farm loan push

8 April 2009

DNA

Mahindra & Mahindra (M&M), India's top tractor manufacturer by volumes, is

anticipating a revival in demand in FY10 on the back of wider disbursal of farm credit

by public sector banks, low interest rates and good monsoon.

The company sees a 3-5% growth for the domestic tractor market during the current

fiscal as against flat growth in the last fiscal.

Anjanikumar Choudhari, president, farm equipment sector, M&M, said, "The

availability of farm credit by public sector banks and low interest rates have given a

big stimulus to the tractor demand. The good monsoon is an added advantage. The

economic boom is also reflected in the rural economy. These factors have and will

lead to a decent growth this fiscal." Choudhari sees the domestic tractor market rising

at compound annual growth rate (CAGR) of 6-8% in the next five years.

He said rising labour costs in rural areas due to migration of labour to urban areas is

also pushing up demand for tractors, which are a substitute for labour.

A lot of alternative professions have come up in rural areas due to government-run

rural employment schemes, resulting in diversion of farm labour."Due to these

factors, tractors and other farm equipment will do well and see revival. Though there

are uncertainties due to elections it's only after June that we can see a change," he

said.

According to an analyst who did not want to be named, the demand for M&M's

tractors will rise in this fiscal as a lot of farmers had deferred purchase due to a lag in

the farm credit reaching them.

Choudhari said that the ownership of tractors in India is still low. "Less than 10% of

farmers own tractors and more than 35% of them hire them. The government is

spending a sizeable amount on farm mechanisation which will help in lifting demand,"

he said.

M&M enjoys a 42% market share after acquisition of Punjab Tractors Ltd. Its

standalone market share is around 20%. M&M operates only in the small tractor

market (up to 80 horsepower).

Despite an upbeat domestic front, M&M witnessed an 82% decline in exports in the

last fiscal due to the slowdown in the US, which is its major export market, Africa,

Middle-East, Turkey and SAARC countries. M&M has started tractor assembling

plants in African countries such as Gambia and Chad.

Continuing its focus on the Chinese market, M&M has entered into another joint

venture with YYueda Yancheng Tractor Company (MYYTCL). Its first Chinese joint

venture is Mahindra China Tractor Company Ltd. (MCTCL).

With MCTCL's Feng Shou and MYYTCL's Jinma brands, Mahindra's tractor

operations position it well to exploit the fast growing market.

MCTCL produces specialised low HP tractors, and now with MYYTCL, M&M will be

present in 16-125 HP segment as well.

Choudhari said, "The Chinese tractor industry (domestic and export) has grown from

about 56,000 tractors in 2003 to 2,22,000 tractors in 2008. The agriculture policy

introduced by the government in 2004 has played a major role in this growth with a

number of positive measures including abolition of tax on agriculture. The introduction

of subsidy for tractor purchase to support farmers has gradually increased to $ 10

billion in 2009 which will provide a major boost to the tractor industry."

Back to Top

Specialized vehicles demand drives CV market: F&S survey

30 April 2009

ENS Economic Bureau

The commercial vehicles market in India is set to experience significant changes with

the hub and- spoke model of transportation. With burgeoning road infrastructure

development, commercial vehicle (CV) sales would be driven by a focus on

application specific CVs such as medium and heavy commercial vehicles (medium

and HCVs) for long distance transportation and light commercial vehicles (LCVs),

typically the sub-3.5-tonne vehicles, for last mile connectivity.

The sub-3.5-tonne LCV segment is expected to capture a significant share of the

overall CV market and to witness intensifying competition with the entry of more

participants.

According to a Frost and Sullivan‘s ‗Commercial Vehicles Market in India‘ report, the

production of CVs in India stood at 417,126 units in 2008 with sales of 384,122 units

in the same year.

Production, domestic sales and exports dropped in 2008 due to the economic

slowdown. Primarily, the 1-tonne goods carrier sub-segment of the sub-3.5-tonne

LCV segment was driving growth.

―The rising demand for specialized vehicles, due to the creation of the hub-and-spoke

model is driving the CVs market in India,‖ said Frost and Sullivan industry analyst,

Sanjay Vasudevan.

―Growth in segments such as retail and intra-city goods transportation need has

contributed to the increase in demand for the sub 3.5-tonne LCVs.‖ The National

Highways Development Programme (NHDP) for improving road infrastructure and

national highways would also impel the demand for CVs with a significant rise in

goods and passenger transport by road, due to enhanced connectivity.

Consolidation and increasing maturity of the transportation sector in India, because of

improved infrastructure, has resulted in a shift in the segment sales of CVs. Truck

sales are on an upswing because of fleet replacement and the establishment of a

new segment of sub-1 tonne.

The contribution of LCVs to the total demand for CVs has been increasing due to the

rapidly expanding usage of smaller vehicles, intra-city transportation and the creation

of a new segment of small CVs, following the introduction of the ‗Tata Ace‘.

New product introduction, coupled with significant technology changes and features

would be observed in the LCV market.

LCV products for executive mass transport would occupy a niche segment with a

significant growth in demand expected.

Accordingly, the CV market is reorganizing its product portfolio in consonance with

the changing demand pattern. However, growth in the next three years is likely to be

moderate compared to the blistering growth witnessed in the last two to three years.

―Domestic companies, with a significant three-wheeled goods carrier portfolio are

expected to rush into the sub 3.5 tonne four-wheeler CVs, to keep abreast with the

market trend,‖ said Vasudevan.

Back to Top

Chinese biggies want to enter Indian car market

30 April 2009

TNN

The Chinese dragon has set its eyes on the Indian car market. Two biggies Chery

Automobile and Great Wall Motors are planning to enter India soon through joint

ventures, senior company officials told TOI at Shanghai Motor Show. "We are looking

at a joint venture partner for India as it holds a good potential for car sales in the

coming time," Chery Automobile president Yin Tongyao said. He termed India as a

"very important" market and said the company was looking at "several proposals" for

finalising a local partner.

Chinese carmakers are shifting focus from their main markets like US and Europe as

volumes there are shrinking due to the global slowdown. At the same time, India's

rising status as one of the fastest-growing car markets in the world, spells

opportunities.

Chery was believed to be in talks with tractor maker Sonalika's car venture,

International Cars & Motors Ltd (ICML), around three years back to roll out its small

car in India. But the talks never fructified into a joint venture. Chery, famous for its

small car QQ, is eyeing sales of 4.19 lakh units in 2009, an 18% increase over 2008.

The QQ comes in two petrol engine sizes 0.8-litre and 1.1-litre.

Gavin Chen, marketing specialist with Chery's international division, said the

company plans to sell cars in India by 2010. "While initially we will look for a

distributor, the final plan is to build a factory in India." Chen said the company saw

India as a big market due to its huge population and thus wanted to develop some

specific models. "The plan is to make cars at good price with good quality," he added.

Great Wall Motor (GWM) listed on the Hong Kong Stock Exchange is China's largest

privately-owned car maker and specializes in SUV and utility models, while recently

expanding into the multi-purpose vehicle and hatchback segment. Chris Guan,

GWM's South Asian region GM, said the company wanted to launch at least one or

two models in India this year. "We are currently evaluating partnerships. Initially, we

are looking for a distributor for which we have been contacted by some companies,"

he said.

Back to Top

Mahindra gets order for 15,000 Xylo in three months

29 April 2009

IANS

Auto major Mahindra and Mahindra (M&M) has received huge bookings for its multi-

utility vehicle Xylo in the last three months, a top official said here on Wednesday. "In

the last three months, 15,000 Xylo were booked.

In the last month alone, we have sold 2,954 units," Vivek Nayer, senior vice-president

(marketing-automotive sector) of M&M, told reporters. He was here to unveil a

customised Scorpio, a sports utility vehicle (SUV) from the company, for soccer star

Bhaichung Bhutia. M&M sold 3,200 Scorpio vehicles last month, Nayer said.

Asked about the outlook for the current financial year, he said: "It's difficult to speak

about the outlook. We are looking at month-to-month performance. Current month is

going fine. Let's wait and watch how the situation unfolds."

Back to Top

M&M Ltd signs pact with SBBJ for vehicle finance

28 April 2009

PTI

Auto maker Mahindra & Mahindra (M&M) on Tuesday said it has entered into an

agreement with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.

M&M customers can avail of a loan up to 85 per cent of the on-road price of the

vehicle with repayment tenure of up to seven years. Interest rates of 12 per cent

would be charged on passenger vehicles and 11.75 per cent on commercial vehicles,

M&M said in a statement.

"Low interest rates and low processing fee are some of the benefits of opting for

State Bank of Bikaner and Jaipur as a preferred financier," M&M Senior Vice-

President K Chandrasekar said in a statement .The bank would finance the entire

range of M&M vehicles including utility vehicles, pick-ups and passenger cars.

M&M's Automotive Sector offers a range of vehicles including three-wheelers, light

commercial vehicles and multi-utility vehicles. It also manufactures the Logan

passenger car through a joint venture with Renault SA of France

Back to Top

Huge idle capacities now haunt carmakers

28 April 2009

The Economic Times

The failure of Indian car market to expand in size has left many car makers with huge

idle capacities. After a year of flat sales in the domestic market along with grim

exports, the huge expansion plans executed in the past three years, entailing a $5

billion investment, are heading for a tailspin. While all car makers are grappling with

idle capacities, the

mid-rung companies like Honda Siel Cars, Ford Motor India, General Motors and

Mahindra Renault are hit hard, though market leader Maruti Suzuki and others such

as Hyundai Motor India also remained moderately unutilised.

With only 60% of the total installed auto capacity utilised, the impeding slowdown in

the domestic market is forcing the makers to rethink on the future strategies. Indian

car market was expected to reach 2.5 million cars by 2009-10, but the economic

slowdown is likely to reduce that target by half-a-million units. In FY‘ 09 18.38 lakh

vehicles were produced against their 30-lakh units combined capacity.

The beleaguered American car major General Motors‘ fully owned Indian subsidiary

tops the chart for unutilised capacity. Its barely utilised a-fourth of its plant capacity in

FY ‗09. ―We have build-up capacities keeping in view the future demand. Our

capacities are split in two plants, the smaller Halol plant will be utilised for bigger

cars, while the bigger Talegaon factory is reserved for small cars.

We will launch two new cars, Cruze and a compact hatchback, to improve our

capacity utilisation,‖ said GM India CEO Karl Slym. While Maruti and Hyundai who

had good sales run in the domestic market by clocking their highest domestic sales

ever in FY09, many companies like Mahindra Renault failed to utilise their capacities

as they did not receive good market response.

Mahindra Renault‘s Nasik plant rolled out just 14,404 cars against the installed

capacity of 50,000 cars, while only 13,423 Logans were domestically rolled out. It‘s

CEO Nalin Mehta clarified: ―We are putting the idle capacity in use for other Mahindra

products such as XYLO and the Scorpio. The economic downturn has impacted us

like most of the auto industry and we are examining several possibilities to utilise the

capacity which we will share at an appropriate time‖.

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Tata Motors still counting Nano booking numbers

26 April 2009

PTI

The booking for the world's cheapest car Nano launched by the Tata has ended but

the numbers are still being counted, a Tata Motors spokesperson said.

The market estimates on the bookings vary from as few as a couple of lakhs to over

one million.

Tata motors itself has not given any information so far. The spokesperson said the

company is still compiling the number and the exercise may take a few days.

Enquiries with some of the banks with which the company has tied up for booking

and financing of the car also failed to reveal any information on the number of

bookings.

However, carwale.com, one of the websites which accepted online booking for Nano,

said it has done 10,000 bookings of Tata's Nano car. "We have secured 10,000

bookings of Nano across 500 cities," carwale.com Vice-President Tufail Khan told

PTI.

He said 50 per cent of the booking has been done through credit cards and the rest

through cheque payment. About 55 per cent of the bookings have been for the top-

end version of the Nano, 25 per cent for the middle version and the remaining 20 per

cent is for the base model.

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Indian carmakers miss the highway to China

26 April 2009

TNN

In the middle of the action, a major Chinese carmaker is holding a press conference

in a packed hall, full of mainly Chinese journalists.

The carmaker is outlining its plans for growth and a new venture with a western

company. The Chinese journalists clap at the end of the hour-long war-like speech in

Mandarin. The handful of western journalists looks bewildered. As does a senior

official of the Chinese carmaker‘s new western partner.

The scene illustrates all the difficulties of doing business in the Chinese market.

Language is a barrier. As are the seemingly-restrictive entry rules for foreign

companies, which require a local partner upfront and commitment to invest and

research and development.

Why is anyone but the Chinese excited? ―It‘s the only market that is growing globally,‖

says the official of the carmaker which has entered into a new western joint venture.

China, he says, is ―the last hope for carmakers in the face of shrinking demand and

volumes across developed markets of Europe and the US.‖ Welcome to the new

freeway of the global car industry. As sales crash across developed western markets,

the call of the dragon gets louder. The frenzy is at such a pitch that marketing wizards

are predicting that carmakers that are not in China must be ―prepared to stay off the

highway and watch the action from the fringes.‖

In contrast to China‘s ‗new-frontier‘ status, Indian companies seem all but absent

from China, one of the few countries in the world where the automobile market is

growing. This is at odds with Tata Motors‘ and Mahindra‘s proclaimed strategies of

expanding beyond India. Automakers from around the world — including ailing ones

such as General Motors and Chrysler — put 870 cars on display in Shanghai. Why

did the Indians stay away? Is there a China phobia because of all the stiff competition

that comes with a rapidly growing market? Or, are the Indians deterred by stiff entry

barriers? Or, are they failing to recognize the new world order for the car industry?

Pawan Goenka, automotive president of Mahindra & Mahindra, denies the Indians

are running scared. He points to Mahindra‘s impending entry into the tough US

market and blames China‘s ―difficult‖ market entry rules. ―They have very stringent

regulations for investment and branding. For Mahindra, we prefer to go in a small way

and then grow. This option is not there in China,‖ he says. But he insists ―we would

never say never.‖ At present, Mahindra has tractor operations in China.

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Ford to source engine blocks from domestic vendor

23 April 2009

The Economic Times

FORD India has identified a domestic vendor to produce engine blocks for its brands

like Fiesta, Ikon and the upcoming small car. This move would substantially reduce

its import dependence.

Ford India president and MD Michael Boneham told reporters on Wednesday that the

company would source the aluminium-cast engine blocks from Pune-based Jaya

Hind. ―We are the first company to localise by sourcing engine blocks from an

external vendor. This (such a use of technology) has never been done by a vendor in

India,‖ he said, adding the sourcing plans would be finalised in two months.

The objective is to make Ford‘s global operations perceive India as a country that has

a robust supplier choice. ―This will increase the localisation of our cars.

We would be using these engine blocks across the Ikon, Ford Fiesta and the small

car, which we are launching next year,‖ he added. Though he did not reveal the value

and quantity of sourcing, he said the volume of engine blocks would be

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Vectra, Russian co Kamaz in heavy-duty truck JV

22 April 2009

The Economic Times

The $800-million Vectra Group, which makes the Tatra range of trucks, has formed a

joint venture with Russian truck maker Kamaz to manufacture the latter‘s range of

heavy duty trucks in India at an initial investment of $13 million (around Rs 65 crore).

Vectra had picked up majority stake in Czech Republic-based Tatra in 2007.

Vectra will produce 5,000 trucks over the next 2-3 years at its Hosur plant, which will

be partly modified to make the Kamaz range. Trucks over 13 tonnes are classified in

the heavy-duty category, and include tippers, side board trucks, and tractors.

The Kamaz range will be multi-axle 6X4 and in the 8X4 class, which are not currently

made in India. With this alliance, the company makes an entry into the segment

between the trucks made by Tata Motors and Ashok Leyland on one hand, and Volvo

on the other. The company is targeting the $1-billion mark by 2011.

―We plan to sell around 1,000 of these trucks this fiscal,‖ said Akhat Urmanov, deputy

director-general, (sales and servicing), Kamaz. The JV plans to corner around 10% of

the Indian market in the next couple of years, he said.

Key to this is the pricing of their vehicles. ―We will price it between the existing Indian

players and Volvo,‖ he said. The group is going in for 30% localisation right from the

start. This localisation will include gearboxes and later, engines.

The JV company also plans to sell some of the multi-axle trucks to the armed forces,

which already are buyers of Tatra trucks made by Vectra. ―The offset policy has also

helped us get new orders from Israel, Russia and other countries,‖ said RK Rishi,

director, Vectra. The new JV will therefore not just target the Indian armed forces, but

those of the countries to which it will be exported.

―India will be a hub not just for neighbouring countries, but also for Africa,‖ said Denis

Trifonoff, regional director, Asia Pacific, Kamaz. ―The main competition will be

existing Indian players,‖ said Mr Rishi. Since Kamaz also makes CNG city, intercity

and suburban buses in Russia, talks are on to bring that into India as well. ―Maybe we

can finish negotiations by the year end,‖ said Urmanov.

This entry is not just another business, but an urgent need to generate more revenue

streams and comes as Russian auto firms face a tough environment back home.

―Conditions are certainly better in India than in Russia,‖ said Urmanov.

―We see the slowdown in India getting over by the end of the year,‖ said Urmanov,

adding that heavy-duty vehicle projects in emerging markets remain cornerstones for

the division‘s long-term growth targets. Not surprisingly, more investments are lined

up to take the production to around 15,000 units in the next five years. ―We are here

because here lie the sales,‖ he said.

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Maruti chalks out Rs 1,200-cr KB engine up gradation plan

19 April 2009

The Economic Times

Maruti Suzuki, which makes every second car sold in India, is investing Rs 1,200

crore to replace engines of existing models with a new light-weight fuel-efficient one

that will conform to a new national emission standard to come in place next year.

"While all our new launches will be on the new engines, in the long term, we plan to

gradually replace our existing series of engines with the fuel efficient KB series

engines," said Maruti Suzuki India MD & CEO Shinzo Nakanishi.

Maruti's popular models Alto, WagonR, Zen Estilo, Versa and Swift will be strapped

with new engines by April 2010 when new Bharat Stage IV (BS IV) emissions comes

into place. These five cars account for a bulk of Maruti's 7.22 lakh cars sold in India.

The new fuel-efficient engine will also help Maruti to compete with new cars like

Honda‘s Jazz, Volkswagen's Polo and Fiat's Grande Punto, which will be launched in

the domestic market soon.

Maruti's small car A-Star is BS IV complaint as it is exported to Europe, while Korean

car maker Hyundai's cars such as Santro, i10 and i20 that are made in India are

already BS IV compliant. Santro came strapped with the new engine when Hyundai

relaunched it as Santro Xing.

The all-aluminium 1.0 litre engine may replace the current line of F-series engines

fitted in the Alto, while the bigger 1.2 litre engine is likely to power the WagonR and

Zen Estilo. This new engine may also power the Swift and the Versa, currently

running on the G13 series, in the near future. The installation of new engines could

also see prices of these select models going up.

"We are working on different combinations. We will continue to have both F and KB

series engines on different vehicles meeting the emission regulatory requirements.

The KB series engines are highly fuel efficient and carry a higher cost then the

current series of engines," MSI executive officer (R&D) IV Rao said.

The company will not change its popular multijet diesel engine in Swift and DZire and

the M-series engine in SX4, as both are capable of meeting BS IV emission norms.

The company has a staggered implementation plan to load the engines in different

cars to meet the April 2010 emission norms deadline.

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Hema Engineering in JV with Verlicchi Group

16 April 2009

TNN

Hema Engineering Industries Private Limited have signed a 50:50 Joint Venture with

Verlicchi Group, Italy to set up design and manufacturing facilities for two wheeler

frames, exhaust systems and fuel tanks in India.

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Daimler Trucks buys out Indian JV partner Hero

16 April 2009

REUTERS

Daimler will pay 16 million euros ($21.2 million) for the remaining 40 per cent in its

Indian heavy truck joint venture after dwindling finances forced local partner Hero

Group to focus on its core business of motorcycles.

Referring to the significance of India as "a key to a completely new generation of

products", Daimler Trucks said on Wednesday it would invest more than 700 million

euros over four years to enter and eventually use the subcontinent as a bridgehead

to other emerging markets. The two partners had originally planned to divide the

investment in proportion to the size of their stakes.

"I really regret the Hero Group's decision, but Daimler Trucks will nonetheless enter

the truck volume market in India," said Daimler Trucks chief Andreas Renschler in a

statement on Wednesday.

"Nothing has changed regarding our plans to manufacture trucks in Chennai. I'm

counting on continued good relations with the Hero Group, whose expertise regarding

the Indian market is very important for us."

Daimler, the world's largest commercial vehicle maker, had hoped its JV with Hero

would allow it to compete better against rivals like Volvo, which has a deal with

India's Eicher Motors, as well as Tata Motors Ltd, Ashok Leyland and Mahindra &

Mahindra.

Daimler agreed in December 2007 to locally produce light, medium and heavy-duty

commercial vehicles with the Hero Group, which controls 26 per cent of India's

leading motorcycle maker Hero Honda.

The German group had forecast market potential of 500,000 units by 2018,

translating to annual growth rates of 7 per cent on average versus 2006 -- almost

twice as much as the global truck market. Demand for heavy duty vehicles weighing

over 16 tonnes would rise by an even faster 10 per cent per year.

Daimler plans to use to low cost base to export a type of premium commercial

vehicles tailored for emerging markets.

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Tata, Maruti looking for engineers at Auto Congress

17 April 2009

PTI

India's top two car manufacturers are scouting for auto engineers at the World

Congress of the Society of Auto Engineers (SAE) in Detroit next week.

The SAE in a media release on Thursday listed out Tata Motors and Maruti Suzuki as

among the ten companies which would be talking with prospective candidates at the

SAE 2009 World Congress Career Fare in Detroit on April 20-21.

The Congress attracts hundreds of auto engineers from the US. At a time of

economic recession when a large number of them have lost their jobs, the SAE

career fair is expected to help them in their reemployment.

Reflecting a sense of the crisis the US auto industry is in right now, the mainstream

auto makers are missing from this job fair.

Besides Tata and Maruti, the other eight companies participating in it are Aerotek

Automotive, BAE Systems, Delta Staffing, GTA - Professional Staffing, Mercedes-

Benz Technology, NAVAIR Special Recruitment Branch, Northwood University, Pratt

& Whitney and Transonic Combustion.

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Radial tyre brands ride ban on Chinese imports

5 April 2009

Mydigitalfc.com

The restriction on imports of radial tyres from China by the government has come as

blessing for the Indian tyre industry. Leading tyre manufacturers, such as Ceat Tyres

and JK Tyres, among others, have ramped up production during the fourth quarter

ended March 31, and are expecting more than 15 per cent growth in sales volume in

the truck tyre segment.

Radial tyres imported from China are nearly 30 per cheaper than those manufactured

in India —had captured over 10 per cent market share. After the ban on import of

Chinese bus and truck radial tyres since November 2008, domestic sales have

improved. The present market price of a light truck radial tyre is over Rs 20,000 in

India.

―We are expecting over 15 per cent growth in sales volume on quarter-on-quarter

basis for truck tyres. Positive sales of passenger cars in past three months have also

helped us,‖ said Arnab Banerjee, vice president — marketing and sales, Ceat Tyres.

JK Tyres‘ director-marketing of AS Mehta said, ―Benefit of ban on import of Chinese

radial tyres started reflecting in our sales from March. But actual figures can only be

predicted by the month-end. We expect this to continue till the second quarter of

2009-10.‖

Mehta, however, was concerned about many traders still importing radial tyres under

bias and cross ply tyres. ―We (at the Automotive Tyre Manufacturers‘ Association)

had taken up the issue with the Centre, after which it had issued licenses to serious

importers of tyres from China,‖ he said. The government issued licenses to Tata

Motors, Ashok Leyland and Eicher to import radial tyres by paying anti-dumping duty.

However, analysts expect only a marginal change due to the ban on the bottom line

of tyre companies in fourth quarter ended March 31, 2009. Unless the demand for

commercial vehicles pick up in India, there will be hardly any change in the results of

these companies, they say. Demands for commercial vehicles (CVs) have fallen by

20-25 per cent in the past year, an analyst, who did not wish to be named, said.

Karvy Stock Broking vice-president Ambareesh Baliga expects demand for CVs to

pick up from the second quarter of financial year 2009-10, which would boost the

demand for radial tyres.

But as the prices raw materials such as rubber and crude oil have started moving

northwards, companies are wary about being able to sustain the momentum in next

quarter. Rubber prices have gone up from Rs 50-70 to Rs 85 a kg, while crude prices

have moved up to $51.83 per barrel from $41 in January.

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Firm natural rubber may spur imports

8 April 2009

Business Standard

With natural rubber prices witnessing a sharp spiral, the tyre industry is planning to

import the commodity in a major way. Natural rubber prices have jumped 33 per cent

in just five weeks. The gap between the global and domestic prices has widened as

the current Indian price for the benchmark RSS-4 grade is higher by Rs 13-14 per kg

than the global one. So, import is an attractive option for tyre majors to expand

inventory in the light of an improvement in car and two-wheeler tyre sales. According

to the Automotive Tyre Manufacturers Association (ATMA), natural rubber prices are

currently ruling around Rs 94 per kg from Rs 69 on March 1.

Globally, rubber prices are showing a stable trend, while Indian prices are

appreciating by almost Rs 2-3 on a daily basis and may hit the Rs 100 level soon. For

instance, in Thailand, the largest producer of natural rubber in the world, prices

moved up by only four per cent during March, from Rs 74 on March 1 to Rs 77 on

March 31. In India, however, the rise was a whopping 23 per cent during the same

period, from Rs 69 on March 1 to Rs 85 on March 31. Even the market experts are

not in a position to put up a convincing reason for the current trend. The RSS-4 grade

today quoted at Rs 94 in Kottayam, while the current global prices are ruling around

Rs 80-81.

According to some experts, the absence of farmers in a daily appreciating market is

the main reason for the present rally. Earlier, the growers waited for the prices to rise

to Rs 80 from Rs 65 in last December. But when the prices breached the Rs 85 level,

they waited for a price tag of Rs 90. A majority of growers are now holding their

stocks, awaiting the prices to cross Rs 100. ―Certain speculators in the futures

segment are causing a huge distortion in the market and even the availability of

natural rubber has become an issue. What is most unfortunate is that the rally in

rubber prices is devoid of any fundamental shift in actual demand or supply situation,‖

said Rajiv Budhraja, Director General of ATMA.

The rise in circuit limit in natural rubber trading on commodity exchanges has also

played a role. The circuit limit has been successively raised over the last few months

and, currently, it stands at four per cent from two per cent earlier. ATMA has urged an

immediate roll back of the circuit limit to two per cent. Dealers said that the flow of the

commodity to the terminal markets was too low, affecting bulk supplies to end users.

According to the Rubber Board estimates, as on February 28, the total stock in the

market was 224,600 tonnes as against 198,000 tonnes in the same period in 2008.

But even in this case of such a huge stock, it was very hard to mobilise 10,000

tonnes of rubber, they said. So, the availability of the commodity is a serious concern.

Another set of dealers have the opinion that a sudden spurt in demand by the tyre

manufacturers has contributed much in the rally. Increasing sale of passenger cars

has enthused the tyre manufacturing sector and major tyre companies are now trying

earnestly to expand the inventory.

Till February, the total import was 73,53,0 tonne as against 82,11,6 tonne in the same

period of 2007-08. In February 09, the import was 2,100 tonne and it is likely that

there would be a sharp increase in imports in March and April. Meanwhile, extreme

summer heat has affected the yield of rubber trees. The production is expected to

pick up by mid-May at the beginning of monsoon.

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Speculation’ stretches rubber to Rs 100/kg

13 April 2009

Business Line

As prices for RSS-4 (ribbed smoked sheet grade 4) rubber hit Rs 100 a kg during the

weekend, there was a unanimous opinion about the current run in the commodity.

That is, prices of natural rubber have been driven up 48 per cent in two months and

36 per cent in a month by sheer speculation. Revival of futures in the commodity is

also pointed out as another reason for the current run.

‗No reason for price rise‘

―There is no fundamental reason for rubber to hit Rs 100 a kg now. Compared with

last year, we have an exceptionally good production. On the other hand, consumption

is almost stagnant by tyre and non-tyre sectors. With ending stocks last fiscal nearly

double that the previous year, rubber is not worth the price the market quotes now,‖

said Mr Rajiv Buddhiraja, Director-General of the Automotive Tyre Manufacturers‘

Association (ATMA).

He represents the body that is seen as a voice for eight large tyre companies that

produce 90 per cent of the country‘s output. According to the Rubber Board, ending

stocks on March 31 were 2.05 lakh tonnes against 1.08 lakh tonnes a year ago.

Rubber production during 2008-09 is estimated at 8.65 lakh tonnes, up five per cent

over a year ago. Consumption was up at 8.65 lakh tonnes from 8.61 lakh tonnes a

year ago. Exports slipped 15 per cent to 45,430 tonnes but imports increased to

78,030 tonnes (68,826 tonnes). ―It is speculation by 10-15 dealers, who trade in

rubber and also take part in futures trading, that is driving up the prices. We don‘t

think this price is sustainable,‖ said Mr N. Radhakrishnan, President of the Cochin

Rubber Merchant Association.

Rubber makes up 41 per cent of the tyre companies‘ input costs. The manufacturers

consume 57 per cent of the rubber produced in the country. A Re 1 a kg rise in

rubber prices translates into an additional cost of Rs 450 crore for the tyre sector in

the country. ―This situation is not healthy for tyre companies as the economy is yet to

revive. Also, global prices are Rs 13 a kg lower than domestic prices. This means, we

have no option but to resort to imports,‖ Mr Buddhiraja said. Mr Radhakrishnan

agreed that the tyre companies had little option under these circumstances but to

resort to ―huge imports‖.

Tapping low

―But we have to see other reasons too for the rise in prices. Tapping was low during

February and March due to extremely hot conditions. Since there were no new

rubbers coming, the growers have held back old stocks, leading to tight supply,‖ Mr

Radhakrishnan said. ―These speculators too added fuel, telling growers that prices

will touch Rs 125 a kg. Therefore, the growers have found another reason to hold

back stocks,‖ he said. While rumours are afloat on sales default, Mr Radhakrishnan

denied any default took place. ―Tyre companies usually give orders on Tuesday for a

week‘s requirement and delivery has to be made in seven days. They are not having

much by way of inventories,‖ Mr Radhakrishnan said. ―The tight supply has forced us

to import around 20 per cent of our requirement during May-July,‖ Mr Buddhiraja.

Arrivals to begin May

Tyre companies are reported to have contracted to import about 25,000 tonnes.

―Arrivals are set to begin from the first week of May,‖ the ATMA official said. ―But

prices cannot rule at these levels without any fundamentals. The growing areas are

experiencing rains and tapping is scheduled to resume soon. In a week or 10 days,

arrivals will improve and, naturally, prices will have to come down,‖ said Mr

Radhakrishnan. ―In fact, at that time there could be even panic sales of rubber.

Needlessly, speculators and players in the futures market have raised the hopes of

the growers,‖ he said.

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JK Tyre to Go Ahead With Rs.500 Crore Expansion Plans

14 April 2009

News.infibeam.com

The fast growth of Indian economy and increasing disposable income among the

consumers has stimulated exceptional growth in the passenger car industry. India is

now Asia's fourth largest vehicle market which is doing much better than its global

peers. Several auto giants like General Motors Corporation, Nissan Motor Company,

Hyundai Motors, and Volkswagen et al are pumping in huge sums of money to

expand their manufacturing facilities in India.

JK Tyre & Industries plans to go ahead with its Rs 500-crore expansion program in

the next 18 months, according to a top company official. It would be speeding its

overall production capacity of nine million tyres in phases in India. It is widely

believed that the company will fund the expansion through a combination of internal

build-up and debt. A senior representative of JK Tyre Industries said that it sees

immense potential in its Off-the-Road (OTR) tyre business, which has propelled the

company to go ahead with its expansion program of scaling up the output of truck

and bus radials, OTR and specialty tyres at a capital outlay of Rs 500-crore.

JK Tyre & Industries is India's leading four-wheeler tyre manufacturer, and the 13th

largest tyre manufacturer in the world. It has achieved innumerable feats including

the top honours such as The Brand Equity Award, Rajiv Gandhi National Quality

Award, CII-Exim Bank Award, and several others. It is first Tyre Company in India to

be chosen as a Super brand. The company has also acquired Tornel - a leading

Mexican tyre manufacturing company.

JK Tyre is equipped with 4,000 dealers and over 120 stocking point. The company

has left a mark across every Indian road; treading into every nook and corner of the

country. JK Tyre is a preferred OEM supplier and continues to be ranked among the

top three companies by the JD Power Asia Pacific Tyre Customer Satisfaction Index

(TCSI) study.

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Tyre makers seek Govt help to check rubber prices

14 April 2009

Business Line

Alarmed by the increase in speculative activity in natural rubber futures trading, the

Automotive Tyre Manufacturers Association (ATMA) has sought immediate

intervention of the Government.

36% increase

As far as rubber consuming interests are concerned, it is a matter of concern that

despite no major change in fundamentals of demand and supply, domestic natural

rubber price has increased from Rs 70 a kg on March 1 to Rs 95 on April 9, an

increase of 36 per cent in just about a month‘s time. The unwarranted increase of

natural rubber price has also led to tightness on the supply side. The current supply

situation is also out of sync with the encouraging stock level of over two lakh tonnes

of natural rubber, as reported by the Rubber Board. Mr Rajiv Budhiraja, Director

General, ATMA, said in a release that international rubber availability is good and

with global prices ruling at much lower levels (currently at Rs 82.5 a kg), the domestic

tyre industry has stepped up its import volumes.

‘Side-stepped’

This is yet another spell wherein the interests of domestic rubber growers and

consumers are being side-stepped by the intermediaries with a view to making short-

term speculative gains,‖ he said, adding that large volume of rubber imports is bound

to depress the domestic demand for rubber in the near future. According to the

association, aberrations by way of domestic rubber price being higher by over Rs 12

a kg in comparison to the international price, disrupt smooth functioning of tyre

companies, besides leading to large scale imports.

Meet on April 20

To take stock of the situation as it has developed and to evolve appropriate course of

action for the tyre industry, Heads of Purchase Departments of leading tyre

companies and members of ATMA are meeting at Kottayam on April 20. The ATMA

delegation would also meet the Rubber Board Chairman and apprise him of the

concerns of the tyre industry and seek the Board‘s intervention to restore normalcy by

isolating the speculative interests and ensuring adequate and timely availability of

natural rubber for domestic consumers.

‘Reduce intra-day limits’

As an immediate step, ATMA has sought reduction in intra-duty limits for futures

trading in natural rubber to be confined to two per cent in comparison to the existing

enhanced limit to 4 per cent. It has further urged that at volatile times like this, futures

trading in NR should be temporarily suspended to bring some balance and discipline

in the market, which is imperative in the long-term interest of NR growing and

consuming interests alike.

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Soaring rubber price worry Tyre companies

16 April 2009

Commodityonline.com

Natural rubber prices are soaring to Rs 100 a kg level again. And nobody knows why.

That is the most surprising factor as far as rubber prices are concerned. If you talk to

market analysts, the fundamentals are the same and the demand is also without

much change. Still natural rubber prices climbed up to Rs 100 a kg this week from Rs

70 in March first week. This huge rise has caused concerns among the tyre

manufacturers and they have decided to meet the Rubber Board chairman in this

regard on April 20.

Worried over the rising prices of natural rubber, the Automotive Tyre Manufacturers

Association (ATMA) has sought immediate intervention of the government to tackle

the prices. The unwarranted increase of natural rubber price has also led to tightness

on the supply side. The current supply situation is also out of sync with the

encouraging stock level of over two lakh tonnes of natural rubber. According to a

press note issued by ATMA, international rubber availability is good and with global

prices ruling at much lower levels (currently at Rs 82.5 a kg), the domestic tyre

industry has stepped up its import volumes. This is yet another spell wherein the

interests of domestic rubber growers and consumers are being side-stepped by the

intermediaries with a view to making short-term speculative gains, the ATMA said.

The association said large volume of rubber imports is bound to depress the

domestic demand for rubber in the near future. According to the association,

aberrations by way of domestic rubber price being higher by over Rs 12 a kg in

comparison to the international price, disrupt smooth functioning of tyre companies,

besides leading to large scale imports. To take stock of the situation as it has

developed and to evolve appropriate course of action for the tyre industry, heads of

purchase departments of leading tyre companies and members of ATMA are meeting

at Kottayam on April 20.

The ATMA delegation would also meet Rubber Board chairman and apprise him of

the concerns of the tyre industry. As an immediate step, ATMA has sought reduction

in intra-duty limits for futures trading in natural rubber to be confined to two

per cent in comparison to the existing enhanced limit to 4 per cent.

Back to Top

New Product

Mahindra unveils Bolero Stinger at Autocar Performance Show news

14 April 2009

Domain-B

Utility vehicle major Mahindra & Mahindra Ltd (M&M) today unveiled the Bolero

Stinger – a customised concept at the `Autocar Performance Show 2008' in Mumbai.

Built on the Bolero platform, the Bolero Stinger combines its striking exterior with

powerful performance. The vehicle is powered by a 97hp CRDe engine and is

available in the 2WD BS3 variant.

''The Bolero Stinger epitomises Mahindra's ability to offer auto enthusiasts

customised concepts of a high specification and detailing. It is a super stylish

offroader which takes the rough and tough image of the Bolero to a new high. The

Stinger is meant for the adventurous and fun loving driver who thrives on speed and

the thrill of the open road," said Vivek Nayer, senior vice president - marketing,

automotive sector, Mahindra & Mahindra Ltd.

The Bolero Stinger boasts of a custom built guard with auxiliary lamps and rear roll

cage in powder coated black, styled scoops & bezels on side and bonnet with built in

mesh, styled body claddings, custom paint job for interiors & exteriors, modified body

shell and re-panelling, cargo bay with cover, alloy wheels, custom built tail lamp bezel

with LED lamps, SS. exhaust tail end in twin pipe, overhead amber indicator marker

lamps, customised door trim pads with map pockets and bottle holders, upholstery in

leather and suede combination and MP3 player with speakers,

Mahindra also displayed the recently launched Scorpio Automatic which incorporates

a fully automatic 6-speed gear box and the powerful 2.2 litre mHawk engine.

''Scorpio is the first Indian brand and the first SUV in its class to offer a 6-speed fully

Automatic Transmission. This new edition of one of India's most loved SUVs has

been designed to make driving an effortless experience and is equipped with in-built

intelligent driving modes for an effortless drive and a wide array of smart features,

giving the Scorpio an even greater competitive edge in its segment,'' M&M said in a

release. The Scorpio Automatic has a fully electronically controlled automatic

gearbox which results in shorter shift times and hence, improved drivability. This is a

major technological improvement over earlier Automatics which were hydraulic

controlled.

M&M also created a special 4x4 track at the show to demonstrate the superior

offloading capability of Mahindra's utility vehicles. This is the first time in India that an

automobile manufacturer has created a 4x4 track to give visitors a firsthand

experience of its vehicles in rough road conditions.

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Mahindra-Renault looking at expanding beyond Logan

28 April 2009

IANS

Renault and Indian auto major Mahindra and Mahindra, which jointly manufacture the

sedan Logan in India, will expand their product portfolio to better utilise the capacity

at their Nashik plant in Maharashtra.

"We are currently assessing the viability of four to five Renault cars to be

manufactured in the facility and will finalise the models with Mahindra," Ashish

Sinharoy, Renault India's senior vice president of corporate affairs, told IANS.

This comes as a U-turn for both car makers who had in the past ruled out expanding

the product line-up in the joint venture in the short term. The scope of the current joint

venture does not go beyond manufacturing Logan and integrating the distribution and

sales networks. But two factors have worked towards the re-think: Logan's sales

have plummeted, and the Nashik facility has been rendered under-utilised.

Sinharoy said Logan, which did very well in the first year of its launch, has been a

victim of the economic slowdown. Coupled with this, there was a lack of options in

terms of other models available in the joint venture's stable; hence the decision to

expand, he said.

Mahindra-Renault managed to sell close to 26,000 units of Logan during the 11

months of 2007-08 since the car was launched, while the number nearly halved to

only 13,423 last fiscal. "As a result, the plant has been under-utilised and the dealer

network is also under-selling. So we are actively looking at optimising the utilisation

and have decided to introduce new models in our line-up," Sinharoy said.

"Although the numbers for the new vehicles won't be huge, it will definitely pep up the

dealer network and induce demand."

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Audi introduces new Audi A6 in India

23 April 2009

PTI

German luxury car-maker Audi on Thursday launched its business sedan Audi A6 in

the Indian market.

"The Audi A6 is the most successful business sedan worldwide and one of our main

contributors to our achievement in the Indian market. We believe the new Audi A6 will

be one of the key players in the Indian luxury car market," Audi India Managing

Director Benoit Tiers said in a statement.

Audi A6, with four engine variants, would be available at Audi dealerships pan-India

from May 4 onwards, the statement said.

"India has been a significant growth driver for Audi and will be the car market of the

future," Tiers said.

Its price starts at Rs 38,57,000 (ex-showroom Mumbai) and offers a choice of four

engines and six colours.

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Honda to launch Jazz in June at Rs 5.5 lakh onwards

22 April 2009

The Economic Times

After a decade long operations in India, the largest player in the mid-size cars, Honda

Siel Cars (HSCI) is entering the high volume hatchback category with its small car

Jazz, a top company executive said. The car will have a new 1.2 litre engine

developed exclusively for the Indian market, carrying highest fuel efficiency in its

segment.

Jazz also called Fit in certain markets, is the only small car in Honda's global

portfolio. To be launched in India in the month of June, Jazz is likely to be the most

expensive petrol hatchback in the market with an expected base price of Rs 5.5 lakh.

It will be pitted against Skoda's Fabia, Tata Motors' Indigo, Ford Fusion and

Hyundai's Accent besides Ritz the upcoming product from Maruti's stable.

Speaking to ET, HSCI managing director & CEO Masahiro Takedagawa said, "Jazz

will have all the features found in a premium large car. Our survey shows that 80%

hatchback customers feel that these cars lack legroom and headroom space which

we have addressed in Jazz."

He added, "We have designed a special engine for India to optimise fuel efficiency

and power, which delayed the launch by one year. Jazz also comes strapped with a

toughened suspension to meet stiff roads conditions in India."

The car is based on Honda's City platform and will have a high 70% localisation. Jazz

is likely to endorse Honda pioneered V-Tec technology for high fuel efficiency, which

is already used in the Honda City engine. Jazz will also qualify for the concessional

8% excise duty under government's small car definition

"We will try to pass the benefit of lower excise duty on Jazz but 30% of its

components are imported and the weak rupee may lead to a higher price," Mr

Takedagawa said. He however added that the company is not positioning Jazz as a

volume generator and its best-selling sedan City will remain the largest car for Honda

in India.

Jazz will have customisation option for navigation system, in-car entertainment,

sporty tyres and other gizmos at the dealer level. It will be launched with manual

transmission and will be studded with an automatic transmission later.

According to sources in the automobile market, Honda could also launch a diesel

variant of Jazz in the next few years. The company is targeting smaller cities and

towns for the new car and plans to add 10 more dealerships in the next one year to

the current tally of 106 across the country news by end

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Tata’s' 'world truck' to roll out by May-end

22 April 2009

The Economic Times

TATA Motors is understood to be working full throttle on the global launch of its high-

profile ‗world truck‘ by the end of May 2009. The country‘s largest CV maker is

expected to gradually phase out its existing heavy and medium-range trucks,

replacing them with the world truck, two officials close to the development said.

―As a policy, Tata Motors does not talk about its future product launches. An

announcement will be made at an appropriate time,‖ said a Tata Motors

spokesperson. ―The world truck will sport a more expensive price tag. Given the

current slowdown in the commercial vehicle market, Tata Motors will continue

producing the existing range till the market picks up,‖ said a person familiar with the

development.

Tata Motors is developing the world truck along with its subsidiary Daewoo

Commercial Vehicles on a completely new platform. The trucks, powered with 185-

565 HP engines, will compete with the likes of Volvo, Nissan, Mercedes Benz and

MAN. The world truck, having up to 300 horse power (HP), will be launched in India,

while the higher HP models will be for the global markets,‖ said a senior company

official.

Price is a critical factor in the commercial vehicle segment and the company is keen

to keep the prices of its new range as competitive as possible. The world truck will be

priced at a premium of 5-10% compared to its existing range, as it will have far more

features such as AC cabins.

Although sales of commercial vehicles have started looking up this month, the

company has put price hikes on hold for the moment. Every year, commercial vehicle

majors increase prices in the range of 3-5% in April. During April to March 2009, CV

sales have taken a 22% knock at 3.84 lakh units. Sales of Tata Motors for the last

financial year fell by 22% to 2.33 lakh units.

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The Ritz' heart rolls out!

16 April 2009

TNN

The Maruti-Suzuki Ritz may still be a short while away from being launched, but its

power plant is live and kicking already. On April 14 2009, the

Indian car maker revealed the brand new K12M engine to the world. Manufactured

within Maruti's Gurgaon facility in a special new engine plant, the K12M is the second

of a family of modern engines. Its smaller sibling, the K10B was the first - and now

does duty in the ultra-compact A-Star small car.

The K12M is essentially a 1197cc petrol engine that is capable of putting out 85 PS of

power at 6000rpm in its current state of tune. Torque figures stand at 113Nm @

4500rpm - which should make the Ritz a sprightly performer when it hits showrooms

soon. The K12M's technological superiority is showcased in its all-aluminium

construction and the extensive use of plastic parts as was with the K10B as well.

Maruti's engineers worked closely with the Suzuki boffins in India and in Japan to

make the K12M as advanced as possible. The main aim for the team was to reduce

losses and an innovative rocker-less DOHC camshaft, plastic intake manifold and

offset crankshaft with low tension rings help do just that.

All that weight saving also makes the K12M extremely fuel efficient too - and not at

the price of performance! A high pressure fuel system and advanced injectors for

better atomisation and combustion help this 1.2 litre unit pump out decent power and

torque figures. Durability is also on the high side with the K12M as it employs a silent

timing chain and clever tappet design along with an increased spark plug life.

The K12M is also BS-IV compliant - which will make the Ritz the first ever passenger

car in India to adhere to the new pollution norm when it rolls out. With the K12M,

Maruti has taken yet another step forward to providing India with cutting edge

technology in their cars. And if the smaller K10B powered A-Star is anything to go by,

expect the K12M powered Ritz to be a huge pleasure as well!

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Industry Competition

Toyota small car may sport Rs 5-7 lakh tag

29 April 2009

The Economic Times

Toyota Kirloskar Motor, the Indian subsidiary of the Japanese auto giant, has

revealed the pricing segment for the compact car it plans to launch next year.

In an exclusive chat with ET, the company, which is the Indian venture of Toyota

Motor, the world‘s biggest car manufacturer by volumes, also plans to jack up its

production to 5,000 units a month by July, and double sales and servicing manpower

by 2010.

―The compact car will be priced in the B+ category,‖ said Sandeep Singh, deputy MD,

revealing details of the much-awaited car for the first time. This category has cars,

such as Maruti Swift, the Skoda Fabia and the Chevy UVA.

The pricing of these cars is between Rs 5 lakh and Rs 7 lakh. This means that the

compact car will be priced between a Santro top-end variant and a Honda City entry

variant. The model will be launched in both sedan and hatchback versions. Around

70,000 units of the so-called compact vehicle will be produced at its Rs 3,200-crore

factory at Bidadi in Bangalore.

The compact car will have a localisation of 65% to start with, and will gradually be

taken to 90% by 2011, said Shekar Viswanathan, deputy MD (Commercial). That

would make it one of the few foreign models with the highest percentage of local

components. The Innova, which sold 3,900 units in March, and the Corolla have a

localisation of 65% and 45%, respectively.

―We are looking to have 75% local components for the Innova and around 50% for

the Corolla by next year,‖ said Mr Viswanathan. Higher localisation for the small car

has made the company actively consider a new powertrain facility by the end of 2010.

Still in the planning stages, the facility will be dedicated to producing engines and

gearboxes for the compact car.

The company is looking at expanding dealer network from the current 82 to 150 by

2010-end, said Mr Singh. ―With the compact car, we want to be in semi-rural and

rural towns,‖ he said. By the end of this year, the number of dealerships will be

around 95. With the rise in dealerships will come new hires, which will double the

sales and servicing teams from the existing 2,800 people. The company, which had

cut production in the first quarter, saw a 20% shortfall in supply for its models in

March.

This has led to a revision in sales targets, and now the company will be making 5,000

units from July, a rise of 35% from its current level. This figure includes both, the

Innova, and the Corolla. ―We aim to sell 50,000 units of these cars this year,‖ said Mr

Singh. The company is banking on the post-monsoon festive season for a turnaround

in the automotive market.

But, imports and the depreciation in the rupee are casting a shadow in its efforts to

cut costs. The Japanese currency has appreciated 33% against the rupee since

October last year, making imports from that country much more expensive in India,

and thus increasing costs of production here.

Toyota Kirloskar also imports parts from Thailand, paid for in the US currency, which

has appreciated 21.6% since August. The company imports 30% of parts by value for

its Innova utility vehicle and 55% for the Corolla Altis car.

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Leyland may review LCV JV with Nissan

28 April 2009

The Economic Times

With the commercial vehicle segment showing very little signs of a revival, Ashok

Leyland, India‘s second largest truck maker, is ―reviewing‖ its collaboration with

Nissan Motor of Japan to manufacture light commercial vehicles.

Hinduja group sources told ET NOW that the review process is currently on and the

two partners will work out the revised investment and capacity programme over the

next few weeks. Industry insiders feel that the project, which was scheduled to go on

stream over the next two years, could get delayed as a result.

Last year, Ashok Leyland struck a deal with Nissan to form three joint venture

companies to manufacture light commercial vehicles, power trains and for technology

development for a total investment of Rs 2,400 crore. The project was supposed to

have a debt-equity ratio of 1:1 with each partner bringing in about Rs 600 crore each.

Under the revised plan, which is currently at the works, the capital investments are

likely to be downsized sharply.

While 51% of the vehicle manufacturing joint venture will be owned by Ashok

Leyland, Nissan is set to have a 51% shareholding in the power train joint venture.

Nissan Ashok Leyland Technologies, which will be involved in technology

development, will be equally owned by Ashok Leyland and Nissan.

However, R Seshasayee, managing director of Ashok Leyland, told ET NOW that the

joint venture plans are very much on track. ―There is no truth in the rumours that we

are shelving our joint venture with Nissan,‖ he said.

The buzz that Ashok Leyland is in two minds about going ahead with its joint venture

with Nissan has been gaining ground since the Hero group announced earlier this

month that it was exiting its truck joint venture with Daimler. The Hero-Daimler break-

up was clearly due to the sharp slowdown in commercial vehicle segment, and

industry insiders fear that the current demand situation could force other alliances to

review their truck plans in India.

The domestic commercial vehicle industry has been struggling in recent months with

volumes down by almost 23% in the last fiscal ended March 2009. Analysts expect

the industry to report a modest growth of 6-7% in the current financial year.

There are also reports that Bajaj Auto and Renault are also reviewing their

collaboration for developing the ultra-low cost car for India, although Rajiv Bajaj,

managing director of Bajaj Auto, maintains that the car joint venture is very much on

track.

Mahindra & Mahindra, which has joined hands with US-based Navistar, to tap the

commercial vehicle segment in India, has also made it clear that their plans for the

domestic track are intact. ―We are rolling out brand new platforms for the domestic

market and there are no plans to delay the rollout,‖ Pawan Goenka, president

(automotive sector), M&M, recently told ET NOW

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MRF bags HAL order for helicopter tyres

13 April 2009

Mydigitalfc.com

In a major boost to its technical capabilities, MRF is set to be the first Indian tyre

company to produce helicopter tyres for the Indian defence sector. The company has

secured orders from Hindustan Aeronautics (HAL), military aircraft manufacturer, to

make tyres for Chetak range of military helicopters. Satisfied with MRF‘s products,

the defence authorities have also asked the company to develop tyres for all fighter

aircraft and other helicopters.

―We have got the first order from HAL and are executing the same. The order is for

about 400-500 tyres for Chetak military aircraft,‖ a top company official said.

However, other details such as order size and delivery schedule couldn‘t be obtained.

―It‘s a prestigious order. More than the size, the order validates our product

performance and technology,‖ added the official.MRF will be selling its helicopter

tyres, developed over a period of three years, under the brand name Aero Muscle.

The Rs 5,000 crore plus MRF, which is already a supplier of tyres to the defence

sector, will initially execute the order out of its Arakonam plant, near Chennai. It has

invested a few crores in Arakonam to equip the facility to produce helicopter tyres.

Later, it will shift production to its Medak unit (Andhra Pradesh), where the company

proposes to invest more than Rs 120 crore in creating a separate assembly line for

aviation tyres.

Helicopter tyres for the defence sector are at present imported. There are over 30

different types of aviation tyres required by the defence forces, including navy, coast

guard and others. MRF obtained all approvals from certifying authorities to

manufacture and supply its indigenously developed tyres for Chetak helicopters last

year.

The defence sector contributes about 2-3 per cent to the company‘s top line.

According to a document of Defence Research and Development Organisation, MRF

tyres have been initially cleared for an operational life of 10 years with five years as

storage life. Based on this clearance, HAL (helicopter division) placed an order on

MRF for supply, which will result in foreign exchange savings. Based on the

confidence gained in development, Centre for Military Airworthiness and Certification

(CEMILAC), one of the certifying authorities, has initiated development of tyres by

MRF for all fighter aircraft and other helicopters.

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Apollo Tyres to invest Rs 700cr in FY10; net slips 50% in FY09

29 April 2009

The Economic Times,

Undeterred by an over 50 per cent fall in its net profit in the last fiscal, tyre maker

Apollo Tyres today said it will invest Rs 700 crore in 2009-10 mainly for completion of

its Chennai Greenfield facility. The company's net profit for 2008-09 almost halved at

Rs 108 crore compared to Rs 219 crore in the previous fiscal on account of high input

cost and sluggish demand in the domestic auto market. Net sales rose by 10.18 per

cent in FY'09 at Rs 4,070 crore compared to Rs 3,694 crore in the previous fiscal.

For the quarter ended March 31, 2009, Apollo Tyres posted a 22.04 per cent dip in its

net profit at Rs 46.20 crore against Rs 59.26 crore in the year-ago period. Net sales

went up 10.89 per cent at Rs 1,110 crore against Rs 1,001 crore in the same period

previous fiscal.

"We have earmarked a capital expenditure of Rs 700 crore for 2009-10, of which 90

per cent will go for completion of the construction work of our upcoming Chennai

facility, while the rest will be utilised for ongoing maintenance," Apollo Tyres Chief

Financial Officer Sunam Sarkar told reporters.

The company is setting up a Greenfield tyre producing facility in Chennai with an

initial capacity of 150 tonnes per day, expandable up to 450 tonnes per day. It had

announced to invest Rs 550 crore in the facility while starting the construction work in

September, 2008.

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Apollo Tyres offers to buy Dutch tyre maker

29 April 2009

Business Standard

Delhi-based Apollo Tyres, the country's second-largest tyre producer, has offered to

acquire 100 per cent stake in Vredestein Banden B.V, a Netherland-headquartered

premium tyre making for an undisclosed sum. "The trustee in bankruptcy at the

Almelo Court in the Netherlands has approved Apollo Tyres offer to acquire 100 per

cent stake of Vredestein Banden B.V (VBBV)."

The parties concerned will be in a position to disclose any further information,

including price, only after certain conditions have been met and certain approvals

including regulatory and statutory approvals are granted, wherever required, the

release further stated.

VBBV is a 100 per cent subsidiary of Russia's largest tyre manufacturer Amtel-

Vredestein N.V (AVNV).Earlier in the day, the board of Apollo Tyres gave their

approval to the management to proceed with requisite approvals and compliance on

the acquisition of VBBV.

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International Updates

Navistar First Truck and Bus Maker to Receive Hybrid Certification from California Air Resources Board

27 April 2009 Eastern Daylight Time

Navistar (NYSE: NAV) continues to blaze new trails through the hybrid landscape,

becoming the first truck and bus manufacturer to receive total hybrid vehicle

certification from the California Air Resources Board (CARB) for improving fuel

economy and overall emissions.

The innovative integration of an optimized engine and hybrid system makes total

vehicle certification of the International Dura Star Hybrid box van and utility truck, and

the IC Bus CE Series hybrid bus a reality.

On Friday, April 24, 2009 the CARB voted to implement a $25 million voucher

incentive program as part of California Assembly Bill (AB) 118 to accelerate the

deployment of about 1,000 medium- and heavy-duty diesel hybrid trucks and buses

in California. Purchasers of commercial hybrid vehicles under this program will

receive incentives ranging from $10,000 to $35,000 per vehicle depending on weight

class. In addition, purchasers of CARB-certified International Dura Star Hybrid

models and IC Bus hybrid buses will receive vouchers worth another $5,000 per

vehicle under the incentive.

―This is a win-win for everyone in California,‖ said Jack Allen, Navistar president,

North American truck group. ―By working together we created the opportunity to put

more clean diesel hybrid trucks and buses on California‘s roads, and we‘re proud that

Navistar‘s hybrid leadership directly puts money back in our customers‘ pockets.‖

In addition to commercial hybrid trucks, Navistar is an industry leader in hybrid school

buses. In August 2007, Navistar‘s IC Bus subsidiary delivered the first hybrid diesel

school bus to the Napa Valley Unified School District in California. While most diesel-

only powered school buses achieve an average of six to seven miles per gallon, the

fuel efficiency of the IC Bus plug-in hybrid electric school bus nearly doubled the

average to 13 miles per gallon.

AB 118, authored and championed by former California State Assembly Speaker

Fabian Nunez, aims to reduce greenhouse gases from California‘s transportation

sector, and was signed by Governor Schwarzenegger on Oct. 14, 2007.

Environmental Innovations

For decades, Navistar has demonstrated a commitment to clean technologies that

benefit the environment and its customers. In 1989, Navistar was the first original

equipment manufacturer to release the smokeless diesel engine and, in 2001,

Navistar was the first engine manufacturer to gain certification from the U.S.

Environmental Protection Agency (EPA) for meeting particulate and hydrocarbon

emissions standards – six years ahead of schedule. Navistar was also the first to

enter line production of commercial diesel hybrid trucks and school buses.

Most Fuel Efficient Heavy Trucks

In addition to hybrid-electric trucks and buses, the conventional line-up of

International brand commercial trucks is among the most aerodynamic, fuel efficient

in the industry. Navistar recently became the first OEM to receive dual certification

through the U.S. EPA SmartWay Program for helping to reduce greenhouse gas

emissions. Navistar produces two industry-leading Class 8 trucks with SmartWay

certification — International LoneStar and International ProStar — a distinction they

received for their superior aerodynamics and fuel economy. While the aerodynamic

ProStar Class 8 tractor is the market leader in fuel-efficiency, in June 2008, the

groundbreaking LoneStar became the first classic-styled Class 8 tractor to receive

the SmartWay certification.

Award-winning Environmental Leadership

For its ongoing leadership, Navistar was honored with the 2007 Blue Sky Award from

West Start-CALSTART for its contributions to the commercial development of diesel-

hybrid technology. This preeminent award is presented each year by West Start-

CALSTART, the nation's leading advanced transportation technology industry

organization working to support and accelerate the growth of companies developing

clean and energy-efficient transportation technologies.

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Volkswagen Golf bags World Car of the Year

16 April 2009 TNN

During a ceremony at this year's New York Auto Show, an independent jury of 59

handed the prestigious World Car of the Year award to Volkswagen's new MK VI

Golf.

The award comes with its own claim-to-fame. Unlike other 'Car of the Year' awards

which are usually nation or continent specific, or at least affiliated to some sort of

automotive media, the World Car of the Year award is often considered to be the

most indisputable as its jury is entirely independent, composed of automobile

journalists from 22 different countries around the world. And to back its authenticity,

the rules which qualify any car for this award state that it must be on sale on at least

2 continents around the world.

Of the four categories of this award, the latest iteration of the Volkswagen Golf was

selected as the overall World Car of the Year 2009, besting out competition that

came from the likes of the new Ford Fiesta and the much talked about Toyota IQ.

The VW Golf was first introduced back in 1975 as a compact family car. It has had an

illustrious life spanning 35 years so far, and has gone on to become the third largest

selling car in the world. In its sixth generation now, the new Golf has made waves

across the world by being the safest, most technically advanced and dynamic Golf

yet. Though Volkswagen hasn't made any official announcements, the Golf is very

likely to be India bound in the foreseeable future.

Back to Top

Bridgestone to increase radial passenger tire production capacity in China

13 April 2009 www.automotive-business-review.com

Bridgestone has announced that it will increase radial passenger tire production

capacity at Bridgestone Wuxi Tire in China, in response to the expected medium-to-

long term increase in demand for radial passenger tires in the Chinese market.

Bridgestone has applied to the Chinese authority for investment to increase

production, and has decided to strengthen its production capacity after receiving the

approval of the Chinese authority. The company intends to start increased production

at the Wuxi plant in the second half of 2011. Bridgestone has said that it is planning a

total investment of $98 million, which will enable it to increase daily production by

4,200 units, giving the plant an estimated daily output of 12,000 units once production

capacity has been increased.

Back to Top

Bridgestone to pay fine over int'l price cartel

16 April 2009 www.tradingmarkets.com

Japan's top tire maker Bridgestone Corp. said Thursday it will pay a fine of 58.5

million euro‘s as ordered by the European Commission in January for forming a price

cartel to sell marine hoses used to transport oil. Bridgestone said it has decided to

comply with the European Commission's order without taking legal action with a

European Union court against the order.

The company said it appropriated about 7.5 billion yen to pay the fine in its earnings

report for the 2008 business year which ended in December. The European

Commission in late January ordered Bridgestone and four U.S. and European

companies to pay a total of 131 million euro‘s in fines for forming the price cartel.

The five companies, which also include Parker ITR S.R.L. SpA based in Italy and the

United States and Sweden's Trelleborg AB, fixed prices of marine hoses and

exchanged sensitive information, including the names of customers, between 1986

and 2007, according to the executive arm of the European Union.

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