Hero Honda posted its highest net profit in five quarters
Racing ahead of main rival Bajaj Auto, Hero Honda continues to record an amazing performance this year, despite the overall recession in the Indian automotive market.
In fact, Hero Honda posted its highest net profit in five quarters, with a 50% increase in profit after tax (PAT) at Rs 306.3 crore for the quarter ended September 30, 2008. The company clocked Rs 204.3 crore in the same period last year, and Rs 298.7 crore in the fourth quarter of FY 2007.
Due to better cost control, more efficient work practices and higher sales, Hero Honda's operating profit margins also improved to 15.26% during the quarter, against 14.06% in the same period last year, and 12% in the first quarter.
Hero Honda's motorcycle and scooter sales went up by 29% during the quarter to 972,000 units, against last year's 756,000 units. The company sold 537,000 vehicles during the Diwali month in 2007, and aims to cross that mark this year with 600,000 units.
'We have posted the best-ever sales in the fiscal and are aiming to net the highest-ever sales in October. Our margins grew as a result of good sales volume and strong fiscal discipline. Cost-control and greater penetration in the market also helped bring in better profits. We have built a huge stock to attain the highest volume growth in the festive season. To meet the liquidity crunch in the market, we have entered into tie-ups with regional, rural and co-operative banks to meet customers' credit needs,' said Pawan Munjal, MD, Hero Honda.
Hero Honda, which currently has a 55% market share in the two-wheeler segment in India, recently launched four new variants of its existing bikes, and is expected to launch more variants and perhaps two or three all-new bikes by end-2009.
According to analysts and industry experts, Hero Honda's fundamentals are strong and it has posted impressive volume growth, outperforming the entire two-wheeler industry. The company improved its realization on the back of shifting bulk production to the tax-free zone in Haridwar, and its bottom line has grown with effective cost control management.
[Via: indiaautomotive]
CLAAS Group sets up manufacturing facility near Chandigarh
Germany company, CLAAS has set up its new manufacturing facility near Chandigarh, in Punjab, where it will produce combine harvesters for the Indian market as well as for exports. CLAAS India Ltd., a fully owned subsidiary of the CLAAS Group, will handle all aspects of production, sales and marketing of CLASS products in India.
'CLAAS quality standards are equally high in all its 14 manufacturing facilities worldwide. Whether our harvesters are made in Germany or in India, our benchmark of quality is the same. 'Made by CLAAS' is what our customers expect and that's what they get from us,' says Jan-Hendrik Mohr, member of the group executive board and responsible for the worldwide production of combine harvesters.
The CLAAS plant near Chandigarh is equipped with the latest in paint shop, manufacturing and fabrication technologies and has fully integrated process and quality control systems in place. The plant has a capacity of 900 units per annum, which can be increased to 1,200 units if demand warrants.
From this plant, CLAAS will not only cater to the requirements of the Indian market, but also other Asian and African countries, including South Korea, Sri Lanka, Taiwan, Iran, Sudan and Tanzania. 'India, which is already a leader in software and steel production, is now destined to reach remarkable milestones in the business of agriculture equipments,' says Catherina Claas, group deputy chairperson, CLAAS.
'With our two manufacturing facilities in India, and the location-specific advantage in terms of proximity to Asian and African markets, we are expecting to leverage exports in these markets even further,' says Pradeep K. Malik, President & Managing Director, CLAAS India Ltd.
[Via: indiaautomotive.net]
Maruti Suzuki would focus on research and development
Last month, at Maruti's 27th Annual General Meeting, the company's chairman R C Bhargava had said that Maruti Suzuki would focus on research and development and scale up its small engine development capabilities. Now, the company, which inaugurated its new engine manufacturing plant near Gurgaon today, has reiterated that it definitely does intend to increase its focus on R&D activity in India.
'We will be strengthening our R&D team here in India and will have 1,000 engineers [up from the current 570] working by 2010,' said Shinzou Nakanishi, MD, Maruti Suzuki. 'The economic environment is tough but there is no change in our hiring plans for R&D,' he added. The company is committed to setting up an R&D unit at Maruti Suzuki India, which would be at par with Suzuki Motor Corp, Japan, said Nakanishi.
[Via: indiaautomotive]
Honda India’s targets sale of 70,000 units this year
With the new Honda City having been launched in India recently - which is expected to boost the company's sales significantly - Honda Siel Cars India Ltd. (HSCI) is looking at an overall sales target of 65-70,000 cars this year.
Up to seventy percent of HSCI's sales in India come from the City, and with the new City widely expected to outperform the competition in its class, and with the Jazz hatchback also coming in by mid-2009, the next 12 months may well be extremely good for Honda in terms of sales.
[via: cartradeindia]
Nissan’s SuperMini in India by 2010
The Japanese car maker, Nissan , will launch its super minicar, Nissan March in India by 2010. Tata Nano is slated for launch in early 2009. However, the full scale launch of Nano will be possible only in the second half 2009. In other words, the Singur fiasco has resulted in a boon for Nano competitors.
''The small, next-generation car 'March' will be launched in India by 2010 in the 'A' segment category. The car would be manufactured at the company's plant situated at Oragadam in Tamil Nadu, though initially the car would be rolled out from the company's Thailand facility followed by India," said Shouhei Kimura, Managing Director, Nissan Motor India. ''We would have a total of nine Nissan models by the year 2012 in the Indian market and this car would be one of the new models," he added.
[Via: cartradeindia]
Maruti’s New Petrol Engine Plant in India
India's largest car manufacturer, Maruti Suzuki India, opened its new petrol engine plant on Tuesday. The plant will have an annual manufacturing capacity of 2,40,000 fuel efficient KB series petrol engines. These petrol engines will be primarily used for its new model A-Star slated for a launch in India. The commencement of the new petrol engine plant from Maruti is in line with its target to achieve sales of one million by 2010-11.
"The new engine series is an important step towards attaining the target sales of a million units in the domestic market by 2010-11. The operational capacity of our plant has reached the million mark," said Shinzo Nakanishi, Maruti Suzuki India Managing Director. "This new engine is highly fuel efficient while also offering best in refinement and performance. It will take engine technology to the next level in India," he added.
The new KB engine will be introduced into other models after the A-star. The new power plant will also be used in the new redesigned Alto and Nissan Pixo. The new KB series engine complies with BS III emission norms as well as Euro IV and Euro V standards and it will also power the export models of the company.
[Via: cartradeindia]
M&M ownership leads to turnaround for Punjab Tractors Ltd.
After having been acquired by Mahindra & Mahindra last year, Punjab Tractors Ltd. (PTL) - which seemed to be in the financial doldrums earlier - is now beginning to do much better. The company's excess capacity at its two plants at Mohali is now being used to manufacture Mahindra tractors, While PTL's own Swaraj-branded tractors have also gained some ground.
According to reports in the media, sales of PTL tractors increased by 57% in the first half of this fiscal, at 17,257 units, and in the same period, the company's market share increased from 7.3% to 10.7%.
With a production capacity of 60,000 tractors per annum, both of PTL's manufacturing units at Mohali have excess capacity, which will now be used to make Mahindra tractors. This also means that M&M will no longer establish a new tractor manufacturing facility (the company was earlier looking at setting up such a unit somewhere in South India), which is likely to result in a saving of hundreds of crores of rupees for the company.
[Via: indiaautomotive]
Nissan may buy 20% of Chrysler
While the proposed GM-Chrysler merger is still being speculated about, another player - Nissan - now seems to have jumped into the fray. The Japanese carmaker is said to be looking at picking up a 20% stake in Chrysler, bringing the troubled American car manufacturer into the Renault-Nissan alliance.
Nissan is said to have already made an offer to Cerberus Capital Management, which holds about 80% percent of Chrysler, though according to various sources, Stephen Feinberg (Cerberus founder and CEO) would rather do a deal with GM.
With slowing sales worldwide, Nissan is also looking at cutting production at some of its factories, and is asking its workers in some locations to take leave without pay. In the US alone, Nissan's sales have dropped by 37% this year. In such a grim economic scenario, it seems incomprehensible for Nissan to pick up a 20% stake in Chrysler.
[Via: indiaautomotive]
Small Car from Honda in India
Tata Nano will soon have a competitor from Honda Siel Cars India Ltd. Bajaj-Renault-Nissan have already announced to launch their Nano competitor in the Indian market and Honda Motor Company from Japan recently shook hands with Siddharth Sriram Group to launch a second small car in India.
The new small car will be a 600cc car that will be launched in the B or B+ segment. The 600cc K-series engine, currently being sold only in Japan, will power the new car model in India. It will roll out from the Rajasthan manufacturing facility and will be designed specifically for the Indian driving conditions.
The company also plans to launch its hatchback model, Jazz , in India which is a premium model powered by a 1200cc engine. It will be available in India by 2009.
Mahindra launches new Scorpio & Bolero variant
Mahindra & Mahindra Ltd. (M&M) has launched the new 'FuelSmart' system on the Scorpio and Bolero multi-utility vehicles. This technology has been introduced on the Scorpio M2DI and Bolero SLX BS3 variants.
Developed by the Mahindra R&D team, along with inputs from Bosch, Mahindra FuelSmart system, with its Micro-Hybrid technology, enables the engine to switch off automatically at a traffic light, when idle and in neutral gear. The engine starts seamlessly, automatically, once the driver depresses the clutch before moving forward.
This stop-start system is based on the principle of not burning fuel when it is not required. The FuelSmart system automatically detects when the vehicle is stationary with the engine idling, and stops the engine automatically. This conserves fuel, reduces running costs, and reduces emissions. The savings may not be huge for one single vehicle, but when one considers a scenario where a very large number of vehicles are equipped with this technology, the collective savings will be massive!
Murli Deora, Union Petroleum Minister said, 'Innovative technologies like the Mahindra FuelSmart system with Micro-Hybrid technology will help the government achieve its sustainable energy goals. Initiatives such as this will serve as a benchmark in India's sustainable energy programme.'
'The Mahindra FuelSmart system reflects our commitment to sustainable growth. This initiative is part of our Sustainable Mobility Solutions programme which seeks to pioneer technologies that are not only fuel-efficient and innovative, but also environment friendly,' said Keshub Mahindra, Chairman, Mahindra Group.
'This technology was specially created keeping in mind the heavy traffic congestion drivers have to face on our roads today. An incremental cost of only Rs 3,800 makes the Mahindra FuelSmart System quite affordable. Therefore, it can be used across a large number of vehicles and make a significant difference to energy consumption,' said Dr Pawan Goenka, President - Automotive Sector, Mahindra & Mahindra Ltd.
[Via: indiaautomotive]