Indian Government Asked to Implement Stricter Fuel Economy Standards
"The fuel economy norms in India are very lacking nature and there has been no movement on the issue," says Anumita Roychowdhury, Associate Director, Center for Science and Environment (CSE). The CSE has urged the government to enforce stricter rules on fuel economy standards in India. There is an Energy Conservation Act in India and the Parliament office has also issued a directive to the Bureau of Energy Efficiency to develop stricter fuel economy standards but the same has not been implemented effectively in India.
"The car industry has got away with self-labelling, without meeting any official standards," reiterated Roychowdhary. There have been ongoing discussions since past three year but no concrete steps have been taken so far. She also stated that the 'Indian small car' market is gradually shifting to mid to large cars which account for 36 percent sales now. This mean the fuel efficiency will still be lower. Moreover, carbon-di-oxide emission from cars accounts for more than half of all CO2 emitted by vehicles. She said the failure to develop fuel economy standards is out of line with the aspiration of developing India as a car manufacturing hub.
[Via: cartrdaeindia]
Tata Secures Loans for JLR Revival
Tata Motors has been successful in securing a 175 million pound (600 crore) private sector loan for its ailing luxury brands Jaguar and Land Rover from Burdale Financial Ltd.
Burdale Financial Ltd, a member of the Bank of Ireland Group has confirmed that it will provide loans to Tata Motors that will include a three-year commitment to finance the parts and accessories' inventories and receivables of the Land Rover, which needs a huge amount of cash for it to work smoothly, in the United Kingdom and the United States. "JLR is pleased to have concluded this facility which is an important element of our working capital financing arrangements," said Ken Gregor, CFO of the JLR.
"This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year. The government had offered bridging finance from the automotive assistance programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary," said Peter Mandelson, Business Secretary.
It can be recalled that Britain had pledged to guarantee up to 2.3 billion pounds of loans, including 1.3 billion pounds from the European Investment Bank in January, to help its ailing car industry cope with a slump in demand. More than 14,000 workers are employed at Jaguar Land Rover's five British sites. Tata Motors bought Jaguar and Land Rover from Ford in June last year for about $2.3 billion.
[Via: carazoo]
Special Indian R&D Center for Maruti Cars in India
Maruti Suzuki is planning to set up an exclusive R&D center in India that will help in developing and improving its product portfolio in the country. Maruti currently sells every second car in India. According to its latest annual report, the company is looking for new land to set up its India-specific R&D center for its small cars. It will specially cater to the market demands of Indian customer. This center will also design and develop independent full bodies of its various models.
"Indian engineers will focus on the Indian market and come out with India-specific models apart from bringing customised versions of global models to India," said Shinzo Nakanishi, chief executive officer and managing director of the company. He also stated in the annual report that the Indian market essentially needs additional R&D center to develop better cars in the country.
The company has already incorporated "One Gram, One Component" scheme in its manufacturing process which aims at reducing the weight of each component by one gram. The company is also persuading its suppliers to establish their own engineering capabilities to test and develop their components. Thus, a cumulative effort from the company as well as the auto component suppliers will definitely benefit the end product.
[Via: cartradeindia]
VW Targetting Rs 4 Lakh Starting Price For The Polo
VW is targetting a base price of Rs 4 Lakhs for the Polo when it gets launched in India either late this year or early next year. Worried by the lukewarm response to the Skoda Fabia the company is working hard to meet its cost target for the base Polo which will come with a naturally aspirated 1.2 Litre Petrol engine. The company hopes to sell 25,000 units of the Polo every year in the Indian market.
The next up is the Polo based sedan which will compete in the midsize segment with the likes of Honda City, Fiat Linea and Hyundai Verna. The sedan will sport state of the art petrol and diesel engines for optimum performance and economy. The Jetta too will get a new range of engines by April 2010 to meet the stricter Bharat IV norms. The timid 1.6 Litre Petrol engine will be replaced by a TSi motor while diesel will shift from VW's own Pump Duse technology to more conventional common rail technology.
The new Passat will be launched at the Geneva Motor show next year and is expected to come in India towards the end of 2010. VW's iconic Beetle will also be launched in September this year as but more as a brand building excercize than volumes. The sales are expected to be in double digits only due to higher price.
VW is bullish on the Indian market and is putting all its might behind as it thinks that Indian market has the most potential after the Chinese market in the Asian subcontinent.
[Via: CC]
Cash for clunkers brings in the customers
According to a report in MSNBC, the government's scheme of giving cash for clunkers or old cars is bearing fruit in that people are exchanging their beaten down and old vehicles thanks to the discounted price offered by dealers. The fact that new cars come with warranties and even extended warranties in some cases, new car owners are getting good deals.
This will not only spur vehicle sales and help revive the economy but also help in cleaning up the air and reducing gas consumption as newer cars are more fuel efficient. While people are picking up all kinds of cars, the maximum discount they are getting is from Hyundai who is matching the government's offer in a bid to boost sales.
[Via: globalmotors]
Ratan Tata Asks for Cost Cutting for Jaguar Land Rover
Tata Motors is planning to build all its cars including Jaguar and Land Rover with light weight aluminum bodies to cut costs. The company is also developing hybrid engines to be used in future models. It has also made considerable progress in identifying sources from India for its two premium models.
However, "Tata Motors on the other hand has recognised the high level of technology and skills embedded in JLR which could be of great value to both companies," Ratan Tata added in a statement in 2008-2009 Company's Annual Report. He also stated that the sales of the Jaguar have fallen by 20 percent and that of Land Rover by 51 percent from October 2008-March 2009 as compared to the corresponding period in the previous year.
He also said that one of the most important things for the two brands is to sustain through these difficult times. However, it is expected that the company shall sail through with its new products and aggressive marketing campaigns.
In 2008-09, Tata Motors reported a consolidated loss of Rs 2,505 crore on an income of Rs 70,939 crore against a profit of Rs 2,167 crore on an income of Rs 35,660 crore the previous year. The consolidated operations were significantly driven by JLR.
[Via: cartradeindia]
Hero Honda posts Rs 500 crore profit for April-June
Hero Honda, India's largest two-wheeler manufacturer, has reported a net profit of Rs 500.1 crore for the period April-June 2009, an 83% increase over the profit for the corresponding period in 2008. This increase in profit is, according to the company, on account of lower input costs and better sales figures.
Hero Honda's sales for April-June 2009 amounted to Rs 3,811 crore, a 34% increase over last year's figure. Gross profit stood at Rs 604.5 crore, a 97% increase over the figure reported in the year-ago period.
With Bajaj Auto lagging far behind at a distant second spot, Hero Honda is currently the undisputed no.1 two-wheeler manufacturer in India. The company is expected to launch a new 'premium' motorcycle - the Karizma ZMR - in the domestic market over the next few weeks, with which it hopes to take on bikes like the Bajaj Pulsar 220 DTS-i and the Yamaha R15.
[Via: indiaautomotive]
Tata Motors Posts Profits In The First Quarter
Tata Motors posted a 58 per cent rise in its fiscal first-quarter unconsolidated net profit at 5.14 billion rupees ($106.8 million), compared with 3.26 billion rupees a year earlier. The Indian carmaker reported revenues (net of excise) of Rs. 6404.63 crores on a stand-alone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs. 6928.44 crores in the corresponding quarter previous year.
Tata Motors's continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs. 728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year.
Improvement in liquidity, increased reach across the country and introduction of new products and variants improved the company's sales, except in the case of the heavy truck segment.
The company's domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4% over the corresponding quarter of the previous year, whilst the exports at 5220 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year.
Tata passenger vehicles declined by 10% in the domestic market to 45,846 units but have been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the company has a joint market share of 12.3% in the industry.
[Via: carazoo]
Hyundai announces record high earnings for Q2
Thanks to robust global sales, Hyundai posts record profits in Q2. The Korean car maker acquires 5 percent of the global car market for the first time ever!
While the global auto industry is moaning in the worst slump in decades, Hyundai posts a record quarterly profit in the three months ending in June. The Korean largest carmaker revealed its net earnings jumped to $650 million in the second quarter of this year (+48 percent). Profit jumped to record high thanks to increased global demand for smaller and more fuel efficient cars, weaker won and improving brand image.
In the first six months of 2009, Hyundai managed to sell 1,403,931 new cars and SUVs across the globe, representing a five percent decrease from a year earlier as demand for automobiles in the global market fell. Hyundai built 719,478 units at its domestic manufacturing plants, while overseas plants churn out 684,453 new Hyundai cars.
In its official statement, Hyundai also revealed it has acquired 5 percent of the global new car market share in the first half of this year for the first time ever. This result was achieved by expanded market share China, Europe and US as the automaker boosted efforts to raise its brand image and continued to expand marketing activities in local markets.
Hyundai has been particularly successful in China, where it has sold 257,000 units in the first half. For the 2009, Hyundai raised its overall sales target to 450,000 units from previous 400,000 units. The automaker continues to expand its new car line-up and will start selling locally produced Sonata sedans and i30 C-segment hatchbacks in July and September.
Lately, Hyundai has been very successful in Europe. Its sales in June rose by the largest margin among all carmakers operating in the region. According to the European Automobile Manufacturers' Association, Hyundai's June sales rose 27.1 percent from the same month last year to come in at about 35,000 units, while sales in the first half of the fiscal year increased 15.7 percent compared to the same period last year, pushing up the company's first-half share of the European market to 2.3 percent from the 1.8 percent recorded last year.
[Via: hyundai-blog]
MoU signed between Mahindra and SBT
Mahindra and Mahindra Ltd. (M&M), one among the largest automobile manufacturer of the country, signed a MoU with the State Bank of Travancore (SBT) for vehicle finance. As per the MoU, SBT will be a chosen financier for both commercial and passenger vehicles of Mahindra.
"We are extremely pleased to partner with State Bank of Travancore as it will provide our customers with additional retail finance options for both commercial vehicles and passenger vehicles. A low rate of interest is just one of the benefits of opting for the State Bank of Travancore as a preferred financier. The bank's vast national network of over 726 branches and 460 ATMs will also help us make further inroads in upcountry markets where we already have a strong customer base," said Mr. Arun Malhotra, Senior Vice President, Sales and Customer Care, Automotive Sector, Mahindra & Mahindra Ltd.
For commercial customers, the bank will offer loan of up to 85% of the on road price of the vehicle, with a tenure of 7 years at 11.25% p.a., and for passenger vehicles the loan offered will be up to 85% of the on road price of the vehicle with a tenure of up to 5 years at 8% in the first year and 10% in the second and third year.
Mahindra models of M&M including Mahindra Scorpio, Mahindra Xylo, and Mahindra Bolero can be availed through this easy loan option. The largest associate of State Bank of India, State Bank of Travancore is 100% government owned.
[Via: carazoo]