The story about India enticing world auto majors will add another feather in European giant Volkswagen's (VW) cap as it prepares for its first fully-original Indian Volkswagen car, made with the help of expertise provided by Indian engineers and designers.
A slowdown in the automobile industry is set to reverse by the year-end. The slowdown, which is cyclical in nature and occurs after every seven years, should come to an end in the next three months, according to the Society of Indian Automobile Manufacturers (SIAM), the country's apex automobile body.
Banks make criteria tougher for funding the car. Tata Motors Chairman Ratan Tata's dream to help the common man own a four-wheeler may meet its bete noire in bankers as ICICI Bank, HDFC Bank and rival lenders realign rules to finance the Nano, touted to be the world's cheapest car.
The demand from second-time car buyers outstrips the demand from those seeking to upgrade themselves from two-wheelers. Tata Motors' city dealers say about 60 per cent of all Nano buyers are those who already own a car and the rest 40 per cent are those who either own a two-wheeler or have never owned a vehicle earlier.
For many years now, the Congress and its allies have not had any noteworthy representation from the area. The loan-waiver package may not improve things in the next general elections in 2009, Business Standard found out in an extensive tour of the area. Most farmers said they did not find it worthwhile to go to a bank for loan because the process was too cumbersome.
The Chennai-based company is developing bikes in the range of 200cc and above to compete with Bajaj Auto's Pulsar range, which begins with the 150cc variant and ends with the 220cc model at the top of the ranks, sources, who declined to be identified, said.
Demand payment of sugarcane arrears, company says there are no dues.
Mahindra & Mahindra is developing a small engine for a smaller version of its UVs and replicate the Tatas dream of a small car, a company official said.
Mahindra & Mahindra, the world's fourth largest tractor maker, has deferred its plan to build a Rs 400 crore (Rs 4 billion) tractor facility in Chennai on apprehensions that tractor sales may slow, a top company executive has said.
Speaking to Business Standard a day after the company announced indifferent results for 2007-08, Kant said this year is going to be the toughest for the auto industry in a long time because of soaring input costs and crude oil prices. But the credit squeeze could have a far-reaching impact on the industry's fortunes.
"No airline is making money in India because they are selling below cost. The country is seeing a 25 per cent annual growth rate in air passenger traffic, but some slowdown is also expected. These are some of the pains when markets open up," said John Leahy, chief operating officer (customers), Airbus. Leahy, however, declined to offer details.
The crude oil rally will impact prices of aviation turbine fuel, which forms 30 per cent of the operating cost for an airline. The company incurred a loss of $23.1 million during the October-December quarter of FY08. This was against a net profit of $9 million during the corresponding quarter of 2006-07.
Despite a general slowdown, Audi India has posted a dizzying growth figure of 123 per cent, selling 321 units in January-April 2008. All set to launch the new A4 sedan in July, Benoit Tiers, managing director, Audi India, tells Business Standard about the company's objectives.
The sharp depreciation of the rupee against the US dollar over the last four weeks has neutralised the impact of recent import duty cuts aimed at lowering prices of commodities like edible oil, metallurgical coke and newsprint.
The auto sector is doing well in India, despite stock market meltdown, emerging signals of industrial slowdown and rising costs.
The procurement has already touched 19.8 million tonnes and government agencies continue to procure 200,000-250,000 tonnes daily.
Cement companies' latest quarterly performance shows that they have begun to feel the pinch of the government's anti-inflationary measures. The latest price cut of 1.5 to 3 per cent at the government's persuasion and a decision to hold prices for the next three months could impact earnings even more.
Now Delhi-based Sona Koyo, which is supplying steering systems for the Nano, and Minda Group, which supplies electrical switches, have confirmed that they and other component suppliers have suggested a price rise to Tata Motors.
Liquor companies are set to raise prices, thanks to the hike in the cost of molasses, a by-product of sugar used to make potable alcohol. "Alcohol prices may rise as much as 20 per cent due to lower molasses production," said Abhishek Khaitan, managing director, Radico Khaitan, the country's second largest liquor producer.
Honda Siel Cars India President and CEO Masahiro Takedagawa, in an interview with Business Standard, shares the company's India strategy, including the launch of hybrid technology (a first on Indian roads), small cars and outlook on diesel technology, an area where the company is losing ground to other auto majors. The company launched its 8th generation Accord today in Mumbai.
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