Indian Auto Industry Update August 4th, 2011

Indian Auto Industry Update
04 Aug 2011 Industry
Sale of land: HM in Mamata crosshairs Tata Motors bond risk jumps as interest rates damp growth

Interviews & Features
Turbocharged race Ferrari: Racing is in its blood

Cars, SUVs, MUVs
GM to introduce five new models by 2012 GM launches Chevrolet Beat in Kerala market Audi launches the new A6 sedan Audi to enter used car business by year-end Nissan India aims to triple sales to 40k cars in FY12 Volume game: Nissan plans small car in Rs 2-4 lakh range BMW launches initiative to help create sustainable cities

Commercial Vehicles
Premium trucks on fast track Ashok Leyland sales up 16% in July Ashok Leyland-Nissan revive greenfield project Tata Motors to train truck drivers in sales push GM India ropes in new director to beef up its commerical vehicles business

Construction & Agri Machinery
BEML opens Thai front with Rs 120-crore deal

2/3 Wheelers E-Bikes Components
Wabco-TVS renamed Wabco India

Allied Industries
Ceat Q1 net loss at Rs 41.90 cr

Emissions / Environment Finance & Insurance Oil, Lubricants & Alternative Fuels International News
Quake-hit Suzuki Q1 profit falls 20% Now, Toyota related information on your smartphone

Business Magazines Economy
Rupee sheds 13 paise against dollar Sensex sheds 169 points on growth concerns

Closings
Last Financial Closings......

Industry
Sale of land: HM in Mamata crosshairs Probal Basak Business Standard (Web & Print Edition) Kolkata: The Mamata Banerjee government is likely to issue a showcause notice to C K Birla Group’s automobile company, Hindustan Motors (HM), for allegedly understating by Rs 200 crore the sale of excess land at its factory site in 2007. Government sources say they also believe the company gave a false picture of what it proposed to do with the money from the sale. HM says the charges are untrue. According to government sources, the state was informed of a Rs 85-crore projected revenue from the sale of excess land in the country’s oldest automobile factory, though HM had allegedly sold the land to Bangalore-based Shriram Properties for the development of an integrated information technology township for Rs 285 crore. This was for 314 acres at its Uttarpara plant in Hooghly district, an official said. The development seems linked to Chief Minister Mamata Banerjee’s decision to seek details of all unused land in the possession of various government departments and industrialists, to create a land bank in Bengal. “The chief minister has examined the file. She has asked the departments concerned to take necessary action. As of now, it has been decided to send a showcause notice. Prior to that, the government will meet the company officials to discuss the matter,” a source said. “The allegations are not only about projecting lower revenue. According to the company’s proposal, the fund was supposed to be utilised for revival of the plant and payment of workers’ dues, which did not happen.” An HM spokesperson said: “What they will do is up to the government. A meeting will take place some time this week. Whatever the government asks, we will tell them. There is no showcause notice as of now.”

He also denied any irregularities in transfer of land. “Whatever information had to be given, we have given it to the state government. It is not proper to discuss it in the public domain. It is strange that questions are being raised four years after the deal has happened. Had we done something wrong, the (earlier) government would have taken some action,” he said. HM’s Uttarpara plant, which produces the Ambassador car, is built on 427 acres. It had a total of 741 acres in its possession till the sale. The proposal to sell the remaining 314 acres was pending before the state government for more than three years. Since the Uttarpara land had been vested with the West Bengal government, the company needed approval for alternative usage. Finally, in 2006, it got approval from the Left Front government to sell the land. HM entered into an arrangement in 2007 with Shriram Properties to develop a township. According to government sources, HM, in its proposal, projected Rs 85 crore revenue from the sale, of which Rs 70 crore was to be utilised to revive the plant and Rs 15 crore to repay dues to its workers. The township has not taken off, as the developer is yet to receive clearances from the government. http://www.business-standard.com/india/news/saleland-hm-in-mamata-crosshairs/444816/

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

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Interviews & Features
Turbocharged race The Economic Times (Delhi Print Edition) Depending on whom you ask or what you read, China has between 100 and 250 carmakers. Joint ventures with the global biggies dominate the top 10 — think General Motors (GM), Volkswagen (VW), Toyota, Ford, Nissan, Hyundai — and a rash of domestic players makes up the rest of the pack. The sheer number of players may not come as a surprise considering China is the largest car market in the world — in 2010, 13.8 million units were sold. The Indian car market is roughly a seventh of the Chinese one, and at last count, there were a little over 20 major players — mostly multinational — in the race with close to 40 brands. The difference: the top three are not global leaders by any yardstick. There’s no Toyota, GM, VW — the global one-two-three — at the top of the India grid. Rather, there’s Maruti, the affiliate of world No 9 Suzuki at pole position, followed by Hyundai Motors (No 8 globally) and home-grown manufacturer Tata Motors in third spot. What’s more, the top three rather remarkably control almost 70% of the Indian car market, with the Detroit

giants GM and Ford (globally No 2 and No 4, respectively) relegated to 6th and 7th position, Toyota at No 5 and VW at No 8. Much of this, of course, has to do with Suzuki’s early entry into India, via a joint venture with the government in the early 1980s when the competition at that time was sparse and outdated. Ford, GM, Toyota and Honda began Indian operations over a decade ago but have met with limited success thanks largely to their top-down approach of first launching cars at the higher end of the market where margins are fatter but volumes slim. A situation in which global leaders are also-rans with market shares in single digits is unimaginable in most other parts of the world. But that situation may not hold for too long back home. For, even though growth in car sales fell by 15% in July to touch a two-year low, global auto majors are convinced about prospects in the long haul. Abdul Majeed, auto practice leader at PricewaterhouseCoopers (PwC) expects the Indian car market to more than double to five million from 2.2 million units in five years. ON THE GROWTH PATH In contrast, growth in developed markets is subdued. In the Eurozone, growth in car sales is expected to decline by 2-4% in 2011. The saviour for global Big Auto, as in the case in many other industrial categories, is of course the much-touted cluster of developing economies. The July skid notwithstanding, car sales are still expected to grow by 10-12% in India in 2011. “The growth story is intact. This (drop in July) is just a temporary blip. All car manufacturers need to expand operations,” says Sandeep Singh, deputy managing director, Toyota Kirloskar Motor, the joint venture in which the Japanese giant holds 89%. “If inflation is tamed, interest rates will come down. There is a huge opportunity and we have to move fast with our expansion plans,” he adds. The world’s largest carmaker by sales, Toyota, intends to boost its share of emerging markets from 40% in 2010 to 50% in two to three years on the back of growing sales of fuel-efficient small vehicles. That in a line sums up the name of the game for the auto majors: ramp up capacities at the entry levels with affordable and snazzier models. “The Indian market is much bigger for us now than in the past,” says Hiroshi Nakagawa, managing director of Toyota Kirloskar Motor. The renewed focus on the mass market — more than half of the cars sold in India are compacts and hatchbacks — promises to change the name of the game. VW, one of the newer entrants into India — it began operations in 2007 — has achieved what many of its global counterparts could not do in more than a decade: a market share of 3% in four years. It has done so by launching competitively-priced models -the Vento that was priced lower than the hitherto bestselling Honda City in the mid-size segment; and the Polo premium hatchback is VW's cheapest car in India. Emboldened, VW is now thinking big — very big. Says John Chacko, Volkswagen Group’s chief representative and president and MD, Volkswagen India: “We want to be amongst the top three in India by 2018. Globally we rank third with a market share of 11%. I am sure with a market share of 11% in India we can be amongst the top three.” Chacko acknowledges that it’s going to be a “long journey,” and that he needs to get “a whole range of products, the right products and achieve high localisation levels” if he has to get into the top three. If VW does climb five places, it will also mean that one of the leaders, if not all three, will have to face up to a significant erosion in share. For, it’s not only VW that can be spotted in their rear view mirrors. Detroit giants GM and Ford are also threatening to get their act together. What's more, Nissan (ranked No 6 in the world) and Renault have joined the race. The likes of Peugeot-Citroen, Kia, Chrysler and Proton are all itching to get foot to pedal, and finalising their India blueprints. “There is demand but we are all constrained by capacity,” says Michael Boneham, managing director, Ford India. Perhaps no longer. A week ago the US auto giant announced that it would invest close to $1 billion in a second factory in Sanand in Gujarat to assemble vehicles and make engines. If Ford has decided to bite the bullet after 13 years in the country, it may have something to do with some new-found success. Struggling with just a 1.5% market share till a year ago, Ford bounced back smartly to more than double its share to 3.54%. The success ingredient: The small car Figo, which accounts for three fourths of all cars Ford sold in July. More variants of the Figo are in the works even as the Detroit major recently launched the premium sedan Fiesta. But Ford is clear that that compacts is where the action is — it will launch eight new such products in 12-18 months. ROOM FOR ALL Slowdown or no slowdown, the slugfest promises to be fascinating. After all, if the top three control over two thirds of the market, the top five lord over 85% of it; add No 6, 7 & 8 and the share shoots up to close to 95%. In effect, this means that there are at least a dozen players slugging it out for a thin sliver of the pie. Is

it going to be worth their while? “That more than 12 players are fighting for less than 5% market share is not going to kill anybody. There is room for every car maker,” maintains Neeraj Garg, head of VW’s passenger car business in India. Industry experts feel that the top two —Maruti Suzuki and Hyundai — are unlikely to be displaced in the next four to five years. “There is no killer product in the pipeline to sway the market otherwise,” says VG Ramakrishnan, senior director, automotive, at Frost and Sullivan, a management consulting firm. Maruti with a solid 41% overall market share and a near-complete portfolio may be in an even sweeter spot. “Maruti has the scale, new products and is currently the most efficient manufacturer in India,” says Hormazd Sorabjee, editor of Autocar India. “At least for the next 8-10 years, Maruti will continue to be the dominant player as India is a lead market for Suzuki, much more important than Japan,” he adds. Indeed, Suzuki’s ability to transfer R&D quickly will go a long way in helping Maruti stay on top. “Our ability to put models in the market that reflect customer needs in shorter periods at a low cost of ownership will make the difference,” says RC Bhargava, chairman, Maruti Suzuki. “We may lose market share over a 10year period but our volumes will grow,” he adds. Over the past decade, Maruti’s share has slipped by 14 percentage points from 55% in 2000. Maruti’s sales have fallen by more than a fourth in July, with the discontinuation of popular hatchback Swift contributing to that fall. But with a new version of that model set for launch, India’s largest car maker may have a new ace up its sleeve. Another masterstroke from Maruti could well prove to be a plan to re-introduce its one-time breadand-butter entry-level brand, the Maruti 800. Analysts point out that the new-look 800 will comply with the new emission norms, and will be priced lower than the Alto — taking it closer into the territory of the world’s cheapest car, the Tata Nano. Hyundai too is planning to launch a car below its current base model, the Santro. Tata Motors may well be the most vulnerable of the top three, what with the Nano not yet delivering huge volumes. Sales in July fell to 3,250 from a peak of 10,000 a few months ago. Overall, Tata’s share in passenger cars has dropped from 18% in fiscal 2007 to 12.66% in the April-June 2011 quarter. “Of the top three, Tata Motors seems to be on the weakest wicket. The Nano has not given them the required market share,” says Maruti’s Bhargava. “The passenger vehicle segment of Tata Motors is under pressure as the lead time for product development is too long,” adds Autocar’s Sorabjee. Tata Motors officials were unavailable for comment. The biggest beneficiaries are the new kids on the block. In the first six months of 2011, points out VW’s Garg, the top three have grown volumes by 14%, 21% and 9% respectively, but their market shares have dropped cumulatively by 3.8%. In the same period Toyota, VW and Ford have collectively gained 4.4%, adds Garg. “This has to happen in any emerging market where a market leader starts losing share as the number of players increase,” he explains. VW for its part has more than doubled its market share from 1.6% a year ago. As a group, VW is present with entire range of brands: there’s Audi at the luxury end; and Skoda, which extends from the mass segment (with the Fabia) to the luxury (the Superb). Between January and June, the three brands grew by 500% with sales of nearly 38,000 units, says Chacko. Toyota has been present in India since 1999 when it launched utility vehicle Qualis. Over the years, it captured consumer mind space with bestselling brands like the Corolla, Innova, Camry and Fortuner. Yet these brands addressed only 12% of the Indian car bazaar. The more recent launches of the mid-size sedan Etios and small car Liva have changed the name of the game-now Toyota can pull in close to half of the country’s potential car buyers. That’s a significant shift for Toyota, from the higher end to the mass market. “We have entered a new segment with new customers and aspirations,” acknowledges Toyota Kirloskar’s Singh. “Etios will now be our flagship product as it was developed and adapted for India. And for the next two years our focus will be on the compact segment (where the Liva is positioned),” adds Singh. Toyota intends to increase dealerships from 159 to 175 by the end of 2011, 40-45% of them in tier-II markets. SMALL PACKAGES The advantage for brands like VW and Toyota is that they are distinctly more aspirational than a Maruti. The

flip side, however, is that nobody knows — and straddles — the small car segment as well as Maruti does. And that’s the segment that every car maker with mass market ambitions is attempting to crack. GM is there with the Beat, which is now in diesel too, and Ford with Figo (petrol and diesel). And Honda Siel, a distant No 10, is banking on the Brio compact to score some gains. So where does that leave a Johnnie-come-lately like a Renault? The French auto major dissolved a joint venture with the Mahindras last April, and started independent operations this May. The market share game is not priority for Renault at this point in time; establishing the brand over the next 12 months is. To that end Renault recently launched the Fluence sedan in the Rs 15 lakh price bracket. “Brand Renault is not well established in India. With the launch of the Fluence we are showing Renault’s capabilities in design, styling, innovation, technology and value-formoney products,” says Marc Nassif, MD, Renault India. Renault plans to follow up with the launch of the SUV Koleos this year; in 2012, it will launch mass market cars, including a hatchback, the affordable SUV Duster and another yet unnamed car. “In two years, we will launch mass market products and have 100 dealership outlets in 70 cities, so 2013 will be the first fully functional year and we expect to sell 100,000 cars by 2014,” explains Nassif. That's when he says Renault will reach a critical mass in the Indian market. “Phase two of our operations will take us to a goal of reaching a 5% market share,” adds Nassif. In South America and Brazil, the company got a 5% share in 8-10 years. Renault may be a late entrant but its advantage may well be that it won’t have to traverse as long learning curve as the likes of the Detroit majors, Honda and Toyota had to. Meantime, other global majors like Peugeot-Citroen are looking to kickstart their India operations. “New entrants have outlined an aggressive strategy with several new launches lined up in the next three to four years. Cost and product differentiation will hold the key,” says PwC’s Majeed. It’s going to be a noholds-barred skirmish for share in one of the world’s fastest growing markets. Who ends up on the victorious side is a matter of conjecture as of now, but there’s little doubt about one big winner in this battle: the spoiltfor-choice Indian consumer. “Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved"

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Ferrari: Racing is in its blood Shapur Kotwal Hindustan Times (Web Edition) New Delhi:Loud styling, outlandish claims and even louder exhausts make supercar clubs an exciting bunch. Shouting ‘look at me’ is intrinsic to such beasts, and is something a lot of the car owners really want. Racing heritage Maserati, however, is the most understated of the lot. Few sportscar buyers are aware that the brand has a motorsport and Grand Prix racing heritage to die for; and almost no one remembers its great mid-engined supercars of yesteryear. Now resurrected by Ferrari, it shares most of the supercar giant’s components, and though clubbed with Alfa Romeo today, its proximity to Ferrari still exists. The MC Stradale is currently the fastest and most powerful Maserati. It looks purposeful with its lowered suspension, race car-inspired front splitter and gorgeous 20-inch wheels finished in matte black. Roomy interiors It’s very attractive on the inside with Alcantara-lined race seats, generously splattered carbon fibre trimming and a partial roll-cage. The Stradale tips the scales at a mere 1,770kg, which is light for a car of this size toting a V8 in its belly. Based on one of Ferrari’s finest engines, this F430-based motor spins to 7,500rpm, makes a potent 450bhp and in the right mode, rasps and yowls menacingly. There is a big difference between this variant and Maserati’s standard GranTurismo (GT) model. Breaches 300 kph Selecting race mode tightens things up. Gears now shift up with a pleasing ‘bang’ in 0.06 of a second and 0100kph can be blitzed through in just 4.6 seconds. So keep your right foot in and you’ll cross the 300kph

barrier with élan. Autocar India Maserati GranTurismo MC Stradale Price: Rs 1.37 crore (est ex-showroom Delhi) Top speed: 301kph L/W/H: 4,933/1,915/1,343mm Wheelbase: 2,942mm Kerb weight: 1,770kg Turning circle: 10.5m Engine: V8, 4,691cc, petrol Power: 450bhp at 7,000rpm Torque: 52.00kgm at 4,750rpm Gearbox: Sequential robotised manual gearbox Fuel tank: 90 litres Boot: 320 litres Tyres: Pirelli PZero Corsa 255/35-ZR 20 (f), 295/35-ZR 20 (r) Verdict More involving, more rewarding to drive, and more complete, GranTurismo MC Stradale is easily the best Maserati to have hit the road or track in a long, long time. And, the best part is that this car doesn’t ride too badly either, perfect for our roads. At an estimated Rs 1.37 crore (ex-showroom Delhi), it is expensive, but you do get a lot out of the car. http://www.hindustantimes.com/business-news/auto/Racing-is-in-its-blood/Article1-728882.aspx

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Cars, SUVs, MUVs
GM to introduce five new models by 2012 Agencies See this story in: The Indian Express (Web Edition) Chennai: The first light commercial vehicle from US automobile giant General Motors will be rolled out in the first quarter of 2012, a top company official said today. With the foray into the commercial vehicle space, General Motors would be the latest to enter into this category after auto majors Tata Motors, Mahindra and from Ashok Leyland-Nissan. General Motors India Vice-President P Balendran said the company proposes to launch five new models in the next 18 months in the domestic market. "In the next 18 months, we plan to introduce five new products. The models will be a hatchback, sedan, an utility vehicle, a van and Euro-IV version of (SUV) Tavera," he told reporters after unveiling the Chevrolet Beat diesel variant in the Tamil Nadu market. "The first product will be a utility vehicle to be rolled out during the first quarter of next year. It can be subone tonne category," he said without elaborating. He said General Motors India is on a massive expansion plan in both plants at Halol in Gujarat and Talegaon in Maharashtra and has invested USD 1 billion (about Rs 5,000 crore) till date. The LCVs would be rolled out from the Halol plant along with hatchbacks Spark, Aveo-UVA, mid-size sedan Aveo, premium sedan Optra, Sports Utility Vehicle Tavera and premium SUV Captiva. However, for manufacturing engines, General Motors India has set up the first power-train plant in Talegaon at a cost of USD 230 million. It would be the first flexi-plant for the company to produce both petrol and

diesel engines for small passenger cars. Balendran replied in the affirmative when asked if GM would introduce a diesel variant of its popular selling Chevrolet Spark, saying it would be decided by the "success" of the Beat diesel variant. Since the launch of the car on July 25 countrywide, the company has got bookings of over 5,250 units, he said. He said GM has set a target of selling in excess of 5,000 units of the Diesel variant in the domestic market this year. With the car market remaining "sluggish" due to hike in interest rates and increase in fuel prices, Balendran hoped GM would clock sales of 1.40 lakh units this year compared to 1.10 lakh in 2010. "The passenger car business reported a negative 15 per cent growth in July. I hope it would start improving in the festive season," he said. The Beat Diesel equipped with one litre engine,launch launched today is priced at Rs 4.37 lakh for the base version and the top variant is priced at Rs 5.55 lakh (ex-showroom Chennai). Tamil Nadu and Kerala constitutes 20 to 25 per cent of sales for General Motors India. North India contributes majority of sales at 35 per cent and the West 25-30 per cent, he added. http://www.indianexpress.com/news/gm-to-introduce-five-new-models-by-2012/826636/0

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GM launches Chevrolet Beat in Kerala market PTI See this story in: The Economic Times (Web Edition) Kozhikode (Kerala): General Motors, India's fifth largest car maker,on Wednesday launched the Chevrolet Beat, equipped with a one litre 'Smarttech' diesel engine specifically designed for the Indian market, in Kerala. The compact car would come in three versions, priced between Rs 4.29 lakh to Rs 5.45 lakh, Karl Slym, GM India President and Managing Director told reporters here. "Offering a diesel engine developed for Indian consumers in our most popular model is a mementous achievement for GM India', he said, adding the Beat diesel would set a new industry benchmark and be a winner with local car buyers. He said the Beat Diesel sports the 1.0 XSDE Smarttech engine developed specifically for India by the GM Technical Centre, Bangalore in collaboration with GM Power-train Europe. "We have taken the expertise from Europe, the hub of diesel technology,but at the same time engaged our engineers in India to make sure we do not give a completely European engine. The engine delivers 62.5 PS of power and a mileage of 24 km a litre," he said. Slym claimed that the three-year/100,000 km engine and vehicle warranty on offer is the most comprehensive in the mini-diesel segment. He said GM India was also rapidly expanding its dealership and service network to support demand. GM India is currently present in 220 locations across 186 cities in the country, he said. General Motors India has completed 16 years of operation in India and offers products under Chevrolet brand, introduced in 2003. Last year, about 4.25 million Chevrolets were sold in over 120 countries. The company offers the Captiva, Optra, Cruze, Aveo, AVeo U-VA, Spark, Beat and Tavera for sale in India from its manufacturing facilities in Halol, Gujarat and in Talegaon, Maharshtra. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/gm-launches-chevrolet-beat-

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

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Audi launches the new A6 sedan IANS See this story in: The Economic Times (Web Edition) New Delhi: German automobile manufacturer Audi Wednesday launched a new variant of its executive class sedan Audi A6 in the price range of Rs 37.7 lakh to Rs 47 lakh. "The launch of the new Audi A6 is in line with our top down strategy for India," said Michael Perschke, head, Audi India. According to Perschke, the new A6 combines new technologies and fuel efficient engine. "The new A6 is available with wide array of innovation like lightweight technology, adaptive air suspension, LED headlamps," Perschke said. The Audi model range in India includes Audi A4, Audi A6, Audi A8, Audi A7 Sportback, Audi Q5, Audi Q7, Audi RS5, and the super sports cars Audi R8 and Audi R8 Spyder. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/audi-launches-the-new-a6sedan/articleshow/9468938.cms Audi A6 takes on Merc and BMW in luxury launch... Hindustan Times (Web & Print Edition) http://www.hindustantimes.com/business-news/auto/Audi-A6-takes-on-Merc-and-BMW-in-luxurylaunch/Article1-729025.aspx

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Audi to enter used car business by year-end Heena Khan The Hindu Business Line (Web Edition) New Delhi: Audi, the German luxury car maker, plans to get into the used car business in India by the yearend. The company expects this business to account for 10 to 20 per cent of its new car sales. “By the end of this year, we will start our used car business under the Audi Approved Plus brand,” Audi India Head, Mr Michael Perschke, told reporters here. Audi A6 launch The company on Wednesday launched the new version of its executive class sedan, A6, priced between Rs 37.7 lakh and Rs 47 lakh (ex-showroom Delhi). The four variants will be available in all 13 Audi dealerships across India. Assembled at its Aurangabad facility, the car claims a mileage of 21 kmpl. Expansion drive The company will be expanding its dealer's network from 13 to 18 by the end of 2011. “By 2011, we will have 18 dealers pan-India, with plans for new dealerships in markets like Coimbatore,

Indore and Lucknow among others,” Mr Perschke said. “This would mean 600 extra jobs for our India operations by 2013. We will be hiring skilled talent at three levels – corporate, dealership and production,” he said. Doubling output With the launch of the new sedan, the company plans to double the production of Audi from its Aurangabad plant. “From September, we will start double shifts, which will increase our annual output to 6,000 units from the current 3,000 units in a single shift,” Mr Perschke said. Audi India investment figure was put at €30 million, of which around €20 million has been utilised so far. Sales target The company is targeting sales of over 5,000 units this year, up from 3,003 cars sold last year. It sold 3,145 units in the January-July period against 1,626 units in the same period last year, up 93 per cent. “Our target is to have 25 per cent Indian luxury car market share by 2015 and we are on track,” Mr Perschke said. Product range This year, excluding the new A6, the company has launched five models in 13 different engines – Audi A8 L, Audi R8 V10, Audi R8 Spyder, Audi A7 Sportback and Audi RS5. Mr Perschke said that Audi was also considering bringing cars in the lower segment by emulating a topdown approach. http://www.thehindubusinessline.com/companies/article2319071.ece?homepage=true Audi eyes used-car biz in India The Statesman (Web Edition) http://www.thestatesman.net/index.php?option=com_content&view=article&id=378635&catid=40 Audi to start used car business in India by year-end Financial Chronicle (Web Edition) http://www.mydigitalfc.com/cars/audi-start-used-car-business-india-year-end-591 Audi to start used car business in India by year-end The Economic Times (Web & Print Edition) http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/audi-to-start-used-carbusiness-in-india-by-year-end/articleshow/9467606.cms Audi to start used car biz in India Mail Today (Delhi Print Edition)

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Nissan India aims to triple sales to 40k cars in FY12 Reuters See this story in: Financial Chronicle (Web Edition) Mumbai:The unit of Japanese car maker Nissan Motor is aiming to triple sales to 40,000 vehicles by the end of this fiscal year, helped by the launch of its mid-sized sedan 'Sunny', its India head said. The company has also planned to export components worth $100 million out of India to its global manufacturing facilities and reiterated its plans to double production capacity from its plant in Chennai to 400,000 per year. "This fiscal year we have a very aggressive plan to even triple sales which will be reaching about 40,000. Sunny will make a big contribution," Kiminobu Tokuyama, Managing Director of Nissan Motor India, said at the unveiling of its Sunny mid-sized sedan on Wednesday.

The company aims to launch the model by October this year, Tokuyama said, adding that the company is on track to open 100 dealerships by the end of 2012 from 40 dealerships nationwide currently. Nissan Motor India's sales in July rose 59 percent to 1,593 vehicles, driven by sales of its Micra hatchback, and it sold about 13,000 cars in the last fiscal year that ended in March. Last week, Ford Motor Co said it plans to build a $900 million production plant in India, doubling its investment in the country, as the U.S. carmaker seeks to catch up with rivals in the second-fastest growing auto market in the world. Foreign car makers have been making inroads into the local market and are increasingly using India as a hub to make and export small cars. http://www.mydigitalfc.com/cars/nissan-india-aims-triple-sales-40k-cars-fy12-611 Nissan India aims to triple sales to 40,000 cars in FY-12 The Economic Times http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/nissan-india-aims-to-triplesales-to-40000-cars-in-fy-12/articleshow/9468105.cms

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Volume game: Nissan plans small car in Rs 2-4 lakh range Roudra Bhattacharya The Hindu Business Line (Web & Print Edition) Mumbai: In order to garner higher volumes in the domestic market, Nissan is working on a new small car in the Rs 2-4 lakh range. This model is likely to compete with Maruti's Alto, Chevrolet Spark and the Hyundai Santro. “We're seriously studying the launch of a small car below the Micra. We see great opportunity in the small car segment,” said Mr Kiminobu Tokuyama, Managing Director and CEO, Nissan Motor India. Separately, Nissan is also working on an MPV with joint venture partner Ashok Leyland. To be launched next year, this will compete with the Toyota Innova. The Japanese automaker is currently gearing up for the launch of its fifth model in the country — the Sunny sedan. To be available at dealers from October, the sedan will initially be sold with a 1.5 litre petrol engine. However, the car which is based on Micra's V platform, will also see a diesel variant later. Mr Tokuyama said Nissan is looking to triple sales by the end of this fiscal to 40,000 units as it expands dealerships and both the Micra and Sunny gives it higher volumes. “The Sunny will later be exported to West Asia and Africa. We exported 90,000 units of the Micra since last October, while selling 18,000 units domestically till date,” he said. Since the launch of the Micra in July 2010 and March this year, the company sold 13,000 units in all. Nissan also sells the X-Trail SUV, Teana premium sedan and the 370Z sports car in India. While all these are imported as built units from Japan, the Micra is built at a plant in Chennai which it runs with alliance partner Renault. Nissan also expects to export $100 million worth of components to its global production facilities from India this fiscal. http://www.thehindubusinessline.com/companies/article2319009.ece Nissan India unveils 'Sunny' sedan, is planning small car The Times of India (Web & Print Edition) http://timesofindia.indiatimes.com/business/india-business/Nissan-India-unveils-Sunny-sedan-is-planningsmall-car/articleshow/9470197.cms Nissan Motor unveils Sunny

The Hindu (Web & Print Edition) http://www.thehindu.com/business/companies/article2319362.ece ...Nissan brings Sunny Hindustan Times (Web & Print Edition) http://www.hindustantimes.com/News-Feed/auto/Nissan-brings-Sunny/Article1-729026.aspx Nissan India unveils 'Sunny' sedan The Indian Express (Web Edition) http://www.indianexpress.com/news/nissan-india-unveils-sunny-sedan/826708/ Nissan India plans small car The Tribune (Web Edition) http://www.tribuneindia.com/2011/20110804/biz.htm Nissan Motor India unveils mid size car ‘Nissan Sunny’ Deccan Herald (Web Edition) http://www.deccanherald.com/content/181121/nissan-motor-india-unveils-mid.html Nissan India unveils Sunny sedan, planning small car Financial Chronicle (Web Edition) http://www.mydigitalfc.com/cars/nissan-india-unveils-sunny-sedan-planning-small-car-623 Nissan India unveils 'Sunny' sedan, is planning small car The Economic Times (Web Edition) http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/nissan-india-unveils-sunnysedan-is-planning-small-car/articleshow/9469885.cms

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BMW launches initiative to help create sustainable cities IANS See this story in: The Economic Times (Web Edition) New Delhi: German automobile major BMW on Wednesday said it will start an unique initiative in Mumbai and cities around the world to address the problems arising out of increasing population and inadequate facilities and come up with solutions to create sustainable metros. The BMW-Guggenheim initiative is designed as a mobile laboratory, which will explore new ideas and help in the creation of solutions to make city life easier. "We wanted one venue of the first cycle of the lab to be in Asia and after careful deliberation, we selected Mumbai. A vibrant, diverse city, it is the most populous city in India and the world," said Richard Armstrong, director of Solomon R. Guggenheim Museum which will conduct the research with the automobile major. "It will be an endlessly rewarding place to explore and create dialogue around a range of urban issues," he added. The six-year project aims to cover nine major cities worldwide on a mobile lab which will travel three cities in phases. The first phase will cover New York, Berlin and Mumbai. "The theme for cycle 1 is confronting comfort. Will explore how urban environments can be made more responsive to people's needs, how people can feel at ease in an urban environment," BMW said in a statement. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/bmw-launches-initiative-tohelp-create-sustainable-cities/articleshow/9468211.cms

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Commercial Vehicles
Premium trucks on fast track Lijee Philip The Economic Times (Delhi Print Edition) Mumbai: Sales of premium trucks are replicating the successful run enjoyed by top-end passenger cars, as transporters see sense in buying larger and more fuel-efficient vehicles to keep pace with a fastgrowing infrastructure sector. A slew of high-end truck-makers such as Daimler, Volvo, Mahindra Navistar, Scania and homegrown Tata Motors Prima and Ashok Leyland’s U truck are vying for a share of the premium pie that is expected to grow 50% this year. Experts said sustained export growth, expansion of highways and need for better logistics will see sales of high-end commercial vehicles touching 11,000 in 2011. Premium trucks handle better, are safer, comfortable and more fuel-efficient. Priced between . 20 lakh and . 70 lakh, these high-end trucks sold over 7,000 units in 2010, growing nearly five-fold in three years. Right now, these trucks form a fraction of the total commercial vehicle sales, which grew 14% to 1.72 lakh units during April to June. “High-end truck sales are growing at a faster pace, but the base is still low,” said Amol Sandil, EVP, Hino Motors India. Sales of tippers, tractor-trailers, multi-axle and rigid trucks are up, following an increase in container freight, mining and construction activity. Experts said, sales growth of high-end trucks will see some products in the market — at present, such as 16- and 20-tonne medium- and heavy-commercial vehicles — being replaced by 25-, 35-and 40-tonne vehicles. “Transporters are becoming revenue-oriented, instead of costoriented,” Mahindra Navistar MD Nalin Mehta said, adding that the fleet operators are now looking at carrying more load and doing more distance and not worrying about price and fuel cost. “Fleet operators’ buying behavior is changing from acquisition cost to total cost of ownership,” said Somnath Bhattacharjee, EVP-sales, marketing and aftermarket president, Volvo Trucks. Truck drivers, too, have started demanding more comfort, safety and quality. “Operators buy these trucks for driving comfort at top speeds. Driver fatigue is also very low in these trucks due to the reengineered cabins,” Ashok Leyland executive director Rajiv Saharia said. With infrastructure in an expansion mode, high-end truck firms are looking to further their product portfolio in the Indian market, where Tata Motors and Ashok Leyland together hold 80% market share. Global truck brands such as Volvo, Daimler, Scania and MAN have set up production facilities in India and are developing customised products to gain market share in emerging nations such as India and China. However, some fleet operators are skeptical about the return on investment. A Mumbai-based operator said it was still a niche product for certain high-end applications. “Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved"

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Ashok Leyland sales up 16% in July PTI See this story in: The Hindu Business Line (Web & Print Edition) Chennai: Commercial vehicle manufacturer Ashok Leyland has reported a 16 per cent jump in sales at 7,834 units in July 2011, up 16 per cent compared to the corresponding month of the previous year. The company, a flagship of the Hinduja Group, said in a statement that it had sold 6,747 units in July 2010. However, for the April-July 2011 period, total sales marginally dipped to 27,111 units from 28,147 units.

Total sales in the domestic market in July stood at 6,774 units against 6,022 units, while exports grew 46 per cent to 1,060 units from 725 units. Total sales of vehicles in the domestic market during April-July dipped to 23,512 units from 25,482 units. Exports from April to July 2011 soared to 3,599 units from 2,665 units in the same period last year, it added. http://www.thehindubusinessline.com/companies/article2319114.ece Ashok Leyland reports 16% jump in sales in July Financial Chronicle (Web Edition) http://www.mydigitalfc.com/companies/ashok-leyland-reports-16-jump-sales-july-601 Ashok Leyland reports 16 per cent jump on its sales in July 2011 The Economic Times (Web Edition) http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/ashok-leyland-reports-16-percent-jump-on-its-sales-in-july-2011/articleshow/9471913.cms Ashok Leyland reports 16 per cent jump in sales in July Hindustan Times (Delhi Print Edition) Ashok Leyland sales up 16% at 7,834 vehicels The Financial Express (Delhi Print Edition)

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Ashok Leyland-Nissan revive greenfield project The Economic Times (Web Edition) Pune: Ashok Leyland and Nissan are reviving their greenfield project at Sriperumbudur after having put it on ice for the past few years. This project is targeted at the equal joint venture's plans for growth in the automotive sector beyond FY 16, regarded as Phase II. At present, the joint venture is focusing on the three-platform lineup of small commercial vehicles, the first of which was displayed about a fortnight ago in Chennai. "The second platform, which will roll out in 15-18 months from now, will be made by Nissan while the third platform will be made by Ashok Leyland," Dr V Sumantran, executive vice chairman, Hinduja Automotive said. The ALIL-Nissan joint venture was initially to have been a greenfield facility but due to delays in land allotment and the subsequent global financial slowdown, the two partners chose to optimise existing facilities. Hence, the first three shared platforms, led by the recently unveiled Leyland Dost commercial vehicle, will be made at the respective existing locations of the two auto OEMs. While the Dost is being made at ALIL's existing plant at Hosur, the second platform will be made at Nissan's plant near Chennai and the third shared platform at Hosur. Engine manufacturing will follow the same plan since the JV has a separate agreement for powertrains. "Nissan will position the vehicle it manufactures for personal use while Ashok Leyland will position it for the commercial segment. At a later date, we will also offer a personal version. Yes, there could be some overlap with the proposed General Motors offering which is based on Wuling design," Dr Sumantran said. He added that the personal use vehicle will be the Nissan NV200 van, which was launched last year in Japan, which will take ALIL into the below-7 tonne segment where it currently lacks a product. This three-common platform-different-positioning strategy will mean that the JV will produce, for either OEM, vehicles that can seat from seven to 14 to 25 people. After which, Ashok Leyland's existing range takes over, Dr Sumantran said. Referring to the greenfield plant, Dr Sumantran said the slowdown forced them to use existing facilities. Originally, the proposed investment had been pegged at Rs. 2400 crore, while the two partners made do with just half the amount at their existing plants. Now, with a greenfield project again on the agenda, Dr Sumantran maintained that they would invest a lot less. "We have achieved volumes with a smaller

investment so our investment in Phase II will also be small," he said. While admitting that more players are eyeing this segment, Dr Sumantran maintained that the JV vehicles will be positioned in a more upscale segment. "The market is shifting upwards while being cost conscious. The trend is that five years from now, standards will rise and vehicles oriented as SUVs for people carriers will become monocoque vans," he said. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/ashok-leyland-nissan-revivegreenfield-project/articleshow/9468150.cms Ashok Leyland-Nissan Sriperumbudur plant to kick in for phase 2 products The Hindu Business Line (Web Edition) http://www.thehindubusinessline.com/companies/article2318769.ece

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Tata Motors to train truck drivers in sales push Yuga Chaudhari Daily News & Analysis (Web Edition) Mumbai: Want to sell trucks? Train the drivers first. Or so Tata Motors, India’s largest truck maker, seems to believe. The company is joining hands with quasi-government institutions, NGOs, truck distributors and training institutes to train drivers. There is a severe dearth of skilled truck drivers in India, which is estimated to have around 5 million truck drivers today. The country has a high fatality rate and is the second-worst in the world in terms of truck accidents. As per industry estimates, around 2 million drivers a year would be needed from 2014. Even if 50% of this is considered towards fleet replacement, an additional 1 million drivers would be required every year. That’s a tall order, given that all the ITIs together produce barely 20,000 drivers a year today. Tata Motors expects the move to help plug the void and spur sales growth for truck makers like itself. Its initiative alone will churn out 3.4 million drivers over the next ten years. “To maintain the growth momentum of the industry we decided to take up this skilling initiative under CSR (corporate social responsibility). It will not only help the society but also the business in general,” said GS Uppal, industrial relation CSR administrative head, Tata Motors. The first pilot for the project is due to begin at Jabalpur this month, followed by one at Ujjain. The company plans to open at least 10 centres by the end of this year. The exercise is likely to be keenly watched by others in the private sector as Tata Motors paves the way for a system where brand owners voluntarily become a part of skill development. In many ways, the Tata Motors endeavour will do what is already being done byMicrosoft (Microsoft certified courses), Sun (for Java), Oracle (database courses and even the Oracle University), Cisco (router education) and IBM (DB2 and AIX courses). As of now, no commitment has been proffered by the National Skill Development Corp to Tata Motors, but if the end result is in line with the body’s objectives, a partnership could be in the offing. Besides, this could gradually be developed into a policy where each brand owner decides to convert one (or more) of the government’s ITIs into centres of excellence in India. When brand owners promote their technology, it allows for better and more rapid skill development. Thus, a Siemens (or Schneider or Anchor) could be encouraged to promote courses for electricians, while Finolex (or Prince) could be certifiers of courses for plumbing and so on.

Tata Motors already runs a drivers’ training institute in Punjab. The centre, opened in 2009, offers an exhaustive one-year training programme for drivers. The company is also in talks with Tamil Nadu, Gujarat, Maharashtra, Haryana and Himachal Pradesh governments for setting up similar institutes. “But we realised that the problem is so huge that this initiative may not be sufficient. We had to think of a different model, which is quicker and more cost-efficient. Taking this ahead, we worked on some new training modules with Ernst & Young,” said Uppal. Tata Motors’ 45-day training programme, designed with inputs from Austrian driver-training firm Huber Ebner, will involve third party agencies — skill development agencies, NGO, etc — which will invest in the hardware, such as trucks and driving track. According to Uppal, around nine agencies have shown interest in the project and the company has tied up with Avron Skill Development, Indigram, Be-Able and Ambuja Foundation. Tata Motors will facilitate this training though its fleet operators and dealers, who will help in getting students. It is also in talks with large fleet operators who are facing a shortage of drivers. To make the model sustainable, the 45-day course will charge a nominal fee. For the pilot project, a fee of Rs4,500 will be charged for training on light commercial vehicles and Rs7,500 for heavy commercial vehicles. Tata Motors also plans to facilitate placement of trainees. “We need a system that can produce at one lakh certified drivers each year, which is likely to go up to 5 lakh a year,” said a person associated with the skills development industry. Ashok Leyland and Volvo are also training drivers. Ashok Leyland, in fact, has a large driving track near Ennore where it trains truck drivers. But these are small efforts yet, based in single locations. “The need of the hour is to scale up quickly to 1,000 locations to start with, and take it up to 50,000 locations,” said the person, who did not want to be quoted for the story. This would mean adopting franchisees who will promote the business in each state and sending the best drivers to a driving track where they can be tested for on-ground performance. That’s just the model Tata Motors proposes to follow. It plans to announce an all-India franchisee scheme where investors will take part of the fees from each student and in turn provide the infrastructure and do the on-ground marketing to rope in students. Much of the content delivery and simulation software could be through distance-learning systems (and possibly cloud technology). Within the Tata group, CMS is already doing this with around 80 odd centres, and VSAT connectivity is already being provided by TataNet, a division of Nelco. Some four years ago, Tata Motors was also exploring whether it could become the outsourcing agency for the government to issue truck driving licences, said a source. This may not have been cleared by the government because of legal reasons, but it is quite possible that drivers certified by the company will automatically get a driving licence. Also, these drivers may find easy acceptability, both in India and overseas. http://www.dnaindia.com/money/report_tata-motors-to-train-truck-drivers-in-sales-push_1572042

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

The Economic Times (Web Edition) Pune: General Motors India, the passenger car maker about to enter the utility vehicle segment, has roped in Ashutosh Khosla as its director, sales and marketing, commerical vehicles. Mr Khosla, who was with Piaggio Vehicles till recently with the same portfolio, will be based in Pune. Karl Slym, president and managing director, GMI, said, "We have recently inducted Mr Khosla to head the commercial vehicle business. We plan to introduce utility vehicles, for passenger and goods carrier purposes, from SAIC's portfolio, starting from next year," he said, the first of which will roll out of the Talegaon plant in the first half of next year. He went on to say, "We have called them commercial vehicles but they will be more utility vehicles, capable of carrying people or goods. They will come in varying sizes, allowing customers to use them to carry either goods or people," Mr Slym said. Indications are that the multi-utility vehicles will be based on Wuling's platform, will roll out of both, the Talegaon and Halol, Gujarat plants. Wuling is part of GM's JV in China with SAIC, with the latter holding a 50% stake in GMI. These multi-utility vehicles are expected to be sub 1 tonne to 1 tonne payload carriers while in numbers of people, they could carry seven-12 people. GMI officials stressed that all products in the country will be badged Chevrolet, whether they come from GM's of SAIC's portfolio. Referring to the forthcoming launch of its commercial vehicles, Mr Slym said these vehicles will be sold through their existing dealer network. "Only on the outskirts of a town we might need new dealers," he said, where the showroom need not be a large one, as a passenger car dealership usually has. Small towns would be handled by the existing dealer offering the entire range of products, he said. “Copyright © 2011, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/general-motors-india-ropesin-new-director-to-beef-up-its-commerical-vehicles-business/articleshow/9465893.cms

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

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2/3 Wheelers E-Bikes

Components
Wabco-TVS renamed Wabco India PTI See this story in: The Hindu Business Line Chennai: Auto-component manufacturer Wabco-TVS Ltd today said the company has been renamed Wabco India Ltd. The name change comes in the wake of the company’s agreement with Sundaram-Clayton Ltd after acquisition of equity shares of Clayton Dewandre Holdings from TVS Group for the new name, a company press release here said. Wabco Holdings, which is a global technology leader and tier-one supplier to the commercial vehicle industry, acquired a majority ownership in Wabco-TVS India in 2009. “We are proud of our TVS heritage as it has helped us to build strong relationships with customers across India for over 40 years,” the Wabco India Wholetime Director, Mr P. Kaniappan, said. The Wabco Chairman and CEO, Mr Jacques Esculier, said Wabco India was committed to sustain its success as a premier supplier and will continue to localise new technologies while setting new global standards for service levels. Wabco India manufactures conventional braking products, advanced braking systems and related products for commercial vehicles. It has three factories located in Ambattur, Mahindra World City near Chennai, and in Jamshedpur. In 2010-11, the company reported Rs 899 crore revenues and currently has over 1,100 employees, the statement added. http://www.thehindubusinessline.com/companies/article2319210.ece Wabco-TVS renamed as Wabco India Ltd Financial Chronicle (Web Edition) http://www.mydigitalfc.com/companies/wabco-tvs-renamed-wabco-india-ltd-617 Wabco-TVS (India) to be renamed Wabco The Financial Express

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Allied Industries
Ceat Q1 net loss at Rs 41.90 cr PTI See this story in: The Hindu Business Line New Delhi: Tyre maker Ceat Ltd today posted a net loss of Rs 41.90 crore for the first quarter ended June 30, 2011. The company had reported a net profit of Rs 13.87 crore in the same period last financial year, Ceat said in a filing to the BSE. Net sales of the company rose to Rs 1,072.59 crore for the first quarter ended June 30, 2011, compared with Rs 772.22 crore in the same period the previous fiscal. “Escalating raw material prices, especially natural rubber and lower capacity utilisation in the first quarter after commencement of production in the new plant at Halol (Gujarat) have impacted the profitability for the

quarter,” it said. Shares of Ceat were trading at Rs 96 on the BSE in late afternoon trade, down 2.24 per cent from its previous close. http://www.thehindubusinessline.com/companies/article2319034.ece Ceat Q1 net loss at Rs 41.90 cr The Indian Express http://www.indianexpress.com/news/ceat-q1-net-loss-at-rs-41.90-cr/826693/ Ceat Q1 net loss at Rs 41.90 crore Financial Chronicle http://www.mydigitalfc.com/companies/ceat-q1-net-loss-rs-4190-crore-605 Ceat posts Q1 net loss of Rs. 41.90 cr Mail today Ceat first quarter net loss at Rs 41.90 cr The Financial Express

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Emissions / Environment Finance & Insurance Oil, Lubricants & Alternative Fuels International News
Quake-hit Suzuki Q1 profit falls 20% Agencies See this story in: The Indian Express Tokyo: Osamu Suzuki-led Suzuki Motor Corp posted a 20 percent drop in quarterly operating profit on Wednesday after the March 11 earthquake hampered production, and stuck to its annual guidance for a small profit rise driven by the Indian market. * Q1 operating profit 25.6 bln yen vs consensus 13.8 bln yen * Keeps full-year oper profit forecast at 110 bln yen * Q1 net profit up 24 pct on one-off special profit Suzuki, like other Japanese automakers, is looking to make up for production lost due to the March disaster in the second half of the business year, with plans to increase output for the full year. The bigger worry for the maker of Swift and Alto cars is a slowdown in demand in its largest and most profitable market, India, where competition is also intensifying with global giants such as Toyota Motor Corp and Ford Motor Co entering the small-car segment. Last week, local unit Maruti Suzuki India Ltd beat estimates with an 18 percent rise in first-quarter net profit, but warned of a challenging environment for car demand as interest rates and fuel prices rise. Suzuki's April-June operating profit was 25.57 billion yen ($331.5 million), down from 31.95 billion yen a year earlier but nearly double the consensus estimate of 13.8 billion yen in a survey of seven analysts by Thomson Reuters I/B/E/S.

First-quarter net profit rose 24 percent to 18.73 billion yen as it booked a one-off extraordinary profit, it said. Suzuki kept its full-year operating profit forecast at 110 billion yen, up 2.9 percent from last year, and net forecast at 50 billion yen. A poll of 19 analysts by Thomson Reuters I/B/E/S put the annual operating profit at 105.7 billion yen. Suzuki made headlines recently by lashing out at its top shareholder, Volkswagen AG, for seemingly undermining its independence through a fine-print entry in the German automaker's annual report that categorised Suzuki as an associate over which it could significantly influence financial and operating policy decisions. Volkswagen, in response, denied that it was trying to send a coded message to assert its control, but admitted that plans to cooperate had sputtered, forcing a review of their 18-month-old partnership. Shares in Suzuki are down about 10 percent in the year to date, faring worse than a 6.5 percent fall in Tokyo's transport sector subindex . Before the results were announced, Suzuki ended down 2 percent at 1,739 yen on a broad sell-off in Japanese stocks. http://www.indianexpress.com/news/quakehit-suzuki-q1-profit-falls-20/826548/0 Suzuli Q1 falls 20% on Quake, keeps forecast Hindustan Times

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Now, Toyota related information on your smartphone NYT See this story in: The Economic Times New York: Toyota Motor Sales U.S.A. is adopting interactive bar codes across all its marketing so cellphone-carrying customers can quickly access sales promotions, vehicle quotes, videos, safety tips and similar information. With the new ToyoTag, a logo inside a ring, Toyota says customers - potential and otherwise - can snap the image and receive product-related content and other company information using either a standard mobile phone or a smartphone. Those with iPhones or Android devices can download a SnapTag reader to receive Toyota's content. "The ToyoTag allows customers to engage with us wherever and whenever they want information," said Michael K. Nelson, interactive communications marketing manager for Toyota. The new tag, he said, will provide one-on-one interactions with customers at all stages of interest in its products. The company, which is creating its ToyoTag marketing in house, teamed up with SpyderLynk, a Denver a mobile marketing technology provider. In 2008, SpyderLynk introduced the SnapTag, which uses 2-D mobile bar code technology, and the company customizes the tag's look and content for each client. Coke, Bud Light and the Marines have all experimented with SnapTags. By chance, Nelson came across a tag last year as Toyota began exploring a comprehensive mobile marketing program. "I was watching football one Sunday last fall," said Nelson, "and I saw the SnapTag being used in a Bud Light commercial. I knew right away that we could brand it." Although some studies predict that about half of the American public will own smartphones by the end of 2011, Nelson said he did not want to ignore the rest. "That's why SnapTag was perfect for us," he said.

Nelson said he contacted SpyderLynk the next morning and worked with them to use the SnapTag technology to create a logo in which the center of the ring is swapped out depending on what Toyota is trying to convey. For example, to rebut some of the negative publicity it received from braking problems on some models, Toyota placed a ToyoTag in some newspapers to direct people to the National Highway Traffic Safety Administration website to read the government's report on the issue and Toyota's response. Toyota also has experimented with the ringed logos by including them at auto shows so phone users could learn more about its prepaid maintenance plan. It also tried them in some newspaper advertising for its popular Prius hybrid and for fundraising for tsunami relief in Japan. After evaluating these initiatives, Toyota worked with Saatchi & Saatchi, part of the Publicis Groupe, this spring to redesign the interactive logo, and this week announced its rollout for the ToyoTag. The company did not disclose its marketing budget, but according to Kantar Media, Toyota spent $1.87 billion for all its advertising in the company's past fiscal year, which ended March 31. Toyota's first step will be expanding its ringed logos across social media, at this summer's action-sports Dew Tour, by sponsoring a best-athlete voting contest as well as a scavenger hunt where participants who snap a tag receive a video response from a tour celebrity. Starting this fall with the introduction of its 2012 models, Toyota plans to tie its new branding to the rollout of its new Prius line and to some of its other popular models like the Tacoma truck. The company will imbed information in car brochures so users can receive interactive content like videos, or links to apps that allow customizing or building a new vehicle. Most companies that have tested twodimensional codes in advertising have yet to embrace such tag marketing, opting instead to experiment with one-off campaigns. It is challenging for companies, said Miles Austin, who writes the independent blog Fill the Funnel, to create an interactive experience that is "fat-finger friendly, which means easy-to-use big buttons, and offers video that resonates and is not just another website." Companies also run the risk that "not enough people are familiar with this kind of technology to engage with these types of features and contents," said George Guildford, an account manager with a British-based PR agency. The advantage, he added, "is that since the links used are trackable, brands can clearly see how effective and successful the campaign has been." http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/now-toyota-relatedinformation-on-your-smartphone/articleshow/9475895.cms

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Business Magazines Economy
Rupee sheds 13 paise against dollar PTI See this story in: The Hindu Business Line Mumbai: Moving in line with the equity market, the rupee dropped further by 13 paise to Rs 44.40 per US dollar in early trade today on persistent dollar demand from banks and importers on the back of a higher dollar in the overseas markets. The rupee resumed lower at Rs 44.37/38 per dollar on the Interbank Foreign Exchange, as against its previous close of 44.27/28 per dollar, and moved down further to Rs 44.40 per dollar before quoting at Rs 44.32/33 per dollar at 10.30 a.m.

The domestic currency hovered in a range between Rs 44.30 per dollar and Rs 44.40 per dollar during morning deals. Sustained dollar demand from banks and importers in view of the higher dollar in the overseas markets and weak equity markets mainly affected the rupee value against the American currency, a forex dealer said. In the New York market, the Senate approval of the US debt bill gave the dollar much needed relief yesterday, although the greenback stayed weak against the Swiss franc. http://www.thehindubusinessline.com/industry-and-economy/banking/article2318523.ece

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Sensex sheds 169 points on growth concerns PTI See this story in: The Hindu Business Line Mumbai: The Bombay Stock Exchange benchmark Sensex today slumped below 18,000 mark to its lowest in over six weeks, shedding 169 points as funds sold banking, auto and heavy machinery stocks due to worries over a slowing domestic growth amid a weak global trend. The BSE 30-scrip index, which had lost 204 points in the last run, touched the intraday low of 17,859.50 before closing 169.34 points down at 17,940.55, a level last seen on June 16. RIL and Infosys were down by 1.19 per cent and 0.76 per cent, respectively. ICICI Bank and HDFC Bank fell on concerns over sticky inflation and rising interest rates which might dent their revenue on fall in loan demand. Interest rate-sensitive auto and realty stocks also suffered losses on concerns over rising borrowing costs. Brokers said trading sentiment turned bearish after telecom major Bharti Airtel posted poor results for the first quarter of this fiscal and the Prime Minister’s Economic Advisory Council lowered the country’s yearly growth forecast to 8.2 per cent from 9 per cent. Sentiment at home was also influenced by a weak Asian market and lower opening of European stocks on sovereign debt worries after it emerged that Italy had approached the European Union to settle a potential debt crisis at home after yields on Italian bonds touched the highest in euro history. US data showing decline in consumer spending in June further dampened the sentiment. Similarly, the broad-based National Stock Exchange index Nifty dropped below 5,400 level before ending down by 51.75 points at 5,404.80. http://www.thehindubusinessline.com/markets/stock-markets/article2318495.ece

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Closings
Last Financial Closings......

Sensex NSE US$ spot US$ US$ 6 months Yen Euro spot LIBOR 6 months Call

17,940.55 (-169.34) 5,404.80 (-51.75) Rs.44.26 Y.77.112 Rs.45.59 Rs.57.40 Rs.63.39

%
%

Aluminium (per kg) (Mum) Aluminium Ingot Copper (per kg) Gold (10gm) Lead (per kg) Mild Steel Ingots (Mumbai) Nickel (per kg) (Mumbai) Nickel Cathode Silver (1kg) Sponge Iron (per tonne) Steel Flat (per tonne ) Steel Long GVD (per tonne) Steel Long BVN (per tonne) Tin (per kg) Zinc (per kg) (Mumbai) Zinc Ingot Rubber

Rs.112.31 Rs.- - - Rs.428.55 Rs.23,955 Rs.111.96 Rs.31400.00

Rs.1059.81
Rs. - - -Rs.59845.00 Rs. - - Rs. - - - Rs.- - - Rs.- - - Rs.- - - Rs.104.81 Rs. Rs.20870

Crude Oil (WTI) Crude Oil (Brent) $113.93 (-2.75)

Scip on BSE

Face Value (Rs)

Last Traded Value (Rs.)

Apollo Tyres Asahi Ind Amara Raja B Ashok Leyland Bajaj Auto Bharat Forge Denso Eicher Motor Escorts Exide Ind Force Motors Gabriel India Hero Honda Hind Motors Hi-Tech Gear Jay. Bh. Maruti Jamna Auto JK Tyres & Inds Kinetic Motors Kinetic Engg KOEL Kirloskar Br: LML Ltd L&T Lumax Ind Lumax Tech M&M Maruti Suzuki Motherson SS Minda Inds MRF Omax Auto Rico Auto Sona Koyo St SRF Tata Motors

1 1 2 1 10 2 1 10 10 1 10 1 2 5 10 5 10 10 10 10 2 2 10 2 10 10 5 5 1 10 10 10 1 1 10 10

72.70 79.90 244.10 25.25 1455.40 303.50 63.70 1345.95 93.45 150.25 692.95 48.05 1804.45 17.55 124.70 68.75 138.75 99 17.35 128.95 123.90 159.50 11.15 1658.70 328 180.85 710.90 1215.15 228.10 226.90 7034.10 43.35 13.40 16.95 312.25 927.75

TVS Motors

1

53.15

Scip on BSE Bhushan Steel Essar Steel Hindalco Hind Zinc Ispat Inds Jindal Steel JSW Steel Jindal Saw National Aluminium SAIL TISCO Visa Steel

Face Value (Rs) 2 10 1 2 10 1 10 2 10 10 10 10

Last Traded Value (Rs.) 380.40 ---165.70 135.30

556.20 709.60 143.90 73.85 120.95 563.10 57.85

Scip on BSE Ambuja Cement Binani Industries Birla Corp India Cement Prism Cement Saurashtra Cement Shree Cement

Face Value (Rs) 2 10 10 10 10 10 10

Last Traded Value (Rs.) 129.25 158.05 323.85 67.90 45.15 15.80 1734.35

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