indian auto industry update · indian auto industry update 07 feb 2017 industry note on vehicle...

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Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump in Jan Apollo Tyre\'s revenue surges but margins skid as costs rise Interviews & Features Cars, SUVs, MUVs Maruti Suzuki India contributes 50% of Suzuki Motor global sales Maruti Ciaz emerges market leader in mid-size segment Maruti tops 3 prime categories in Apr-Jan Suzuki Wagon R gets big makeover, now on sale in Japan India to be an important part of Toyota-Suzuki Motor business partnership What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal? Honda City facelift officially teased ahead of launch India-bound Honda WR-V details out Hyundai Grand i10 facelift launched; Price starts at Rs.4.58 (Ex-Delhi) We already stopped manufacturing BS-III vehicles: Toyota Kirloskar Motor Luxury Cars CCI rejects complaint against Daimler Fin Services, Mercedes Commercial Vehicles Tata Motors to bring in new Ace to take on rivals Ashok Leyland bags an order worth Rs 70.35 crore Construction & Agri Machinery 2/3 Wheelers BSIV compliant Bajaj Pulsar RS200 & Pulsar NS200 launched Harley-Davidson to introduce 50 new models in next five years E-Bikes Components India needs more leaders to put auto parts Inc on global map Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand Tube Investments Q3 net profit jumps 67% to Rs 27.47 cr Allied Industries Rubber prices under pressure on rising output, falling utilisation Apollo Tyre's revenue surges but margins skid as costs rise Emissions / Environment Finance & Insurance Post demonetisation, two-wheeler loan demand hit the most Oil, Lubricants & Alternative Fuels HPCL gets green nod for Rs 3,846 cr expansion project to produce Euro IV fuel Oil prices edge up on Iran tensions News Magazines BMW G310R to be launched this year Renault shelves plans for Kwid-based sedan

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Page 1: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Indian Auto Industry Update

07 Feb 2017

IndustryNote on vehicle scrapping policy with Committee of Secretaries Govt

Two-wheeler sales hit speed bump in Jan

Apollo Tyres revenue surges but margins skid as costs rise

Interviews amp FeaturesCars SUVs MUVs

Maruti Suzuki India contributes 50 of Suzuki Motor global sales

Maruti Ciaz emerges market leader in mid-size segment

Maruti tops 3 prime categories in Apr-Jan

Suzuki Wagon R gets big makeover now on sale in Japan

India to be an important part of Toyota-Suzuki Motor business partnership

What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal

Honda City facelift officially teased ahead of launch

India-bound Honda WR-V details out

Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi)

We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor

Luxury CarsCCI rejects complaint against Daimler Fin Services Mercedes

Commercial VehiclesTata Motors to bring in new Ace to take on rivals

Ashok Leyland bags an order worth Rs 7035 crore

Construction amp Agri Machinery23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched

Harley-Davidson to introduce 50 new models in next five years

E-BikesComponents

India needs more leaders to put auto parts Inc on global map

Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand

Tube Investments Q3 net profit jumps 67 to Rs 2747 cr

Allied IndustriesRubber prices under pressure on rising output falling utilisation

Apollo Tyres revenue surges but margins skid as costs rise

Emissions EnvironmentFinance amp Insurance

Post demonetisation two-wheeler loan demand hit the most

Oil Lubricants amp Alternative FuelsHPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel

Oil prices edge up on Iran tensions

News MagazinesBMW G310R to be launched this year

Renault shelves plans for Kwid-based sedan

Honda City facelift India launch on February 14 2017

Bajaj Dominar 400 vs Mojo vs Himalayan comparison

2017 Mahindra XUV500 Sportz launched at Rs 165 lakh

Hero Flash electric scooter launched at Rs 19990

International NewsToyota Suzuki poised to unveil partnership on Monday

Toyota April-December net profit falls 24 but hikes annual outlook

Toyota lifts annual outlook for 2017-18

Groupe Renault acquires company specialising in LCV electrification

Hyundai Motor Group promotes fewer execs after profits drop

UK new car sales rise by 3 in January boosted by consumer demand

JLRs increased investment export of other British goods to China has a new twist

Suzuki Q3 operating profit exceeds forecasts on better margins

Luxembourg launches criminal case over VW emissions scandal - minister

Takata shares untraded with heavy sell orders KSS seen backing restructuring

Volvo main factory in Gothenburg hit by violent fire

Who is Carlos Ghosn His first stint with automotive industry at Michelin

A $42900 sports sedan revs up competition

Automakers are betting on a hydrogen-fuelled future

Volkswagen plans to cap CEO pay at 10 million euros Source

Tata to showcase two-door sportscar at Geneva

EconomyRupee gains 9 paise to end at 6722 against US dollar

For fourth straight day Sensex hits 4-month high

ClosingLast Financial Closing

Industry

Note on vehicle scrapping policy with Committee of Secretaries Govt PTISee this story in The Economic Times (Web Edition)

New Delhi A concept note on vehicle scrapping policy has been sent to the Committee of Secretaries (CoS) for consideration andapproval government said today

In the first phase the policy aims at scrapping commercial vehicles which have completed 15 years

Ministry of Road Transport and Highways has proposed a concept note on Voluntary Vehicle Fleet Modernisation Programme(V-VMP) and it was circulated for inter-ministerial consultation Minister of State for Road Transport and Highways Mansukh LalMandavia said in a written reply to the Rajya Sabha

He said the note aims at creating an ecosystem for voluntary scrapping and replacement of old polluting vehicles

After the deliberation it was decided to prepare a CoS note The note has already been submitted to CoS for consideration andapproval the minister said

V-VMP policy proposes to push 28 million decade old vehicles off the roads

Last week Road Transport and Highways Minister Nitin Gadkari has said that the PMO is keen on the proposal as once it isimplemented pollution would be checked considerably as 65 per cent of the pollution is caused by heavy vehicles which havecompleted 15 years

He has said a presentation has already been made before the Finance Minister Arun Jaitley

The proposal is to provide relief of about Rs 5 lakh to people who purchase new commercial vehicle of about Rs 15 lakh if theysurrender their over 15-year old commercial vehicles

Once the proposal is accepted he said it is bound to result in Rs 10000 crore boost in tax revenue as the automobile sector will

benefit from it

He said that the automobile sector is projected to grow by 22 per cent and it will be a win-win situation for all

The automobile sector turnover will grow from Rs 45 lakh crore to Rs 20 lakh crore after policy implementation the minister said

The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehiclesbought on or before March 31 2005 numbering about 28 millionhttpautoeconomictimesindiatimescomnewsindustrynote-on-vehicle-scrapping-policy-with-committee-of-secretaries-govt57003919

Top

Two-wheeler sales hit speed bump in Jan T E NarasimhanBusiness Standard

Chennai While sales of commercial and passenger vehicles seem to have recovered from the impact of demonetisation thetwo-wheeler industry continues to be under pressure

This is due to a drop in motorcycle sales driven by the rural economy According to industry sources sales of heavy and mediumcommercial vehicles (CVs) grew around one per cent in January while passenger car sales grew in double-digits Howeverdomestic two-wheeler sales dropped by around seven per cent to 126 mn units This was despite two-wheeler makers havingreduced the down-payment Some dealers also waived it

Bajaj Autoamprsquos domestic motorcycle sales were down by 15 per cent to 119803 units in January from a year before HeroMotoCorps dropped by 13 per cent to 487088 units TVS Motors dropped to 207059 units from 208485 units in the same montha year before mainly due to a drop in motorcycle sales scooter sales grew by 12 per cent

Among the top players only Honda saw growth by around two per cent to 368145 units in January Yadvinder Singh Guleriasenior vice-president for sales at Honda Motorcycle amp Scooter India says there has been a post-demonetisation recovery in urbanareas while rural economies continue to be under pressure Around 80 per cent of the sales in rural areas are of motorcycles heexplains Their scooter performance he added was due to product launches additional capacity increase in network andmarketing

Also theyamprsquod worked with financiers to ease the burden on retailers and customers (such as reducing the down-payment) Heexpects the rural market to come back by end-April

Passenger vehicle volumes as mentioned earlier recovered sharply in January Most of the large original equipment makers havereported strong year-on-year growth in wholesale volumes Marutis domestic volume grew by 259 per cent to 133934 units inJanuary Hyundais grew by 105 per cent to 42017 units Toyota Kirloskar reported a 21 per cent increase in domestic sales at10336 units

Nissan saw a 629 per cent rise to 4346 units and Tatas grew 21 per cent to 12907 units

Though the CV market reported only one per cent growth experts note this is on a high base January sales were driven mainly bydemand ahead of the change to stiffer emission norms in April

CV sales could see single-digit growth over the next two months and it is expected that the industry volumes would come underpressure after Aprilhttpwwwbusiness-standardcomarticlecompaniescar-sales-grew-in-january-but-two-wheelers-continue-to-lag-117020600535_1html

Top

Apollo Tyres revenue surges but margins skid as costs rise Apollo Tyres revenue surges but margins skid as costs riseApollo Tyres revenue surges but margins skid as costs rise

Top

Interviews amp Features

Cars SUVs MUVs

Maruti Suzuki India contributes 50 of Suzuki Motor global sales PTI

See this story in The Economic Times (Web Edition)

Tokyo Maruti Suzuki Indias contribution to parent Suzuki Motor Corporations global sales in terms of volumes has crossed 50 percent in the April-December period this fiscal

During the first nine months of the fiscal Suzuki Motor Corporation (SMC) said its automobile sales in India stood at 1061 lakhunits while its overall global sales were at 2083 lakh units at 5093 per cent

In the comparable period last fiscal SMC said its sales in India were at 972 lakh units out of a total global sales of 2040 lakh unitsaccounting for 4764 per cent

SMC today reported that its consolidated operating income increased by 144 per cent to 1674 billion yen year-on-year mainlyowing to increase in automobile sales in India and Europe despite the impact of the exchange rate

However its consolidated net sales in the April-December decreased by by 44 per cent to 2252 billion yen as compared to thecorresponding period of the previous fiscal year

This was mainly on account of a drop in Japanese domestic net sales which decreased by 38 per cent to 7253 billion yenyear-on-year mainly owing to decrease in minivehicle and OEM sales despite increase in sub-compact and standard-sized vehiclesales

Overseas net sales also decreased by 47 per cent to 15267 billion yen year-on-year mainly owing to decrease in automobilesales in Indonesia and Pakistan and the impact of the exchange rate despite increase in automobile sales in areas including Indiaand Europe it addedhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsmaruti-suzuki-india-contributes-50-of-suzuki-motors-global-sales57004116

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Maruti Ciaz emerges market leader in mid-size segment S Ronendra SinghThe Hindu Business Line (Web amp Print Edition)

New Delhi New Delhi February 6A market leader of small cars for long Maruti Suzuki Indiaamprsquos (MSIL) sedan Ciaz hasrecently been successful in getting numero uno position in the mid-size (A3) segment as well

The Ciaz has beaten all its competitors such as Honda City Hyundai Verna and Volkswagen Vento not only in the January salesbut also in the entire financial year

Since its launch MSIL has sold 140226 units of Ciaz which is priced between Rs 753 lakh and Rs 1052 lakh (ex-showroomDelhi)

According to Rs Kalsi Executive Director (Marketing amp Sales) Maruti Suzuki India ampldquoCiaz started as an outstanding productwith great looks plush interiors and generous room and comfort With introduction of Ciaz SHVS (mild hybrid) and newinfotainment features it clearly pulled aheadamprdquo

MSILamprsquos share in the segment has surged to 41 per cent in FY2016-17 against 29 per cent in FY2015-16 he said

Launched in October 2014 Ciaz has crossed the one lakh cumulative sales mark in the domestic market in June last and is racingfurther Kalsi said

One of the reasons for Ciazamprsquos growing number is due to government purchase (govt deptsamprsquo official vehicle)

According to analysts Honda will push for market leadership again when it launches the fifth-generation City on February 14

Rakesh Batra Partner and National leader--Automotive Sector at EY said

both Maruti Suzuki and Hyundai Motor were stronger players in the small car segment but not in the A3 segment and have notsucceeded earlier with other models

But for Honda City has been an important model for many years beating others such as Ford Ikon

According to Yoichiro Ueno President and Chief Executive Officer Honda Cars India Ltd ampldquoThe Honda City has been ourmost successful model ever since the start of operations in the country It commands loyalty among customers and we are excitedto add another chapter to the success story of the model with the launch of the new Honda City 2017amprdquo

The current pricing of the City ranges between Rs 832 lakh and Rs 1266 lakh (ex-showroom Delhi) The upcoming variant isexpected to be priced between Rs 9 lakh and Rs 1350 lakhhttpwwwthehindubusinesslinecomtodays-papertp-newsmaruti-ciaz-emerges-market-leader-in-midsize-segmentarticle9525093ece

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Maruti tops 3 prime categories in Apr-Jan Nandini Sengupta

The Times of India (Delhi Print Edition)

Chennai Its known for its small car supremacy But in the past 10 months car market leader Maruti Suzuki has managed to crackthree non-small car segments -the mid-sized sedan with its Ciaz the compact SUV with the Vitara Brezza and the premiumhatchback with the Baleno

According to industry data Ciaz with 53644 units in the April-January period has not only outsold competitors like Honda City Hyundai Verna Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment Similarly in the crowdedcompact SUV segment Vitara Brezzas year-to-date tally of 88537 units is ahead of best-seller competitors like Hyundai Creta andMahindra Bolero Baleno too leads the premium hatch market with 96720 units ahead of competitors like Hyundai i20 Honda Jazzand VW Polo

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while The difference is now itsnonsmall car products are doing well Top company officials say that looking at de-risking the companys portfolio with non-small carproducts is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020

ampldquoOur leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growingnumber of Nexa showrooms a lineup of strong products and our communication strategy which has evolved to reach out to thenew target customer Innova tions like personalisation in Brezza have also helpedampldquo said R S Kalsi executive director(marketing and sales) at Maruti Suzuki India

Auto analysts agree it is the Nexa network thats one of the biggest reasons for Marutis non-small-car success this time round Nowonder the company plans to double the number of Nexa outlets by 2020 Abdul Majeed partner PwC said ampldquoThere are acouple of things that Maruti has done differently First the overhaul of their distribution network with Nexa was a masterstrokePotential premium customers didnt want to go to the same showroom that sells a Rs 2-3 lakh car Second they worked hard ontheir products particularly on styling And finally they put their pricing act togetherampldquo

What has also helped is the inconsistent performance of their main competitorsampldquoTypically Marutis competitors have beenputting up solo success products but most of them have not followed up with a consistent best-selling lineupampldquo said an analystwith a Mumbai-ba sed broking firm That has helped the autmobile market leader

Marutis quest for nonmini markets goes back in time to 1985 when it launched the Gypsy and 1990 when the Maruti 1000 wasrolled out In recent times it has dabbled with different segments like the SUV (Grand Vitara) in 2003 sedan (SX4 Baleno andKizashi in 1999 2008 2011 respectively) minivan (Versa and Eeco) and mini MPV (Ertiga) Some of these like the Swift Dzire(compact sedan) and Esteem (entry sedan) have been huge successes too The difference this time is the number of non-small carproducts rolling out from Maruti and its new focus on these segments

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Suzuki Wagon R gets big makeover now on sale in Japan Shubhodeep ChakravartyThe Economic Times (Web Edition)

Wagon R has been one of Suzukis best-selling cars since it was first rolled out in Japan in 1993 Little surprise then that thecompany has no intentions yet of retiring the car and showcased its latest facelift earlier this month

The latest Wagon R put on display in Japan showed the car with an all-new front profile with a thinner chrome plate pushed higherup to further emphasise on the tall-boy stance of the car It features all-new LED headlights 14-inch alloys push-button starttouchscreen infotainment system heated front seats among other features

Built on the new-generation HEARTECT platform that emphasis on rigidity and lighter weights for newer Suzuki cars the 2017Wagon R is 3395mm in length (slightly smaller than its current version in India) 1475mm in width and 1650mm in height It has awheelbase of 2460mm

The car is on sale in Japan and is offered in three variants - FA Hybrid FX and Hybrid FZ The claimed mileage for the hybridversion is 334kmpl

In India Maruti Suzuki expanded Wagon Rs portfolio last month by adding the VXi+ variant There is no word yet on when themodel showcased in Japan will make its way herehttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japan56999748Suzuki Wagon R gets big makeover now on sale in JapanThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneoussuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japanarticleshow56998052cms

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India to be an important part of Toyota-Suzuki Motor business partnership Ketan ThakkarThe Economic Times (Web amp Print Edition)

Mumbai India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation andSuzuki Motor a senior Toyota Kirloskar executive said

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

Top

Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

Top

Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

Top

Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

Top

Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

Top

News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 2: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Honda City facelift India launch on February 14 2017

Bajaj Dominar 400 vs Mojo vs Himalayan comparison

2017 Mahindra XUV500 Sportz launched at Rs 165 lakh

Hero Flash electric scooter launched at Rs 19990

International NewsToyota Suzuki poised to unveil partnership on Monday

Toyota April-December net profit falls 24 but hikes annual outlook

Toyota lifts annual outlook for 2017-18

Groupe Renault acquires company specialising in LCV electrification

Hyundai Motor Group promotes fewer execs after profits drop

UK new car sales rise by 3 in January boosted by consumer demand

JLRs increased investment export of other British goods to China has a new twist

Suzuki Q3 operating profit exceeds forecasts on better margins

Luxembourg launches criminal case over VW emissions scandal - minister

Takata shares untraded with heavy sell orders KSS seen backing restructuring

Volvo main factory in Gothenburg hit by violent fire

Who is Carlos Ghosn His first stint with automotive industry at Michelin

A $42900 sports sedan revs up competition

Automakers are betting on a hydrogen-fuelled future

Volkswagen plans to cap CEO pay at 10 million euros Source

Tata to showcase two-door sportscar at Geneva

EconomyRupee gains 9 paise to end at 6722 against US dollar

For fourth straight day Sensex hits 4-month high

ClosingLast Financial Closing

Industry

Note on vehicle scrapping policy with Committee of Secretaries Govt PTISee this story in The Economic Times (Web Edition)

New Delhi A concept note on vehicle scrapping policy has been sent to the Committee of Secretaries (CoS) for consideration andapproval government said today

In the first phase the policy aims at scrapping commercial vehicles which have completed 15 years

Ministry of Road Transport and Highways has proposed a concept note on Voluntary Vehicle Fleet Modernisation Programme(V-VMP) and it was circulated for inter-ministerial consultation Minister of State for Road Transport and Highways Mansukh LalMandavia said in a written reply to the Rajya Sabha

He said the note aims at creating an ecosystem for voluntary scrapping and replacement of old polluting vehicles

After the deliberation it was decided to prepare a CoS note The note has already been submitted to CoS for consideration andapproval the minister said

V-VMP policy proposes to push 28 million decade old vehicles off the roads

Last week Road Transport and Highways Minister Nitin Gadkari has said that the PMO is keen on the proposal as once it isimplemented pollution would be checked considerably as 65 per cent of the pollution is caused by heavy vehicles which havecompleted 15 years

He has said a presentation has already been made before the Finance Minister Arun Jaitley

The proposal is to provide relief of about Rs 5 lakh to people who purchase new commercial vehicle of about Rs 15 lakh if theysurrender their over 15-year old commercial vehicles

Once the proposal is accepted he said it is bound to result in Rs 10000 crore boost in tax revenue as the automobile sector will

benefit from it

He said that the automobile sector is projected to grow by 22 per cent and it will be a win-win situation for all

The automobile sector turnover will grow from Rs 45 lakh crore to Rs 20 lakh crore after policy implementation the minister said

The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehiclesbought on or before March 31 2005 numbering about 28 millionhttpautoeconomictimesindiatimescomnewsindustrynote-on-vehicle-scrapping-policy-with-committee-of-secretaries-govt57003919

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Two-wheeler sales hit speed bump in Jan T E NarasimhanBusiness Standard

Chennai While sales of commercial and passenger vehicles seem to have recovered from the impact of demonetisation thetwo-wheeler industry continues to be under pressure

This is due to a drop in motorcycle sales driven by the rural economy According to industry sources sales of heavy and mediumcommercial vehicles (CVs) grew around one per cent in January while passenger car sales grew in double-digits Howeverdomestic two-wheeler sales dropped by around seven per cent to 126 mn units This was despite two-wheeler makers havingreduced the down-payment Some dealers also waived it

Bajaj Autoamprsquos domestic motorcycle sales were down by 15 per cent to 119803 units in January from a year before HeroMotoCorps dropped by 13 per cent to 487088 units TVS Motors dropped to 207059 units from 208485 units in the same montha year before mainly due to a drop in motorcycle sales scooter sales grew by 12 per cent

Among the top players only Honda saw growth by around two per cent to 368145 units in January Yadvinder Singh Guleriasenior vice-president for sales at Honda Motorcycle amp Scooter India says there has been a post-demonetisation recovery in urbanareas while rural economies continue to be under pressure Around 80 per cent of the sales in rural areas are of motorcycles heexplains Their scooter performance he added was due to product launches additional capacity increase in network andmarketing

Also theyamprsquod worked with financiers to ease the burden on retailers and customers (such as reducing the down-payment) Heexpects the rural market to come back by end-April

Passenger vehicle volumes as mentioned earlier recovered sharply in January Most of the large original equipment makers havereported strong year-on-year growth in wholesale volumes Marutis domestic volume grew by 259 per cent to 133934 units inJanuary Hyundais grew by 105 per cent to 42017 units Toyota Kirloskar reported a 21 per cent increase in domestic sales at10336 units

Nissan saw a 629 per cent rise to 4346 units and Tatas grew 21 per cent to 12907 units

Though the CV market reported only one per cent growth experts note this is on a high base January sales were driven mainly bydemand ahead of the change to stiffer emission norms in April

CV sales could see single-digit growth over the next two months and it is expected that the industry volumes would come underpressure after Aprilhttpwwwbusiness-standardcomarticlecompaniescar-sales-grew-in-january-but-two-wheelers-continue-to-lag-117020600535_1html

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Apollo Tyres revenue surges but margins skid as costs rise Apollo Tyres revenue surges but margins skid as costs riseApollo Tyres revenue surges but margins skid as costs rise

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Interviews amp Features

Cars SUVs MUVs

Maruti Suzuki India contributes 50 of Suzuki Motor global sales PTI

See this story in The Economic Times (Web Edition)

Tokyo Maruti Suzuki Indias contribution to parent Suzuki Motor Corporations global sales in terms of volumes has crossed 50 percent in the April-December period this fiscal

During the first nine months of the fiscal Suzuki Motor Corporation (SMC) said its automobile sales in India stood at 1061 lakhunits while its overall global sales were at 2083 lakh units at 5093 per cent

In the comparable period last fiscal SMC said its sales in India were at 972 lakh units out of a total global sales of 2040 lakh unitsaccounting for 4764 per cent

SMC today reported that its consolidated operating income increased by 144 per cent to 1674 billion yen year-on-year mainlyowing to increase in automobile sales in India and Europe despite the impact of the exchange rate

However its consolidated net sales in the April-December decreased by by 44 per cent to 2252 billion yen as compared to thecorresponding period of the previous fiscal year

This was mainly on account of a drop in Japanese domestic net sales which decreased by 38 per cent to 7253 billion yenyear-on-year mainly owing to decrease in minivehicle and OEM sales despite increase in sub-compact and standard-sized vehiclesales

Overseas net sales also decreased by 47 per cent to 15267 billion yen year-on-year mainly owing to decrease in automobilesales in Indonesia and Pakistan and the impact of the exchange rate despite increase in automobile sales in areas including Indiaand Europe it addedhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsmaruti-suzuki-india-contributes-50-of-suzuki-motors-global-sales57004116

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Maruti Ciaz emerges market leader in mid-size segment S Ronendra SinghThe Hindu Business Line (Web amp Print Edition)

New Delhi New Delhi February 6A market leader of small cars for long Maruti Suzuki Indiaamprsquos (MSIL) sedan Ciaz hasrecently been successful in getting numero uno position in the mid-size (A3) segment as well

The Ciaz has beaten all its competitors such as Honda City Hyundai Verna and Volkswagen Vento not only in the January salesbut also in the entire financial year

Since its launch MSIL has sold 140226 units of Ciaz which is priced between Rs 753 lakh and Rs 1052 lakh (ex-showroomDelhi)

According to Rs Kalsi Executive Director (Marketing amp Sales) Maruti Suzuki India ampldquoCiaz started as an outstanding productwith great looks plush interiors and generous room and comfort With introduction of Ciaz SHVS (mild hybrid) and newinfotainment features it clearly pulled aheadamprdquo

MSILamprsquos share in the segment has surged to 41 per cent in FY2016-17 against 29 per cent in FY2015-16 he said

Launched in October 2014 Ciaz has crossed the one lakh cumulative sales mark in the domestic market in June last and is racingfurther Kalsi said

One of the reasons for Ciazamprsquos growing number is due to government purchase (govt deptsamprsquo official vehicle)

According to analysts Honda will push for market leadership again when it launches the fifth-generation City on February 14

Rakesh Batra Partner and National leader--Automotive Sector at EY said

both Maruti Suzuki and Hyundai Motor were stronger players in the small car segment but not in the A3 segment and have notsucceeded earlier with other models

But for Honda City has been an important model for many years beating others such as Ford Ikon

According to Yoichiro Ueno President and Chief Executive Officer Honda Cars India Ltd ampldquoThe Honda City has been ourmost successful model ever since the start of operations in the country It commands loyalty among customers and we are excitedto add another chapter to the success story of the model with the launch of the new Honda City 2017amprdquo

The current pricing of the City ranges between Rs 832 lakh and Rs 1266 lakh (ex-showroom Delhi) The upcoming variant isexpected to be priced between Rs 9 lakh and Rs 1350 lakhhttpwwwthehindubusinesslinecomtodays-papertp-newsmaruti-ciaz-emerges-market-leader-in-midsize-segmentarticle9525093ece

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Maruti tops 3 prime categories in Apr-Jan Nandini Sengupta

The Times of India (Delhi Print Edition)

Chennai Its known for its small car supremacy But in the past 10 months car market leader Maruti Suzuki has managed to crackthree non-small car segments -the mid-sized sedan with its Ciaz the compact SUV with the Vitara Brezza and the premiumhatchback with the Baleno

According to industry data Ciaz with 53644 units in the April-January period has not only outsold competitors like Honda City Hyundai Verna Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment Similarly in the crowdedcompact SUV segment Vitara Brezzas year-to-date tally of 88537 units is ahead of best-seller competitors like Hyundai Creta andMahindra Bolero Baleno too leads the premium hatch market with 96720 units ahead of competitors like Hyundai i20 Honda Jazzand VW Polo

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while The difference is now itsnonsmall car products are doing well Top company officials say that looking at de-risking the companys portfolio with non-small carproducts is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020

ampldquoOur leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growingnumber of Nexa showrooms a lineup of strong products and our communication strategy which has evolved to reach out to thenew target customer Innova tions like personalisation in Brezza have also helpedampldquo said R S Kalsi executive director(marketing and sales) at Maruti Suzuki India

Auto analysts agree it is the Nexa network thats one of the biggest reasons for Marutis non-small-car success this time round Nowonder the company plans to double the number of Nexa outlets by 2020 Abdul Majeed partner PwC said ampldquoThere are acouple of things that Maruti has done differently First the overhaul of their distribution network with Nexa was a masterstrokePotential premium customers didnt want to go to the same showroom that sells a Rs 2-3 lakh car Second they worked hard ontheir products particularly on styling And finally they put their pricing act togetherampldquo

What has also helped is the inconsistent performance of their main competitorsampldquoTypically Marutis competitors have beenputting up solo success products but most of them have not followed up with a consistent best-selling lineupampldquo said an analystwith a Mumbai-ba sed broking firm That has helped the autmobile market leader

Marutis quest for nonmini markets goes back in time to 1985 when it launched the Gypsy and 1990 when the Maruti 1000 wasrolled out In recent times it has dabbled with different segments like the SUV (Grand Vitara) in 2003 sedan (SX4 Baleno andKizashi in 1999 2008 2011 respectively) minivan (Versa and Eeco) and mini MPV (Ertiga) Some of these like the Swift Dzire(compact sedan) and Esteem (entry sedan) have been huge successes too The difference this time is the number of non-small carproducts rolling out from Maruti and its new focus on these segments

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Suzuki Wagon R gets big makeover now on sale in Japan Shubhodeep ChakravartyThe Economic Times (Web Edition)

Wagon R has been one of Suzukis best-selling cars since it was first rolled out in Japan in 1993 Little surprise then that thecompany has no intentions yet of retiring the car and showcased its latest facelift earlier this month

The latest Wagon R put on display in Japan showed the car with an all-new front profile with a thinner chrome plate pushed higherup to further emphasise on the tall-boy stance of the car It features all-new LED headlights 14-inch alloys push-button starttouchscreen infotainment system heated front seats among other features

Built on the new-generation HEARTECT platform that emphasis on rigidity and lighter weights for newer Suzuki cars the 2017Wagon R is 3395mm in length (slightly smaller than its current version in India) 1475mm in width and 1650mm in height It has awheelbase of 2460mm

The car is on sale in Japan and is offered in three variants - FA Hybrid FX and Hybrid FZ The claimed mileage for the hybridversion is 334kmpl

In India Maruti Suzuki expanded Wagon Rs portfolio last month by adding the VXi+ variant There is no word yet on when themodel showcased in Japan will make its way herehttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japan56999748Suzuki Wagon R gets big makeover now on sale in JapanThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneoussuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japanarticleshow56998052cms

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India to be an important part of Toyota-Suzuki Motor business partnership Ketan ThakkarThe Economic Times (Web amp Print Edition)

Mumbai India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation andSuzuki Motor a senior Toyota Kirloskar executive said

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

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Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

Top

Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 3: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

benefit from it

He said that the automobile sector is projected to grow by 22 per cent and it will be a win-win situation for all

The automobile sector turnover will grow from Rs 45 lakh crore to Rs 20 lakh crore after policy implementation the minister said

The draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) policy has proposed to bring under its purview vehiclesbought on or before March 31 2005 numbering about 28 millionhttpautoeconomictimesindiatimescomnewsindustrynote-on-vehicle-scrapping-policy-with-committee-of-secretaries-govt57003919

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Two-wheeler sales hit speed bump in Jan T E NarasimhanBusiness Standard

Chennai While sales of commercial and passenger vehicles seem to have recovered from the impact of demonetisation thetwo-wheeler industry continues to be under pressure

This is due to a drop in motorcycle sales driven by the rural economy According to industry sources sales of heavy and mediumcommercial vehicles (CVs) grew around one per cent in January while passenger car sales grew in double-digits Howeverdomestic two-wheeler sales dropped by around seven per cent to 126 mn units This was despite two-wheeler makers havingreduced the down-payment Some dealers also waived it

Bajaj Autoamprsquos domestic motorcycle sales were down by 15 per cent to 119803 units in January from a year before HeroMotoCorps dropped by 13 per cent to 487088 units TVS Motors dropped to 207059 units from 208485 units in the same montha year before mainly due to a drop in motorcycle sales scooter sales grew by 12 per cent

Among the top players only Honda saw growth by around two per cent to 368145 units in January Yadvinder Singh Guleriasenior vice-president for sales at Honda Motorcycle amp Scooter India says there has been a post-demonetisation recovery in urbanareas while rural economies continue to be under pressure Around 80 per cent of the sales in rural areas are of motorcycles heexplains Their scooter performance he added was due to product launches additional capacity increase in network andmarketing

Also theyamprsquod worked with financiers to ease the burden on retailers and customers (such as reducing the down-payment) Heexpects the rural market to come back by end-April

Passenger vehicle volumes as mentioned earlier recovered sharply in January Most of the large original equipment makers havereported strong year-on-year growth in wholesale volumes Marutis domestic volume grew by 259 per cent to 133934 units inJanuary Hyundais grew by 105 per cent to 42017 units Toyota Kirloskar reported a 21 per cent increase in domestic sales at10336 units

Nissan saw a 629 per cent rise to 4346 units and Tatas grew 21 per cent to 12907 units

Though the CV market reported only one per cent growth experts note this is on a high base January sales were driven mainly bydemand ahead of the change to stiffer emission norms in April

CV sales could see single-digit growth over the next two months and it is expected that the industry volumes would come underpressure after Aprilhttpwwwbusiness-standardcomarticlecompaniescar-sales-grew-in-january-but-two-wheelers-continue-to-lag-117020600535_1html

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Apollo Tyres revenue surges but margins skid as costs rise Apollo Tyres revenue surges but margins skid as costs riseApollo Tyres revenue surges but margins skid as costs rise

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Interviews amp Features

Cars SUVs MUVs

Maruti Suzuki India contributes 50 of Suzuki Motor global sales PTI

See this story in The Economic Times (Web Edition)

Tokyo Maruti Suzuki Indias contribution to parent Suzuki Motor Corporations global sales in terms of volumes has crossed 50 percent in the April-December period this fiscal

During the first nine months of the fiscal Suzuki Motor Corporation (SMC) said its automobile sales in India stood at 1061 lakhunits while its overall global sales were at 2083 lakh units at 5093 per cent

In the comparable period last fiscal SMC said its sales in India were at 972 lakh units out of a total global sales of 2040 lakh unitsaccounting for 4764 per cent

SMC today reported that its consolidated operating income increased by 144 per cent to 1674 billion yen year-on-year mainlyowing to increase in automobile sales in India and Europe despite the impact of the exchange rate

However its consolidated net sales in the April-December decreased by by 44 per cent to 2252 billion yen as compared to thecorresponding period of the previous fiscal year

This was mainly on account of a drop in Japanese domestic net sales which decreased by 38 per cent to 7253 billion yenyear-on-year mainly owing to decrease in minivehicle and OEM sales despite increase in sub-compact and standard-sized vehiclesales

Overseas net sales also decreased by 47 per cent to 15267 billion yen year-on-year mainly owing to decrease in automobilesales in Indonesia and Pakistan and the impact of the exchange rate despite increase in automobile sales in areas including Indiaand Europe it addedhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsmaruti-suzuki-india-contributes-50-of-suzuki-motors-global-sales57004116

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Maruti Ciaz emerges market leader in mid-size segment S Ronendra SinghThe Hindu Business Line (Web amp Print Edition)

New Delhi New Delhi February 6A market leader of small cars for long Maruti Suzuki Indiaamprsquos (MSIL) sedan Ciaz hasrecently been successful in getting numero uno position in the mid-size (A3) segment as well

The Ciaz has beaten all its competitors such as Honda City Hyundai Verna and Volkswagen Vento not only in the January salesbut also in the entire financial year

Since its launch MSIL has sold 140226 units of Ciaz which is priced between Rs 753 lakh and Rs 1052 lakh (ex-showroomDelhi)

According to Rs Kalsi Executive Director (Marketing amp Sales) Maruti Suzuki India ampldquoCiaz started as an outstanding productwith great looks plush interiors and generous room and comfort With introduction of Ciaz SHVS (mild hybrid) and newinfotainment features it clearly pulled aheadamprdquo

MSILamprsquos share in the segment has surged to 41 per cent in FY2016-17 against 29 per cent in FY2015-16 he said

Launched in October 2014 Ciaz has crossed the one lakh cumulative sales mark in the domestic market in June last and is racingfurther Kalsi said

One of the reasons for Ciazamprsquos growing number is due to government purchase (govt deptsamprsquo official vehicle)

According to analysts Honda will push for market leadership again when it launches the fifth-generation City on February 14

Rakesh Batra Partner and National leader--Automotive Sector at EY said

both Maruti Suzuki and Hyundai Motor were stronger players in the small car segment but not in the A3 segment and have notsucceeded earlier with other models

But for Honda City has been an important model for many years beating others such as Ford Ikon

According to Yoichiro Ueno President and Chief Executive Officer Honda Cars India Ltd ampldquoThe Honda City has been ourmost successful model ever since the start of operations in the country It commands loyalty among customers and we are excitedto add another chapter to the success story of the model with the launch of the new Honda City 2017amprdquo

The current pricing of the City ranges between Rs 832 lakh and Rs 1266 lakh (ex-showroom Delhi) The upcoming variant isexpected to be priced between Rs 9 lakh and Rs 1350 lakhhttpwwwthehindubusinesslinecomtodays-papertp-newsmaruti-ciaz-emerges-market-leader-in-midsize-segmentarticle9525093ece

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Maruti tops 3 prime categories in Apr-Jan Nandini Sengupta

The Times of India (Delhi Print Edition)

Chennai Its known for its small car supremacy But in the past 10 months car market leader Maruti Suzuki has managed to crackthree non-small car segments -the mid-sized sedan with its Ciaz the compact SUV with the Vitara Brezza and the premiumhatchback with the Baleno

According to industry data Ciaz with 53644 units in the April-January period has not only outsold competitors like Honda City Hyundai Verna Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment Similarly in the crowdedcompact SUV segment Vitara Brezzas year-to-date tally of 88537 units is ahead of best-seller competitors like Hyundai Creta andMahindra Bolero Baleno too leads the premium hatch market with 96720 units ahead of competitors like Hyundai i20 Honda Jazzand VW Polo

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while The difference is now itsnonsmall car products are doing well Top company officials say that looking at de-risking the companys portfolio with non-small carproducts is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020

ampldquoOur leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growingnumber of Nexa showrooms a lineup of strong products and our communication strategy which has evolved to reach out to thenew target customer Innova tions like personalisation in Brezza have also helpedampldquo said R S Kalsi executive director(marketing and sales) at Maruti Suzuki India

Auto analysts agree it is the Nexa network thats one of the biggest reasons for Marutis non-small-car success this time round Nowonder the company plans to double the number of Nexa outlets by 2020 Abdul Majeed partner PwC said ampldquoThere are acouple of things that Maruti has done differently First the overhaul of their distribution network with Nexa was a masterstrokePotential premium customers didnt want to go to the same showroom that sells a Rs 2-3 lakh car Second they worked hard ontheir products particularly on styling And finally they put their pricing act togetherampldquo

What has also helped is the inconsistent performance of their main competitorsampldquoTypically Marutis competitors have beenputting up solo success products but most of them have not followed up with a consistent best-selling lineupampldquo said an analystwith a Mumbai-ba sed broking firm That has helped the autmobile market leader

Marutis quest for nonmini markets goes back in time to 1985 when it launched the Gypsy and 1990 when the Maruti 1000 wasrolled out In recent times it has dabbled with different segments like the SUV (Grand Vitara) in 2003 sedan (SX4 Baleno andKizashi in 1999 2008 2011 respectively) minivan (Versa and Eeco) and mini MPV (Ertiga) Some of these like the Swift Dzire(compact sedan) and Esteem (entry sedan) have been huge successes too The difference this time is the number of non-small carproducts rolling out from Maruti and its new focus on these segments

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Suzuki Wagon R gets big makeover now on sale in Japan Shubhodeep ChakravartyThe Economic Times (Web Edition)

Wagon R has been one of Suzukis best-selling cars since it was first rolled out in Japan in 1993 Little surprise then that thecompany has no intentions yet of retiring the car and showcased its latest facelift earlier this month

The latest Wagon R put on display in Japan showed the car with an all-new front profile with a thinner chrome plate pushed higherup to further emphasise on the tall-boy stance of the car It features all-new LED headlights 14-inch alloys push-button starttouchscreen infotainment system heated front seats among other features

Built on the new-generation HEARTECT platform that emphasis on rigidity and lighter weights for newer Suzuki cars the 2017Wagon R is 3395mm in length (slightly smaller than its current version in India) 1475mm in width and 1650mm in height It has awheelbase of 2460mm

The car is on sale in Japan and is offered in three variants - FA Hybrid FX and Hybrid FZ The claimed mileage for the hybridversion is 334kmpl

In India Maruti Suzuki expanded Wagon Rs portfolio last month by adding the VXi+ variant There is no word yet on when themodel showcased in Japan will make its way herehttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japan56999748Suzuki Wagon R gets big makeover now on sale in JapanThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneoussuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japanarticleshow56998052cms

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India to be an important part of Toyota-Suzuki Motor business partnership Ketan ThakkarThe Economic Times (Web amp Print Edition)

Mumbai India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation andSuzuki Motor a senior Toyota Kirloskar executive said

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

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Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

Top

Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

Top

Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

Top

Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

Top

News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 4: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

See this story in The Economic Times (Web Edition)

Tokyo Maruti Suzuki Indias contribution to parent Suzuki Motor Corporations global sales in terms of volumes has crossed 50 percent in the April-December period this fiscal

During the first nine months of the fiscal Suzuki Motor Corporation (SMC) said its automobile sales in India stood at 1061 lakhunits while its overall global sales were at 2083 lakh units at 5093 per cent

In the comparable period last fiscal SMC said its sales in India were at 972 lakh units out of a total global sales of 2040 lakh unitsaccounting for 4764 per cent

SMC today reported that its consolidated operating income increased by 144 per cent to 1674 billion yen year-on-year mainlyowing to increase in automobile sales in India and Europe despite the impact of the exchange rate

However its consolidated net sales in the April-December decreased by by 44 per cent to 2252 billion yen as compared to thecorresponding period of the previous fiscal year

This was mainly on account of a drop in Japanese domestic net sales which decreased by 38 per cent to 7253 billion yenyear-on-year mainly owing to decrease in minivehicle and OEM sales despite increase in sub-compact and standard-sized vehiclesales

Overseas net sales also decreased by 47 per cent to 15267 billion yen year-on-year mainly owing to decrease in automobilesales in Indonesia and Pakistan and the impact of the exchange rate despite increase in automobile sales in areas including Indiaand Europe it addedhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsmaruti-suzuki-india-contributes-50-of-suzuki-motors-global-sales57004116

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Maruti Ciaz emerges market leader in mid-size segment S Ronendra SinghThe Hindu Business Line (Web amp Print Edition)

New Delhi New Delhi February 6A market leader of small cars for long Maruti Suzuki Indiaamprsquos (MSIL) sedan Ciaz hasrecently been successful in getting numero uno position in the mid-size (A3) segment as well

The Ciaz has beaten all its competitors such as Honda City Hyundai Verna and Volkswagen Vento not only in the January salesbut also in the entire financial year

Since its launch MSIL has sold 140226 units of Ciaz which is priced between Rs 753 lakh and Rs 1052 lakh (ex-showroomDelhi)

According to Rs Kalsi Executive Director (Marketing amp Sales) Maruti Suzuki India ampldquoCiaz started as an outstanding productwith great looks plush interiors and generous room and comfort With introduction of Ciaz SHVS (mild hybrid) and newinfotainment features it clearly pulled aheadamprdquo

MSILamprsquos share in the segment has surged to 41 per cent in FY2016-17 against 29 per cent in FY2015-16 he said

Launched in October 2014 Ciaz has crossed the one lakh cumulative sales mark in the domestic market in June last and is racingfurther Kalsi said

One of the reasons for Ciazamprsquos growing number is due to government purchase (govt deptsamprsquo official vehicle)

According to analysts Honda will push for market leadership again when it launches the fifth-generation City on February 14

Rakesh Batra Partner and National leader--Automotive Sector at EY said

both Maruti Suzuki and Hyundai Motor were stronger players in the small car segment but not in the A3 segment and have notsucceeded earlier with other models

But for Honda City has been an important model for many years beating others such as Ford Ikon

According to Yoichiro Ueno President and Chief Executive Officer Honda Cars India Ltd ampldquoThe Honda City has been ourmost successful model ever since the start of operations in the country It commands loyalty among customers and we are excitedto add another chapter to the success story of the model with the launch of the new Honda City 2017amprdquo

The current pricing of the City ranges between Rs 832 lakh and Rs 1266 lakh (ex-showroom Delhi) The upcoming variant isexpected to be priced between Rs 9 lakh and Rs 1350 lakhhttpwwwthehindubusinesslinecomtodays-papertp-newsmaruti-ciaz-emerges-market-leader-in-midsize-segmentarticle9525093ece

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Maruti tops 3 prime categories in Apr-Jan Nandini Sengupta

The Times of India (Delhi Print Edition)

Chennai Its known for its small car supremacy But in the past 10 months car market leader Maruti Suzuki has managed to crackthree non-small car segments -the mid-sized sedan with its Ciaz the compact SUV with the Vitara Brezza and the premiumhatchback with the Baleno

According to industry data Ciaz with 53644 units in the April-January period has not only outsold competitors like Honda City Hyundai Verna Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment Similarly in the crowdedcompact SUV segment Vitara Brezzas year-to-date tally of 88537 units is ahead of best-seller competitors like Hyundai Creta andMahindra Bolero Baleno too leads the premium hatch market with 96720 units ahead of competitors like Hyundai i20 Honda Jazzand VW Polo

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while The difference is now itsnonsmall car products are doing well Top company officials say that looking at de-risking the companys portfolio with non-small carproducts is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020

ampldquoOur leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growingnumber of Nexa showrooms a lineup of strong products and our communication strategy which has evolved to reach out to thenew target customer Innova tions like personalisation in Brezza have also helpedampldquo said R S Kalsi executive director(marketing and sales) at Maruti Suzuki India

Auto analysts agree it is the Nexa network thats one of the biggest reasons for Marutis non-small-car success this time round Nowonder the company plans to double the number of Nexa outlets by 2020 Abdul Majeed partner PwC said ampldquoThere are acouple of things that Maruti has done differently First the overhaul of their distribution network with Nexa was a masterstrokePotential premium customers didnt want to go to the same showroom that sells a Rs 2-3 lakh car Second they worked hard ontheir products particularly on styling And finally they put their pricing act togetherampldquo

What has also helped is the inconsistent performance of their main competitorsampldquoTypically Marutis competitors have beenputting up solo success products but most of them have not followed up with a consistent best-selling lineupampldquo said an analystwith a Mumbai-ba sed broking firm That has helped the autmobile market leader

Marutis quest for nonmini markets goes back in time to 1985 when it launched the Gypsy and 1990 when the Maruti 1000 wasrolled out In recent times it has dabbled with different segments like the SUV (Grand Vitara) in 2003 sedan (SX4 Baleno andKizashi in 1999 2008 2011 respectively) minivan (Versa and Eeco) and mini MPV (Ertiga) Some of these like the Swift Dzire(compact sedan) and Esteem (entry sedan) have been huge successes too The difference this time is the number of non-small carproducts rolling out from Maruti and its new focus on these segments

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Suzuki Wagon R gets big makeover now on sale in Japan Shubhodeep ChakravartyThe Economic Times (Web Edition)

Wagon R has been one of Suzukis best-selling cars since it was first rolled out in Japan in 1993 Little surprise then that thecompany has no intentions yet of retiring the car and showcased its latest facelift earlier this month

The latest Wagon R put on display in Japan showed the car with an all-new front profile with a thinner chrome plate pushed higherup to further emphasise on the tall-boy stance of the car It features all-new LED headlights 14-inch alloys push-button starttouchscreen infotainment system heated front seats among other features

Built on the new-generation HEARTECT platform that emphasis on rigidity and lighter weights for newer Suzuki cars the 2017Wagon R is 3395mm in length (slightly smaller than its current version in India) 1475mm in width and 1650mm in height It has awheelbase of 2460mm

The car is on sale in Japan and is offered in three variants - FA Hybrid FX and Hybrid FZ The claimed mileage for the hybridversion is 334kmpl

In India Maruti Suzuki expanded Wagon Rs portfolio last month by adding the VXi+ variant There is no word yet on when themodel showcased in Japan will make its way herehttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japan56999748Suzuki Wagon R gets big makeover now on sale in JapanThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneoussuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japanarticleshow56998052cms

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India to be an important part of Toyota-Suzuki Motor business partnership Ketan ThakkarThe Economic Times (Web amp Print Edition)

Mumbai India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation andSuzuki Motor a senior Toyota Kirloskar executive said

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

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Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

Top

Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

Top

Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

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Page 5: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

The Times of India (Delhi Print Edition)

Chennai Its known for its small car supremacy But in the past 10 months car market leader Maruti Suzuki has managed to crackthree non-small car segments -the mid-sized sedan with its Ciaz the compact SUV with the Vitara Brezza and the premiumhatchback with the Baleno

According to industry data Ciaz with 53644 units in the April-January period has not only outsold competitors like Honda City Hyundai Verna Volkswagen Vento and Skoda Rapid but also clocked the highest growth in the segment Similarly in the crowdedcompact SUV segment Vitara Brezzas year-to-date tally of 88537 units is ahead of best-seller competitors like Hyundai Creta andMahindra Bolero Baleno too leads the premium hatch market with 96720 units ahead of competitors like Hyundai i20 Honda Jazzand VW Polo

Looking beyond small cars to plug emerging niche segments has been the Maruti strategy for a while The difference is now itsnonsmall car products are doing well Top company officials say that looking at de-risking the companys portfolio with non-small carproducts is very much part of its new strategy that calls on the company to roll out 15 new products across 2015-2020

ampldquoOur leadership in new and premium segments is due to multiple factors -a superior purchase experience due to growingnumber of Nexa showrooms a lineup of strong products and our communication strategy which has evolved to reach out to thenew target customer Innova tions like personalisation in Brezza have also helpedampldquo said R S Kalsi executive director(marketing and sales) at Maruti Suzuki India

Auto analysts agree it is the Nexa network thats one of the biggest reasons for Marutis non-small-car success this time round Nowonder the company plans to double the number of Nexa outlets by 2020 Abdul Majeed partner PwC said ampldquoThere are acouple of things that Maruti has done differently First the overhaul of their distribution network with Nexa was a masterstrokePotential premium customers didnt want to go to the same showroom that sells a Rs 2-3 lakh car Second they worked hard ontheir products particularly on styling And finally they put their pricing act togetherampldquo

What has also helped is the inconsistent performance of their main competitorsampldquoTypically Marutis competitors have beenputting up solo success products but most of them have not followed up with a consistent best-selling lineupampldquo said an analystwith a Mumbai-ba sed broking firm That has helped the autmobile market leader

Marutis quest for nonmini markets goes back in time to 1985 when it launched the Gypsy and 1990 when the Maruti 1000 wasrolled out In recent times it has dabbled with different segments like the SUV (Grand Vitara) in 2003 sedan (SX4 Baleno andKizashi in 1999 2008 2011 respectively) minivan (Versa and Eeco) and mini MPV (Ertiga) Some of these like the Swift Dzire(compact sedan) and Esteem (entry sedan) have been huge successes too The difference this time is the number of non-small carproducts rolling out from Maruti and its new focus on these segments

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Suzuki Wagon R gets big makeover now on sale in Japan Shubhodeep ChakravartyThe Economic Times (Web Edition)

Wagon R has been one of Suzukis best-selling cars since it was first rolled out in Japan in 1993 Little surprise then that thecompany has no intentions yet of retiring the car and showcased its latest facelift earlier this month

The latest Wagon R put on display in Japan showed the car with an all-new front profile with a thinner chrome plate pushed higherup to further emphasise on the tall-boy stance of the car It features all-new LED headlights 14-inch alloys push-button starttouchscreen infotainment system heated front seats among other features

Built on the new-generation HEARTECT platform that emphasis on rigidity and lighter weights for newer Suzuki cars the 2017Wagon R is 3395mm in length (slightly smaller than its current version in India) 1475mm in width and 1650mm in height It has awheelbase of 2460mm

The car is on sale in Japan and is offered in three variants - FA Hybrid FX and Hybrid FZ The claimed mileage for the hybridversion is 334kmpl

In India Maruti Suzuki expanded Wagon Rs portfolio last month by adding the VXi+ variant There is no word yet on when themodel showcased in Japan will make its way herehttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japan56999748Suzuki Wagon R gets big makeover now on sale in JapanThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneoussuzuki-wagon-r-gets-big-makeover-now-on-sale-in-japanarticleshow56998052cms

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India to be an important part of Toyota-Suzuki Motor business partnership Ketan ThakkarThe Economic Times (Web amp Print Edition)

Mumbai India will play an important part in the business partnership announced on Monday by Toyota Motor Corporation andSuzuki Motor a senior Toyota Kirloskar executive said

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

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Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

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Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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Page 6: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Toyota Motor Corporation and Suzuki Motor concluded a memorandum towards business partnership that will enable both sidesexplore possibility of co-operation in areas including environment and safety IT and mutual supply of products and components

While the details are not out yet people in the know say it could mean Toyota and Suzuki could work closely on smaller hybridvehicles and source components jointly which would increase the economies of scale and bring down the cost at a time whenchallenges on emission on eroding natural resources are on the rise

How soon the work will crystallize will be known only after the preliminary blueprint is finalised the person said

A core team from the two companies are privy to the discussions A person involved in the discussion from Toyotas side could beNaomi Ishii the former MD of Toyota Kirloskar who is a key member of the strategy team

In a statement to ETAuto Akito Tachibana MD of Toyota Kirloskar said with an aim to jointly contribute to resolution of socialissues and sustainable growth of an automobile based society TKMs parent company Toyota Motor Corporation (Toyota) havesigned an agreement with Suzuki Motor Corporation (Suzuki) announcing to collaboratively begin examinations for businesspartnership in areas such as environmental technologies safety technologies information technologies This is aimed to achievesustainable growth with mutual business interests staying independently competitive in the market

As we hear that India is one of the candidate regions considered to be covered in the implementation of this partnership we atTKM look forward to the outcome under this memorandum added Tachibana

Toyota and Suzuki have agreed to work toward the early realisation of business partnership To that end the two companies are toimmediately establish an implementation framework aimed to bringing to realisation the points agreed on Monday

Currently they have decided on the framework of what areas to work on The identified areas will be further examined but I amsure they will ensure that the competition law is not violated here in India or in Japan India is part of the study the document saysso but I dont what is it for observed R C Bhargava chairman of Maruti Suzuki from the announcement document

Announcing the partnership Akio Toyoda the president of Toyota Motor Corporation recalled the comment made by Osamu Suzukiat the October 2016 press conference wherein the Suzuki chairman is quoted of having said if you are running a company youhave to continue to take on challenges You are running your company for the benefit of society and this remainsunchangedamprdquo This comment deeply resonated within him Toyoda said

We want to cooperate toward enabling all people throughout the world to truly experience the joy of mobility and to achieving asociety of future mobility full of smiles I am truly thankful for having been given this opportunity to work together with a companysuch as Suzuki which overflows with the spirit of challenge Toyota looks forward to learning muchamprdquo added Toyoda

Suzuki Chairman Osamu Suzuki said under the leadership of president Akio Toyoda Toyota was enthusiastic throughout ourdiscussions regarding partnership even though such was sought by Suzuki which was concerned about the development ofadvanced technologies

In response to Toyotaamprsquos display of enthusiasm Suzuki also intensively engaged in the discussions and we now stand at thestarting point for building a concrete cooperative relationship I want to give this effort our fullest and to aim at producing results thatwill lead Toyota to conclude that it was the right thing for Toyota to have decided to work together with Suzukiamprdquo addedSuzukihttpautoeconomictimesindiatimescomnewsindustryindia-to-be-an-important-part-of-toyota-suzuki-motor-business-partnership57005744Toyota Suzuki in partnership talksFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewstoyota-suzuki-partnership-talks-972Toyota Suzuki explore global tie-up with India in sightmint (Web amp Print Edition)httpwwwlivemintcomCompaniesVL7p0ALm7azJcCd1DCdjiNToyota-Suzuki-poised-to-unveil-partnership-todayhtmlToyota-Suzuki global partnership to impact IndiaThe Times of India (Web Edition)httptimesofindiaindiatimescombusinessindia-businesstoyota-suzuki-global-partnership-to-impact-indiaarticleshow57008189cms Toyota Suzuki agree to begin talks aimed at forging partnershipBusiness Standard (Web Edition)httpwwwbusiness-standardcomarticlereuterstoyota-suzuki-courtship-intensifies-as-partnership-talks-begin-117020600316_1html

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What are CAFE norms and why do they matter in the proposed Toyota-Suzuki deal Amrit Rajmint (Web Edition)

New Delhi Indiaamprsquos proposed corporate average fuel efficiency (CAFE) norms for all car makers could be a key todeciphering the latest realignment move in the global auto industry

With reports suggesting that the two Japanese auto makers Toyota Motor Corp and Suzuki Motor Corp are on the cusp of a tie-upto share technology as well as pool in capital India is the key market both are seeking to address Changes in regulatory normshave left both companies scrambling to fill gaps in their product lines

From 1 April India adopts CAFE or corporate average fuel efficiency norms which require cars to be 30 or more fuel efficient

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

Top

Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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NURC News Update - AUTOMOBILES

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Page 7: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

from 2022 and 10 or more between 2017 and 2021

The mileage improvement will be decided on the basis of litres of fuel consumed by a vehicle to run 100km The move is targeted atreducing the carbon footprint of the automobile industry It is the first time such norms have been introduced in India

Now car makers were hoping that since diesel as a fuel offers higher mileage they will be able to meet those norms but since thesaid fuel has come under scanner especially after the Supreme Court effected a ban on diesel run vehicles in 2015 the larger fearis that usage of diesel may just be limited to commercial use

In such a scenario since use of diesel vehicles go out of equation in personal space meeting CAFE norms will be impossible justby petrol vehicles since their mileage is low and weight is almost the same

Therefore the way forward will be hybridsampmdashnot the mild ones

In this scenario Toyota and Honda are the global leaders and Indian market leaders including Suzuki are laggards

Suzuki in fact has said it does not have money to invest in rapidly changing technologies and it hardly bothered about developingthose on its own since it always operated in India where local companies resisted such norms to come in early and in Japan itoperated in the mini car segment where it holds around 30 market share

Suzuki is aware that it may take a while before such norms get a legal nod in India but when they do get the nod the repercussionswill be wider

Maruti had to withdraw its Omni and Gypsy models in 2000 when Bharat stage norms were first introduced as Suzuki did not havetech immediately available in India to meet those norms Models were brought back to the market after upgradation It seemsSuzuki in India is at a similar point now with a massive 47 market share in the worldamprsquos fastest growing auto market but it isnot sure if that share can be maintained amid a rapidly changing regulatory environment

Not that it has not explored tie ups before But it has had bitter experiences with Volkswagen and General Motors In Toyota it maysee cultural similarities deep pockets and a shared kinship stemming from their Japanese roots

Suzuki stands to gain if the partnership goes through but that will also depend on how much ground it is willing to cede to Daihatsuits arch-rival in the mini car segment and now a Toyota company in India which is expected to be third largest market forpassenger vehicles by 2025httpwwwlivemintcomCompaniesFpQ6YCFflJHYPGiX6in4ANWhat-are-CAFE-norms-and-why-do-they-matter-in-the-ToyotaSuzhtml

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Honda City facelift officially teased ahead of launch The Economic Times (Web Edition)

New Delhi Honda Cars India has officially released the teaser of its upcoming City facelift on the companys website

At the first impression the Honda City facelift looks refreshed from some angels but the overall newness is missing in the car Thedesign looks more crisp and sharp when seen from the third-quarter angle 2017 Honda City get a fresh bumper with L-shapeddaytime running lamps with round shape fog lamps It also gets new set off diamond cut alloy wheels with a grey metallic touchwhich gives it a more sporty look

In the interiors the new gen City will get black and silver dashboard with a 5-inch or 7-inch touchscreen infotainment It will alsohave features like Apple car play Android Auto Bluetooth and navigation Talking about safety norms the base variant of the car ismost likely to get standard airbags ABS and EBD

2017 Honda City will come with both 15 litre petrol and 15 litre diesel engine options with the regular 5-speed manual and CVTtransmission The petrol variants produce power of 117 hp and torque of 145 Nm while the diesel engine gives 99 hp of power and200 NM torque

The mid-size sedan which is going to be launched on February 14 can be booked now for Rs 21000 The car is likely to be pricedbetween Rs 8 lakh to Rs 12 lakh

Honda City has been getting a stiff competition from Maruti Suzuki Ciaz as it comes with the mild hybrid system which getsgovernment incentives Also Ciaz coming from Maruti Suzuki stable has an advantage of more reach in terms of sales and servicenetwork However Honda City has managed to maintain the sales of 5000-6000 units making it the highest selling car for HondaThe Honda City has also remained in the top 10 selling cars for many months soon after the launch

Apart from Ciaz Honda City fights competition against Hyundai Verna Nissan Sunny Renault Scala Volkswagen Vento and SkodaRapidhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarshonda-city-facelift-officially-teased-ahead-of-launch57000980

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India-bound Honda WR-V details out Deccan Chronicle (Web Edition)

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

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Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

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Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 8: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Hondas first sub-4m SUV the WR-V will be introduced soon in markets like India and Brazil It was recently displayed to theBrazilian media and so we have a few more details of the upcoming SUV Lets have a look

For the uninitiated the WR-V is based on the Jazzamprsquos platform which is also shared by the City and the Honda HR-V which islikely to arrive at our shores Besides the platform the WR-V also shares several body panels with the Jazz Essentially it is thesame formula that Honda had applied to the BR-V and the Mobilio Now what we got to know from Brazil is that the Honda WR-Vwill ride nearly 200mm off the ground which puts it on par with its prime adversary the Ford EcoSport and ahead of the MarutiSuzuki Vitara Brezza

Interestingly as the WR-Vamprsquos side profile is a carbon copy of the Jazzamprsquos Honda has reportedly pushed the wheels tothe extremities of the vehicle to improve its off-road capabilities The front axle is said to be moved forward by 10mm while the rearhas been pushed behind by 15mm

Result the wheelbase of the WR-V is 2555mm To put things into perspective the Jazz offers a wheelbase of 2530mm It doesntresult into an improved cabin space which will remain similar to that of the Jazz (no worries since the Jazz has an abundance of it)but is said to amplify its soft-roader traits Also both the restyled bumpers seem to be designed to keep the overhangs minimalcompared to the Jazzhttpwwwdeccanchroniclecombusinessautos060217india-bound-honda-wr-v-details-outhtml

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Hyundai Grand i10 facelift launched Price starts at Rs458 (Ex-Delhi) Ronak ShahThe Economic Times (Web Edition)

New Delhi Hyundai Grand i10 facelift has been launched at a price of Rs 458 lakh ampndash 639 lakh for the petrol variants andRs 568-732 lakh for the diesel variants (All prices Ex-Showroom Delhi) Hyundai showcased the car in a video on its officialYouTube channel with Y K Koo MD amp CEO Hyundai Motor India unveiling the car

Hyundai Grand i10 now gets a powerful 12L U2 diesel engine which sheds out a power of 75 PS and 190 Nm of torque Hyundaiclaims a mileage of 2495 kmpl on this new diesel engine Earlier the diesel variant of the car was powered by a 11L engine On thepetrol side the car gets the same 12L Kappa engine which gets an option of both manual and automatic gearbox

Hyundai Grand i10 petrol manual claims a mileage of 1977 kmpl and on the AT variant the claimed mileage is 2495 kmpl

Media rumours on the car name changing to Hyundai Grand i10 Prime is not true The company has confirmed that it will continuethe same nomenclature on its hatchback

Speaking at the launch of New 2017 Grand i10 Y K Koo MD amp CEO Hyundai Motor India Ltd said ampldquoGrand i10 is aphenomenal product It is an aspirational car that has won the hearts of its customers across the globe and has become a landmarkproduct in HMILamprsquos growth story Over 55 lac units of Made in India Grand i10 have been sold in India and world marketswhich show strong brand admiration The launch of The New 2017 Grand i10 will create new benchmark for the segment by offeringenhanced Modern Premium Hyundai Experience to the aspirational customersamprdquo

Hyundai Motor India has been aggressive with the pricing of the car and the latest iteration of its popular hatch gets some majorexterior updates The car now gets a new radiator grille design redesigned front bumper and LED DRLs (daytime running lights) toadd to the sporty look

At the rear the Hyundai Grand i10 now gets dual-tone bumper integrated with reflectors It will also be the first car in its segment toget Air Curtain which helps to the overall aerodynamics of the car and reduces the NVH levels The overall dimensions of the carhave not changed but Hyundai has changed the design on the diamond cut alloys and wheel covers

On the inside top-end variants of Hyundai Grand i10 gets 70-inch touchscreen infotainment system which supports smart phoneintegration including Apple Car Play Google Android Auto and Navigation The infotainment system also includes voice recognition

On the safety front airbags and ABS are now standard on the car and the top-variants also get rear-parking camera and sensorsTo add to the comfort Grand i10 gets fully automatic temperature control unit with a rear AC vent

Hyundai Grand i10 was first introduced in 2013 and since then it has been an important product for the Korean based company andhas also helped Hyundai Motor India to increase its market share in that segment The company has sold over 107 lakh units of itsexisting Grand i10 in April-December 2016 period in the domestic market and with the update is looking to increase its marketshare

Hyundai Grand i10 has also been a popular export model of the company with about 39112 units of the cars exported betweenApr-Dec 2016httpautoeconomictimesindiatimescomnewspassenger-vehiclecarshyundai-grand-i10-facelift-launched-price-starts-at-rs-4-58-ex-delhi56994881Hyundai rolls out 2017 Grand i10 at Rs 458 lakhThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomtodays-papertp-newshyundai-rolls-out-2017-grand-i10-at-rs-458-lakharticle9525092eceHyundai launches updated Grand i10 at Rs 458 lakhThe Tribune (Web amp Print Edition)httpwwwtribuneindiacomnewsbusinesshyundai-launches-updatd-grand-i10-at-rs-4-58-lakh360232htmlHyundai launches updated Grand i10 at Rs 458 lakhThe Times of India (Web Edition)httptimesofindiaindiatimescomautolauncheshyundai-launches-updated-grand-i10-at-rs-4-58-lakharticleshow57001765cms

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

Top

News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

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Page 9: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Hyundai Grand i10 Facelift launched in India at Rs458 lakhThe Statesman (Web Edition)httpwwwthestatesmancombusinesshyundai-grand-i10-facelift-launched-in-india-at-rs-4-58-lakh-1486371871html Hyundai launches updated Grand i10 at Rs 458 lakhBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompanieshyundai-launches-updated-grand-i10-at-rs-4-58-lakh-117020600314_1html

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We already stopped manufacturing BS-III vehicles Toyota Kirloskar Motor Nandini Sen GuptaThe Economic Times (Web Edition)

Chennai The auto industry may be grumbling about the Environment Pollution Control Authority (EPCA) banning Euro III vehiclesfrom April 1 2017 but some companies are taking the opportunity to highlight their environment-friendly stand by announcing thatthey no longer produce BS III vehicles

Toyota Kirloskar Motor has released a statement saying that it has stopped manufacturing BS III vehicles more than a year ago aswe believe in providing state of the art technology through our vehicles in our countryamprsquos fight against pollution All ourvehicles currently being sold in India are BS IV compliant Further in line with Government of India planning we are readying tointroduce BS VI fuel complaint vehicles as soon as such fuel is available across the country

The EPCA order has created a furore in the auto industry with companies saying that there would be a stockpile of nine lakhvehicles in April when BS III is phased out

Industry body SIAM has apparently informed the pollution control board the 20000 passenger vehicles 75000 commercialvehicles 47000 three-wheelers and about 750000 two-wheelers (all of BS III stage) would remain yet to be sold as of April 1

Already there has been a spurt in commercial vehicle demand as customers pre purchase discounted BS III trucks before the Aprildeadline Auto experts say CV demand will likely flatten out after April 1httpautoeconomictimesindiatimescomnewsindustrywe-already-stopped-manufacturing-bs-iii-vehicles-toyota-kirloskar-motor56999818

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Luxury Cars

CCI rejects complaint against Daimler Fin Services Mercedes Business Standard (Web Edition)

New Delhi Competition Commission has dismissed allegations of unfair business practices made against Daimler FinancialServices and Mercedes Benz India with respect to lease financing of a luxury car

Apart from the two entities the complaint was also filed against Autohanger and Mercedes Financial Services

The complainant had entered into a lease financing agreement with Daimler Financial Services India Pvt Ltd for availing theservices of a Mercedes-Benz GL 350 model vehicle

It was alleged that certain clauses in the leasing agreement were abusive

For the complaint Competition Commission of India (CCI) considered provision of lease financing services for luxury cars in Indiaas the relevant market

Rejecting the allegations the regulator said that since Daimler Financial Services is not a dominant player in the relevant marketthe question of alleged abusive conduct by it does not arise

There are many players in the relevant market offering lease financing services and the complainant had multiple options toapproach them CCI said in an order on February 2

It is improbable that Daimler Financial Services could have operated independently of the market forces in the relevant market theregulator added httpwwwbusiness-standardcomarticlepti-storiescci-rejects-complaint-against-daimler-fin-services-mercedes-117020600993_1htmlCCI rejects complaint against Daimler Fin Services MercedesDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-cci-rejects-complaint-against-daimler-fin-services-mercedes-2313979

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Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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Page 10: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Commercial Vehicles

Tata Motors to bring in new Ace to take on rivals Ketan ThakkarThe Economic Times (Web Edition)

Mumbai Tata Motors is making its Ace mini truck slightly longer and tougher to take on rivals that have been steadily chipping awayat the market leaderamprsquos share in the small commercial vehicle space

The new alternatives on the Ace platform will take higher payload as well as withstand more abuse than the current range saycompany insiders The products ampmdash XL versions of the Ace Zip Ace and Mega Ace ampmdash are set to hit the market thisApril

With the new range of products Tata Motors is aiming to address the emerging needs of the last-mile transportation industry interms of faster turnaround better capacity greater safety comfort reliability and overall value said Ravi Pisharody its executivedirector responsible for the commercial vehicle business

Tata Motors is still the leader with a 62 share in the 10-125 tonne mini-truck segment where the Ace is the champion for severalyears now But it has lost more than 10 market share over the last three years to Mahindra amp Mahindraamprsquos Maxximo JeetoSupro and Ashok Leylandamprsquos Dost

Though demand for the Dost has lost the momentum of late Ashok Leyland is planning to launch its own small commercial vehiclesafter its break up with Nissan Motor VE Commercial Vehicle too is likely to enter the space in 2108-19

The threat both existing and emerging has compelled Tata Motors to re-invent itself and company executives hope the newproducts will give the brand an edge over competition

The XL versions of the Ace will allow for 15 higher payload They also come with BS IV diesel engine options new interiors andpower steering as standard The existing range will continue to be available

This will be the second major recent step by Tata Motors to spruce up its portfolio The company launched the new Xenon Yodha inDecember allowing it to compete more actively with Mahindra in the pickup space

According to several people in the know Tata Motors will look to bridge the gap between the Ace XL family and the Yodha withofferings in the middle at several price pointshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvtata-motors-to-bring-in-new-ace-to-take-on-rivals57001817

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Ashok Leyland bags an order worth Rs 7035 crore The Economic Times (Web Edition)

Chennai Indian commercial vehicle manufacturer Ashok Leyland on Monday has bagged an order of 135 buses for Burkino Fasoworth Rs 7035 crore informed the company in a Bombay Stock Exchange (BSE) filing

The order has been bagged by Ashok Leyland West Africa and is under Lines of Credit from Exim Bank of India through EcowasBank of Investment amp Development (EBID)

The buses will be supplied to the Ministry of Higher Education Scientific Research and Innovation and will be supplied over the next180 days This includes delivery of vehicles spare parts aggregates supply training and an effective after sales support system inBurkino Faso

Talking about the companys recent successes in foreign land Ashok Leyland inaugurated a new vehicle assembly plant in DhakaBangladesh to expand further in the region Such ventures reflect the CV makers vision to strengthen its overseas presence

In India Ashok Leyland has posted 85 percent jump in its net profit for the first half of fiscal 2017 (April-December 2016) and stoodat Rs 58519 crore Its revenue for the concerned period atood at Rs 944295 crore thereby registering a year-on-year marginalgrowth of 057 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-bags-an-order-worth-rs-70-35-crore56997901

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Construction amp Agri Machinery

23 Wheelers

BSIV compliant Bajaj Pulsar RS200 amp Pulsar NS200 launched The Economic Times

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

Top

Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

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Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

Top

Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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NURC News Update - AUTOMOBILES

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Page 11: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

New Delhi Bajaj Auto today in a media statement announced the launch of its BS-IV emission norm compliant 2017 edition ofPulsar RS200 and NS200 models priced up to Rs 133 lakh (ex-showroom Delhi)

The BSIV Pulsar RS200 is available in both ABS and non-ABS variants While the non-ABS version is priced at Rs 122 lakh theABS variant is tagged at Rs 133 lakh (ex-showroom-Delhi) the company said in a statement

On the other hand the BSIV Pulsar NS200 is available at a starting price of Rs 96453 (ex-showroom-Delhi) it added

Commenting on the launch Bajaj Auto President Motorcycle Business Eric Vas said with the new 2017 Pulsar range the companyis offering discerning motorcyclists a combination of sporty responsive performance high quality finish and handling

The new RS200 is equipped with advanced technology such as ABS fuel injection liquid cooling perimeter frame andtwin-projector headlamps

While the 2017 edition of the Pulsar NS200 comes with a liquid cooled four valve triple spark engine that complies with BS-IVnorms the company saidhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbsiv-compliant-bajaj-pulsar-rs200-pulsar-ns200-launched57004876Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsDaily News amp Analysishttpwwwdnaindiacommoneyreport-bajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-models-2313794Bajaj Auto launches BS-IV compliant Pulsar RS200NS200 modelsThe Times of Indiahttptimesofindiaindiatimescomautobikesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200ns200-modelsarticleshow57003058cmsBajaj Auto launches BS-IV compliant Pulsar RS200 NS200 modelsBusiness Standardhttpwwwbusiness-standardcomarticlepti-storiesbajaj-auto-launches-bs-iv-compliant-pulsar-rs200-ns200-models-117020600790_1html

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Harley-Davidson to introduce 50 new models in next five years Deccan Chronicle

Within a targeted span of five years Harley-Davidson will be introducing 50 new models to their existing bike lineup TheMilwaukee-based bike maker also plans open 200 new dealerships outside the United States to introduce more people to theHarley lifestyle by 2020 Harley Davidson has Harley-Davidson Riding Academy in the US which trained more than 65000 riders in2016

Harley-Davidsonamprsquos net income for the fourth quarter of 2016 was $472 million compared to $422 million during the samequarter in 2015It added 40 dealers around the world during the past year with the manufacturer now selling 525 percent of itsmotorcycles outside of the United States

Matt Levatich President and CEO Harley-Davidson said ampldquoThe success we saw with the launch of the Milwaukee-Eightengine is a sign of the innovation we have in place We are confident our 2018 line will also help salesamprdquo

ampldquoI have never been more excited about the products in our pipeline We do not just build motorcycles we build drivers tooWe are focusing on the next generation of ridersamprdquo headed ampldquoWe want to add more dealers overseas and grow ridershere in the United States reaching out to new markets including younger riders women African-Americans and Hispanicsamprdquo

Harley-Davidson sells its highest number of motorcycles in the 600cc+ category securing around 60 of the market share in IndiaThe company has also successfully completed 5 years of Harley Owners Group (HOG) rally and has over 12000 HOGmembers in the country The rally includes various competitions and awards like the Custom Champion Contest where owners canshow their customization skills on the bikes The amplsquoBig 5 Ridersamprsquo honour is awarded to the riders completing all the fiverallies in a calendar year which includes the zonal rallies -- Western Northern Eastern Southern and one national rally There isalso a amplsquoTriple Fiveamprsquo honour that is awarded to the owners who have covered more than 1 lakh kilometers on theirHarleys The awards list also includes the HOG amplsquoChapter of the yearamprsquo which will be awarded to the most activechapter for their collective effort and contributions in one yearhttpwwwdeccanchroniclecombusinessautos060217harley-davidson-to-introduce-50-new-models-in-next-five-yearshtml

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E-Bikes

Components

India needs more leaders to put auto parts Inc on global map The Economic Times

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

Top

Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

Top

Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

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Page 12: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

New Delhi Indian auto component industry needs more leaders to put the industry on global map as well achieve targeted revenueof $200 billion envisaged in the Automotive Mission Plan 2026 (AMP 2026) emphasised the industry experts present at the recentlyheld Automotive Summit orgainsed by ACMA

V C Sehgal the man behind the astronomical growth story of Motherson Sumi Systems Limited pitched for strong focus on the corebusiness and strictly avoiding fund diversion into different business

Sharing learnings from his personal feat Vivek Chaand Sehgal Chairman Samvardhana Motherson Group amp Motherson SumiSystems Ltd said ampldquoKeeping pace with the changing face of mobility in India and the world faster adoption of newtechnologies has made Samvardhana Motherson Group a globally preferred solutions provider in the industry In India autocomponents maker need to move from products to solutions considering the parameters of quality cost delivery designmanagement safety environment and sustainabilityamprdquo

While focus on research and development and ability to meet the global standards can serve as wheel for the auto parts makers totake them global The auto parts industry has already been successful in achieving its core strength as developed markets likeEurope and America

Europe being the highest importers of auto components manufactured in India contributes to 36 percent of the total share of Indiancomponent exports While the second largest region for India component exports is North America grabbing a share of 25 percent

Exports of auto parts from India have grown at a CAGR of 18 over the last 6 years to 160 countries with the presence of 40 IPOswhich is a matter of great achievement for us

Rattan Kapur President ACMA seeks governments help in setting up RampD facilities in various parts of the country thus giveimpetus to the growth especially for the smaller manufacturers

Girish Shankar Secretary (Heavy Industry) Ministry of Heavy Industries amp Public Enterprises Government of India said ampldquoThegovernment is continuously focusing on enhancing the ease of doing business in India GST being one of the biggest initiatives forthe cause which will help streamline the prevailing indirect tax structure in the country

He further added It is crucial for the Indian Automotive Industry to synergise with the global supply chain and focus on RampD andInnovation With a successful creation of crash-test facility at NATRIP we are set to achieve higher standards in vehicle safety Withfund sanction for second phase of FAME scheme in the recent Union Budget we are facilitating significant traction for electricmobility in the countryamprdquo

Giving a backdrop to the Indian Auto Components Industry Deep Kapuria Chairman-Trade Fairs CII Past President ACMA andChairman The Hi-Tech Group said ampldquoThe business model of the auto component industry is fast evolving and shifting from amanufacturing to a service-intensive industry The shift requires the supply chain to change in order to build synergy with globalvalue networks The industry needs to contemplate with the contingencies of de-risking against natural calamities which disrupts thesupply chain and compliance with increasing tax structureamprdquo

The 2nd New Delhi Automotive Summit 2017 concluded with the various action points which will bring new synergies in globalsupply chains industry for the overall growth of the auto components sector in India Automotive companies both Indian andinternational OEMs or component suppliers alike have made their presence felt on the global stage

In addition the conference involved discussions on Creating Global Value with Supply Chains and How Disruptive Technologies areshaping Value Chains of the Future The event also outlined the current state of the industry and indicated the way forward as wellas the opportunities that could exist for suppliers in the near futurehttpautoeconomictimesindiatimescomnewsauto-componentsindia-needs-more-leaders-to-put-auto-parts-inc-on-global-map57003586

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Steel Strips Wheels starts production at its new hot steel rolling mill at Jharkhand The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels has started mass production at its newly opened hotsteel rolling mill at Saraikela (Jharkhand) from the month of February 2017 informed the company in a Bombay Stock Exchange(BSE) filing

The company also mentioned that it has booked the complete capacity utilisation from first day itself

The factory has an annual capacity of rolling 50000 MT and it has entered into a strategic tie up to roll up to 18000 MT steelbarsflats with a reputed company in the region thereby booking the remaining capacity of the rolling mill from Day 1 ofmanufacturing

The tie up is for rolling 1500 MT per month for an initial period of three years and the agreement will come for review postcompletion

The hot rolling mill set up at an approximate cost of Rs 60 crore is 40 km away from Steel Strips Wheels existing commercialwheel manufacturing facility at Jamshedpur and will be a backward integration of the plant

Jamshedpur wheel manufacturing plant along with the companys new truck wheel facility in Chennai will utilise close to 65 percentof the rolling mill capacityhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-starts-production-at-its-new-hot-steel-rolling-mill-at-jharkhand56998142

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Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

Top

News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

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PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

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Page 13: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Top

Tube Investments Q3 net profit jumps 67 to Rs 2747 cr Business Standard

New Delhi Engineering firm Tube Investments of India (TII) today reported a 6739 per cent jump in standalone net profit to Rs2747 crore for the third quarter ended December 31 2016

The company had reported a net profit of Rs 1641 crore in the year-ago period TII said in a BSE filing

Its total income from operations during the quarter under review also went up by 753 per cent to Rs 104129 crore as against Rs96831 crore in the corresponding quarter of last fiscal

Total expenses rose to Rs 99650 crore during the quarter against Rs 91604 crore a year ago

Meanwhile in a separate filing TII informed that its board in a meeting held today approved an Interim Dividend of Rs 125 perequity share having face value of Rs 2 each for the financial year ending March 31 2017

It also approved the proposal for setting up of a greenfield project for manufacturing Cold Rolled Welded (CDW) tubes in Patialadistrict of Punjab with an estimated capital expenditure of about Rs 77 crore

Shares of TII today ended 117 per cent up at Rs 60815 apiece on BSEhttpwwwbusiness-standardcomarticlepti-storiestube-investments-q3-net-profit-jumps-67-to-rs-27-47-cr-117020600979_1html

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Allied Industries

Rubber prices under pressure on rising output falling utilisation Prabhudatta MishraFinancial Chronicle

As natural rubber production is rising and consumption falling as per the Rubber Boardamprsquos December data prices areexpected to decline The production of natural rubber in the country is showing an increasing trend It increased in December afterregistering a 19 per cent rise in November Production in November was 63000 tonnes against 53000 tonnes in the year agomonth

According to the data released last week the production surged 12 per cent in December against the same month of 2015 India isthe worldamprsquos second-biggest consumer and the fifth-largest producer of rubber In the 2014-15 crop year 655000 tonnes ofrubber was produced

Increase in production in April-December 2016 against the same period of last year is over 12 per cent Total production in FY17 upto December was 493000 tonnes against 440000 tonnes in the year ago period If the trend continues production in FY17 couldreach the anticipated 654000 tonnes

On the other hand consumption in December decreased by 03 per cent to 85000 tonnes against 85250 tonnes in December2015

Commerce and industry minister Nirmala Sitharaman January 23 launched an online system for rubber growers which would helpthem reduce the production cost and enhance productivity The rubber soil information system (RubSIS) is an online system forrecommending appropriate mix of fertilisers for specific plantations depending upon the nature of soil the ministry said

RubSIS has been developed by the Rubber Research Institute of India under Rubber Board in collaboration with the Indian Instituteof Information Technology and Management Kerala and the National Bureau of Soil Survey amp Land Use Planning ICAR

The ministry said itamprsquos a cost effective tool for sustainable and scientific management of rubber growing soils Apart frompreventing indiscriminate use of chemical fertilisers and soil degradation RubSIS will help reduce the cost of production increaseproductivity and lower in environmental pollution Launched in Kottayam (Kerala) the largest rubber growing district of IndiaRubSIS will be extended to the entire rubber growing region in Kerala and Tamil Nadu this year

Meanwhile another important factor that could bring down prices of rubber could be the tieup between Reliance Industries andRussian petrochemical giant Sibur to set up South Asiaamprsquos first butyl rubber halogenation unit at Jamnagar in Gujarat TheMoU was signed during the Vibrant Gujarat Summit in Gandhinagar RIL had said in a statement on January 18 without givinginvestment details

The unit to be set up at RILamprsquos integrated petrochemical site in Jamnagar ampldquowill produce 60000 tonnes of halogenatedbutyl rubber every year under Reliance Sibur Elastomers (RSEPL) a joint venture in which RIL owns 749 per cent and Sibur 251per centamprdquo it said

Halogenated butyl rubber is used to manufacture tubeless tyres Apart from the planned halogenation unit the joint venture owns a

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

Top

Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

Top

Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

Top

Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 14: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

120000-tonne per annum butyl rubber plant currently under construction at the same venue It will provide the butyl rubber feed tothe halogenation unit

Nikhil Meswani executive director RIL said ampldquoRSEPLamprsquos halogenated butyl rubber plant will be well-poised tocapitalise on the significant surge in regional demand in tyre and pharmaceutical industriesamprdquo It is expected to be complete in2018 India he said is expected to see a quantum jump in tyre output with domestic and international tyre majors lining up Rs15000 crore of investment

ampldquoThe halogenated butyl rubber demand is expected to grow at 8-10 per cent CAGR over the next few years driven byincreasing customer preference for tubeless tyres in India and neighbouring countries and significant investments in manufacturingof pharmaceutical closures and tank inner linersamprdquo he said

Supply of rubber started easing in 2014 Worldwide rubber production grew at a slower pace as the prolonged drops in pricescaused producers to limit expansion plans Production in 2015 was 123 million tonnes up by 12 per cent over the previous yearRubber consumption declined 03 per cent to 121 million tonnes in 2015 The decrease was due to fall in China Japan and Indiabecause of economic slowdown according to a research report by Thailandamprsquos Tris Rating

Quoting the International Rubber Study Group Trsi Rating said production in 2016 and 2017 is expected to rise moderately to 124million tonnes and 128 million tonnes respectively The persistently low prices will keep pressuring producers to reduce productionRubber usage is forecast to grow to 123 million tonnes in 2016 and 127 million tonnes in 2017httpwwwmydigitalfccomcommoditiesrubber-prices-under-pressure-rising-output-falling-utilisation-944

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Apollo Tyres revenue surges but margins skid as costs rise Vatsala Kamatmint

No doubt Apollo Tyres Ltdamprsquos December quarter performance raced past Street expectations on all fronts But rising rawmaterial prices tempered the companyamprsquos profitability and the bigger concern is there is no sign of them cooling off

In fact Apollo Tyresamprsquo management in the analystsamprsquo call cautioned investors that there could be a 10 increase inoverall raw material costs in the March quarter too This is not surprising given that RSS Grade-4 rubber prices (used in tyremanufacture) alone surged by about 40 over the last 12 months Other commodity prices like synthetic rubber whose price islinked to crude oil are up too

No wonder then that the December quarteramprsquos operating margin fell by about 270 basis points year-on-year to 144although higher than Bloombergamprsquos forecast A basis point is one hundredth of a percentage point

What came to Apollo Tyresamprsquo rescue was its robust sales which grew by 173 to Rs3457 crore at the consolidated level

Demonetization which was a roadblock for auto sales to some extent helped the company As cash transactions fell demand forChineseKorean tyres dropped too especially in the truck and bus segment

Strong domestic sales were a positive surprise amid challenges But the 54 jump in European revenue was a bonanza Demandfor winter tyres in Europe was better than what the analysts had penciled in Meanwhile the acquisition of German tyre distributorReifencom GmbH added to international revenue too which on the whole surged by about 54

That said higher costs also took a toll on operating profit which dropped by 1 from a year ago

Unfortunately Apollo Tyresamprsquo borrowings too have risen at a time when overall raw material costs are on a roll Netconsolidated debt at the end of six months ended September 2016 had more than doubled to Rs1612 crore from the year-agoperiod Therefore December quarteramprsquos interest cost was up by 46 from a year earlier

In spite of this the companyamprsquos consolidated profit of Rs2958 crore was a huge beat on Street expectation That said it wasonly 6 higher than the year-ago period

The point is that rising costs will continue to contain profit growth To some extent high revenue growth can provide an operatingleverage Meanwhile in January the company along with most other tyre makers hiked prices in the replacement market as costpressures are unlikely to ebb soon Some dealers say that further price hikes cannot be ruled out

Meanwhile Apollo Tyresamprsquo stock has been running downhill since October when investors sensed that rising raw material andinterest costs may keep net profit expansion subdued From this level revenue growth is certain quarter after quarter but it may nottranslate into a commensurate growth in profitshttpwwwlivemintcomMoneyNM4JZ49KLSI1QoiIDAlYfPApollo-Tyres-revenue-surges-but-margins-skid-as-costs-risehtml

Top

Emissions Environment

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

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Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

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Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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Page 15: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Finance amp Insurance

Post demonetisation two-wheeler loan demand hit the most The Economic Times

Mumbai Consumer loan demand for two-wheeler and consumer durable loans has seen significant drops since the November 82016 demonetisation announcement according to a new analysis by TransUnion CIBIL

At the same time demand for other consumer loan types including credit cards and auto loans have crept up through December2016 after a sharp decline that was the immediate response to the announcement it said

Prior to November 8 credit demand was growing at an average 35 on an annual basis across all loan products with significantyear-over-year growth in demand for consumer loans (up 71) and credit cards (up 41) This growth was seen broadly across thespectrum of lenders

TranUnion CIBIL study indicated a broad-based growth across all geographies and were accompanied by historically lownon-performing asset (NPA) rates as banks instituted strong data-driven risk management practices

In the week after the demonetisation announcement TransUnion CIBIL saw a significant decrease in new credit demand with thefocus for both consumers and bankers being cash exchange and collections said Amrita Mitra Vice President- financial ServicesResearch and Consulting at TransUnion CIBIL

Two-wheeler and consumer durable loans usually serviced by Private Banks and NBFCs were most negativelyimpacted-significantly in key geographies like Maharashtra Gujarat Andhra Pradesh amp West Bengalhttpautoeconomictimesindiatimescomnewsauto-financepost-demonetisation-two-wheeler-loan-demand-hit-the-most57000367

Top

Oil Lubricants amp Alternative Fuels

HPCL gets green nod for Rs 3846 cr expansion project to produce Euro IV fuel PTISee this story in The Economic Times

New Delhi State-owned refiner Hindustan Petroleum Corporation (HPCL) has received environment clearance for expansion of itsMumbai refinery in Maharashtra entailing an investment of Rs 3846 crore

With the proposed expansion HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV qualityspecifications besides other petroleum products like LPG Naphtha Kerosene ATF Fuel oil and Sulphur and can meet the currentmarket demands

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 75 million tonnes per annum(MTPA) up to 95 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP)

The Environment Ministry has given environment clearance to HPCLs expansion project subject to compliance of someconditions a senior government official said

The total cost of the project is estimated to be Rs 322343 crore for refinery expansion and PRU and revamping of CPP with acapital investment of Rs 62245 crore

All new facilities will be set up within refinery premises of 21 acres and the project will be completed within 36 months

Among conditions specified HPCL has been asked to impart training to all employees on safety and health aspects of chemicalshandling

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying outenvironmental management and monitoring

As per the proposal HPCLs expansion project will involve integration of facilities for optimisation of energy and resourceconservation Through Mumbai Refinery Expansion Project production of MS meeting Euro VVI norms will be made possible

The proposed project will improve refinery margin and contribute overall development of the region The proposed PRU project willfacilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in powerhttpautoeconomictimesindiatimescomnewsoil-and-lubeshpcl-gets-green-nod-for-rs-3846-cr-expansion-project-to-produce-euro-iv-fuel57000440

Top

Oil prices edge up on Iran tensions ReutersSee this story in The Hindu Business Line

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

Top

Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

Top

Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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Page 16: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Singapore Oil prices edged up on Monday on fears that new US sanctions against Iran could be extended to affect crude suppliesbut markets were capped by further signs of growing US production

Tensions between Tehran and Washington have risen since a recent Iranian ballistic missile test which prompted US PresidentDonald Trumps administration to impose sanctions on individuals and entities linked to Irans elite Revolutionary Guards militaryunit

Brent crude futures the international benchmark for oil prices were trading at $5691 per barrel at 0320 GMT up 10 cents fromtheir last close

US West Texas Intermediate (WTI) futures were up 8 cents at $5391 a barrel

Traders said the strain between Tehran and the United States raised concerns that US sanctions could be tightened further toimpact Iranian oil exports which were only allowed to return to normal last year

ampldquoThis was countered somewhat by data showing another strong rise in rig activity in the USamprdquo ANZ bank said onMonday

US drillers added 17 oil rigs in the week to February 3 bringing the total count up to 583 the most since October 2015 energyservices firm Baker Hughes Inc said on Friday

Rising US production undermines efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers likeRussia to a end global oil oversupply by cutting their output by a planned average of almost 18 million barrels per day (bpd) duringthe first half of the year

Also delaying the market rebalancing are OPECs efforts to shield its biggest customers in Asia from the cuts as the group reducessupplies to regions in Europe and North America where demand growth is slower or where other suppliers are more dominant

This is evident in price movements Brent crude futures are more than 2 per cent below their peak in early January when the cutsstarted

Further downward pressure could come from a slowdown in Chinese imports a core pillar of global demand growth over the pastyears

ampldquoChinas crude oil imports will soften in H117 due to a heavy refinery maintenance season and weaker run-rates at theindependent teapot refineriesamprdquo BMI Research said

ampldquoUp to 900000 bpd of refining capacity - equivalent to 60 per cent of total refining capacity - could be shut at various pointsover the Q117-Q217 period dragging on importsamprdquo it added

A reduction in the import quotas for Chinas independent refiners will also weigh on the overall import demand said BMI Theresearchers noted that the first round of 2017 licences were 67 per cent lower at 6881 million tonnes than the year ago periodhttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-edge-up-on-iran-tensionsarticle9523601ece

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News Magazines

BMW G310R to be launched this year Autocar India

BMWamprsquos first small-capacity motorcycle after much speculation and waiting will see the light of showrooms this year If youare still not up to date with the eagerly-awaited G310R here is a recap of the designed-in-Germany but built-in-India motorcycle

The G310R is the first small-capacity motorcycle to be designed and engineered by BMW Motorrad It is a street fighter by designthough the design itself is hardly as eccentric or radical as other BMW motorcycles The German bikemaker it would seem isplaying it safe with this one understandable considering it is designed for the masses The BMW G310R will be manufactured inpartnership with TVS at the latteramprsquos state-of-the-art plant in Hosur outside Bengaluru

Bavarian beautyThe G310R is a compact street bike riding on five-spoke wheels Its fascia is dominated by a minimalistic headlight fairingItamprsquos a neatly-styled motorcycle sleek body panels not cluttered by excessive graphics There are pronounced tankextensions boldly emblazoned by a racy amplsquoRamprsquo while the chunky smoothly profiled 11-litre fuel tank bears the famousglobally looked up to BMW badge

The tail fairing is slim rising upwards with rear mudguard considerably outstretched over the rear wheel A large silencer runs onthe right side of the bike with plenty of lightweight alloy visible apart from an angular belly cowl

The new TVS-BMW bike comes with digital instrumentation along with switchgear that is easy to operate

German precisionThe engine of the TVS-BMW G310R is unique for reclining its liquid-cooled cylinder backwards head rotated 180 degrees

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 17: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

exchanging positions of the inlet and exhaust ports This cleverly shifts much of the powerplants weight ampndash its gearboxampndash closer to the motorcycles front wheel and allows the G310R a short wheelbase (1374mm) without shortening theswingarm

The four-valve head houses the dual overhead camshafts and offers fuel injection Expect quick-revving engine character asitamprsquos a short-stroke BMW engine with its bore and stroke measuring 80mm x 62mm The G310R revs until 10500rpm andmakes 34hp at 9000rpm lower than KTMamprsquos fierce larger-capacity 390 Duke Do however expect a tall order ofsmoothness and refinement with a counter-balancer provided Peak torque is 284Nm built up at 7500rpm BMW claims a 145kphtop speed with fuel efficiency of 30kpl which puts the G310R right up on par for the segment

The G310R comes with a six-speed gearbox and cable-fed clutch The cooling system incorporates a generously-sized radiator andBMW has worked to ensure engine performance isnamprsquot hampered even when running in really hot weather

Power is nothing without comfortThe G310R tips the scales at 158kg The TVS-BMW bikeamprsquos frame is tubular steel constructed with an alloy swingarmprovided at the rear A sturdy 41mm diameter upside-down telescopic suspension is in the front with an adjustable monoshockworking at the rear

The 17-inch wheels are standard at the front and back with the rear tyre a healthy 15060 section unit

The brakes are steel-braided hose-controlled Thereamprsquos a 300mm rotor-equipped disc in the front radial-mounted andchomped on by four-piston callipers with a 240mm disc unit at the rear using a two-piston caliper The ABS system as comesstandard with every BMW bike is twin-channel on the G310R

Expect the new TVS-BMW bikes to become big rivals to KTMamprsquos brilliant Duke street bikes worldwide with the G310Rdelivering on the crucial count of a more comfortable riding position and plusher suspension as are both missed on the ultra-sportyhence more aggressively positioned Dukes

The G310R should hopefully mark only the first of a couple of motorcycles built around the same platform TVS and BMW areclearly on the right track having lost some time to Bajaj and KTM but arriving in good time at the Make-in-India scene offeringsensible positioning that is certain to be warmly received worldwide BMW used to be Europeamprsquos largest two-wheeler playeruntil KTM set foot in India and things changedhttpwwwautocarindiacomauto-newsbmw-g310r-to-be-launched-this-year-404132aspx

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Renault shelves plans for Kwid-based sedan Autocar India

Renault-Nissanamprsquos CMF-A platform is off to a great start in India with the Renault Kwid proving to be a big hit and itsJapanese sibling the Datsun redi-GO also finding some success Renault has more cars on the platform lined up with a compactsedan being on top of that list But conditions in the Indian automotive market seemed to have taken a toll with the group nowdeciding to shelve those plans

This is largely due to the implementation of GST and its tax structure which will mean that the special excise duty benefits enjoyedby the compact segment ampndash sub-four-metre cars with engine sizes lower than 12 litre (petrol)15 litre (diesel) ampndash will nolonger be there

Currently the Indian auto industry has four different slabs of excise duty based on dimensions and engine capacity ranging from125 percent for small cars CVs two- and three-wheelers to 30 percent for luxury cars and SUVs In addition the governmentimposed an infrastructure cess ranging from 1-4 percent for various segments Under the GST regime these rates are expected tobe converted to a maximum of two rates thereby making the tax structure on automotive industry more simple and structured Atthe moment there is no clarity if and how the Government will have a lower rate for compact vehicles

Additionally recent sales trends in the Indian automotive market have shown that the car buyer is showing distinct preference forcompact SUVs and soft roaders over the compact sedan segment This has had a direct impact on the once booming compactsedan segment which is now showing signs of saturation

Thus with these uncertainties and conditions around the compact sedan segment Renault has put its plans on ice for aCMF-A-based sedan Of course this is by no means the last we hear from the CMF-A platform itself CEO Carlos Ghosn hasunequivocally stated ampldquoThere will be many more CMF-A cars for Indiaamprdquo If not a compact sedan then perhaps othervehicle variants like a larger hatchback or an SUV Crossover could be consideredhttpwwwautocarindiacomauto-newsrenault-shelves-plans-for-kwid-based-sedan-404131aspx

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Honda City facelift India launch on February 14 2017 Autocar India

Honda will launch the refreshed City sedan in the Indian market on February 14 2017 The carmaker has started acceptingbookings for the updated sedan with the booking amount set at Rs 21000

The Honda City had long been the best seller in the segment though in recent months the Maruti Ciaz has risen to the challenge

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 18: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

outselling the City in certain months last year And with rivals such as Skoda having recently given the Rapid a facelift andVolkswagenamprsquos near constant updates to the Vento Honda looks to refresh interest in the City with a facelifted modelHereamprsquos what you can expect from the updated Honda City in India

1 It sports cosmetic changesThe updated Cityamprsquos front now gets a Civic-like nose and chin along with a chrome band running across the grille and spillingover the headlights on both sides The headlights shape has been mildly tweaked and now houses LED daytime running lampsTop trim models will additionally get full LED headlamps and fog lamps The front bumper has been restyled as well with moreprominent divisions for the front air dam and fog lamp housings At the rear it gets the addition of a tailgate-mounted spoiler alongwith reprofiled tail-lamps with LED inserts Spy shots of the car in India also point towards a new set of alloy wheels on the top trim

2 No mechanical changes are expectedThe facelift is unlikely to feature any mechanical changes for India It will continue to be powered by the same 15-litre petrol and15-litre diesel engines for now The new City though will get a revised suspension and will sit 10mm higher than the current car

3 Equipment upgrades in the pipelineA major equipment upgrade will be the new infotainment system with Android Auto and a mobile mirror feature This system is beingco-developed with Blaupunkt Top-spec cars will get six airbags as standard along with leather seats and a soft-touch dashboard

4 Revival of City ZXInterestingly with the launch of the facelifted City in India Honda will be reviving the amplsquoCity ZXamprsquo badge that waspreviously seen on the facelift of the Indian second-gen Honda City (fourth-gen internationally)httpwwwautocarindiacomauto-newshonda-city-facelift-india-launch-on-february-14-2017-403640aspx

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Bajaj Dominar 400 vs Mojo vs Himalayan comparison

Autocar India

No motorcycle is bad in its entirety Each motorcycle has its own identity characteristics that make it unique and fun to ride onceyou figure out the techniques needed to harness its full potential That isnt to say that they dont have their shortcomings With therecently launched Dominar 400 from Bajaj creating waves of excitement and anticipation we find out its purpose and its competitionto find out if it really lives up to all the hype With the Royal Enfield Himalayan in one corner and the Mahindra Mojo in another wepit these motorcycles against each other in a showdown of design versatility and value After all these motorcycles do hold theattention of the same category of buyers riding-wise and budget-wise

The powder roomWhile the Dominar 400 and the Mojo are styled along the lines of new-age naked sports-tourers the Himalayan is clothed inadventure-tourer garbs Mahindra may admit that the Mojo is a tourer but Bajaj has decided to call its motorcycle a power cruiserWhen viewing this trio alongside each other the Dominar does appear to have the most compact dimensions While the Mojo has afacade that could seem bulky and awkward it does have a certain charm that a few enthusiasts would really love Lets face it itdoes look rather intimidating and could be mistaken for a larger motorcycle The eyebrow-like LED strips above the headlights maymake the Mojo appear like an angry owl but it does look quite nice The Dominar 400s headlight setup on the other hand while stillquite beefy looks more mature and proportional And that mosaic-like LED headlight setup is fresh and appealing The Himalayansimply towers over these two with its adventure-oriented styling It displays a sort of raw rugged charm It has a purposefulbare-bones stance that may not appeal to audiences who prefer smooth and flowing lines

The Mojos instrument cluster consists of an analogue tachometer that lights up with the revs and a digital readout for thespeedometer and other information It can however get a bit hard to read in direct sunlight and is overly bright during night ridingwhich reduces a bit of vision in completely unlit situations Bajaj has given the Dominar 400 a split console with the handle-mountedone being all digital and quite easy to read and the tank-mounted LED strip housing the warning lights However with a full-facehelmet on the tank strip is way below your field of vision The Himalayan keeps things simple with its instrument cluster althoughthings do appear a bit cluttered It gets an analogue speedo tacho and fuel gauge and a digital read-out for the odometer and tripmeters The Himalayan is the only one here to get a temperature gauge and gear indicator It also gets a digital compass for whenthere isnt a road in sight

The tank on the Mojo is angular and chunky and it gets these thick radiator shrouds on either side that complements the exposedtwin-rib chassis Bajajs fledgling on the other hand appears to have the better tank design compared to the Mahindra it appearswell-sculpted and mature The Himalayans teardrop-shaped tank is designed to accommodate riding in the standing position tomake off-road riding easier

The protruding tail-end on the Mojo is unconventional and looks quite nice on its own but compare it to the rest of the motorcycleand things start to get a bit disproportionate The Dominars tail-end looks nice and thick and sports Bajajs typical vertical twin-stripsetup while the Himalayan gets a raised rear fender in keeping with its off-road-friendly theme And where the Mojo unnecessarilygets two metal finished silencers (that do sound quite nice actually) the Dominar gets a nice thick matte-black-finished singlesilencer that has a nice throaty note in the higher revs The Himalayan gets an upswept silencer to aid in ground clearance but theexhaust note sounds a bit dull and is quite unappealing

Beneath the surfaceThe Dominar gets a set of beefy 43mm telescopic forks at the front while the rear is armed with the Bajaj trademark Nitroxtwo-stage adjustable monoshock system While the stiff setup will make riding over bad roads quite a hassle the firm setup givesthe Dominar sporty handling and excellent high-speed stability It feels very planted through corners and the bike turns in to cornersin a fuss-free neutral manner The Dominar 400 gets a perimeter-type frame formed from steel spars and backed by a precision

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

Top

Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 19: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

pressed steel swingarm This chassis setup is what makes the weight of the motorcycle feel so well distributed Its hard to tell thatthe Dominar at 182kg has the same kerb weight as the Himalayan

On the Himalayan the weight is a bit more noticeable this does feel like a large motorcycle The frame is a steel semi-doublecradle while suspension duties are taken care of by a pair of 41mm conventional forks and a single rear shock Both ends deliverrelatively long travel ampndash 200mm at the front and 180mm at the rear What this means is that on the road theres not much youhave to slow down for And even though this is such a tall motorcycle that has more rugged dual-purpose tyres it handles cornerswonderfully This rigid chassis setup means you can dip into corners and the Himalayan holds its lines well and gives you theconfidence to lean in deeper Although the large 21-inch front tyre means directional changes are not going to be very quickOff-road is where the Himalayan really comes into its element The front-end however does feel a bit too soft and restricts theamount of feedback you need And if you manage to get a bit of air time the suspension does bottom out on landings Royal Enfieldhas designed its adventure bike with touring equipment in mind so the frame includes anchor points for panniers and their supports

The Mojo on the other hand gets a twin-tube exposed chassis that looks nice and solid But because weve had the chance to ridethis bike extensively we can safely say that its not the greatest chassis out there Its prone to flex at higher speeds which canmake choosing lines precisely quite a daunting task It also weighs 3kg more and has a heft of 185kg But that being said theDominar makes use of 43mm telescopic forks at the front while the Mojo gets more premium upside-down forks At the rear theDominar 400 and the Mojo both get a multi-step adjustable mono shock

Anchored downOne place the Dominar really shines is in the braking department The 320mm disc at the front and the 230mm one at the rear do aphenomenal job of bringing the motorcycle to a halt The front brake feels sharp and precise while the rear one feels moreprogressive Coupled with the MRF Revz C1 tyres and twin-channel ABS our Vbox figures revealed the Dominar comes to acomplete stop from 60kph in just 202 sec and 1720m

The Himalayans brakes however tell a slightly different story While it gets a slightly smaller front disc at 300mm and a slightlylarger rear one at 240mm it simply cannot keep up with the Dominar when it comes to sheer stopping power In contrast the frontbrake feels more progressive while the rear brake feels sharp this may not be that great on the road But off-road this setupactually works well and keeps the front from locking up while the rear does and allows you to tighten up your turns and use it tosteer

Although the Dominar and the Mojo are shod with a 320mm disc at the front the Mojos are made by Jijuan a Spanish firm thatworks with Mahindra Racing while the Dominar gets brakes from Bybre The front brake on the Mojo does lack initial bite but isintended to be progressive the bite does come in later At the rear the Mojo gets a 240mm disc similar to the Himalayan But thelack of weight over the rear tyre and a sharp bite means the rear does lock up quite easily

The Dominar 400 and Mojo share the exactly the same tyre profile but the Dominars locally made MRF rubber provide excellentlevels of grip The Mojo sports Pirelli Diablo Rosso II tyres which aside from being more expensive provides even more tractionThe Himalayan gets dual-purpose tyres from Ceat that provide reasonable levels of grip on the road and off it Where the Mojo andHimalayan fall short is ABS they dont get any at this point The Dominar gets a more expensive variant with ABS twin-channel atthat And even this more expensive variant still comes in cheaper than the other two bikes

Power cruisinWhile we know for a fact the Mojos engine is an absolute gem the Dominars engine shares some base components with the KTM390 series we can all agree that the one on the KTM is definitely a bomber of an engine The Dominars engine is a singleoverhead camshaft derivative of the 373cc KTM Duke and RC 390 engine It has oversquare bore dimensions and comes withBajajs triple-spark technology with its four valves nesting inside a compact single-cylinder head And while this fuel-injectedliquid-cooled engine may produce less power than the KTM its no slouch at all It feels punchy and strong and pulls in a very linearmanner to its rev limiter which is close to 10000rpm Gearshifts up and down the six-speed box feed in with a precise light feelThe bonus here is that the Dominar also gets a slipper clutch which steps in to allow hard downshifting from high speeds The gearratios feel just right and perfectly matched to the engineamprsquos long legs In fact overall the Dominar encourages you to ride ithard and this is where it feels quite in its element

The Himalayans engine on the other hand feels very relaxed in its power delivery This 411cc single-cylinder unit with undersquaredimensions relies on a simple layout with a single overhead camshaft and two valves It is fed via a carburettor with throttle positionsensor and produces 245hp that is driven towards the rear wheel through a five-speed gearbox The gearbox however may feel abit notchy when shifting at the wrong rpm and thats a hassle when riding in city conditions The tall gear ratios ensure a cruisingagenda when on the road And when off-road the taller ratios mean you dont have to shift gears too much The Dominar 400 andMojo both get liquid-cooled fuel-injected engines

The Mahindra Mojos 295cc unit makes 27hp and 30Nm So the Dominar 400 does lead in terms of power output and torquefigures which is expected from the extra 78cc of displacement But the Mojos engine is no pussycat Once it hits the4500-5000rpm mark there is this surge of power and torque that makes this motorcycle feel a lot more powerful than just 27hp Italso gets a six-speed gearbox (minus the slipper clutch) which works quite well except for some rather confusing ratios in thehigher gears

Saddle talkIf these motorcycles are designed with long-distance cruising in mind ergonomics are the most crucial aspect of these contendersHaving already covered massive distances on Mahindras steed we can safely say that things do get a bit painful on longer stintsWhile the seat is fairly comfortable there is almost negligible thigh support This means that once you cross that two-hour mark ofcontinuous riding sore-butt syndrome is sure to come knocking The handlebar is nice and wide and rather comfortable And thefoot pegs are rather forward-set which isnt really a problem per se but it does impede any sort of aggressive riding

The elongated single-seat setup on the Mojo seems functional but the Dominars split-seat setup is wider and is certainly the morecomfortable one The narrow seat on the Himalayan is also reasonably comfortable and it shares its seat height with the Dominarat 800mm The Mojo is 14mm taller and stands at 814mm

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 20: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

When it comes to refinement levels the Mojo really takes the cake It feels nice and solid and free of vibrations Once you spend abit of time in the saddle of the Dominar 400 the vibrations do start to become quite apparent Anything past 4000rpm will have alight buzz that creeps in from the handlebar seat and footpegs The Himalayan isnt vibration free either but it simply isnt asnoticeable as on the Dominar

Another area the Dominar 400 falls behind in is fuel capacity Its just that the Mojo will go a fair distance further with its 21-litre fueltank while the Himalayan gets a 15-litre one The Dominar gets a smaller 13-litre capacity The Himalayan despite having the mostdisplacement here puts down 346kpl while the Dominar 400 returns 335kpl and the Mojo 334kpl

Into the sunsetThough these motorcycles have been designed with focus on touring they have different strengths and weaknesses While theHimalayan may appeal to more adventurous seasoned and mechanically sound riders and the Mojo may appeal to the highwayaficionados the Dominar 400 is simply the better-rounded modern-day package This is a motorcycle you can swing your leg override hard all day without worrying too much about mechanical issues Aside from it having a bit of a jarring ride it offers moremodern features that make it a safer motorcycle And lets not forget that resounding price tag If you consider the non-ABS basevariant of the Dominar it costs approximately Rs 15000 less than the Himalayan and the Mojo So at the end of the day Bajaj hasmade a good motorcycle for a phenomenal price taghttpwwwautocarindiacomauto-newsbajaj-dominar-400-vs-mojo-vs-himalayan-comparison-404125aspx0

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2017 Mahindra XUV500 Sportz launched at Rs 165 lakh Autocar India

Mahindra has re-introduced the special-edition XUV500 Sportz based on the top W10 trim Priced at Rs 166 lakh and Rs 176 lakh(ex-showroom Mumbai) for the manual and automatic versions respectively the Sportz edition gets added exterior styling bits suchas contrast-coloured panels and body graphics The special edition was previously available on the pre-facelift model as well

The special-edition XUV500 features red contrast colour inserts around the fog lamps contrast-coloured door handles and roofrails It also gets body graphics on the bonnet wing mirrors and lower door panels and Sportz badging Other cosmetic changesinclude new alloy wheels and red brake calipers There are no details about the changes to the cabin apart from the addition of astylised badge on the dashboard and the key

In terms of equipment the Sportz carries over features from the top W10 trim such as the reverse parking camera touchscreeninfotainment system with navigation auto climate control cruise control automatic headlamps and rain sensing wipers to name afew

Mechanically the XUV500 Sportz carries forward using the same 140hp 22-litre mHawk diesel engine paired to either a six-speedmanual or a six-speed automatic gearbox There was no mention about all-wheel drive but with prices only about Rs 10000 morethan the two-wheel-drive variants the system could be given a miss

Mahindra seems keen to push sales of the XUV500 with the new special-edition model which now faces competition fromTataamprsquos new premium product the Hexahttpwwwautocarindiacomauto-news2017-mahindra-xuv500-sportz-launched-at-rs-165-lakh-404124aspx

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Hero Flash electric scooter launched at Rs 19990 Autocar India

Hero Electric today launched its latest model the Flash e-scooter powered by a lead-acid battery The Flash e-scooter is equippedwith a 250W motor which is powered by a 48V 20Ah VRLA battery and can travel for 65km on a single charge It has a top speedof 25kph

Available as a limited edition model with just 2000 units for sale the Flash has an introductory price of Rs 19990 (ex-showroomDelhi) The price is inclusive of the government subsidy of Rs 14000 for electric vehicles as it is a collaboration between theDepartment of Science the Society of Manufacturers of Electric Vehicles (SMEV) and Hero Electric

The lightweight 87kg Flash e-scooter does not require a riding license or registration a factor that is expected to make it popularamongst youth Some of its features include magnesium alloy wheels a telescopic suspension and a full-body guard It is alsoequipped with short-circuit protection and has under-the-seat storage It will be on offer in red-black and silver-black colourcombinations

Sohinder Gill CEO Hero Electric told our sister publication Autocar Professional on the sidelines of the launch that depending onconsumer preference there is also provision to offer a lithium-ion battery-powered Flash e-scooter at the lower-end within a fewmonths The price difference between the two battery-powered scooters is pegged at around Rs 15000-20000The e-scooter targets youth housewives small traders and senior citizens Despatches of the Flash will commence from next weekto Delhi dealerships and it will be introduced across India within a month covering all 350 outlets of Hero Electric The companyplans to add an additional 100 dealers in CY2017 to take the figure up to 450 by the year end

Two new e-scooters in the pipelineHero Electric is gearing up to launch two new products The first model ampndash a lithium-ion battery-powered high-end smart

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 21: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

scooter with high connectivity and a Bosch powertrain ampndash will be launched after Diwali this year The second model ampndash alow-speed high-end e-scooter with a lithium-ion battery ampndash will be launched before end-March 2018 Both will have a range ofabout 60-70km though the smart scooter will have a top speed of 55kph The lithium-ion battery is expected to be sourced fromKorea China or Taiwan

Gill says that while the lithium ion battery has a three-year lifespan the lead-acid battery comes with a one-year warranty To makelithium-ion batteries more cost effective SMEV is looking at local manufacturing it has 10 proposals in hand which two are to beshortlisted within a month and will require some handholding from the EV manufacturer

Talking about online bookings for e-scooters Gill pointed out that over the past two months when demonetisation had hit dealersales the company sold a large volume of its Maxi Wave and e-spring scooters through PayTM and has started online bookings forthe Flash as wellReacting to the Union Budget 2017-18 Gill appreciated the Rs 175 crore allocation for the three months till start of April onaccount of subsidies for EVs by the governmenthttpwwwautocarindiacomauto-newshero-flash-electric-scooter-launched-at-rs-19990-404111aspx

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International News

Toyota Suzuki poised to unveil partnership on Monday ReutersSee this story in The Economic Times

Japans Toyota Motor Corp and Suzuki Motor Corp appeared poised to unveil a wide-ranging partnership on Monday that couldinclude the development of new technologies and procurement

Both automakers which said in October they were exploring a tie-up said their boards would make a decision on the matter later inthe day The firms are also set to announce third-quarter earnings on Monday

A partnership could offer Suzuki a maker of affordable minivehicles and compact cars access to Toyotas RampD expertise Japansfourth-largest automaker has said it has been struggling to keep pace with the breakneck speed of RampD in the industry

While the two companies have yet to say how Toyota may gain from a partnership with Suzuki insiders at the world No 2automaker have said it will likely seek Suzukis help in cracking the India market

Suzuki dominates the Indian market through its majority stake in Maruti Suzuki India Ltd which sells roughly half of all cars sold inthe country whereas Toyota is still struggling to gain significant market share despite years of trying

Access to Suzukis tightly knit supply chain network in India which the automaker has cultivated since the 1980s could help Toyotato develop and sell more mainstream cars tailored for the local market

Fujio Ando an adviser at Chibagin Securities noted that except for compact cars the two automakers had little overlap in theirproduction line-up adding that Suzuki was already buying hybrid technology from Toyota

One question will be how much Toyota will open up to Suzuki given its relations with Daihatsu he added referring to Toyotas ownminivehicle specialist firm

Toyota invests heavily in RampD in areas including automated driving artificial intelligence and lower-emission cars

Suzuki has long sought a bigger partner A partnership with Germanys Volkswagen ended on a sour note in 2015 after the Germancarmaker accused it of violating their pact by agreeing a diesel engine deal with Italys Fiat

Shares in Toyota and Suzuki were roughly flat in line with the broader Tokyo markethttpautoeconomictimesindiatimescomnewspassenger-vehiclecarstoyota-suzuki-poised-to-unveil-partnership-on-monday56996161Toyota Suzuki begin talks for partnershipThe Hindu Business Linehttpwwwthehindubusinesslinecomnewsworldtoyota-suzuki-begin-talks-for-partnershiparticle9523960eceToyota Suzuki courtship intensifies as partnership talks commence The HinduhttpwwwthehinducombusinessIndustryToyota-Suzuki-courtship-intensifies-as-partnership-talks-commencearticle17205710eceToyota Suzuki confirm business collaborationAutocar Indiahttpwwwautocarindiacomauto-newstoyota-suzuki-confirm-business-collaboration-404127aspx

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Toyota April-December net profit falls 24 but hikes annual outlook AFPSee this story in The Economic Times

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 22: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Tokyo Toyota said on Monday that net profit in the nine months to the end of December fell by almost a quarter on-year but revisedup its full-year forecast thanks to foreign exchange gains and a pick-up in sales

The Japanese auto giant which lost its crown as the worlds top-selling automaker in 2016 said net profit fell 24 percent to 143trillion yen ($127 billion) from 189 trillion yen a year earlier

The maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yen Thatwas already up from an earlier 145 trillion outlook

Toyota said in a statement that the upward revision was mainly based on the current trend of financial results due to changes inforeign currency exchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since the November election of Donald Trump as US president with expectations hisbig-spending tax-cutting plans would fire inflation and force the Federal Reserve to hike interest rates

However the latest forecast is far below the record 231 trillion yen net profit in the year to March 2016httpautoeconomictimesindiatimescomnewsindustrytoyota-april-december-net-profit-falls-24-but-hikes-annual-outlook56998752

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Toyota lifts annual outlook for 2017-18 AFPSee this story in The Times of India

Tokyo Japanese auto giant Toyota on Monday revised up its full-year forecast but warned of an uncertain outlook with the carindustry bracing for possible protectionist policies under US President Donald Trump

The company which lost its crown as the worlds top-selling automaker last year said a drop in the value of the yen had allowed itto lift its earnings despite a fall in its nine-month net profit

It said net profit declined 24 percent to 143 trillion yen ($127 billion) from a year earlier the first April-December decline in fiveyears

However the maker of the Prius hybrid forecast a full-year net profit of 17 trillion yen up from its earlier estimate of 155 trillion yenThat was already up from an earlier 145 trillion yen outlook

In a statement it said the upward revision was based on the current trend of financial results due to changes in foreign currencyexchange rates and the upward revision of our sales plans

Japanese exporters have enjoyed a boost since Trumps November election as the yen has weakened on expectations hisbig-spending tax-cutting agenda would fire inflation and force the Federal Reserve to hike interest rates

A weaker yen boosts exporters bottom lines by making their products relatively less expensive overseas while inflating the value oftheir earnings abroad when repatriatedStill Toyotas latest forecast is far below the record 231 trillion yen net profit in the year to March 2016

The Japanese auto industry faces uncertainty over Trumps drive to support US firms over foreign imports a stance that has raisedfears of a possible global trade war

He has targeted Toyota with strong criticism of its ongoing project to build a new factory in Mexico threatening it with painful tariffs

It is difficult to forecast the impact of the Trump administration at this time Toyota executive Tetsuya Otake told reporters

Shigeru Matsumura an analyst at SMBC Friend Research Center said the outlook for the Japanese auto industry faced politicalrisks over Trump

Toyota and other Japanese carmakers have tough steering to do on their strategies in North America he said before the earningsannouncement

Toyota CEO Akio Toyoda met Prime Minister Shinzo Abe on Friday ahead of a Japan-US summit this week with the auto trade rowone of the key issues

Toyoda whose company last month annonced plans to invest $600 million and create 400 jobs at one of its US plants declined tocomment on details of his meeting with Abe but said We discussed the current situation

Shigeru Hayakawa a senior executive and board member said Dialogue between the leaders of the two countries will beimportant from now on We hope they will communicate aiming for the prosperity of the two economies

Toyotas vehicle sales in April-December ticked up to 77 million units from 76 million with increases in Japan Europe and Asiathe statement said

But vehicle sales fell in the Middle East and Africa while the key North American market remained flat after cheap oil hit demand forToyotas fuel-efficient offerings including the Prius

Separately Toyota and small car maker Suzuki agreed on Monday to begin detailed discussions on a technology tie-up as well as

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 23: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

mutual supply of products and components after announcing initial plans in October

What the companies have agreed on is to create a partnership which will be win-win for both parties not one in which Toyotawould rescue Suzuki said Suzuki chief executive Yasuhito Harayama

Stiff competition at home and abroad has pushed some Japanese automakers to eye tie-ups

Nissan last year bought a one-third stake in Mitsubishi Motors forging an alliance that will challenge some of the worlds biggestauto groups

Nissan is scheduled to announce its nine-month results on Thursday while Honda said last week its net profit for the period jumped189 percent as it upgraded its full-year forecastshttptimesofindiaindiatimescombusinessinternational-businesstoyota-lifts-annual-outlook-for-2017-18articleshow57004544cms

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Groupe Renault acquires company specialising in LCV electrification The Economic Times

BOULOGNE-BILLANCOURT Groupe Renault on Monday has acquired French company PVI short for Power Vehicle Innovationwith a view to accelerating the growth of its Light Commercial Vehicle business informed the automaker in an official statement

The assets of PVI which boasts recognised expertise in the design and conversion of commercial vehicles running on natural gasor electricity complement those of Renault

PVIamprsquos expertise and small-scale flexible production facility will benefit Renault while Renault will provide economies of scalefor the purchasing of components as well as a significant technology portfolio informed the French automobile manufacturer

ampldquoWe are very pleased to welcome PVIamprsquos team specialising in electric conversions to Groupe Renaultamprdquo saysAshwani Gupta SVP LCV Division

ampldquoThis acquisition is part of the Groupamprsquos strategy to develop its business by proposing a complete range of electricLCVs coupled with connected services As the number one European manufacturer of electric LCVs this is a unique opportunity forour teams to work on the next generation of this type of car Together we will continue to innovate to ensure increasing proximitywith our business customers while addressing their every needamprdquo

PVI has previously worked with Groupe Renault on the development and electrification of the upcoming Renault Master ZE Thislarge van which was unveiled at the Brussels Motor Show on January 13 2017 and which is due to be launched before the end of2017 will extend the Groupamprsquos existing range of electric LCVs

This acquisition also includes Escal a subsidiary in which PVI has a 95 percent stake Escal specialises in the distributioninstallation and maintenance of security systems for lifting vehicles Both PVI and Escal with a combined workforce of 93employees are attached to the Groupe Renaultamprsquos LCV Divisionhttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvgroupe-renault-acquires-company-specialising-in-lcv-electrification57006366

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Hyundai Motor Group promotes fewer execs after profits drop ReutersSee this story in The Economic Times

Seoul Hyundai Motor Group South Koreas second-biggest conglomerate said on Monday that in an annual reshuffle it haspromoted 348 executives down 5 percent from last year due to growing business uncertainty

The revamp comes as Hyundai Motor Group focuses on slashing costs including cutting executive pay after flagship unit andautomaker Hyundai Motor posted its fourth consecutive annual profit decline in 2016

Big family-owned conglomerates like Hyundai Motor Group and Samsung Group have delayed their year-end annual promotionsafter senior executives were questioned by prosecutors investigating a political scandal involving South Korean President ParkGeun-hye

None of the executives of the major conglomerates have been charged with any wrongdoings so far

Hyundai Motor Group said its management reshuffle takes into account various situations but did not elaborate on the change inits timing

Among those promoted was Jang Woong-jun who is involved in developing technology for self-driving cars Jang who studied atStanford University has been promoted to the post of a director making him the youngest executive of the group at the age of 37

Hyundai Motor Group trails Samsung Group in terms of assets and has 51 subsidiaries including Hyundai Motor Kia Motors Hyundai Mobis and Hyundai Steelhttpautoeconomictimesindiatimescomnewsindustryhyundai-motor-group-promotes-fewer-execs-after-profits-drop57000059

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 24: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

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UK new car sales rise by 3 in January boosted by consumer demand ReutersSee this story in The Economic Times

London British new car registrations rose 3 in January according to a car industry bodys figures spurred on by the first annualincrease in demand from private consumers since March despite fears Brexit would hit sales

A total of 174564 new cars were registered last month in Europes second largest market the Society of Motor Manufacturers andTraders said on Monday boosted by a five percent increase in sales to individual consumers

Analysts predict the British car market will shrink by around five percent in 2017 after two years of record high demand and due tothe Brexit-related fall in the pound pushing up the price of some models

But the chief executive of one of Britains biggest dealership chains Lookers told Reuters key economic fundamentals remained inplace to drive demand

The deals are good unemployment is low and they are the things that have driven growth Andy Bruce said

Demand from business customers for fleet cars the biggest proportion of overall registrations also returned to growth in Januaryafter falling marginally in December

Bruce suggested that an increase in excise duty which will be paid on many new car sales due to come into force in April might bebringing forward some demand to the first three months of the year

There will be an element of pull-forward in my view that people will be clamouring to get whats available today rather than orderingcars that will fall into quarter two he said httpautoeconomictimesindiatimescomnewsindustryuk-new-car-sales-rise-by-3-in-january-boosted-by-consumer-demand57001257

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JLRs increased investment export of other British goods to China has a new twist ReutersSee this story in The Economic Times

Solihull England Each aluminium Land Rover body that rolls along the production line at Solihull carries a lengthy sheet of papergiving the vehicles specifications At the top of the build card is the name of the country for which the vehicle is destined

In recent years around one in five of the cards has had China printed on it

I often think how rich are the people in China They buy so many said line worker George Baker amid a cacophony of forklifthorns beeping machinery and trumpeting line stoppage alarms

Jaguar Land Rover (JLR) owned by Indias Tata Motors increased sales to China from around 250 million pounds in its 2009financial year to almost 8 billion pounds in 2014-2015 allowing it to more than double its UK workforce

Jaguars success and deals to export other British goods and services worth billions of pounds are cited as examples of theopportunities for selling into China and of how the government can help open the door for British companies

Exploiting those opportunities is especially urgent since Britain voted last year to leave the European Union a fact well understoodby Prime Minister Theresa May who needs fast-growing markets like China to make up the numbers that may be missing soonfrom its European trade

But the impressive deals touted by the government are not quite what they seem a Reuters analysis of the figures shows

The value of announced deals to export British goods and services to China since 2010 adds up to 36 billion pounds according toofficial government releases over the period often issued around the time of ministerial visits to Beijing

However a Reuters examination of company statements corporate filings and interviews with executives shows the value of actualexports from those deals have totalled less than 6 billion pounds

The upshot government figures are giving an overly rosy picture of the state of UK-China trade economists said

If you look at these headline deals and they have a big number on them I think thats not really very informative said HolgerBreinlich professor of international economics at the University of Nottingham

You have to look at the small print and whats being spent in the UK

The Reuters analysis highlights the challenges British companies face in China with whom the UK has a ballooning deficit and howeven a post-Brexit free trade deal may fail to accelerate exports

The government declined to comment on the conclusions reached for this story A spokeswoman for the Department of International

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 25: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Trade said the announced trade and investment deals would help retain or even grow jobs in the UK and will have benefits for theExchequer too

CHINESE CHALLENGESThere are a variety of reasons why the deals have turned out smaller than announced

For one thing more than 3 billion pounds worth of deals were preliminary agreements that were never completed

In other cases the amounts cited were for the overall value of a project in which the UK entity had a small role

For example in 2013 the government touted a 6-billion-pound deal between Oxford University and China Construction Bank (CCB)to help fund research into regenerative medicine

Donal Bradley head of life sciences at Oxford said the figure referred to the amount of money CCB could contribute towardsresearch work almost all of which would be done in China Oxfords role was largely to provide advice on the creation of newresearch facilities in China

So far the Chinese partner has paid around 15 million pounds to Oxford for its work he said

In some cases deals involved British companies agreeing to provide products that are manufactured outside Britain

For example Thomas Pink was cited as signing a 57 million deal with a Chinese franchisee but the London-based shirt-makerproduces almost all its garments in Asia and Morocco

Government announcements in 2014 and 2015 cited agreements by oil and gas group BP Plc to export 185 billion pounds worth ofliquefied natural gas (LNG) to China But LNG is not produced in the UK and BP typically supplies customers from facilities inIndonesia Trinidad and Australia

Although companies fulfilling contracts from non-UK operations still make profits which can flow back to Britain the impact is muchsmaller

The muting of the announced deals also reflects the reality that Britains strength is more in services than manufacturing

British companies have signed billions of dollars of deals to provide Chinese clients with training product testing architectural andother services in recent years But the services are largely delivered by staff on the ground in China reducing the benefit to theBritish economy

Northumberland-based Annie Barr International provides training to doctors and nurses in China Founder Barr said she had signeddeals worth 57 million pounds in recent years including a contract to open 100 clinics across China

At the early stages it was necessary to send out staff from the UK and her courses used training materials developed by staff in theUK But most of the activity was in China

We wont have too many exports from the UK Barr said

Distance culture language and government procedures around issuing visas for example all make China a harder place for Britishcompanies to do business especially when compared with neighbouring Europe

WIDENING GAPThe trade gap between Britain and China has widened sharply in the past decade with a drop in UK exports in 2015 pushing thedeficit to over 25 billion pounds equivalent to more than 1 percent of Britains GDP

Goods exports to China dropped 18 percent in the first 11 months of 2016 according to the UK tax authority which does notprovide reasons behind its data

The US deficit with China has prompted President Donald Trump to threaten protectionist actions but Britain is taking the oppositetack hoping for more open markets

Ministers have said they want a free trade deal with China but declined to identify their priority market segments saying they werestill in consultation with businesses

Andy Goss Global Sales Director at JLR said his cars can face a Chinese tariff of 25 percent

But other exporters including Rolls Royce which sells aero engines and technology group TestPlant said their products andservices faced low or no tariffs already thanks to World Trade Organization rules

Alan Winters professor of economics at the University of Sussex said non-tariff barriers such as government support forstate-backed enterprises or difficulties in securing permits were bigger limitations on UK businesses competing for Chinesecustomers Trade treaties had a poor track record at tackling such barriers he said

Chinas restrictive banking and insurance regulations are a key hindrance to capitalising on one of Britains biggest competitivestrengths said Guy Dru Drury chief representative in China for the CBI Britains biggest business trade body

He added there was little sign China would open up its financial services sector and instead new Chinese regulations around areaslike data protection were actually making the environment tougher for overseas companies

A spokesman for the Chinese embassy in London said the Chinese government has made unremitted efforts to improve its

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

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Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

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For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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Page 26: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

investment climate and that policies to increase domestic consumption would improve opportunities for exporters to the country

Even where the market outlook is strong for UK companies that may not lead to increased exports however

JLRs exports to China have dipped since the company opened a plant in China in late 2014 for example

The authorities in China want us to build cars in China Like most governments around the world they want employment in Chinaand they want Chinese parts purchased for the cars Goss said adding the approach was no different to other countries

Because of localisation you are going to see a different pattern of revenues Goss added

This almost certainly will impact overall UK export growth given the increase in JLRs exports generated 60 percent of the growth inUK goods exports to China since 2008httpautoeconomictimesindiatimescomnewsindustryjlrs-increased-investment-export-of-other-british-goods-to-china-has-a-new-twist57008143

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Suzuki Q3 operating profit exceeds forecasts on better margins ReutersSee this story in The Economic Times

Tokyo Suzuki Motor Corp on Monday reported a higher-than-expected rise in third-quarter operating profit on the back of bettermargins while sales remained strong in its biggest market of India

Japans fourth-largest automaker said operating profit rose to 519 billion yen ($46113 million) in October-December up from 451billion yen a year prior and exceeding a median forecast of 4366 billion yen drawn from 10 analysts in a Thomson Reuters IBESpoll

It kept its full-year profit forecast of 1450 billion yen unchanged slightly lower than a median forecast of 14778 billion yen drawnfrom 10 analysts in a Thomson Reuters IBES poll

Suzuki which specialises in ultra-compact cars has benefited from strong demand for its higher-margin vehicles in India whichaccounts for around half of its total global sales This has offset slower sales at home and in other Asian regionshttpautoeconomictimesindiatimescomnewspassenger-vehiclecarssuzuki-q3-operating-profit-exceeds-forecasts-on-better-margins57003085

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Luxembourg launches criminal case over VW emissions scandal - minister ReutersSee this story in The Economic Times

Luxembourg - Luxembourg launched criminal proceedings over the Volkswagen emissions scandal on Monday saying its typeapproval authority was cheated by car manufacturers

Following an investigation into the scandal the countrys infrastructure minister said it was lodging a complaint with prosecutorsagainst unknown culprits

We have decided to launch penal lawsuit against unknown Minister Francois Bausch told journalists on Monday

In documents distributed to reporters Luxembourgs infrastructure ministry described itself as a victim of criminal action that led itto certify cars which it would not have done had the tests not been cheated

Luxembourg is among seven nations under scrutiny by Brussels regulators for failing to impose the kind of penalties Volkswagenhas faced in the United States over its use of illegal defeat device software to mask toxic diesel emissionshttpautoeconomictimesindiatimescomnewsindustryluxembourg-launches-criminal-case-over-vw-emissions-scandal-minister57004674

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Takata shares untraded with heavy sell orders KSS seen backing restructuring ReutersSee this story in The Economic Times

Tokyo Shares in Japans Takata Corp were untraded with a glut of sell orders on Monday after sources said the struggling air bagmaker had selected Key Safety Systems (KSS) as the final bidder for its restructuring raising a concern that the US auto partssupplier could lead Takata into a bankruptcy

Reuters reported on Saturday that Takatas steering committee leading the selection process told the parts makers automakerclients that it has tapped KSS owned by Chinas Ningbo Joyson to back Takatas restructuring

KSS was among bidders which have favoured a court-led turnaround of Takata which would cap their exposure to Takatas existing

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

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Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

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Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

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Page 27: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

liabilities estimated by some analysts to be as high as $10 billion for recall costs alone sources have told Reuters previously

If Takata files for a bankruptcy protection it is likely that value in equities will be wiped out which is a huge blow for shareholdersincluding the founding Takata family

Takata has been seeking financial backers through the selection process to help it deal with billions of dollars in costs related to therecall of millions of potentially defective air bag inflators that have been linked to at least 16 deaths globally

Bidders for Takatas turn around included Swedens airbag maker Autoliv Inc and Japans chemical maker Daicel Corp sourceshave previously told Reutershttpautoeconomictimesindiatimescomnewsauto-financetakata-shares-untraded-with-heavy-sell-orders-kss-seen-backing-restructuring56992422

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Volvo main factory in Gothenburg hit by violent fire AFPSee this story in The Economic Times

Stockholm A fire broke out Monday inside the worlds largest Volvo factory in Gothenburg authorities said prompting anevacuation of the industrial premises

Emergency services have been alerted to the scene and the police are following to support emergency services in the event of firebarriers Gothenburg police said in a statement

Described in local media as a violent fire released images showed smoke coming out of the Volvo factorys roof in Torslanda aremote area in Gothenburg

Six fire stations and 40 firefighters are working to extinguish the fire local relief services said in a statement

It is burning very hard here Stellan Andersson a Volvo fire technician told the Goteborgs-Posten daily No injuries have beenreportedhttpautoeconomictimesindiatimescomnewsindustryvolvos-main-factory-in-gothenburg-hit-by-violent-fire57006261

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Who is Carlos Ghosn His first stint with automotive industry at Michelin The Economic Times

After publishing the first installment of the multi-part series of My Personal History Carlos Ghosn which talked about his early lifeand education career today we present to you the second part of the series The second chapter talks about Ghosns first step intothe world of automotive industry - his stint with tire manufacturer Michelin

End of Student Chapter amp Embark on a New Adventure with MichelinOne day in May 1978 at around 830 in the morning I woke up to the jarring sound of the phone ringing When I answered theman on the other end of the line identified himself as Hidalgo

The Michelin Company in France would like to expand its business in Brazil he said They need French engineers who arefamiliar with the local environment Would you like to have an interview in Clermont-Ferrand

The catalyst for this call was my sister who had told Hidalgo about me in Brazil At the time I was 24 years old I had progressed tothe second masters level of the grandes ecoles universities earning a degree at the Ecole des Mines I was considering entering adoctoral program in economics and hadnt thought much about starting my career

But the word Brazil rang in my ears I hadnt lived there for 18 years but it was my birthplace and my spiritual home

I took the interview It went well - the company was clearly interested in hiring me and it wasnt long before they made me an offer

It was a time of personal and professional growth Michelin often gave freshman employees the chance to suggest ideas onimportant issues such as how to make production processes more efficient or how to best manage raw latex

After training we were each assigned a plant Le Puy where large tires were manufactured was my first assignment I had aninterest in improving productivity and toured the site many times every day The importance of effective communication quicklybecame apparent to me and was reinforced every day This wasnt something I had learned in my schooling but it was one of thebiggest lessons from my early career

I traveled to plants around Europe and soon got my big break It was a global era for Michelin Management was targeting oneoverseas location after another and the company turned to a younger generation of executives I was promoted to manager of theplant in Le Puy in my third year with the company at the age of 26

My main challenge was to build trust and relationships with my older subordinates I spent a lot of time cultivating teams that couldsolve problems together Two years passed and when the management of the factory was fully on track someone appeared fromthe headquarters office It was Francois Michelin himself and he had a new opportunity to offer me

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

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A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

Top

Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

Top

Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

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Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

Page 28: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Handling the Turbulence and Triumph in BrazilWhat you learned by working beside Francois Michelin was that he was also sophisticated dignified and polite Michelinsglobalisation was a result of his acumen and ability

He offered me a job working at Michelin headquarters under Behrouz Chahid-Nourai the chief financial officer Two experienceswould be critical to my career The first was the development of cross-manufacturing - a principle that would serve me well in thisjob and all others

Another key opportunity was the chance to work with Chahid-Nourai He taught me the concepts and practices of cutting-edgecorporate finance including the techniques for optimizing resources Seven years after I joined the company Francois Michelin sentme to Brazil which opened a big door for me

In 1985 I was finally transferred to Rio de Janeiro where I could be close to my parents and sisters However the plight of MichelinBrazil made it far less than an ideal situation The country was mired in political unrest dealing with a financial crisis and had untilrecently been ruled by a military regime Hyperinflation had exceeded 1000 a year and businesses there were experiencingmassive losses In fact huge debt was becoming Michelins primary concern in Brazil

Despite these challenges I considered the country to be a potential treasure trove of opportunity for Michelin Brazils naturalresources were abundant and its enormous market potential was comparable to that of China Russia and India

I worked hard to implement reforms I initiated negotiations with the government trying to secure approval to raise prices Extrememeasures were required And while the people at Michelin headquarters in Clermont-Ferrand were frustrated I was steadfast in myresolve In the end I was able to resurrect the Brazilian operations and establish segment leadership in the marketplace

Around this time however the labor union movement grew more violent and worker strikes became more frequent One daydespite being cautioned against it by the managers around me I went alone to a factory whose workers were on strike to hear theirconcerns I did not encounter any hostility all they wanted to do was talk

After three years of turbulence the Brazilian operations stabilised I was 31 years old at the time If I think about it now my actionsrepresented youthful indiscretion but I believe I was right to maintain a bullish approach toward growth

One day I received a message from Francois Michelin saying The old married couple would like to visit Brazil I was grateful Theboss I trusted was watching over me He came to Brazil with his wife in 1987 I spent 10 days with him touring factories andplantations all over the country

After he returned home I was presented with another challenge that would reshape my career I was to go to the US a fiercelycompetitive region and Michelins biggest overseas market I was told that Francois Michelin wanted to leave everything to me Afterthe Christmas holidays my young family and I left my homeland once again

Big Challenges in Worlds Toughest MarketIn February of 1989 I arrived in the US to start my new assignment My family and I would be living in Greenville South Carolina asmall town with traces of the Old South It was a highly religious and welcoming place and we basked in the warmth of southernhospitality

When I got there we were a family of three Our second and third daughters and our first son would be born in the US It was ahappy time in my life not only because of our growing family but also because of the rewarding work My mission was to leadMichelins acquisition of Uniroyal Goodrich a major US tire company during a time of economic downturn

At the time the US had the biggest auto market in the world and Michelin had to establish a strong presence if we wanted to be acontender I felt considerable pressure from headquarters and competition was fierce Goodyear a US company was the industryleader in tire manufacturing and Japans Bridgestone had just acquired the legendary US brand Firestone Michelin had no time towaste

The acquisition of Uniroyal was approved in the early 1990s and we faced some problems right away Uniroyal had a largeinventory of old equipment and had not invested in replacing key parts making production slow and inefficient Under the terms ofthe acquisition agreement Michelin had negotiated the closures of three plants in North America which was met with heavycriticism We simply could not afford them This earned me the nickname The Cost Cutter But I didnt mind - I knew cost-efficiencywas the pathway to recovery

Cost cutting was only part of the strategy We also needed to fully integrate the business to achieve maximum synergies To do thisI created an executive committee composed of the most talented people from Michelin and Uniroyal This would be the firstunsophisticated model of the cross-functional team utilised with success in the Nissan Revival Plan a decade later

The fusion of cultures was the first big challenge for Michelin As a provincial company from Frances Auvergne region its way ofdoing business was different than that of US companies If we wanted to leap forward as a global company the US focus onshort-term profit would need to come together with the European family-owned management style which focuses on long-termresults

This was a time for me to personally learn by doing In Brazil I had battled against the government to raise prices but in the US Ibattled rivals in the market Competition was everything

We had meaningful successes Uniroyal was one of the most significant suppliers of tires for what was then the worlds largestcarmaker General Motors We were also able to establish contact with Japanese automakers I traveled several times to the NorthAmerican plants of Toyota Motor Honda Motor and Nissan Motor including Nissans plant in Smyrna Tennessee Japanesecarmakers were on a roll at this time and I had a feeling that they would climb to the top of the worlds automotive industry andsoon

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

Top

A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

Top

Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

Top

Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

Top

Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

Page 29: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

I also learned a great deal about leadership There were many impressive leaders in the automotive industry including Lee Iacoccaand Robert Lutz who left Ford Motor for Chrysler and served as vice president under Mr Iacocca Lutz was an important influenceon my leadership and communication style and we have stayed in contact over the years

In short things in the US were going very well Then I received a call from Francois Michelin He was sending his son to come workfor me

After 18 Years at Michelin Ready for a New ChapterEdouard was the youngest son of Francois Michelin When he arrived to work for me I put him in charge of our critically importanttruck-tire manufacturing and sales departments His good manners and respect for US customs earned him an excellent reputationamong his colleagues

Because Michelin was a family-owned business it was assumed that Edouard would succeed his father As such I never expectedI would reach the very top of the company ampndash I did not have the right last name

In 1996 after about seven years of working in the US there was a major restructuring of the business I was put in charge of ourglobal tire operations for passenger cars and small trucks and served as the president of the North America office Essentially Ihad climbed to the No 2 position

But would I be happy to stay in that position forever knowing I couldnt climb higher I wasnt so sure So when I received a callfrom a headhunter an alumnus of the Ecole Polytechnique I agreed to meet Over dinner he asked if I was interested in theautomotive industry Renault was looking for a No 2 who could eventually rise to be the top executive He arranged a meetingbetween me and Renault Chairman Louis Schweitzer

My main motivation for taking the job at Renault wasnt the prospect of one day running the company Rather I was interested in theopportunity to study new things and take on new challenges I had always been interested in cars and complex products thatrequired teams of people and supply chains to work in close coordination

After a board meeting I notified Francois about the meeting with Schweitzer and my intention to leave Michelin For a moment heseemed surprised but then he said simply Please let Edouard know

After 18 years at Michelin my heart was heavy at the thought of leaving - both the company and Francoishttpautoeconomictimesindiatimescomnewsindustrywho-is-carlos-ghosn-his-first-stint-with-automotive-industry-at-michelin56994358

Top

A $42900 sports sedan revs up competition The Economic Times

The car is smaller and sportier than other high-end vehicles in the same categoryThe 2 017 Audi S 3 is sma l ler a nd spor tier and costs a pretty penny $42900 The sports sedan sits in the rare position o f h av in g n o d i r e c t competitors which in turn allows it to compete against all newcomers who dare to challenge its frame

Audi says its for the ampldquosophisticatedampldquo driver who wants to ampldquolive life in the fast lane-or leave the crowdbehindampldquo

Its all in the looksCosmetic changes have been made to this years S3 over previous generations There are some new creases and cornering aroundthe angular LED headlights and the signature large Audi grille the intakes have been lowered as well

Red S3 badging 19-inch wheels (part of a $1500 drivers package) and red caliper brakes ($400) help denote that the S3 is special t han ot her sedans

Good value but it could be fasterS 3 h o w e v e r falters with fuel economy It can achieve 21 mpg in the city and 28 mpg on the highway

The S3 has 20 litre 292hp I4 engine which lags behind the power of the 335 inline-six BMW M 2 a nd 3 75 hp of t he i n li ne -fou rMercedes CLA45 AMG It reaches zero to 60 mph speeds in 47 seconds

It boasts of six-speed transmission and the Quattro all-wheel drive

It also comes with climate control heated seats a parking system and rear-view camera and a panoramic sunroof The rear seat isviable for adultsized legs and the spacious trunk suits as road tripfriendly companion

Top

Automakers are betting on a hydrogen-fuelled future The Economic Times

Not many people are familiar with hydrogen powered cars and from an infrastructure stand point purely electric vehicles makemore sense For example there are 15431 electric stations in the United States today and only 33 hydrogen stations in the entireUS according to the US Department of Energy

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

Top

Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

Top

Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

Page 30: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Yet General Motors and Honda recently made a big move to make hydrogen cars a reality The hydrogenpowered cars boastlonger ranges and much shorter re-fill time than their electric counterparts Heres a quick look at the most promisinghydrogenpowered cars

1 The best car to start with is the Honda Clarity which the auto giant began leasing in California at the end of 2016The EPArecently gave the car an estimated range of 366 miles -the longest range of any zero-emissions vehicleHonda says the Clarity hasa refuel time of just three to five minutes

2 General Motors revealed its monster of a hydrogen-pow ered car late last year The car comes with 37-inch tires and stands atmore than 65-feet tall and 7-feet wide The US Army will test the car in extreme conditions in 2017 to determine whether its viablefor missions GM says it has achieved 31 million miles of hydrogen fuel cell testing

3 Toyota has been working on hydrogen-powered cars the longest having put 23 years into the technolog y T he Toyota Mirai hasan EPA estimated range of 312 miles and refuels in just five minutes It comes with a front radar sensor and camera that allows it todetect lane drift and alert the driver It also comes with automatic emergency braking

4 Lexus whose parent compa ny is Toyota wants to unveil its hydrogen-powered car in 2020 but we are yet to hear details on itsrange or other specs The car comes with high-tech perks like a display that can be controlled with simple hand gestures

5 Audi unveiled a concept car the h-tron quattro in 2016 that the automaker says can drive 372 miles on hydrogen aloneAudi saysthe mustard yellow fuel cell car can go from 0 to 62 miles per hour in under 71 seconds The h-tron quattro comes with a `virtualcockpit that replaces the instrument panel and center console with digital screens

6 Ford is aiming to launch the first affordable mass-market hydrogen fuelled vehicle by 2017 In January 2013 Ford announcedthat it was teaming up with Mercedes-Benzs parent company Daimler and Nissan to accelerate the creation of fuel celltechnologyTheres no word yet on how the car will perform

7 Mercedes-Benz will launch its plug-in hydrogen car called the GLC F-Cell sometime this year The automaker says it will have anall-electric range of 30 miles and a collective range of 310 miles with the hydrogen fuel cell The hydrogen tank can be refilled in justthree minutes

8 Startup Nikola Moto Company unveiled its hyd rogen-powered truck recently that it said will have a range of 124 miles Nikolaplans to finish building out an infrastructure of 364 hydrogen stations starting by 2019 The hydrogen-powered truck will cost $5000to $7000 a month to lease and is slated to arrive in 2020

Top

Volkswagen plans to cap CEO pay at 10 million euros Source ReutersThe Financial Express

Hamburg Volkswagen is planning to cap the pay package of its chief executive at 10 million euros ($107 million) and keep pay formanagement board members below that a source familiar with the matter said

Under the plans executives would receive a higher fixed salary and lower variable pay and bonuses would be tied to dividends andthe Volkswagen (VW) stock price business daily Handelsblatt reported earlier on Monday

Executives would also invest in company shares which would then be held for several years the paper added VWamprsquossupervisory board has been working on new executive pay rules for some time The 20-member panel is due to discuss the plans atits next meeting on Feb 24 the source saidA spokesman at VWamprsquos Wolfsburg-based headquarters declined to comment as did the carmakeramprsquos works councilwhose members occupy about half the supervisory boardamprsquos seats

The company has come under fire over executive pay before Former CEO Martin Winterkorn used to be the best paid CEO amongGerman blue-chip firms receiving just under 16 million euros in 2014 In 2015 that was halved but he still received 73 million eurosin fixed and variable compensation despite the companyamprsquos stock plunging on the back of an emissions scandal

Last month the carmakeramprsquos compliance chief left after just over one year in the job following a falling out reportedly receivingaround 12 million euroshttpwwwfinancialexpresscomindustryvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source540143Volkswagen plans to cap CEO pay at 10 million euros sourceThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesvolkswagen-plans-to-cap-ceo-pay-at-10-million-euros-source-4511179

Top

Tata to showcase two-door sportscar at Geneva Deccan Chronicle

Tata has introduced its new sub-brand TAMO that aims to transform the auto market and as Tata calls it is FutuReady Underthe sub-brand TAMO a compact two-door coupe will firstly be introduced Although no details except a few pictures of the conceptunder drapes have been shared it will be showcased at the upcoming Geneva Motor Show in March

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

Page 31: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

First step - a sports carTAMOs first offering will be what looks like a compact two-door coupe Sadly the brand has shared nothing more than a picture ofthe concept under drapes But it does look super exciting Tata Motors have confirmed that the official debut will take place inMarch at the Geneva Motor Show

But what exactly is TAMO

TAMO will function as a separate vertical under the Tata Motors passenger vehicle division Guenter Butschek MD amp CEO at TataMotors stressed that the sub-brand will focus on low investment low volume products TAMO will also network with global techstartups and companies in a bid to stay ahead of the curve and be agile in delivering products to the market

Tata currently uses six different platforms that underpins everything from the Nano to the new Hexa and the Tiago The brand willbe reducing that to just two The new platform is called AMP -- thats short for Advanced Modular Platform The platform can serveas the base for everything from a hatchback to a full-blown SUV Tata has also let slip the fact that the platform will supportelectrification hybridization and autonomous driving tech as well

The first product to be based on the new AMP platform will be rolled out in 2018 Subsequently all products will be moved to thenew platform or phased out altogether

We expect TAMO to push the envelope with respect to design and drivetrains It is too early to comment on whats likely to be onofferhttpwwwdeccanchroniclecombusinessautos060217tata-to-showcase-two-door-sportscar-at-genevahtml

Top

Economy

Rupee gains 9 paise to end at 6722 against US dollar PTIThe Hindu Business Line

Mumbai The rupee rose 9 paise to end at 6722 against the US dollar following sustained bouts of dollar selling by banks andexporters on the back of firm domestic equity market

672100 672350 671400 672200

The rupee opened higher by 10 paise at 6721 as against Fridayamprsquos closing level of 6731 per dollar at the Interbank ForeignExchange (Forex) Market

The domestic unit hovered between 6723 and 6714 per dollar in intra-day deals

Overseas the dollar started the week on the back foot after US data showed a smallerampmdashthanampmdashexpected rise in wagesin January that reinforced expectations the Federal Reserve will refrain from raising interest rates next monthhttpwwwthehindubusinesslinecommarketsforexrupee-live-updatearticle9523242ece

Top

For fourth straight day Sensex hits 4-month high PTISee this story in The Economic Times

Mumbai The Budget-induced optimism got a leg to stand on as the Sensex on Monday pushed higher for the fourth day by scoring199 points to close at 28439 -- a 4-month high -- after hopes built up that RBI might go in for a rate cut at the Wednesdays policymeet

The NSE Nifty retook the crucial 8800-mark on Monday

At its last policy review in December RBI in a surprise move had decided to leave rates unchanged but this time a lower retailinflation and fiscal discipline as shown in the Budget have prompted calls for RBI to remain accommodative

Global leads aligned as most Asian shares ended higher tracking weekend gains in the US on better-than-expected jump in USjobs and a move by President Donald Trump to cut back financial regulations accelerating buying pace by investors

The 30-share Sensex ended up 19876 points or 070 per cent at 2843928 its highest closing since September 23 last year whenit had closed at 2866822 Intra-day it sprang to a high of 2848728 The gauge had rallied 58456 points in the previous threesessions after the presentation of the Budget on February 1

The NSE Nifty regained control of the 8800-mark and added 6010 points or 069 per cent at 880105 at the close On September23 the index finished at 883155 Markets continued to be buoyant on the expectation of rate cut by RBI and positive global cues

We are seeing continuation of rally in the rate sensitive sectors led by reality banks and FMCG which were also supported by

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

Top

Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

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NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

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Page 32: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Budget related sops said Vinod Nair Head of Research Geojit BNP Paribas Financial Services Major European indices stayed inthe positive zone too Data showed that foreign institutional investors bought shares worth Rs 35384 crore last Friday adding tothe level of optimism

The rupee appreciated for the 9th straight day to trade at a fresh 2-12 month high of 6714 (intra-day) against the dollar keepingthe overall mood upbeat

A good 22 stocks in the 30-share Sensex pack advanced while 8 turned lower Sun Pharma led the charge by surging 420 per centwhile ICICI Bank zoomed 318 per cent

Adani Ports Axis Bank Hero MotoCorp ITC HUL GAIL NTPC Asian Paints Wipro RIL Tata Motors Maruti Suzuki and LampTsupported the ongoing bull run

BSE realty jumped the most (up 190 per cent) followed by FMCG (128 per cent) healthcare (127 per cent) and consumerdurables (127 per cent)Broader markets remained in the green too with the mid-cap index advancing 110 per cent and small-cap 088 per cent Realtystocks continued their upward journey buoyed by the infrastructure status to affordable housing in the Budget 2017-18 toencourage investment in the segment which offered tax sops to developers to complete unsold inventories

In the realty space HDIL soared 780 per cent Godrej Properties surged 332 per cent Prestige Estates Projects 283 per cent andDLF 132 per cent Asian shares led by Hong Kong closed higher In Europe Londons FTSE was up 023 per cent and Paris CAC40 014 per cent while Frankfurt edged down 014 per centhttpautoeconomictimesindiatimescomnewsindustryfor-fourth-straight-day-sensex-hits-4-month-high57008008

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Closing

Last Financial Closing

Sensex 2843928 (+19876)NSE 880105 (+6010)US$ spot Rs6722US$ Y1117900US$ 6 months RsYen Rs60Euro spot Rs7213

Gold (10gm) Rs29104Silver (1kg) Rs4228600

Crude Oil (WTI) Crude Oil (Brent) $5683 (+002)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 18215Asahi Ind 1 20090Amara Raja B 1 89275Ashok Leyland 1 9510Bajaj Auto 10 279940Bharat Forge 2 98915Denso 1 Eicher Motor 10 2374550Escorts 10 38315Exide Ind 1 20810Force Motors 10 428350Gabriel India 1 11295Hero Motocor 2 327045Hind Motors 5 1015Hi-Tech Gear 10 32610Jay Bh Maruti 5 34605

Jamna Auto 5 19235JK Tyres amp Inds 10 12135Kinetic Motors 10

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

Powered by Enablingbiz Esoluttions

Page 33: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

Kinetic Engg 10 KOEL 2 34525Kirloskar Br 2 24155LML Ltd 10 1320LampT 2 148380Lumax Ind 10 120155Lumax Tech 10 44035MampM 5 126590Maruti Suzuki 5 614970Motherson SS 1 33930Minda Inds 2 38410MRF 10 5024005Omax Auto 10 7420Rico Auto 1 5875Sona Koyo St 1 8120

SRF 10 173090Tata Motors 2 52585 TVS Motors 1 39605

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5895Hindalco 1 19010Hind Zinc 2 31495JSW Ispat S 10 Jind Steel 1 9070JSW Steel 1 19235Jindal Saw 2 6020National Aluminium 5 7140SAIL 10 6575Tata Steel 10 47340Visa Steel 10 2185

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23960Binani Industries 10 8410Birla Corp 10 75445India Cement 10 16425Prism Cement 10 11230JK Cement 10 80125Shree Cement 10 1599255

Top

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

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Page 34: Indian Auto Industry Update · Indian Auto Industry Update 07 Feb 2017 Industry Note on vehicle scrapping policy with Committee of Secretaries: Govt Two-wheeler sales hit speed bump

NURC MediaNext Pvt Ltd

DirectorSapna KulshresthaMobile 9810975257

Production-in-ChargeS K MandalPhone 011-22626650

Editing-in-ChargeGulab Singh YadavMobile 9999132357

Marketing-in-ChargeRashmi ThakurMobile 9958949710

Accounts-in-ChargeVimal ParasharMobile 9910631712

PLEASE NOTE

NURC Industry Updates contain editedtruncated text of Industry-specific news as it appears in various select dailies and websites These are NOT full stories unless otherwisespecifically mentioned The stories contained herein are informational only and no representation is made or warranty given as to their content reliability truthfulness orusefulness User assumes all risk of use It be clearly understood that NURC updates do not claim to and neither mean to replace the Print or the Internet editions of variousnewspapers whose articles are featured therein For the best and complete news reading NURC urges its readers to read the full text of the stories from the Newspaperswhose credits are given after the headline and visit the related website whose URL is given below the text matter of each news item

NURC News Update - AUTOMOBILES

News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

This update purports to be a compilation of the top stories for the day in the leading Indian and International dailies websites and other information sources and NURCMediaNext Pvt Ltd cannot and does not vouch for their authenticity NURC MediaNext Pvt Ltd cannot be held responsible for any loss(es) arising out of or incidental to theuse of this News Update Reproduction or redistribution without express permission of NURC MediaNext Pvt Ltd is strictly prohibited and is a violation of the subscriptionagreement Such instances will result in immediate cancellation of subscription to the Service without any refund for the remaining period at the sole discretion of NURCMediaNext Pvt Ltd

This email is a solicited newsletter We sent you this email because youyour employer organisation signed up for our daily industry updates If you do not wishto receive these email updates in future please contact us at vimalpnurcmedianextcom to unsubscribe

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