Published July 13th, 2007
in Bikes.
It’s not just the domestic segment where the auto industry is witnessing a slowdown, even the export market is growing at a lower pace with sales growth figures for the first quarter of 2007-08 turning out to be lower compared to the corresponding period in 2006-07 according to the SIAM report.
In exports, while passenger cars and scooter-scooterettes sales have declined, the commercial vehicles, three-wheelers and motorcycles have recorded lower growth rates than the previous fiscal.
“There has been a relative decline in exports, but it is difficult to expect 50 per cent growth every year in certain categories. But we are anticipating 40 per cent growth in exports across all segments in this fiscal,” said Mr Dilip Chenoy, Director-General, Society of Indian Automobile Manufacturers (SIAM). More
Courtesy:www.indiacar.net
Published July 13th, 2007
in Uncategorized and Research/Surveys.
The Foreign Investment Promotion Board (FIPB) has cleared a proposal from Japanese giant Furukawa Electric for setting up a joint venture in India to design and manufacture auto components. The manufacturing facility is likely to be located in Haryana and the Japanese partner would hold a 51% stake in the venture.
This is Furukawa’s first investment in India. Till now, the Japanese giant’s exposure to India was restricted to a technical collaboration with Delphi Automotive Systems.
The Indian venture of Furukawa will be called Minda Furukawa and the Indian partner is San Fin Lease and Investments, a Delhi-based company engaged in the auto component business.
More
Courtesy:economictimes.indiatimes.com
Published July 13th, 2007
in tyres.
Tyre major JK Tyre is planning to invest Rs 1,100 crore over the next three years to expand its production capacity as it sees its revenues crossing Rs 5,000 crore mark by then.
“To meet the increased demand for radial and off the road (OTR) tyres, we will invest Rs 1,100 crore in expanding our production capacity by 2010,” said, JK Tyre and Industries Finance Director A K Kinra.
He said the company would fund the expansion plans through a mix of debt and internal accruals.
More
Courtesy:economictimes.indiatimes.com
Published July 13th, 2007
in Bajaj auto.
Bajaj Auto Ltd, India’s second- biggest motorcycle maker, said profitability will increase in the second half of the fiscal year as it introduces new models to woo buyers deterred by higher borrowing costs. The stock rose.
Bajaj, whose profit declined in the past two quarters, will introduce a new motorcycle in September and sell models with higher margins to improve net income, the company said in a statement. Bajaj today reported profit fell 15 percent in its first quarter to Rs 2.26 billion ($56 million), below the median analyst estimate of Rs 2.51 billion. More
Courtesy:economictimes.indiatimes.com
Published July 13th, 2007
in Bikes.
Pune, With the cessation of the production of geared scooters, the manufacturing activity of Maharashtra Scooters Ltd has been limited to the manufacturing of pressure die casting dyes primarily for the two and three-wheeler industry.
At the annual general meeting held here on Wednesday, it was stated that during the first quarter of the current fiscal, the company has made a total income of Rs 63 lakh in the tool room as against Rs 96 lakh for the corresponding period last year.
Net sales have touched Rs 490 lakh (Rs 688 lakh). It was also stated that the company sold 2,042 finished units of scooters which were in stock as on April 1, 2006. More
Courtesy:www.indiacar.net
Published July 13th, 2007
in Bajaj auto and Tvs motor.
Skidding consumer demand has forced two-wheeler majors to withdraw dealer discounts to shore up profit margins in a highly distressed market. For the first time in several years, motorcycle sales, which recorded double-digit growth, have dropped 10% in the past few months with overall two-wheeler sales falling 8-9%.
The key reason for the slump is spiralling interest rates on loans which have soared from 8-9% to 14-15%. This has squeezed the consumer’s ability to borrow. More than 70% of two-wheeler purchases are through loans, with the rural market accounting for more than half the two-wheeler sales. Consumers are shying away from expensive loans and putting off purchases, top industry officials said. More
Courtesy:economictimes.indiatimes.com
Published July 13th, 2007
in Bikes.
Kinetic Motor Company has signed on actor-model Bipasha Basu as the brand ambassador for its upcoming Kinetic SYM scooter, Ms Sulajja Firodia Motwani, Managing Director of the company, said.
The actor has been signed for a contract period of one-and-a-half years. “Though she can endorse all Kinetic models, we would primarily see her endorse the upcoming Kinetic SYM model,” said Mr Ajinkya Firodia, Vice-President, Marketing and Sales.The new 125 cc scooter is primarily targeted at female customers. Hence the company conducted a study for the right celebrity (actress) to endorse the product. Bipasha Basu was the unanimous choice. More
Courtesy:www.indiacar.net
Published July 13th, 2007
in Bajaj auto.
The Bajaj Auto demerger, approved by its board of directors on May 17, now has a timeline. The Bombay High Court has asked the two- and three-wheeler major to hold an extraordinary general body meeting (EGM) of its shareholders on August 18.
The outcome of this shareholder meeting will require the approval of the high court, which could take till November-December, Rahul Bajaj, chairman, Bajaj Auto, said.
“The effective date of the de-merger of Bajaj Auto will be sometime in November-December, when the high court approves the scheme which shareholders will vote on August 18, following the stock exchanges having given their no objection letters. More
Courtesy:economictimes.indiatimes.com
