Indian Auto Industry Update

04 April 2017

IndustryGovernment sets up National Board for Electric Mobility

Tata Motors shares gain as arm bags order to export Made-in-India robot to Europe

BS-III Vehicle Ban India witnesses highest ever retail sales of 8 lakh units in two days

Interviews amp FeaturesLong waiting period for Maruti cars to continue this year too RC Bhargava

Maruti to stay at the top unchallenged for many-many years Hormazd Sorabjee Editor Autocar India

Still a long way to go to match Hero MotoCorp says Hondaamprsquos Noriaki Abe

Note ban and massive discounts have affected retail sales Bajaj

amplsquoAuto sector has been penalised for not doing something that they were not asked to doamprsquo Pawan Goenka

Cars SUVs MUVsTata Motors Sanand plant to touch 100 capacity in a few months

Tata Motors lauches compact sedan Tigor in Rajasthan

Revisit Maruti ruling BMS to Haryana govt

Honda dispatches 3833 units of WR-V in March

Luxury CarsCommercial Vehicles

Ashok Leyland sales up 12 in March at 18682 units

For truck-makers BS-III ban to cost Rs 2500 cr Crisil

Volvo Eicher Commercial Vehicles posts 85 sales growth in March

BS-IV norms likely to trigger more demand for AMT commercial vehicles

Construction amp Agri MachineryEscorts tractors post 317 growth in domestic sales in March

23 WheelersSuzuki Motorcycle sales up 74 at 36029 units in March

TVS Motor posts 10 growth in sales in the month March 2017

BS-III ban to shave Rs 600 crore off two-wheeler makers margins

Honda 2-wheelers for the first time crosses 5 million mark in total sales

Two and three wheelers sales inch up in March

Hero MotoCorp sells 609 lakh units in March 2017

Bajaj Motorcycles sales in domestic market decline by 14 in March 2017

About 3000 units of Kinetic Safar to be exported to Asian countries in FYamprsquo18

Atul Auto sells 3174 units in March 2017

Honda 2Wheelers tops JD Power performance amp layout study

E-BikesComponents

Steel Strips Wheels records 35 growth in total wheel rim sales in March

Allied IndustriesApollo Ceat and JK in race to buy defunct Falcon Tyres

Tolin Tyres faces Delhi High Court ire for infringing Bridgestone trademark

Emissions Environment

Kolkata still continuing with BS-II emission tests

NGT declines to modify SC order on BS-III vehicles

Finance amp InsuranceInsurance corner IRDAI hikes motor third party premium

Oil Lubricants amp Alternative FuelsOil prices steady rebounding Libyan production weighs

Petronas plans to invest $150 million in Indias lubricant market

News MagazinesSkoda Kodiaq SUV spied testing in India

Volvo S60 Polestar India launch on April 14

Hyundai to expand India model range

Passenger vehicle sales cross 3mn units in 16-17

FAME subsidy on mild hybrids withdrawn

Honda reveals 150SS Racer concept

New 2017 Maruti Swift Dzire spotted

BS-IV fuel launched across country

2017 Mercedes S-class facelift spied

2017 Mercedes-AMG E43 review test drive

International NewsUS March new auto sales fall short of market expectations

Former Volkswagen patriarch Ferdinand Piech to sell bulk of Porsche stake

Hyundai flags weaker China sales after missile row

Architect of modern VW cuts ties with share sale

Volvo opens Rs 140 cr driveline test facility in Sweden

Sale of premium gasoline restricted in Cuba

Yamaha XSR900 bike receives Red Dot design award

Hyundai Motor Kia Motors cut China output amid diplomatic tensions

Meet Daimlers first amphibious vehicle - smart forsea concept car

Tesla reports record deliveries of vehicles in first quarter

German court rebuffs Volkswagen complaint over prosecutors searches

Teslas revamped Roadster could beat its fastest car

Tesla tops quarterly sales forecast sells over 25k vehicles

Italian police force gets Lamborghini Huracan for patrolling

Spark Minda inaugurates its new plant in Mexico invests $10 million

BMW R 1200 GS xDrive Hybrid unveiled

Magna invests in Canadian artificial intelligence research facility

Rheinmetall wins new order for commercial vehicle steel pistons

US used car dealer CarMax shares could drop 20 as risky loans rise

Scania appoints Mikael Cato as its Chief Digital Officer

EconomyRupee tumbles 18 paise to 6503

India Incamprsquos credit quality improved in FY17 says rating agency Crisil

Bullish foreign investors take markets to all-time closing highs

ClosingLast Financial Closing

Industry

Government sets up National Board for Electric Mobility PTISee this story in The Economic Times (Web Edition)

New Delhi More than six years after it was approved by the UPA government the Centre has constituted NBEM to promote electricmobility and manufacturing of electric (amp hybrid) vehicles and their components

The Union Cabinet chaired by former Prime Minister Minister Manmohan Singh had on March 31 2011 cleared the proposals forlaunch of the National Mission for Electric Mobility and setting up of a National Board for Electric Mobility (NBEM) and NationalCouncil for Electric Mobility

The NBEM will examine formulate and propose the short-term and long-term plan and contours of the mission programme onelectric mobility its objectives quantifiable outcomes and roles amp responsibilities of the various stakeholders

It will propose and recommend policy guidelines and government interventions and possible strategies for promoting electricmobility and for encouraging manufacture of electric vehicles in the country

One of its key functions will be to explore and recommend collaborations and tie-ups for technology acquisitions obtaining technicalexperts and explore possible agreements with leading RampD centres globally to facilitate availability of technology to the domesticindustry

The NBEM to be chaired by the Secretary of Department of Heavy Industry will comprise of senior bureaucrats as membersincluding secretaries in the Department of Economic Affairs Department of Revenue Ministry of Power Ministry of Road Transportamp Highways Ministry of Petroleum amp Natural Gas among others

It will also have six nominated members of eminence and expertise from the automobile industry academia and research ampdevelopment These include Vikram Kirloskar CMD Kirloskar Systems Ltd Vinod Dashari MD Ashok Leyland Pawan GoenkaMD Mahindra and Mahindra Annamalai Hemalatha MD Ampere Vehicles Ltd and Sudarshan Venu Joint MD TVS Motors

The nominated members will have a tenure of two years or until further government order whichever is earlier These memberscan be re-nominated for additional terms if needed

The NBEM will coordinate and resolve difference of opinion if any among various ministries It will examine recommend monitorand review electric mobility related RampD projects and pilot projects and also evaluate and propose business models for popularisingelectric mobility

It will formulate strategies and give directions to the various ministries and other stakeholders for implementing the decisions of theNational Council for Electric Mobilityhttpautoeconomictimesindiatimescomnewsindustrygovernment-sets-up-national-board-for-electric-mobility57992110

Top

Tata Motors shares gain as arm bags order to export Made-in-India robot to Europe The Economic Times (Web Edition)

New Delhi Shares of Tata Motors were trading higher in early trade on Monday after the auto major said its wholly ownedsubsidiary TAL Manufacturing announced that BRABO the first Made-in-India robot has received ampldquoCEamprdquo certification forcommercial sale in the European market

The scrip was trading 105 per cent up at Rs 47085 Shares of the company opened at Rs 469 and touched an intraday high andlow of Rs 47225 and Rs 46835 respectively Benchmark BSE Sensex was trading 15536 points or 052 per cent up at2976280

The auto major on April 1 also reported an 8 per cent increase in total sales in March at 57145 units as compared to 53057 units inthe same month last year Cumulative sales of the company for the 2016-17 fiscal stood at 542561 units up 6 per cent over511705 vehicles sold in 2015-16

Over the past one year shares of Tata Motors advanced 2276 per cent to Rs 46595 till March 31 2017 The scrip was trading atRs 37955 on April 1 last year On the other hand benchmark BSE Sensex gained 1722 per cent during the same period

On the BSE 205 lakh shares were traded on the counter so far as against the average daily volumes of 479 lakh shares in thepast two weeks

Shares of the company hit their fresh 52-week high of Rs 59860 on September 7 2016 and 52-week low of Rs 36840 on April 52016httpautoeconomictimesindiatimescomnewsauto-financetata-motors-shares-gain-as-arm-bags-order-to-export-made-in-india-robot-to-europe57989294

Top

BS-III Vehicle Ban India witnesses highest ever retail sales of 8 lakh units in two days Deepanshu TaumarThe Economic Times (Web Edition)

Government sets up National Board for Electric Mobility PTISee this story in The Economic Times (Web Edition)

New Delhi More than six years after it was approved by the UPA government the Centre has constituted NBEM to promote electricmobility and manufacturing of electric (amp hybrid) vehicles and their components

The Union Cabinet chaired by former Prime Minister Minister Manmohan Singh had on March 31 2011 cleared the proposals forlaunch of the National Mission for Electric Mobility and setting up of a National Board for Electric Mobility (NBEM) and NationalCouncil for Electric Mobility

The NBEM will examine formulate and propose the short-term and long-term plan and contours of the mission programme onelectric mobility its objectives quantifiable outcomes and roles amp responsibilities of the various stakeholders

It will propose and recommend policy guidelines and government interventions and possible strategies for promoting electricmobility and for encouraging manufacture of electric vehicles in the country

One of its key functions will be to explore and recommend collaborations and tie-ups for technology acquisitions obtaining technicalexperts and explore possible agreements with leading RampD centres globally to facilitate availability of technology to the domesticindustry

The NBEM to be chaired by the Secretary of Department of Heavy Industry will comprise of senior bureaucrats as membersincluding secretaries in the Department of Economic Affairs Department of Revenue Ministry of Power Ministry of Road Transportamp Highways Ministry of Petroleum amp Natural Gas among others

It will also have six nominated members of eminence and expertise from the automobile industry academia and research ampdevelopment These include Vikram Kirloskar CMD Kirloskar Systems Ltd Vinod Dashari MD Ashok Leyland Pawan GoenkaMD Mahindra and Mahindra Annamalai Hemalatha MD Ampere Vehicles Ltd and Sudarshan Venu Joint MD TVS Motors

The nominated members will have a tenure of two years or until further government order whichever is earlier These memberscan be re-nominated for additional terms if needed

The NBEM will coordinate and resolve difference of opinion if any among various ministries It will examine recommend monitorand review electric mobility related RampD projects and pilot projects and also evaluate and propose business models for popularisingelectric mobility

It will formulate strategies and give directions to the various ministries and other stakeholders for implementing the decisions of theNational Council for Electric Mobilityhttpautoeconomictimesindiatimescomnewsindustrygovernment-sets-up-national-board-for-electric-mobility57992110

Top

Tata Motors shares gain as arm bags order to export Made-in-India robot to Europe The Economic Times (Web Edition)

New Delhi Shares of Tata Motors were trading higher in early trade on Monday after the auto major said its wholly ownedsubsidiary TAL Manufacturing announced that BRABO the first Made-in-India robot has received ampldquoCEamprdquo certification forcommercial sale in the European market

The scrip was trading 105 per cent up at Rs 47085 Shares of the company opened at Rs 469 and touched an intraday high andlow of Rs 47225 and Rs 46835 respectively Benchmark BSE Sensex was trading 15536 points or 052 per cent up at2976280

The auto major on April 1 also reported an 8 per cent increase in total sales in March at 57145 units as compared to 53057 units inthe same month last year Cumulative sales of the company for the 2016-17 fiscal stood at 542561 units up 6 per cent over511705 vehicles sold in 2015-16

Over the past one year shares of Tata Motors advanced 2276 per cent to Rs 46595 till March 31 2017 The scrip was trading atRs 37955 on April 1 last year On the other hand benchmark BSE Sensex gained 1722 per cent during the same period

On the BSE 205 lakh shares were traded on the counter so far as against the average daily volumes of 479 lakh shares in thepast two weeks

Shares of the company hit their fresh 52-week high of Rs 59860 on September 7 2016 and 52-week low of Rs 36840 on April 52016httpautoeconomictimesindiatimescomnewsauto-financetata-motors-shares-gain-as-arm-bags-order-to-export-made-in-india-robot-to-europe57989294

Top

BS-III Vehicle Ban India witnesses highest ever retail sales of 8 lakh units in two days Deepanshu TaumarThe Economic Times (Web Edition)

New Delhi On March 30 it was a very normal working day for IT Engineer Ramesh unless he heard about the massive discountson scooters and motorcycles in the nearest showroom of Noida Always aspiring to have a personal vehicle he immediately rushedtowards the nearest dealership to buy one for himself

After the landmark decision on the ban of sale of BS-III vehicles by Supreme Court on March 29 2017 majority of Indian middleclass like Ramesh who always aspired to own their personal vehicle made their dream come true This is because many twowheeler manufacturers were offering up to Rs 22500 discount

For the first time ever huge queues were seen in front of all the showrooms across the country which eventually exhausted theinventories of vehicle manufacturers

More than 8 lakh vehicles were sold in just two days thanks to the major discounts over popular models by many two wheelermanufacturers According to various dealers across the country most of the inventories in the areas were stocked out on thesecond day by afternoon

When Supreme Court announced its decision on ban of BS-III vehicles more than 9 lakh units were unsold at that time Out of the 9lakh units 751 lakh units were two-wheelers and rest were commercial vehicles and passenger vehicles

So going by the dealer fraternity and other sources all the two wheeler dealers were stocked out so a total of 751 lakh units weresold And given by the fact the discounts were around cars and commercial vehicles a total of 8 lakh units were sold in the last twodays of March

Two-wheeler dealers had the highest inventory at the time of ruling After discounts almost all the dealer went stocked out acrossthe country expect the premium motorcycle showrooms There has police protection across many showrooms It may be the highestrecord-breaking retail sales In the festive season of Dhanteras and Diwali the sales is pretty much well planned as lot ofpre-booking happens in advance This is an absolutely an overnight fire sale I am assuming 5 lakh two wheelers were sold on 1stday itself Nikunj Sanghi former president FADA

India being the largest two-wheeler market with second largest population it is a possibility that it is the first time ever in world that 8lakh vehicle were sold in two days

Almost all the dealers went out of the stock second day evening I expect it to be a record-breaking retail sales In fact somebodytold me that RTOs were jammed pack People who need one scooter or motorcycle bought two to because of heavy discounts Fora new vehicle this was the largest discount given by the companies Abdul Majeed Partner PWC

While it was a happy time for the Motown some environment experts believe that there is no effect of the ruling as the air qualityremains the same As the vehicles which were supposed to sold over few months got sold in two days and they will be on roadsoonhttpautoeconomictimesindiatimescomnewsindustryindias-witnesses-highest-ever-retail-sales-of-8-lakh-units-in-two-days57982657

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Interviews amp Features

Long waiting period for Maruti cars to continue this year too RC Bhargava The Economic Times (Web amp Print Edition)

In a chat with ET Now RC Bhargava Chairman of Maruti Suzuki said the company is targeting a double digit growth of at least 10per cent this year too He also said that the company is working on mild hybrid cars and better fuel efficiency as the nextinnovations in the Indian auto sector

ET Now What is the status of BS-III engine inventory Did Maruti manage to clear all its inventory

RC Bhargava We had introduced BS-IV in 2010 after that we never made a BS-III car so issue of a BS-III vehicle has not beenthere for several years now

ET Now You have been very cautious about slowdown in the industry but your dispatch numbers are doing fantastic so are youbeing conservative every time when you describe your outlook

RC Bhargava Not really because we had predicted double digit sales during 2016-2017 at the beginning of the year The actualnumber which we have achieved is 106 just over double digit so it is what as accurate a prediction as we could have made

ET Now What is your product pipeline over next two years What are the exciting cars that we are going to see from yours table

RC Bhargava I cannot talk about all the new models which are in the pipeline

ET Now Not all of them but just give us a flavour

RC Bhargava We are quite clear that unless we keep producing new models to meet the customers requirements we will not beable to maintain our position in the market Today any car roughly has a model life of about six years and in that six yearssomewhere in the middle you have to do some minor changes and some refurbishment of interiors and exteriors so that there is a

innovated car available in the middle of this six-year period

That is the way the industry is going and our plans roughly conform to this principal that models that are three-years old will undergoa refurbishment models which are six years old roughly will undergo a new model

ET Now Can you tell us how much of your sales in any projected year come from new launches

RC Bhargava I am not sure if I can give you the exact number but the additional sales are largely coming from new models Theolder models do not provide much growth so if you want to grow 10 a year then that 10 will mostly come from the new modellaunches in that year

ET Now In 2016-2017 even with issues like note ban and slow rural activity Maruti had more demand and less capacity with longwaiting period What is the situation this year

RC Bhargava This year Gujarat will probably produce something around between 150000-175000 cars which is roughly aroundthe same number we produce in Haryana plant But our backlog orders are already about 130000 to 140000 cars and if you addthe normal growth of market demand and demand for new models launching this year I feel we will still unfortunately continue withbacklogs in some of the models

ET Now What could be you guidance number for FY18

RC Bhargava As we have said earlier also we want to maintain double-digit growth So our internal target in 2017-2018 will be toachieve double-digit growth

ET Now Double digit is a very tall definition 10 is also a double digit and 30 tooamphellip

RC Bhargava That means a minimum 10

ET Now Maruti has always been an innovator be it first small car company with air-conditioning or power window or powersteering So what is the new thing we should hear from Maruti in next 12 months

RC Bhargava I am not sure what you might get but we brought in automatic manual transmission in a small car which broughtautomatic transmission to the doorsteps of an ordinary consumer buying small cars Generally India had just about a 5 per centpenetration of automatic cars but we are selling 30-40 per cent of these models So this is one change The mild hybrid has beenother new development

There will be also more and more emphasis on better fuel efficiency because that is not only in the consumer interest but it alsohelps to meet the environmental norms Customer will opt for price but I think the manufacturers also have a responsibility about theenvironment that is why Maruti is making Euro-IV cars since 2010httpautoeconomictimesindiatimescomnewspassenger-vehiclecarslong-waiting-period-for-maruti-cars-to-continue-this-year-too-rc-bhargava57989162

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Maruti to stay at the top unchallenged for many-many years Hormazd Sorabjee Editor Autocar India The Economic Times (Web Edition)

In a chat with ET Now Hormazd Sorabjee Editor Autocar India said the Maruti is going to stay at the top quite sometime He alsosaid the recent BS-III issue is a wake up call for the auto industry before migration to BS-VI norms which is just two year away

Edited excerpts

ET Now A company (Maruti) which can never go wrong always on top of investors as well as keen observers like you

Hormazd Sorabjee Maruti is going through a dream run they have really cracked the market They are getting products more andmore suited for this market Ignis may not appeal to everyone but they have got new Dzire that has a lot of promise and new Swiftwhich is always a smash hit For the next couple of years Maruti has just got their product pipeline sorted and the competitors havealso not been able to respond effectively Other than Hyundai there are no number two Everyone else is banking on just oneproduct that is doing well but they clearly do not have a product pipeline that can really give Maruti an effective fight

ET Now Tell us about Tata Motors their current portfolio and upcoming launches

Hormazd Sorabjee Tata Motors has to shake off a lot of their legacy issues The brand is still very weak and people are scepticalabout buying a Tata product that is changing slowly There is no silver bullet It is going to require a lot of hard work lot of patienceto really sustain their current trajectory So its early to comment over Tiago and Tigor Though there is a positive buzz around TataMotors Company is working on a lot of organisational changes and they have stitched an alliance with Volkswagen too If thealliance plays out it could really work well for both But still it is too early to say because alliances are great on paper but when itcomes to executing it is very-very difficult especially when there are cultural differences

ET Now Volkswagen has had its fair share of issues again

Hormazd Sorabjee Volkswagen is a far more humble company now then it was before especially after Dieselgate Now Skoda isgoing to lead the whole Volkswagen group because Skoda has a much lower cost structure than Volkswagen which really makessense for working in an emerging market Skoda is taking the lead in emerging markets like India purely because their cost structureis much more competitive

But it is a very exciting time for Tata Motors It (alliance with Volkswagen) looks fantastic on paper but execution is going to be thekey and there are lot of challenges but so far they have taken all the right steps There has been no real misstep so far be it withHexa or Tiago

ET Now So from an investors point of view is Maruti going to continue at the top of the pecking order

Hormazd Sorabjee Yes Maruti will remain at the top unchallenged for many-many years Others just do not have a game plan tocompete with Maruti For Suzuki India is the most important market and that is how it is going to be But having said that themanaging director of Hyundai recently said the company is going to invest Rs 5000 crore by 2020 to launch eight new models inIndia Like Suzuki India is a very big market for the Korean car maker as about 15 per cent of its global sales come from India SoHyundai is going to put up a fight but other than that I really do not see any more challenges for Maruti

ET Now Talking about BS-III flash sales recently it point out that Indian consumer look for a sasta price It does not matter whetherit is BS-III BS-IV If it is cheap it is a buyHormazd Sorabjee It is quite clear consumer is not interested about saving planet but his wallet But it is a big wakeup call for theindustry the BS-III issue has raised that the deadline is for registration and sale and not for manufacturing This is going to be thesame for BS-VI and thats why it is a big wake up call because now the industry has only a couple of years to move to BS-VIFrankly the deadline will be advanced because if you have to sell cars rather than just manufacture that is going to mean eatinginto couple of months of lead time So for the whole industry it would be prudent to just work on sale being the deadline rather thanmanufacturing

ET Now Who will dominate this new normal Will it be Indians Japanese or will it be the Americans

Hormazd Sorabjee You cannot classify it that way There are people who have the technology globally It is much easier for them tobring it here and typically most multinationals have that because they are already operating in BS-VI markets now for a while ForIndian companies like Mahindra Tata Motors which do not have global products in the segment it will be tough Foreign carmakerslike Mercedes have said they will bring BS-VI even before the norm They are ready because they just need to pick it up from globalmarket and have to transplant it here The people who already have the technology in other markets in the world will have theadvantage

ET Now So pricing and technology bring me to the premium Sedan segment How do you see things moving there because thatpocket is also getting a little

Hormazd Sorabjee Certain segments are under pressure like the compact Sedan segment and I think a lot of that sale is actuallynow going to taxi aggregators Uber and Ola People are jumping to bigger hatches and to compact SUVs People just love SUVsthey are the flavour of the month and are really pulling demand from all the others segments So you have got cars like BrezzaCreta Hyundai Creta that are really doing well with sales of over 10000 units So the Sedan segment is under a bit of pressurepurely because people are gravitating to different body styleshttpeconomictimesindiatimescomopinioninterviewsmaruti-to-stay-at-the-top-unchallenged-for-many-many-years-hormazd-sorabjee-editor-autocar-indiaarticleshow57985085cms

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Still a long way to go to match Hero MotoCorp says Hondaacirceurotrades Noriaki Abe Amrit Rajmint

With a target to sell six million two-wheelers in 2017-18 Honda Motor Co will be breathing down the neck of Hero MotoCorp LtdIndiaamprsquos largest two-wheeler company and its erstwhile joint venture partner in India Hero MotoCorp sold 66 million units inthe year to March compared with Hondaamprsquos five million in India Six years after the separation Noriaki Abe chief executive forHondaamprsquos global motorcycle business talked about the difficulties in snatching marketshare from Hero in rural marketsHondaamprsquos inability to introduce a model that will rival Heroamprsquos Splendor or Passion and changing the mindset of a lot ofIndian buyers who are still in love with Hero Edited excerpts

You will now be the chief executive for Hondaamprsquos global motorcycle business That means your involvement with India will geteven more intense

India is our biggest market now Last year India operations exceeded volume of Indonesia

What are your expectations from this market now

We have a very challenging target for next year (2017-18) In this year (2016-17) Honda Motorcycle India could not reach theoriginal target because of demonetisation Such a loss will pass to the next fiscal which means the target will be very very high

Basically we will have to sell one million more next year The target is to sell six million units

Your ex-partner Hero has not seen the kind of growth you have seen How long will Honda take to surpass Hero in sales volume

Luckily or unfortunately the market has changed The income of consumers is growing in urban areas That helped us grow inIndia because we have scooter models which is very apt for urban ride But in rural areas Hero is very very strong We never giveup but it is very difficult to penetrate in rural areas Improvement of the economy is reflecting on consumersamprsquo choice in massmotorcycle field and that will help us because the income of the rural area may improve gradually Infrastructure of the country willimprove and then many consumers will reach out to our products We would like that to happen in motorcycle business in India

But with some respect Hero is very strong

Your two-wheeler sales are driven by scooters What stops you from introducing one brand that can change Hondaamprsquosfortunes in the motorcycle segment

To beat the Splendor (laughs)

Scooter is still the mainstay of our business plan We are trying to launch many models in the motorcycle field But in 110ccsegment we could not find one very strong scooter to compete with Splendor But variety of our line-up in motorcycle field surelystimulates our consumersamprsquo mind

What is ironic is Splendor and Passion brands were actually built on Honda technology and engines

Technology is one thing but we learnt many things in our partnership with Hero One of the most important things is cost structuresupplier network We need to make similar network in the automobile field also to make our company more impactful Price is onething and mindset of customers is another We have launched similar models like Heroamprsquos in the motorcycle segment but it isreally difficult to change the mindset of the consumer which is a main issue

If your target is six million for next year and Heroamprsquos annual sales is about 65 million it should not take you long since Hero isnot growing as fast as you

Mass population is in rural areas where we have many things to do There consumers are committed to Hero So we could notreach the real India Thatamprsquos our interpretation but we can never give up to reach such area also In urban area there is newIndia which has accepted Honda but older India has not yet which is our interpretation So it is quite interesting

In the car business do you see origin of product development moving to India anytime soon

Not soon It will take time Motorization in the motorcycle field is occurring now Market is growing But real motorization inautomobile may happen in the middle of next decade That is our expectation So we have sometime around 10 years But duringsuch period we have to face the new regulation especially with environment-friendly regulation which is very important for everymanufacturer Such kind of a change in battlefield may help us again We are very optimistic Indian market is very important for twodecades because the potential of growth is very huge If the country is conducted properly by the government here the growthwould be exponential

There has been a lot of consolidation in the global auto industry like Toyota-Suzuki or Toyota-Daihatsu By nature Honda has notbeen a company that would go for such strategic decisions

We donamprsquot have such kind of alliances But to make new technology and components we already have a partnership withGeneral Motors We are open to partners but not in India Toyota-Daihatsu in many ways are related companies Two-three yearsago Toyota announced to have first Toyota and second Toyota Second Toyota is for emerging markets and First Toyota is fordeveloped markets In that sense below second Toyota they needed Daihatsu

For example Volkswagen already has that kind of culture They have Audi as the top brand but Skoda is for mass market Toyota isaiming for such kind of a model but in Asia region such European mix has struggled Similar (is the case) with Ford and GeneralMotors

In case of Honda in Asia and especially in Asean countries we are very successful Our business is based on strong motorcyclesales brand is well known In automobile we are a premium brand But if we were affordable to the consumer there our volumeswill grow automatically That is happening in Malaysia and Indonesia

It has not happened in India though

In India competition is very difficult in Maruti Situation is very difficult and different here Taste and mindset of consumer is verydifferent India is a huge country and more than double of entire Asean We have to recognize that India is different In short termwe will use our global expertise to strengthen our premiumness in Indian market But we must continue to learn In motorcycleoperations we are gaining market share and volumes but still a long way to go to reach HerohttpwwwlivemintcomCompaniesKASkrVmMywriAwEaOiRzEPStill-a-long-way-to-go-to-match-Hero-MotoCorp-says-Hondashtml

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Note ban and massive discounts have affected retail sales Bajaj Sonia Shenoy Latha Venkatesh amp Anuj Singhalmint (Delhi Print Edition)

Rajiv Bajaj managing director of Bajaj Auto blames demonetization for the fall in sales of twowheelers The dip in demand is likelyto continue in April too due to people moving forward purchases to March on account of the heavy discounts triggered by theSupreme Court ban on sales of BS-III vehicles from 1 April But things will normalize he says in an interview

Edited excerpts

This month the numbers will be all over the place because of massive discounts given by many of your peers to get rid of theirBS-III inventory But going ahead what is the trend looking like over the next couple of months

I think on the whole the second half has been very difficult compared to the first half Let me give you some numbers In the first

half our domestic motorcycle sales were actually up 16 in fact all the way up to the end of October Between November andMarch they fell and we have ended the year with just plus 5 on the domestic motorcycle front Similarly from being up 24 onthreewheeler sales between April and October last year we have ended up at minus 1 So first due to demonetization and thenmore recently as you said correctly due to the massive discounts in the marketplace there has been some impact on retail sales

However I would like to now believe that is behind us and going forward from April hopefully things should normalise except thatthere will be a slight dip in demand thanks to all the preponing of sales in the last month Perhaps over this month things willnormalise

The Supreme Court order came a little late in the month otherwise in March did you see any improvement at all

Not really we did not but it is difficult to say because ever since about the end of January we have seen discounts surfacing andwhat started initially as Rs2000-3000 a motorcycle built up to Rs5000 then Rs7000 then almost on a daily basis moving up toRs10000 Rs12000 Rs20000 So it has become very difficult to in fact even define what is sales because most of what will besales last month is nothing but challan cutting at a dealership It is not really a sale to the end customer so it would be difficult tohazard a guess But I am told that with the limits going away on withdrawal of cash from ATMs the trade in general is expecting agood April and May driven also by the marriage season So let us hope for the best

On exports last time you told us that the picture is a bit hazy In terms of the new financial year is there any clarity

Exports are a little clearer than before In fact in the first half if I have my numbers right they were down and when I said first halfactually I am counting up until the end of September they were down 23 For the year as a whole they are down 19 whichmeans in the second half we have obviously done better Particularly on motorcycles you see positive growth in March itselfalthough threewheelers continue to remain under pressure primarily because big markets like Sri Lanka and Egypt continue toremain troubled

Going forward we are certainly looking forward to significant growth over last year specially with motorcycles For example I canshare with you that in this month in the month of April we are hoping to clock something like 140000 motorcycles andthree-wheelers put togetherampmdash those are the orders that we have received That if I were to simply extrapolate to almost 16million vehicles is significantly better than the run rate we have seen in recent months So exports are looking more positiveespecially for motorcycles

I know you have never been a fan of this whole discounting and promotion business but given that so much is happeningnowadays will it be hard for you to hold on to those industry leading margins of 203 that you clocked in the quarter gone by

Frankly we did not participate in this desperate discounting except for the last three days and frankly I think that was let us just sayit was greatness thrust upon us in the sense that when competition is discounting Rs15000-20000 and a customer walks up to mydealership it becomes very difficult for my dealer to say amplsquoI am sorry I have nothing to offer youamprsquo So I donamprsquotthink he was trying to sell his stock He was trying to protect his showroom But I donamprsquot think the impact on Bajaj Auto wouldbe significant at all It was restricted to a very small number of vehicles over the last three days and in any case all BS-III stocks arenow amplsquosold outamprsquo and everything we are selling is BS-IV at the given prices So margins per se will not be an issue buton numbers and growth we have to wait and watch

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acirceuro˜Auto sector has been penalised for not doing something that they were not asked to doacirceurotrade Pawan Goenka Ronojoy Banerjeemint (Delhi Print Edition)

Mahindra and Mahindra Ltdamprsquos managing director Pawan Goenka speaks in an interview about the impact of the SupremeCourtamprsquos ban on the sale of Bharat Stage-III vehicles with effect from 1 April

Edited excerpts

How are you responding to the decision by the Supreme Court last week One of the sympathisers of the auto industry said thatdesperate time calls for desperate measures and therefore the industry should just sort of take it in their stride Your thoughts

This is a rather difficult interview for me to do because it is a very emotive subjectThe highest court ampmdashthe SupremeCourtampmdashhas given a verdict and that obviously is supreme something that industry will abide by and has to abide by

Since the media as well as the general public to some extent holds auto industry guilty of doing something that it should not havedone I firmly believe that the industry was right and I want to take a couple of minutes to explain why I think so even though it hasperhaps been talked about a few times

The fact is that the regulation was very clear notification was very clear that April 1 2017 is the date of (stopping) manufacturing (ofBS-III vehicles) and not date of selling The solicitor general has said so in no uncertain terms in the court that was the intent of thegovernment

It has been not the first time but about eighth time that this has been done where the changeover is for manufacturing dateWhat itdoes is that we donamprsquot know in future what is the sanctity of notifications that come out from the government of India whetherwe should act according to those notifications or whether we have to look somewhere else to see what we should be doingThat is really what my anguish isWhat I feel bad about is that clearly the industry has been penalised for not doing something thatthey were not asked to do At the same time industry also is being seen as having something wrong in the eyes of media and in theeyes of general public

Could the industry have dealt with this differently could the industry have come together perhaps in the middle of last year to tryand deliberate on the way forward

In retrospect a lot of things can be done differently in life it is not just about this If you know what future is going to be we will domany things differently The commitment of BS-IV fuel being available was from 1 April 2017 So industry could not have made anassumption that fuel will become available sooner Therefore there was no way for us to say that we are going to start making BS-IVvehicles let us say from 1 January 2017

Are you seeking legal opinion within your company is there any way out Some have mentioned that perhaps the auto industry canrequest the Supreme Court for a curative petition have you been thinking about what next

The legal options available to us at this point of time are very limited We still do not have the final order that has been released bySupreme Court because what we have is an interim order We will take a look at it and if there is any possibility for us to request theSupreme Court to revisit the decision we would certainly want to do that

You have said that half of your BS-III inventory is still unsold and is that an MampM figure or is that an industry figure you are givingus

I do not have the industry data yet because it has been compiled today today being the first working day after 31 March But myunderstanding overall is that the two-wheeler manufacturers after giving very heavy discounts as much as Rs15000 on aRs50000-60000 product have been able to clear most of its inventory So two-wheelers will be much lower than half

My estimate is that the fourwheelers that is passenger vehicles have done quite well in terms of clearing But the commercialvehicles are the ones that are stuck with fairly huge inventory because commercial vehicles were BS-III in half the country almostand BS-IV in the remaining half where the passenger vehicles had converted to BS-IV in most cases

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Cars SUVs MUVs

Tata Motors Sanand plant to touch 100 capacity in a few months Sohini DasBusiness Standard (Web Edition)

Ahmedabad As it eyes the number 3 slot in the Indian passenger vehicle space Tata Motors Sanand factory is set to work at fullthrottle Once functioning at only 20-25 per cent of its installed capacity the plant is soon expected to touch a production volume of10000-12000 cars per month across three models

The Sanand plant is expected to operate at full capacity by the end of financial year 2017-18 said Mayank Pareek presidentpassenger vehicle division of Tata Motors Speaking on the sidelines of the launch of the Tata Tigor compact sedan Pareek saidthe Sanand plant produced around 60000 vehicles last financial year including Tiago hatchback and the Nano

ampldquoPlant capacity is a dynamic thing It depends on what product and what variants are being produced However we plan toscale up the production to 10000-12000 units per month within the next few months and expect that Sanand would function in fullcapacity within the current fiscalamprdquo he said

The company has already managed to ramp up its production capacity for Tiago which has been well-received in the market froman initial 2000 units per month to 6000 units per month at present

The Tiago launched at an attractive price turned the tables for Tata Motors and also for the Sanand factory By June 2016 withintwo months of its launch the car had managed to garner 20000 bookings and the Sanand plant rolled out the 10000th car in Junelast year In fact the site started working in two-shifts to meet the growing demand

By November last year the car had garnered 50000 bookings and Tata Motors had managed to deliver around half that numberThis is when the company stepped on the gas and started working on reducing the wait period for the car which had swelled up tomore than three to four months by then

Sources indicated Tata Motors chose to defer the launch of the sedan variant on the Tiago platform (Tigor) to reduce the waitperiod Now that Tigor has also been launched at an attractive price the company is expecting good traction from the car thusenhancing the Sanand plant capacity utilisation

In fact with the Tigor the company aims to attract buyers of both compact sedans as well as premium hatchbacks Having priced itaggressively at Rs 47 lakh ex-showroom for the entry-level model the firm is aiming at a much larger market of 90000-100000units per month (compact sedans and hatchbacks)

Nano production however is in slow lane and the firm produced only 490 Nanos in February this year according to data from theSociety of Indian Automobile Manufacturers Of late Tata Motors has seen its car demand going up registering 84 per centyear-on-year growth in March this year banking on Hexa and Tiagohttpwwwbusiness-standardcomarticlecompaniestata-motors-sanand-plant-to-touch-100-capacity-in-a-few-months-117040300645_1html

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Could the industry have dealt with this differently could the industry have come together perhaps in the middle of last year to tryand deliberate on the way forward

In retrospect a lot of things can be done differently in life it is not just about this If you know what future is going to be we will domany things differently The commitment of BS-IV fuel being available was from 1 April 2017 So industry could not have made anassumption that fuel will become available sooner Therefore there was no way for us to say that we are going to start making BS-IVvehicles let us say from 1 January 2017

Are you seeking legal opinion within your company is there any way out Some have mentioned that perhaps the auto industry canrequest the Supreme Court for a curative petition have you been thinking about what next

The legal options available to us at this point of time are very limited We still do not have the final order that has been released bySupreme Court because what we have is an interim order We will take a look at it and if there is any possibility for us to request theSupreme Court to revisit the decision we would certainly want to do that

You have said that half of your BS-III inventory is still unsold and is that an MampM figure or is that an industry figure you are givingus

I do not have the industry data yet because it has been compiled today today being the first working day after 31 March But myunderstanding overall is that the two-wheeler manufacturers after giving very heavy discounts as much as Rs15000 on aRs50000-60000 product have been able to clear most of its inventory So two-wheelers will be much lower than half

My estimate is that the fourwheelers that is passenger vehicles have done quite well in terms of clearing But the commercialvehicles are the ones that are stuck with fairly huge inventory because commercial vehicles were BS-III in half the country almostand BS-IV in the remaining half where the passenger vehicles had converted to BS-IV in most cases

Top

Cars SUVs MUVs

Tata Motors Sanand plant to touch 100 capacity in a few months Sohini DasBusiness Standard (Web Edition)

Ahmedabad As it eyes the number 3 slot in the Indian passenger vehicle space Tata Motors Sanand factory is set to work at fullthrottle Once functioning at only 20-25 per cent of its installed capacity the plant is soon expected to touch a production volume of10000-12000 cars per month across three models

The Sanand plant is expected to operate at full capacity by the end of financial year 2017-18 said Mayank Pareek presidentpassenger vehicle division of Tata Motors Speaking on the sidelines of the launch of the Tata Tigor compact sedan Pareek saidthe Sanand plant produced around 60000 vehicles last financial year including Tiago hatchback and the Nano

ampldquoPlant capacity is a dynamic thing It depends on what product and what variants are being produced However we plan toscale up the production to 10000-12000 units per month within the next few months and expect that Sanand would function in fullcapacity within the current fiscalamprdquo he said

The company has already managed to ramp up its production capacity for Tiago which has been well-received in the market froman initial 2000 units per month to 6000 units per month at present

The Tiago launched at an attractive price turned the tables for Tata Motors and also for the Sanand factory By June 2016 withintwo months of its launch the car had managed to garner 20000 bookings and the Sanand plant rolled out the 10000th car in Junelast year In fact the site started working in two-shifts to meet the growing demand

By November last year the car had garnered 50000 bookings and Tata Motors had managed to deliver around half that numberThis is when the company stepped on the gas and started working on reducing the wait period for the car which had swelled up tomore than three to four months by then

Sources indicated Tata Motors chose to defer the launch of the sedan variant on the Tiago platform (Tigor) to reduce the waitperiod Now that Tigor has also been launched at an attractive price the company is expecting good traction from the car thusenhancing the Sanand plant capacity utilisation

In fact with the Tigor the company aims to attract buyers of both compact sedans as well as premium hatchbacks Having priced itaggressively at Rs 47 lakh ex-showroom for the entry-level model the firm is aiming at a much larger market of 90000-100000units per month (compact sedans and hatchbacks)

Nano production however is in slow lane and the firm produced only 490 Nanos in February this year according to data from theSociety of Indian Automobile Manufacturers Of late Tata Motors has seen its car demand going up registering 84 per centyear-on-year growth in March this year banking on Hexa and Tiagohttpwwwbusiness-standardcomarticlecompaniestata-motors-sanand-plant-to-touch-100-capacity-in-a-few-months-117040300645_1html

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Tata Motors lauches compact sedan Tigor in Rajasthan PTISee this story in Financial Chronicle

Jaipur Tata Motors today launched its new car Tata Tigor in both petrol and diesel variants in Rajasthan

S N Barman Vice President Sales of the company said that the company has ensured that the vehicle reaches to customerswithout any waiting period

The car was launched in six colours and four variants at an introductory price (ex-showroom Jaipur) of Rs 481 lakh for petrol (basemodel) and Rs 573 lakh for diesel base model

The company has trained sales consultants to cater the new generation products like Tiago Hexa and Tigor across its sales outletsand service touch points he saidhttpwwwmydigitalfccomnewstata-motors-lauches-compact-sedan-tigor-rajasthan-337

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Revisit Maruti ruling BMS to Haryana govt The Hindu Business Line (Web Edition)

New Delhi Expressing solidarity with 13 Maruti workers recently convicted by a Haryana court for violence at the companyamprsquosManesar plant in 2012 the RSS-backed Bharatiya Mazdoor Sangh (BMS) has urged the BJP government in the State toampldquorevisitamprdquo the case adding that the companyamprsquos management ampldquodeserves equal punishment as they werecause of the actionamprdquo

The violence had claimed the life of a company executive

In a statement BMS General Secretary Virjesh Upadhay appealed to the State government to present the workersamprsquo side incourt and look at the management with the ampldquosame lensamprdquo The convicted workers ampldquoare not criminalsamprdquo butwere only working to earn a living and feed their families he added

A Haryana local court recently sentenced 13 workers to life imprisonment and handed out five-year jail terms for four othersFourteen other workers were fined and released after four-and-a-half years of imprisonment

Following this there have been solidarity actions by various trade unions in India and abroad

ampldquoWe insist that the State revisit the case impartially by understanding the cause of the problem that the management hasbeen equally responsible for this situation This incidence has burst out due to repeated instigation and provocation by supervisorsand management policiesamprdquo said Upadhyay citing various protests in the plant since 2010 where 50 per cent of theworkforce was working on contractual employment and was being given minimum wages in comparison to the permanent workforcethat was drawing at least Rs 25 000month for the same nature of work

BMS also alleged that many MNCs in the Manesar belt do not respect the right of workers to form a union adding that in this caseampldquothe State has taken side of the corporate in view of keeping employment sources or just to keep the rankings and inviteforeign investment without even thinking of violation of workers fundamental rights at stakeamprdquohttpwwwthehindubusinesslinecomtodays-papertp-politicsrevisit-maruti-ruling-bms-to-haryana-govtarticle9614216ece

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Honda dispatches 3833 units of WR-V in March Deepanshu TaumarThe Economic Times (Web Edition)

New Delhi Indian arm of Japanese carmaker Honda Cars has sold 3833 units of WR-V in just 15 days of the vehicles launchLaunched on March 16 Honda WR-V marks the carmakers foray into compact SUV and crossover market For the month of MarchWR-V was the second highest selling model for Honda after City which sold 6271 units

Industry experts believe that the utility vehicle (UV) segment is growing at double digits To ride the wave every car manufacturerhas introduced models under this segment Honda has previously tried its luck in the segment with Mobilio and BR-V

However with WR-V Honda is aggressive on the pricing which will help the carmaker to gain momentum in the UV space

Priced at Rs 775 lakh Honda WR-V competes with the likes of Hyundai Elite i20 Active Volkswagen Polo Cross Fiat Avventuraand Toyota Etios Cross It also competes with Maruti Suzuki Vitara Brezza Ford Ecosport and Hyundai Creta

The crossover from Honda is powered by a 12L i-VTEC petrol engine and a 15L i-DTEC diesel engine The petrol engine churnsout 90 PS of power and 110 Nm of torque mated to a 5-speed gearbox whereas the diesel variantamprsquos maximum power is 100PS and torque is 200 Nm and is mated to the 6-speed gearbox

Honda WR-V fills the gap between Jazz and BR-V With this the carmaker will almost cover 90 percent of the segment

According to sources there is a lot of demand for the diesel variant of WR-V compared to the petrol variant However the carmakerdid not anticipate this huge demand for the diesel variant In fact the carmaker has produced more petrol variants than diesel onesof Honda WR-Vhttpautoeconomictimesindiatimescomnewspassenger-vehicleuvhonda-dispatches-3833-units-of-wr-v-in-march57987490

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Luxury Cars

Commercial Vehicles

Ashok Leyland sales up 12 in March at 18682 units PTISee this story in The Economic Times (Web Edition)

New Delhi Hinduja Group flagship Ashok Leyland has reported a 12 per cent increase in total sales at 18682 units in March

The company had sold 16702 units in the same month last year

Sales of heavy and medium commercial vehicles were up 15 per cent at 15258 units last month as against 13240 units in theyear-ago period the company said in a statement

Light commercial vehicle sales were down by 1 per cent to 3424 units compared to 3462 in March last year it added

For the fiscal ended March 31 2017 total sales were at 145066 units as against 140457 units in the previous year up 3 per cent

MampHCV sales for the year were at 113296 units as compared to 109762 units in 2015-16 up 3 per cent

LCV sales during last fiscal were at 31770 units as compared to 30695 units a year before up 4 per cent

Commenting on the performance Ashok Leyland CEO and MD Vinod K Dasari said We are happy to have achieved an overallgrowth of 12 per cent during March 2017 and a growth of 3 per cent for FY2017 despite various challenges

Further commenting on ban of BS-III vehicles by the Supreme court he said The industry has been affected by this unexpectedoutcome

However Ashok Leyland is currently working on minimising the impact of the decision he addedhttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvashok-leyland-sales-up-12-in-march-at-18682-units57994725Ashok Leyland sales up 12 in March at 18682 unitsDaily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-ashok-leyland-sales-up-12-in-march-at-18682-units-2380160

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For truck-makers BS-III ban to cost Rs 2500 cr Crisil The Economic Times (Web Edition)

New Delhi The discounts and incentives offered on Commercial Vehicles (CVs) is likely to cost the manufacturers about Rs 1200crore according to Crisil Research

The discounts came as a result of the ban imposed on sales and registration of BS-III vehicles by the Supreme Court of India Withthe help of these incentives the CV makers were able to dispose of over half their stock of BS-III vehicles

Crisil Research estimates the impact of this on the EBIDTA margins of listed truck makers (Ashok Leyland and Tata Motorsamprsquostandalone) to equal 25 percent of their revenues The impact would be staggered across fiscals 2017 and 2018 because theunsold inventory will have to be brought back from dealerships and then dealt with

Leading CV makers had continued manufacturing BS-III vehicles all the way to March in anticipation of strong buying in the closingweeks of the fiscal year given price hikes of 8-10 percent expected on BS-IV vehicles Indeed for want of clarity on ban onproduction or registration the industry had expected some BS-III trucks to be sold even in April

This had bloated up inventories When the Supreme Court ruling came CV dealersamprsquo inventory at risk was around 97000units (equivalent to 17 months of sales) valued at Rs 11600 crore

Crisil estimates the remaining 40000-45000 units of unsold inventory to be returned in the upcoming months mainly comprisingless-popular models since there were instances of supply shortage in some popular BS-III models The truck makers are likely toadopt a mix of the following steps to manage unsold BS-III inventory - upgrading them for resale dismantling vehicles for spares orincur higher working capital for holding the inventory until it is exported (which could take 5-6 months)

Assuming the truck makers would have to incur an additional cost of Rs 3-4 lakh per vehicle on reverse logistics and remodeling toBS-IV it would mean an additional expense of Rs 1300 crore

In April Crisil expects shipments to drop as dealers return their BS-III inventory and exchange them for BS-IV vehicles netting offthe sale With the pre-buying momentum gone and BS-IV vehicles priced higher sales would be subdued despite dealers looking tostock up to normal levels

Marginal impact for two-wheeler makersAmong the two wheeler players Bajaj Yamaha and Eicher had upgraded all their offerings to BS-IV from January 2017 Howevermarket leader Hero MotoCorp as well as TVS Motor and Honda Motorcycle and Scooter were upgrading in batches till the first halfof March

When the ruling came the two-wheeler inventory at risk was at 670000 units amounting to Rs 3800 crore (half-a-month of sales)

However discounts and freebies of 10-30 percent on the vehicle price helped the dealers clear most of the stock in the last 3 daysof March While OEMs provided for the incentives dealers also sweetened the deals by providing free insurance etc The totaldiscounts provided work out to nearly Rs 600 crore where the manufacturers would be sharing the bulk of the impact (over 70percent of the incentives) taking a total hit of Rs 460-480 crore

This would cause a 150-200 bps erosion in the aggregate fourth-quarter EBITDA margins of listed players (Hero Bajaj and TVS) infiscal 2017 with the industry leader taking a higher impact due to its large BS-III inventory The impact on Bajajamprsquos profitabilitywill be much lower because of lower inventory and lower discounts offered considering the export option

Passenger vehicle makers largely unscathed marginal hit for 3-wheeler makersFor passenger vehicles with the BS-III inventory at just 16000 units (players had transitioned to BS-IV much earlier) the impactwas always expected to be marginal On top of it given the steep discounts offered in the last three days of the month much of thisstock is expected to have been cleared

As for three-wheeler makers since the BS-III inventory could not be cleared due to the limited number of permits we expect amarginal impact for Piaggio and TVS Bajaj would be unscathed as it had already transitioned to BS-IVhttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvfor-truck-makers-bs-iii-ban-to-cost-rs-2500-cr-crisil57988079Ban on sale of BS III vehicles to cost manufacturers Rs 2500 crThe Hindu Business Line (Web amp Print Edition)httpwwwthehindubusinesslinecomcompaniesban-on-sale-of-bs-iii-vehicles-to-cost-manufacturers-2500-crarticle9613325eceBS-III vehicle ban to cost Rs 2500 crore for truck-makersThe Times of India (Web Edition)httptimesofindiaindiatimescomautomiscellaneousbsiii-vehicle-ban-to-cost-rs-2500-crore-for-truck-makersarticleshow57994704cms BS-III ban cost truck makers Rs 2500 croreBusiness Standard (Web amp Print Edition)httpwwwbusiness-standardcomarticlecompaniesbs-iii-ban-cost-truck-makers-rs-2-500-cr-117040301432_1htmlBS III vehicles ban Flash sale cost automakers Rs 1200 cr annual overall loss to hit Rs 2500 crThe Financial Express (Web amp Print Edition)httpwwwfinancialexpresscomindustrybs-iii-vehicles-ban-flash-sale-cost-automakers-rs-1200-cr-annual-overall-loss-to-hit-rs-2500-cr613884BS-III vehicles ban to cost auto cos nearly Rs 3000 cr CrisilDeccan Chronicle (Web Edition)httpwwwdeccanchroniclecombusinessautos030417bs-iii-vehicles-ban-to-cost-auto-cos-nearly-rs-3000-cr-crisilhtmlClearing BS-III stocks to cost automakers Rs 3000 croreFinancial Chronicle (Web amp Print Edition)httpwwwmydigitalfccomnewsclearing-bs-iii-stocks-cost-automakers-rs-3000-crore-359BS-III ban hits commercial vehicle makers hardThe Hindu (Web amp Print Edition)httpwwwthehinducomtodays-papertp-businessbs-iii-ban-hits-commercial-vehicle-makers-hardarticle17788489eceBS-III vehicles ban to cost auto companies nearly Rs3000 crore Crisilmint (Web Edition)httpwwwlivemintcomPoliticsuOk86DHf78oUMrZonHPFfNBSIII-vehicles-ban-to-cost-auto-companies-nearly-Rs3000-crhtml

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Volvo Eicher Commercial Vehicles posts 85 sales growth in March The Economic Times (Web Edition)

New Delhi Volvo Eicher Commercial Vehicles (VECV) has recorded 85 percent year-on-year growth in sales for the month ofMarch 2017 and stood at 7327 units This includes 7088 units of Eicher brand and 239 units of Volvo brand informed the Indiancommercial vehicle manufacturer in a statement

VE Commercial Vehicles has sold 6753 units in March 2016

Eicher branded trucks amp buses have recorded total sales of 7088 units in March 2017 as compared to 6633 units in March 2016representing a growth of 69 percent

In the domestic commercial vehicle market Eicher branded trucks amp buses have recorded sales of 6410 units in March 2017 ascompared to 5944 units in March 2016 representing a growth of 77 percent

On the exports front Eicher branded trucks amp buses have recorded highest ever sales in a financial year with 8035 units in 2017 as

compared to 6512 in 2016 March 2017 recorded sales of 678 units as compared to 689 units in March 2016 said the company

Volvo trucks have recorded sales of 239 units in March 2017 as compared to 120 units in March 2016 representing a growth of992 percenthttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvvolvo-eicher-commercial-vehicles-posts-8-5-sales-growth-in-march57985438

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BS-IV norms likely to trigger more demand for AMT commercial vehicles Sohini DasBusiness Standard (Web amp Print Edition)

Ahmedabad Switching to Bharat Stage IV emission norms is likely to boost adoption of automated manual transmission (AMT)technology among Indias commercial vehicles (CV) fleet Industry expects at least 10 per cent of the trucking and buses industry toshift to AMT

This is because AMT technology (which basically implies that the driver does not need to change gears manually) needs electronicengines and BS-IV vehicles sport electronic engines At present the size of the tonne and above trucking industry is roughly around400000 units per annum and this is expected to grow to 600000 trucks in the next three to five years For buses it is around90000 units per annum at the moment

Market research analyst Technavio says that the market looks more bullish in the case of medium and heavy commercial vehiclesas they are used in longer trips and a small price hike due to the additional cost of AMT can be recouped by their higher fueleconomy

There has been a lot of developments in this space for past 2-3 years which makes us believe that almost all the OEMs (originalequipment manufacturer) and major AMT suppliers like WABCO Eaton and ZF are looking up to this segment as one of the majorgrowth drivers Although the market for AMT in this segment was close to 5300 units in 2015 we estimate the growth rate to beclose to 26 per cent in Medium amp Heavy commercial during 2015- 2020Tata Motors and Ashok Leyland have been the frontrunnersin adopting AMT in their lineup said Technavio analyst Praveen Kumar

Leading CV player Tata Motors which saw its market share in the space dip to 4437 per cent in FY16 from 472 per cent a yearback is now trying hard to get back to a more than 50 per cent share in the CV business The company plans to launch new AMTbased products

At Tata Motors we constantly engage with our customers and other stakeholders to develop and integrate new and future readytechnologies for our range of commercial vehicles In line with this objective we plan to launch new AMT based products A formalannouncement will be made in due course

Vinod Aggarwal Managing Director and CEO of Volvo Eicher Commercial Vehicles (VECV) said that while the initital cost ofacquisition of an AMT variant is higher by 8-10 per cent if one looks long term fuel cost savings is a huge plus for AMT variantsFuel costs account for roughly 50 per cent of the operating costs while acquisition cost is around 20 per cent AMT variants arehighly fuel efficient and hence the long term savings is higher he said

VECV has launched its AMT-equipped range of medium duty trucks and 9-16 tonne buses It aims to target the state transportcorporations for AMT buses Aggarwal claimed that at least 10 per cent of the market can be expected to shift to AMT variants overthe next few years

Kumar too felt that in medium and heavy commercial vehicles (MHCV) the market for AMT variants is estimated to be35000-40000 units by 2020

Tata Motors has given the mandate to vehicle management systems provider Wabco to supply AMT kits for its CV range AshokLeyland has launched the Boss light truck with AMT already Tata is likely to launch AMT version of its popular light CV Ace

Kumar said that AMTs are likely to be popular in the LCV segment We believe AMT can come in very handy for LCVs as they areprimarily used in city traffic putting additional fatigue on driver As the market for e-commerce grows in India one can expect themarket for AMT equipped LCVs to flourish as they are predominantly used in last mile distribution

He added that the market leaders of commercial vehicles in India are planning to equip their best- selling LCVs with optional AMT toact as a product differentiator

Ashok Leyland could not be reached for a comment As such the companys sales growth in the MHCV segment during April toFebruary period of 2016-17 was 2 per cent while its LCV segment grew by 4 per cent on a year on year basis during the sameperiod Its dealers noted that queries for the AMT variant of Boss light truck is on the rise These are used in last mile connectivityAnd we have noticed demand from logistics players who cater to e-commerce companies in the recent times said a dealer

However it may also be noted that as such the domestic CV industry growth has moderated from 115 per cent in FY 2016 to 35per cent in nine months of FY17 informed ICRA

Of this the MHCV segment has witnessed the most slowdown as reflected by a decline of 22 per cent during the same periodSubrata Ray Group Head Corporate Sector Ratings ICRA Ltd thus said The usage of Automated Manual Transmission (AMT) inIndian CV market is minuscule at present OEMs are exploring opportunity to offer AMT in low-floor buses and other premiumcategory buses However we dont expect its usage in the truck segment due to overloading and poor road conditionshttpwwwbusiness-standardcomarticlecompaniesbs-iv-norms-likely-to-trigger-more-demand-for-amt-commercial-vehicles-117040300508_1html

Top

Construction amp Agri Machinery

Escorts tractors post 317 growth in domestic sales in March The Economic Times

Faridabad Indian farm equipment manufacturer Escorts Agri Machinery has registered 317 percent year-on-year growth in itsdomestic sales for the month of March 2017 and stood at 7014 tractors informed the company in a Bombay Stock Exchange (BSE)filing

Escorts has exported 65 tractors as against 76 tractors during March 2016 thereby posting a de-growth of 145 percent

For the fourth quarter ended March 31 2017 Escorts tractors sold 14625 units in the domestic market and exported 353 unitsthereby recording growth of 26 percent and 627 percent respectively

For the full financial year 2016-2017 the company sold 62699 units in India and exported 1087 units It grew 237 percent and436 percent respectivelyhttpautoeconomictimesindiatimescomnewsautomotivefarm-equipmentescorts-tractors-post-31-7-growth-in-domestic-sales-in-march57985862

Top

23 Wheelers

Suzuki Motorcycle sales up 74 at 36029 units in March PTISee this story in The Economic Times

New Delhi Suzuki Motorcycle India (SMIPL) has reported a 74 per cent increase in sales at 36029 units in March

The two-wheeler maker had sold 20673 units in the same month last year

A comprehensive product portfolio and consistent double digit growth in sales has enabled Suzuki to cross the annual sale mark of35 lakh units in FY17 indicating a growth of 12 per cent over last year SMIPL said in a statement

In the current fiscal the company is targeting sales of 5 lakh units for which it is gearing up its product line-up expanding dealershipnetworks and also becoming aggressive on exports it addedhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclessuzuki-motorcycle-sales-up-74-at-36029-units-in-march57991599Suzuki Motorcycle sales up 74 per cent at 36029 units in MarchDeccan Chroniclehttpwwwdeccanchroniclecombusinessautos030417suzuki-motorcycle-sales-up-74-per-cent-at-36029-units-in-marchhtmlSuzuki Motorcycle sales up 74 per cent at 36029 units in MarchThe Indian Expresshttpindianexpresscomarticlebusinesscompaniessuzuki-motorcycle-sales-up-74-per-cent-at-36029-units-in-march-4597910

Top

TVS Motor posts 10 growth in sales in the month March 2017 The Economic Times

New Delhi Home-grown automaker TVS Motor Company registered a sales growth of 10 during the month of March 2017 Thecompany sold 256341 units in the month of March 2017 compared to 232517 units in the same month last year the company saidin a press statement

Among all the categories total two-wheeler sales increased by 107 from 226643 units recorded in March 2016 to 250979 unitsin March 2017 Domestic two-wheelers sales grew by 84 from 200190 units in March 2016 to 216995 units registered in March2017

While the Scooter sales of the Company grew by 235 increasing from 68161 units in March 2016 to 84173 units in March 2017Motorcycles sales grew by 103 increasing from 86776 units in the month of March 2016 to 95671 units in March 2017

Three-wheeler of the Company registered sales of 5362 units in March 2017 as against 5874 units in March 2016

The Companys total exports grew by 236 increasing from 31121 units in March 2016 to 38462 units in the month of March2017 Two-wheeler exports registered growth of 285 increasing from 26453 units in March 2016 to 33984 units in March 2017httpautoeconomictimesindiatimescomnewsindustrytvs-motor-posts-10-growth-in-sales-in-the-month-march-201757992347TVS Motor sales room in March up 1024 over a year ago at 256341 units

Business Standardhttpwwwbusiness-standardcomarticlecompaniestvs-motor-sales-room-in-march-up-10-24-over-a-year-ago-at-256-341-units-117040300977_1htmlTVS Motorsamprsquo March sales rise 10The Hinduhttpwwwthehinducomtodays-papertp-businesstvs-motors-march-sales-rise-10article17788492ece

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BS-III ban to shave Rs 600 crore off two-wheeler makers margins PTISee this story in The Economic Times

Mumbai The two-wheeler industry would have lost Rs 600 crore due to the discount sales and incentives offered to meet the apexcourt ban on selling BS- III models from the new financial year says a report

The impact is comparatively low as many of the companies like Bajaj Auto Yamaha and Eicher had already upgraded to BS-IV fromJanuary 2017 while market leader Hero MotoCorp and the No 2 Honda and also TVS Motors have upgraded most of their modelbefore the ban set in says a Crisil report on the impact on the Supreme Court ban

When the ruling came the two-wheeler industry had an inventory of 670000 units of BS-III models amounting to Rs 3800 crorewhich is half of monthly sales of the industry But 10-30 per cent discounts and freebies helped the dealers clear most of the stockin the last three days of March

Total discounts offered work out to be around Rs 600 crore of which the two-wheeler makers would be sharing over 70 per cent ofthe incentives taking a total hit of Rs 460- 480 crore while the remaining losses would be absorbed by the dealers says the Crisilreport

This will lead to a 150-200 bps erosion in the aggregate fourth-quarter Ebitda margin of listed players (Hero Bajaj and TVS) in fiscal2017 with the industry leader Hero taking a higher impact due to its large BS-III inventory

Impact on Bajajs profitability will be much lower due to its lower inventory and lower discounts offered considering the export optionRelative to annual revenues this works out to 50 bps impact in fiscal 2017 Ebidta margins on Bajaj

As the Ebidta margins of listed two-wheeler players trended 40 bps higher than last fiscal on YTD basis there is likely to be a 10bps dip to 159 per cent in fiscal 2017

On the positive side the wholesale deliveries for the industry will remain steady unlike the truck and bus makers which are expectedto fall due to the price hike on new models This is also because the two-wheeler makers did not replenish channel inventory in thelast three days of March except in a few states like Punjab where 30 per cent of the sales were billed to dealers

Channel inventory at end March was trending at 25 days sales (lower by 5-10 days from annual average) and is expected to bereplenished gradually over the next few months

We however expect the gradual inventory build-up to be offset by slower retail sales momentum as much of the demand gotpre-poned to March says the report

Meanwhile the report said carmakers are largely unscathed while there will be a marginal hit on the three- wheeler makers For carcompanies with the BS-III inventory at just 16000 units the impact is marginal On top of it given the steep discounts offered in thelast three days March much of this stock is expected to have been cleared

For three-wheelers since BS-III inventory could not be cleared due to limited number of permits there will be a marginal impact forPiaggio and TVS while Bajaj will be unscathed as it had already transitioned to BS-IVhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbs-iii-ban-to-shave-rs-600-crore-off-two-wheeler-makers-margins57992574BS-III ban to shave Rs 600 crore off two-wheeler makers marginsThe Times of Indiahttptimesofindiaindiatimescomautomiscellaneousbs-iii-ban-to-shave-rs-600-crore-off-two-wheeler-makers-marginsarticleshow57991415cms BS-III ban to shave Rs 600 crore off two-wheeler makers marginsThe Indian Expresshttpindianexpresscomarticlebusinesscompaniesbs-iii-ban-to-shave-rs-600-crore-off-two-wheeler-makers-margins-4597962

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Honda 2-wheelers for the first time crosses 5 million mark in total sales The Economic Times

Gurugram Honda Motorcycle amp Scooter India Pvt Ltd (HMSI) closed financial year 2016-17 on a historic high and created newrecords in challenging market scenario

Honda 2Wheelers India closed FYamprsquo2016-17 with all time high total sales of 5008103 units Total sales grew at 12 (which ismore than double the 5 growth of total industry in the same period) over 4483462 units sold in FYamprsquo15-16

Sharing highlights of Hondaamprsquos performance in FYamprsquo16-17 Yadvinder Singh Guleria Senior Vice President - Sales and

Marketing Honda Motorcycle and Scooter India Pvt Ltd said ampldquoIn the beginning of FYamprsquo2016-17 especially aftermonsoon and 7th CPC industry was hopeful of double digit growth

He also added The second half was however a challenging time and two-wheeler industry closed the fiscal with only 5 growthIn this context we are humbled by the confidence of customers in Honda brand India is now firmly leading the Honda DNAworldwide We thank customers for making Honda 2Wheelers India the first 100 subsidiary of Honda Motor Company Japanglobally to ever achieve 5 million sales landmark in a single financial year Honda is today the highest volume gainer as well as themarket share gainer of the industry We are confident that 2017-18 will be a landmark year and Honda 2Wheelers will change theway India and the world will ride homeamprdquo

Honda 2Wheelers India closed FYamprsquo2016-17 with all time high total sales of 5008103 units

Total sales grew at 12 (which is more than double the 5 growth of total industry in the same period) over 4483462 units sold inFYamprsquo15-16

Hondaamprsquos total automatic scooter sales crossed 3 million mark for the first time ever to reach at 3351604 units with 16growth compared to 2892480 units in FYamprsquo15-16

Despite export industry de-growing by -6 in FYamprsquo16-17 exports was the strongest gain point Hondaamprsquos exports grewby an overwhelming 41 increasing from 200114 units in FYamprsquo15-16 to 283153 units in FYamprsquo16-17httpautoeconomictimesindiatimescomnewstwo-wheelersmotorcycleshonda-2-wheelers-for-the-first-time-crosses-5-million-mark-in-sales57992881Hero HMSI post record annual 2-wheeler sales in 2016-17 despite note banBusiness Standardhttpwwwbusiness-standardcomarticlecompanieshero-hmsi-post-record-annual-2-wheeler-sales-in-2016-17-despite-note-ban-117040301110_1htmlHero HMSI post record annual 2-wheeler sales in 2016-17Daily News amp Analysis (Web Edition)httpwwwdnaindiacommoneyreport-hero-hmsi-post-record-annual-2-wheeler-sales-in-2016-17-2380083

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Two and three wheelers sales inch up in March IANSSee this story in The Economic Times

New Delhi Major two- and three-wheeler manufacturers on Monday reported a marginal increase in sales for March 2017

The impact of demonetisation is now over The new launches are attracting customers to the dealership and significant discountson BS-III vehicles over the last few days have improved the performance especially the two-wheelers and commercial vehiclessegment said Abdul Majeed Partner - Price Waterhouse and an auto expert

The worlds largest two-wheeler manufacturer Hero MotoCorp (HMCL) reported a marginal rise in its total sales which stood at609951 units sold last month from 606542 units sold in March 2016

Further consolidating its leadership position Hero MotoCorp clocked its highest-ever sales in a financial year at 6663903 unitscompared to 6632322 units it had sold in the previous fiscal (FY 16) the company said in a statement

However two- and three-wheeler major Bajaj Auto reported a decline of 11 per cent in its total sales including exports for themonth under review to 272197 units from 305800 units reported during the corresponding month of 2016

Besides its total domestic sales in March stood at 169279 units -- down 17 per cent -- from 204281 units sold during the likemonth of last year

On the other hand its overall exports during the last month were a tad higher by a per cent to 102918 units from 101519 unitsshipped out during the corresponding month of 2016

The companys total motorcycle sales during the month under review slipped by eight per cent to 244235 units from 264249 unitssold in the like month of last year

In addition the overall commercial vehicle sales plunged by 33 per cent to 27962 units from 41551 units sold during March 2016

Other two- and three-wheeler maker TVS Motor Company reported a rise in its total sales of 107 per cent from 226643 unitsrecorded in March 2016 to 250979 units in March 2017

The domestic two-wheelers sales of the company grew by 84 per cent to 216995 units while the three-wheeler vehicles segmentregistered sales of 5362 units in March 2017 as against 5874 units in March 2016

According to the company its total exports grew by 236 per cent to 38462 units during the month under review

On financial year basis Honda Motorcycle and Scooter India reported a 12 per cent growth in its domestic sales of 5008103 unitsfor 2016-17 over 4483462 units sold in 2015-16httpautoeconomictimesindiatimescomnewstwo-wheelersscooters-mopedstwo-and-three-wheelers-sales-inch-up-in-march57994935Two-wheeler firms except Bajaj and Honda post growth in MarchBusiness Standardhttpwwwbusiness-standardcomarticlecompaniestwo-wheeler-firms-except-bajaj-and-honda-post-growth-in-march-117040400050_1html

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Hero MotoCorp sells 609 lakh units in March 2017 Sharmistha MukherjeeThe Economic Times

New Delhi The countrys largest two-wheeler maker Hero MotoCorp on Monday reported sales of 609951 units in March 2017

The company had sold 606542 units in the corresponding period of the last financial year

The company sold 6663903 units in the entire fiscal year

During the fiscal year Hero MotoCorp created yet another significant industry benchmark by surpassing the landmark 6-lakh plusmonthly sales on five occasions in a single year ampndash March 2017 (609951) October 2016 (663153) September 2016(674961) August 2016 (616424) and April 2016 (612739)httpautoeconomictimesindiatimescomnewstwo-wheelersmotorcycleshero-motocorp-sells-6-09-lakh-units-in-march-201757996980Hero MotoCorp records six lakh sales in MarchThe Hindu Business Linehttpwwwthehindubusinesslinecomtodays-papertp-newshero-motocorp-records-six-lakh-sales-in-marcharticle9614191eceHero MotoCorp sales up marginally at 609951 units in MarchDeccan Chroniclehttpwwwdeccanchroniclecombusinessautos030417hero-motocorp-sales-up-marginally-at-609951-units-in-marchhtmlHero MotoCorp sales up marginally at 609951 units in MarchDaily News amp Analysishttpwwwdnaindiacommoneyreport-hero-motocorp-sales-up-marginally-at-609951-units-in-march-2380022

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Bajaj Motorcycles sales in domestic market decline by 14 in March 2017 The Economic Times

New Delhi Chakan based motorcycle manufacturer Bajaj Auto in a BSE filing announced its motorcycles sales in March 2017declined by 14 in the domestic market as the company sold 151449 units as against 176788 units in March 2016 However theexports reported 6 growth as the company exported 92786 units last month

Bajajs overall commercial vehicles sale (domestic + export) also declined by over 33 as the CV saw an overall sale of 27962units last month as compared 41551 units in the same month last year

Bajajs overall sales in March 2017 declined by 11 said the statement in BSE filing

Overall in FY 2016-17 Bajaj Motorcycles sales in the domestic market increased by 5 as the company sold over 2001 lakh unitsas compared to 1898 lakh units in FY 2015-16

Companys export during hte financial year dipped by 16 and over all the companys motorcycle sales declined by 4 in FY2016-17

Bajaj Autos total sales (domestic sales +exports) in financial year 2016-17 including its motorcycles and commercial vehiclesregistered a total sale of over 3665 lakh units 6 less than previous fiscal The company sold 5893 lakh units in FY 2015-16httpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbajaj-motorcycles-sales-in-domestic-market-decline-by-14-in-march-201757983873Bajaj Auto sales down 11 in MarchThe Hindu Business Linehttpwwwthehindubusinesslinecomcompaniesbajaj-auto-sales-in-marcharticle9612971eceBajaj Auto sales down 11 per cent in March total export up by 13 per centBusiness Standardhttpwwwbusiness-standardcomarticlecompaniesbajaj-auto-sales-down-11-per-cent-in-march-total-export-up-by-1-3-per-cent-117040300310_1htmlBajaj Auto sales down 11 per cent in MarchDeccan Chroniclehttpwwwdeccanchroniclecombusinessautos030417bajaj-auto-sales-down-11-per-cent-in-marchhtml

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About 3000 units of Kinetic Safar to be exported to Asian countries in FYacirceurotrade18 Shobha MathurThe Economic Times

New Delhi The electric three-wheeler the Kinetic Safar that rolled out in January 2016 has sold 9000 units in 2016-17Manufactured by Kinetic Green Energy and Power Solutions most of Safars have been marketed through institutional sales andthrough the government

Taking its e-mobility initiative further in the country Sulajjia Firodia Motwani founder and CEO of the company told ET Auto that the

focus in FY2017-18 would be to expand the penetration of the Safar through retail sales and the dealer network Plans are toexpand the dealer network to 150 in FYamprsquo18 up from the current 60 dealerships

ampldquoWe plan to sell about 12000 units in the domestic market in the current fiscal of which about 6000 units would be soldthrough the retail outlets and the balance can be marketed in smart cities through mobility companies and the government We arealso planning to start exports this year to Asian countries like Sri Lanka Bangla Desh and Nepal where the demand for e-rickshawsand electric vehicles is rising and will constitute a lucrative marketamprdquo she says Sulajjia had earlier spoken about plying ahigh-speed e-auto for large cities called Soleckshaw developed by group company Kinetic Engineering

Increasingly the need to protect the environment and curb pollution in cities like Delhi has gained centre stage and it is here thatcompanies like Kinetic Green are steadily garnering a foothold

The companyamprsquos mid-term plan is to steadily step up exports to about 1600 units per month in a couple of years as the KineticSafar makes its mark overseas Then Africa will also be added to the export markets where tourists are increasingly finding electricthree-wheelers a viable proposition for commutingInterestingly Kinetic Green that had bagged a large institutional order for electric vehicles from the Uttar Pradesh government to thetune of Rs 400 crore for supplying 27000 Safar vehicles within 12 months has in the first phase delivered 7500 units

Sulajjia says that the change in state government has temporarily put the brakes on the supplies of the Safar The order formed partof the UP governmentamprsquos e-Rickshaw Yojana for providing free e-rickshaws to existing manual rickshaw pullers in the state forenabling them to earn a better livelihood

The company had claimed at the launch that a Safar owner can earn Rs 20000 per month and Kinetic would provide a 10-daytraining course to the drivers for using the Safar

The company has so far set up training centres in 65 districts of UP to facilitate the Safar owners to understand the nuances ofbattery charging and operating the e-three wheelers

Currently manufactured at the companyamprsquos Ahmednagar facility in Maharashtra which has a production capacity of 4000vehicles a month the plant currently outputs about 2000 units monthly

While the e-three wheeler is currently powered by the Exide lead acid battery Kinetic Green has plans to move to the higher pricedlithium ion batteries once economies of scale are reached and the Safar starts selling in large volumes

Kinetic Green also makes a range of golf carts and 4 and 6-seater and 14-seater e-buses to promote eco-tourism

Among competition where lately a lot of action has been observed is a Swedish company Clean Motion that also commencedoperations of its Zbee premium e-rickshaw last year to provide last-mile connectivity in Gurgaon through an agreement with DLFJapanese two and three-wheeler maker Terra Motors had also launched their e-rickshaw Y4Alfa last yearhttpautoeconomictimesindiatimescomnewsindustryabout-3000-units-of-kinetic-safar-to-be-exported-to-asian-countries-in-fy1857984796

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Atul Auto sells 3174 units in March 2017 The Economic Times

New Delhi Light commercial vehicle manufacturer Atul Auto in a BSE filing announced that it sold 3174 units in March 2017 with itssales declining by 391 The company sold 3303 units in March 2016

Companys total sales from April 2016 - March 2017 stood at 38785 units as compared to 43893 units during FY 2015-16 decliningby 1161

Atul Auto mostly has three-wheelers in its product portfolio and is broadly divided into 5 categories namely Atul Shakti Atul GemAtul Smart Atul Gemini and Atul Green The company also manufacturers golf cartshttpautoeconomictimesindiatimescomnewscommercial-vehiclelcvatul-auto-sells-3174-units-in-march-2017-overall-sales-in-fy-2016-17-declines-by-11-6157984769

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Honda 2Wheelers tops JD Power performance amp layout studyThe Economic Times

New Delhi In the scooter segment Honda Activa ranks highest among executive models according to the JD Power 2017 IndiaTwo-Wheeler Automotive Performance Execution and Layout (2WAPEAL) Study

In the motorcycle segment debutant Honda Livo and TVS Sport rank highest in a tie among economy models and Hero SuperSplendor ranks highest among executive models

Bajaj Avenger 150 a debutant model ranks highest among upper executive models while another debutant model Honda CBHornet 160R ranks highest among premium models

The study also mentioned that buyers of newly launched two-wheeler models have higher satisfaction than buyers of carry-overmodels However satisfaction declines if buyers face problems with vehicle quality during the initial ownership period

In the motorcycle category the newly launched models not only generate higher APEAL satisfaction than carry-over models fromlast year but also perform better in terms of initial quality problems experienced by buyers

Among scooters satisfaction with the newly launched models is 12 points lower than for carry-over models The reason is thatnewly launched scooter models fare worse than carry-over models with initial quality problems

ampldquoTwo-wheeler manufacturers launch multiple new models each year that offer contemporary looks styling and increasedfeature contentingamprdquo said Kaustav Roy director at JD Power Singapore

ampldquoHowever the quality of execution is pivotal to satisfaction Buyers in India have a wide range of two-wheelers to choosefrom thus it would be prudent for OEMs to ensure that their new products are of improved quality to benefit from sustainedacceptance by customersamprdquo

ampldquoBecause visual appeal looks and styling is the main purchase reason most often cited by buyers of newly launchedtwo-wheelers a more regular cycle of product styling updates by manufacturers would resonate well with consumersamprdquo saidRajat Agarwal two-wheeler industry expert at JD Power Singaporehttpautoeconomictimesindiatimescomnewstwo-wheelersscooters-mopedshonda-2wheelers-tops-jd-power-performance-layout-study57985691

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E-Bikes

Components

Steel Strips Wheels records 35 growth in total wheel rim sales in March The Economic Times

New Delhi Indian automotive components manufacturer Steel Strips Wheels (SSWL) has registered 35 percent growth in its totalwheel rim sales for the month of March 2017 and stood at 1268 lakh

The company said in a Bombay Stock Exchange (BSE) filing this was largely driven by 2-digit growth in commercial vehicles ampTractor segment wheels

The company foresees a favorable impact on the overall profitability for the month of April based on the growth in the abovesegments For fiscal 2017 SSWL witnessed 10 percent volume growth in line with the guidance given at the beginning of the year

Jamshedpur plant (commercial wheel plant) recorded its highest production and sale in March 2017 and it operated at 110 percentutilisation in March 2017

The company further added Chennai Plant recorded its highest production and sale in March 2017 and operated at highestcapacity utilisation in March 2017

In terms of value the company has achieved gross turnover of Rs 14345 crore in March 2017 as against Rs 12748 crore in March2016 thereby recording growth of 13 percent It has achieved net turnover of Rs 12655 crore in March 2017 when compared withRs 11508 crore in March 2016 posting a growth of 10 percent

Passenger car segment grew 8 percent in March 2017 and the company expects high single digit growth continuing in this segmentin the next financial year also

LCV amp MHCV segment volumes grew by 12 percent year-on-year

The domestic tractor segment volumes increased by 12 percent with presale starting to happen before the monsoon arrival SSWLexpects the first quarter of fiscal 2018 to be in line with March 2017 in anticipation of normal monsoon

Two amp three wheelers segment de-grew by 2 percent Exports shipments were down by 27 percent in March 2017 due to very highbase of last year added the companyhttpautoeconomictimesindiatimescomnewsauto-componentssteel-strips-wheels-records-3-5-growth-in-total-wheel-rim-sales-in-march57991141

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Allied Industries

Apollo Ceat and JK in race to buy defunct Falcon Tyres Sangita MehtaThe Economic Times

Mumbai Apollo Tyres JK Tyres and Ceat Tyres have emerged the top bidders for Falcon Tyres the now-defunct company where

creditors are trying to recover their money in what could become the first big case to be decided under the countrys newBankruptcy Code

Edelweiss Asset Reconstruction Company (ARC) which has bought most of the debt that the company owed to lenders last weekfiled an application at the National Company Law Tribunal (NCLT) under the Bankruptcy and Insolvency Law to dispose of theassets of Falcon Tyres to recover the arrears

Close to half a dozen firms have shown interest in the assets so far and a sale could fetch the creditors Rs 600 700 crore said aperson in the know of the matter

Bids are being evaluated by firm Deloitte which consulting firm Deloitte which has been appointed as the resolution professional inthis case The resolution will have to be concluded in 180 days of the creditors initiating corporate insolvency by moving the NCLT

Apollo Tyres JK Tyres and the RPG group which owns Ceat Tyres said they do not wish to comment on the matter Siby Antonythe chief executive of Edelweiss ARC said the the ARC has initiated the Insolvency and Bankruptcy Code but decline to commenton the bidders

ampldquoIt is too early to comment The process has just startedampldquo he said ampldquoWe are confident of concluding this dealwithin 180 daysampldquohttpautoeconomictimesindiatimescomnewstyresapollo-ceat-and-jk-in-race-to-buy-defunct-falcon-tyres57989376

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Tolin Tyres faces Delhi High Court ire for infringing Bridgestone trademark PTISee this story in The Financial Express

New Delhi Two top officials of an Indian tyre company had to spend a night in jail and directed by the Delhi High Court to shell outRs 35 lakh for infringing the trademark of Japanese tyre maker Bridgestone Justice R S Endlaw also restrained the Indiancompany Tolin Tyres and its Managing Director and Director from infringing the Japanese companyamprsquos trademark by sellingtyres in its name

The March 17 order was passed after the MD and Director of the company apologised to the court for their actions and offered tocompensate the foreign company by paying it Rs 30 lakh and deposit Rs five lakh with Delhi State Legal Services Authority(DSLSA) to avoid criminal contempt proceedings

The court said of the Rs 35 lakh Rs 30 lakh would be paid to the Japanese company to compensate it for the exports made byinfringing its trademark and the remaining would be deposited with the DSLSA The court said ampldquothe sum of Rs five lakhcannot purge the blatant falsehood practicedamprdquo by the company and its two officials as it ampldquoprima facie amounts tointerference with the administration of justiceamprdquo

However it said that since the two officials have undertaken to pay Rs 35 lakh by April 30 ampldquoit is deemed appropriate not totake any further action against them and at this stage leave them with a cautionwarningamprdquo With these directions the courtdisposed of Bridgestoneamprsquos plea against Tolin Tyres

The court made it clear that if the two Tolin Tyres officials did not comply with their undertaking the Japanese company can againinitiate legal proceedings

The court had on March 16 ordered these two official to be kept in police custody overnight as they had to be produced before it thenext day It had said that the two had been been taking a ampldquoblatantly false standamprdquo by denying manufacturing andexporting of tyres under the trademark amplsquoBridestoneamprsquo

The court had noted that the two had admitted their ampldquofalsehoodamprdquo and apologised for it only after the customsdepartment showed records indicating that Tolin was exporting tyres by describing them as amplsquoBridgestoneamprsquohttpwwwfinancialexpresscomindustrytolin-tyres-faces-delhi-high-court-ire-for-infringing-bridgestone-trademark613280

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Emissions Environment

Kolkata still continuing with BS-II emission tests Krishnendu BandyopadhyayThe Economic Times

Kolkata When the entire country has adopted the BS-IV emission standard following the Supreme Court ban on sale andregistration of BS-III vehicles Kolkata still continues with BS-II emission tests

This helps polluting vehicles pass the emission tests and the city is also deprived of clean air it deserves

The Bharat Stage-V emission norm is skipped across 13 major cities in India as the government has decided to leapfrog from

BS-IV to BS-VI directly by April 1 2020

From April 1 only BS-IV vehicles can be registered in India yet Kolkata auto-emission testing centres (AETCs) are followingpre-BS-III standard emission

The BS-IV emission standard was introduced in Kolkata in 2012 but the citys AETCs continue with BS-II emission tests as majorityof them failed to upgrade their technology to measure the finer quantity of different pollutants in the vehicle exhaust

BS-II was introduced in the city in 2001 There was hardly any pressure from the government to force them adopt suchtechnological leap ampldquoIf this is the situation in Kolkata just think of rest of Bengal where BS-IV will be prevalent from April1ampldquo said Somendra Mohan Ghosh an auto-emission expert

ampldquoA stringent emission norm for automobiles alone can make a little difference in reducing the pollution level of ambient airProper implementation of the emission norms and improvement of the citys driving condition determine a lot about the qualitativechange of ambient air But the enforcement is badly missing in Kolkata said Sudipto Battacharya of Saviour and Friend ofEnvironment (SAFE)

Why didnt transport department enforce the rule in AETCs The amendment of the Central Motor Vehicles Rules (CMVR) werenotified in 2012 An officer of the public vehicles department (PVD) however said ampldquoWe got to know about the notification in2014

A transport department officer said ampldquoThe regional transport authorities are supposed to make necessary changes accordingto amendments But off late we at the transport department have started monitoring the issues We came to know that theamendment was not incorporated in the system So we will now be doing it at war footing

Auto Emission Testers Association (AETA) general secretary Apu Pal Chowdhury said ampldquoWe knew that we need to makesome additional investment for upgrading to the new systemWe are now waiting for recommendations by IIT-Kharagpur thatsstudying the current facilities of AETCsampldquopeople at a time The act of crossing such bridges is an acknowledgement of acollective need over a vast period of time One makes it not for oneself but for future generationshttpautoeconomictimesindiatimescomnewsindustrykolkata-still-continuing-with-bs-ii-emission-tests57991929

Top

NGT declines to modify SC order on BS-III vehicles PTISee this story in The Economic Times

New Delhi The National Green Tribunal (NGT) has refused to allow registration of 10 new diesel vehicles conforming to BharatStage-III norms in the wake of the ban imposed by the Supreme Court

A bench headed by NGT Chairperson Justice Swatanter Kumar declined to grant the relief to the East Delhi Municipal Corporation(EDMC) saying that it has no jurisdiction to entertain the plea

The counsel appearing for EDMC submits that the order dated March 30 2017 be modified as their application is for registering ofBS-III vehicles which has been purchased by the Corporation In view of the order passed by the Supreme Court of India recentlywe have no jurisdiction to entertain this application the bench said

The Supreme Court on March 29 had imposed ban on sale and registration of vehicles which are not BS-IV compliant in India fromApril 1 when the new emission norms came into force

Observing that the health of the people was far far more important than the commercial interests of the manufacturers the apexcourt had said that the makers of such vehicles have declined to take sufficient proactive steps despite being fully aware that thefirms would be required to manufacture only BS-IV compliant vehicles from April 1 2017

The order came after advocate Balendu Shekhar appearing for EDMC mentioned the matter before the bench and soughtpermission to register 10 new diesel vehicles to be used for lifting garbage

He told the NGT that these vehicles were only available in BS-III and not available as per BS-IV specifications in the market

When the bench remained unimpressed the EDMC lawyer withdrew his plea seeking liberty to approach the top court for relief

The green panel had earlier directed public sector oil companies to immediately stop plying Bharat Stage-I and Bharat Stage-IIvehicles in the National Capital Region for transporting petrol or petroleum productshttpautoeconomictimesindiatimescomnewspolicyngt-declines-to-modify-sc-order-on-bs-iii-vehicles57989616

Top

Finance amp Insurance

Insurance corner IRDAI hikes motor third party premium Business Standard

Motor insurance premiums have increased from April 1 after the Insurance Regulatory and Development Authority of Indiaannounced the third-party premiums for 2017-18 For private cars not exceeding 1000 CC there was no change in the premiumsFor private cars exceeding 1000CC but not exceeding 1500 CC and those exceeding 1500 CC the increase in TP premiums was40 per cent Hence the premium of a Martuti Wagon-R remains unchanged while there is an increase in the premiums of a sedanand an SUV The chart compares the premiums of a Honda City and Mahindra XUV 500 for the Mumbai and Delhi markets Insome cases the only change is on account of TP premium as the own damage premium is even or marginally lower Both vehiclesare 2014 models The Insured Declared Value for the Honda City is Rs 439301 and Rs 725643 for the Mahidra XUV The totalpremium includes taxeshttpwwwbusiness-standardcomarticlepfinsurance-corner-irdai-hikes-motor-third-party-premium-117040400007_1html

Top

Oil Lubricants amp Alternative Fuels

Oil prices steady rebounding Libyan production weighs ReutersSee this story in The Hindu Business Line

Singapore Oil futures held steady on Monday as a rebound in Libyan oil production over the weekend weighed against upbeateconomic data from Asia that pointed to strong energy demand from the region

International benchmark Brent futures climbed 4 cents to $5357 a barrel by 0952 GMT

US West Texas Intermediate crude futures were 8 cents higher at $5068 a barrel

Libyas Sharara oil field the countrys largest resumed production on Sunday after a week-long disruption and state-owned NOClifted force majeure on loadings of Sharara crude on Monday sources told Reuters

The field was producing around 80000 barrels per day (bpd) on Sunday and about 220000 bpd prior to the March 27 shutdown

ampldquoThe main development over the weekend is the restart of Shararaamprdquo managing director of PetroMatrix Olivier Jakobsaid

Uncertainty about how Libyan output would fare in the months ahead added short-term volatility to oil prices he said ampldquo(It) is aswing factor that can make it move both ways if one looks at the balances for the second half of the yearamprdquo he added

Adding to pressure on prices energy services firm Baker Hughes said the US rig count rose by 10 to 662 last week making the firstquarter the strongest for rig additions since mid-2011 and raising prospects for more US shale oil

Rising supplies tempered data from Asia that suggested the regions buoyant economy would ensure solid demand for energy

Manufacturing data showed factories across much of Asia posted another month of solid growth in March

Purchasing managers index (PMI) data from China showed its factories expanded for a ninth straight month in March although thepace slipped as new export orders slowed

ampldquoThe China PMI figures were pretty positive They provide background support for oil pricesamprdquo chief market analyst atSydneys CMC Markets Spooner said

Oil prices had rallied for three days last week lifted by reduced Libyan output and helped by expectations that members of theOrganization of the Petroleum Exporting Countries (OPEC) and other non-OPEC producers such as Russia would extendproduction cuts beyond Junehttpwwwthehindubusinesslinecommarketscommoditiesoil-prices-fall-as-us-rig-count-stokes-oversupply-worriesarticle9612981ece

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Petronas plans to invest $150 million in Indias lubricant market

Ketan ThakkarThe Economic Times

Mumbai Malaysian oil major Petronas plans to invest $150 million or aboutRs975 crore to expand its presence in thecountryamprsquos lubricant market

Petronas Lubricants International (PLI) manufacturing and marketing arm of the Malaysian national oil corporation will spend themoney to set up a plant with 110 million litres capacity in Patalganga on the outskirts of Mumbai and a technology centre formotorcycle engine oil and invest in branding activity in the country company officials said

Currently the 10th largest lubricant brand in the world India can be a key engine for growth in future for Petronas said Giuseppe

DArrigo group CEO at Petronas Lubricant International ampldquoIndia can be the engine of global lubricant market growth infutureamprdquo he told ET in an interview

Petronas is open to inorganic opportunities arising in the future as it aims to become a top five player in the world in five yearsampldquoWe have been amongst the fastest growing brand globally Even in India we hope to do better than competitionamprdquo saidDArrigo

He said immediate focus is on operationalising the new factory which is expected to go on stream in the first quarter of 2018 andgetting the brandamprsquos amplsquoroute to marketamprsquo right The company may adopt an FMCG-style marketing strategy as it didin China

DamprsquoArrigo said the new plant in India should attain full capacity in three to four years

He said the company would focus on value selling ampldquoIndia is market for price but more and more sophistication is takingplace people will look for value in the future and that is where Petronas will play Better products and better value tocustomersamprdquo he said

Petronas Lubricant currently sell about 30 million litres a year in the country accounting for just 3 of its global volumes of about 1billion litres DamprsquoArrigo said the firm is eyeing volumes of 15-17 billion litres globally by 2020-2021 and that by then sharefrom India would cross 5httpeconomictimesindiatimescomindustryenergyoil-gaspetronas-plans-to-invest-150-million-in-indias-lubricant-marketarticleshow57999616cms

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News Magazines

Skoda Kodiaq SUV spied testing in India Autocar India

Skoda has begun testing its all-new flagship SUV the Kodiaq on Indian roads with the modelamprsquos upcoming launch during thefestive season later this year The test mule spotted on Indian roads wore no camouflage and as per our reader was anall-wheel-drive model

Based on the same platform as the Superb the Kodiaq is Skodaamprsquos first seven-seat SUV and is expected to arrive on Indianshores with a choice of petrol and diesel engines The petrol motor in question is expected to be a 20-litre TSI unit good for 180hpand 250Nm of torque while the diesel motor a 20-litre unit is expected to be offered in two power outputs ampndash 150hp and190hp Gearbox options are expected to include a six-speed manual alongside Skodaamprsquos seven-speed DSG automatic unitAdditionally top models are set to feature all-wheel drive

In terms of styling the model showed little change from its international siblings and though no images of the interior are availablethe cabin is likely to only get minor changes such as different upholstery colours or trim inserts

In terms of equipment we could expect similar equipment levels as offered on the Superb though Skoda could offer added kit tomake the SUV feel more premium

The Kodiaq is expected to be positioned marginally above the Superb in a price bracket of around Rs 27-32 lakh (ex-showroom)putting it in the same line as the Ford Endeavour and Toyota Fortuner as well as its most direct rival the Hyundai Santa Fehttpwwwautocarindiacomauto-newsskoda-kodiaq-suv-spied-testing-in-india-404594aspx

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Volvo S60 Polestar India launch on April 14 Autocar India

Volvo is ready to launch its performance arm Polestar in India on April 14 with the performance divisionamprsquos first model set tobe the S60 Polestar We were the first to break the news that Volvo was evaluating its performance models for the country with theS60 sedan and its sibling the V60 estate both expected to arrive on our shores in the high performance Polestar form For nowthough India is only set to receive the S60 Polestar sedan with the model likely to replace the current 306hp S60 T6 petrol sedan

As with other new Volvos the S60 Polestar sticks with Volvoamprsquos strategy of downsized engines with the model making use ofa 20-litre four-cylinder petrol engine ampndash older models used a 30-litre six-cylinder unit The 20-litre unit though is turbochargedand supercharged to pump out a sizeable 367hp and 470Nm of torque Power is sent to all four wheels via an eight-speedautomatic gearbox

The S60 Polestar also features other mechanical and cosmetic updates such as larger brakes a bigger turbocharged stiffersuspension and a more aggressive body kit and larger 20-inch Polestar alloy wheels

Changes to the cabin include sports seats up front nubuck leather upholstery and carbon fibre trim inserts in place of the standardmodelamprsquos wood or aluminium inserts

In terms of competition the S60 Polestar is expected to go head to head with the Mercedes-AMG C43 and the Audi S5 Sportbackboth of which are equipped with larger displacement six-cylinder petrol engines

Apart from its Polestar models Volvo is also intent on introducing its line-up of estates in India with the first model expected to bethe S90amprsquos sibling the V90 However India is expected to get the V90 in its off-road inspired Cross Country form andpowered by a more 245hp 20-litre D5 diesel engine ampndash 10hp up from the current D5 unit available in the countryhttpwwwautocarindiacomauto-newsvolvo-s60-polestar-india-launch-on-april-14-404591aspx

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Hyundai to expand India model range Autocar India

Nearly two decades after it began operations Hyundai Motor India is gearing up to launch a fresh salvo in the Indian market whichis today the third largest international market for Hyundai after China and the US ampldquoIn 2015 India accounted for 13 percent ofHyundaiamprsquos global sales and that figure has jumped to 15 percent in the first two months of 2017amprdquo says YK Koomanaging director and CEO Hyundai Motor India

ampldquoIndia is a very important market for Hyundai and that is why we are ready to invest Rs 5000 crore in developing andintroducing eight new products to this market by 2020 Out of those eight models three will be for a new segment like our Ioniqhybrid which we will launch at the Auto Expo 2018amprdquo adds Koo who is keen to stress his companyamprsquos commitment tothe Indian market

A raft of new models is being developed some of them specifically for India like a compact SUV (code QXI) based on the Carlinoconcept showcased at the 2016 Auto Expo Hyundai is also developing what is internally called a amplsquoFamily Design Conceptwhich is essentially a practical and spacious budget hatchback specific to India The company is further studying a micro-SUV torival the likes of the Mahindra KUV100

There will be a full model change for some of the existing brands to keep Hyundaiamprsquos portfolio as fresh as possible The Verna(code HHI) will be replaced this August by the latest-generation model whilst the next-gen i20 and Creta are due for replacement in2020 and 2021 respectively

The Grand i10 the i20 and the Creta are key models for Hyundai garnering maximum sales for the company and hence anaggressive plan has been made to keep them as fresh as possible throughout their lifecycle with facelifts and other enhancementsThe Creta is due for a facelift in late 2018 and will come with a mild hybrid option for both petrol and diesel engines

In fact Hyundai plans to aggressively push hybrid tech in India and will roll out mild hybrid options for the new Verna possibly bythe end of this year Hyundaiamprsquos hybrid ambitions have been dealt a blow with the recent rollback of fiscal benefits to mildhybrids under the FAME India Scheme [Faster Adoption and Manufacturing of (Hybrid amp) Electric Vehicles in India] but this isunlikely to change the companyamprsquos hybridisation strategy as other fiscal incentives that give mild hybrids an advantage arelikely to remain

Koo also says that Hyundai ampldquowill manufacture AMTs (automated manual transmissions) in Indiaamprdquo A new in-house AMTmanufacturing facility is being set up which will allow Hyundai to offer a low-cost automatic option in its entry-level cars This will bea crucial step for Hyundai which is keen to grab some of the exploding demand for AMTs that market leader Maruti is currentlymopping up

A bigger issue for Hyundai is a serious capacity constraint The Sriperembudur plant is working overtime in three shifts and for 290days of the year to satisfy not just domestic demand but export markets as well

Last year Hyundai produced 662 lakh cars and that figure is likely to go up as it enters new mass market segments The companyis tight-lipped on its plans to increase capacity but sources say that it is waiting for sister brand Kia to set up a plant in India andshare some of its capacity

Hyundai currently accounts for 1682 percent of the Indian market which places it a distant second behind Maruti which continuesto dominate the market However Hyundaiamprsquos global scale and a wide product portfolio that ranges from entry cars to luxurySUVs make this ambitious Korean automaker the market leaders most formidable rivalhttpwwwautocarindiacomauto-newshyundai-to-expand-india-model-range-404595aspx

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Passenger vehicle sales cross 3mn units in 16-17 Autocar India

The Indian passenger vehicles (PV) have recorded robust sales in the last month of the fiscal year 2016-17 As per the salesnumbers revealed by eight of the 16 carmakers who declare their monthly sales registrations to apex industry body SIAM thepassenger vehicles industry has recorded 1052 percent year-on-year (YoY) growth The continuing surge in SUV sales andincreased off-take by app-based taxi service providers like Ola and Uber have helped drive gains

For the 11-month April 2016 to February 2017 period the PV industry registered total sales of 2764206 units or 235794 unitsshort of the 3-million mark As per the latest industry sales update of these eight automakers which have sold a total of 259992units in March 2017 the three-million mark has been breached for the first time and is headed for higher numbers when the other

eight carmakers announce their March sales The final official sales tally for the PV industry will be revealed by SIAM next week

Maruti Suzuki the countrys leading carmaker is striding confidently towards its targeted 2 million sales in 2020 In 2016-17 thecarmaker crossed the 15 million sales landmark for the first time ever In March 2017 the company sold a total of 139763 unitscomprising 127999 units in the domestic market (up 740 percent) With this it has ended 2016-17 with its highest ever total salesof 1568603 units a growth of 98 percent and includes its highest ever domestic sales of 1444541 units

Where Maruti is stretching the lead versus its competitors is in the utility vehicle segment thanks to surging sales of the VitaraBrezza Its total utility vehicle sales rose 318 percent year-on-year to 18311 units (March 2016 13894) Utility vehicle sales whichhave doubled in the past year have given Maruti the boost in its fiscal numbers In FY17 (April-March) as a result of hugeconsumer demand for the Vitara Brezza ampndash Marutiamprsquos first compact SUV ampndash and also the Ertiga MPV utility vehiclesales jumped 107 percent to 195741 units (2015-16 94416)

The compact cars (Swift Ritz Celerio Ignis Baleno Dzire) were the biggest contributors to domestic sales at 584850 units up79 percent year on year The Baleno which has crossed 150000 sales in the domestic market clearly is the star performer in thislot

The premium Ciaz sedan was also a strong performer in the fiscal going home to 64448 buyers up 188 percent The Ciaz likethe Baleno also crossed the 150000 sales landmark last month Whatamprsquos worrying for Maruti is that the Alto and the WagonR are seeing tepid demand The two cars saw sales of 413981 units down 44 percent (2015-16 432977)

Hyundai which crossed the milestone of five million sales for the first time in a fiscal sold 44757 units in March up 86 percenton-year (March 2016 41201) For 2016-17 it sold a total of 509707 recording a growth of 52 percent (2015-16 484324)

Mahindra amp Mahindra which sold 25352 passenger vehicles in March 2017 down six percent on-year (March 2016 26885) sold atotal of 236130 units in 2016-17 to record zero or flat growth (2015-16 236307) Rajan Wadhera president automotive sectorMampM said ampldquoHowever the auto industry continues to see mixed reactions due to several external challenges and the morerecent one being the unexpected verdict on the sale of BS-III vehicles that has derailed many planned operations Going forwardfactors such as the likely softening of interest rates revision in fuel prices GST implementation and the Union Budgetamprsquosfocus on rural are expected to bring back demandamprdquo

Honda reported domestic sales of 18950 units in March 2017 a year-on-year growth of 87 percent (March 2016 17430) Newmodels like the 2017 City sedan and the WR-V crossover were major contributors to overall sales While the City with 6271 unitswas the biggest seller the WR-V with 3833 units was the next best

However the carmaker needs its sales to grow faster While the March 2017 sales show an uptick overall FY17 sales of 157313units are down 22 percent on 2015-16 sales of 192059 units

Tata Motors which is riding a new wave of demand for its passenger vehicles sold 15433 units in the domestic market in March2017 a growth of 84 percent over March 2016 The company says this is due to the continued strong demand for the Tiagohatchback It has also received an encouraging customer response for its recently launched Hexa SUV and the Tigor Cumulativesales for the fiscal were 153151 units a growth of 22 percent (2015-16 125946)

Toyota registered an 81 percent year-on-year growth to 13796 units (March 2016 7637 units) The company said that it hasposted a 12 percent growth in sales in FY17 on the back of overwhelming response to the Innova Crysta In just less than a yearthe Crysta has sold close to 75000 units in India The Camry Hybrid too has been seeing growing sales reinforcing customeracceptance towards hybrid technology In the April 2016-February 2017 period the Camry Hybrid has sold 1146 units

Ford India sold 8700 units in the domestic market in March up 1507 percent year-on-year (March 2016 7560) For the fiscal yearit recorded total sales to the tune of 91405 units up 1433 percent (2015-16 79944)

Nissan Motor India sold a total of 5309 vehicles in March 2017 an increase of 21 percent over March 2016 The company alsoannounced total domestic sales of 57315 units in FY17 registering a growth of 45 percent over the previous financial year and thehighest-ever volume achieved by the company in India According to company president Guillaume Sicard the carmaker plans tolaunch eight new products in India by 2021 with an aim to achieve 5 percent market share It currently has a market share of 19percent within the countrys passenger vehicles segmenthttpwwwautocarindiacomauto-newspassenger-vehicle-sales-cross-3mn-units-in-16-17-404592aspx

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FAME subsidy on mild hybrids withdrawn Autocar India

The government has stopped extending benefits to mild hybrid vehicles in the country under the FAME [Faster Adoption andManufacturing of (Hybrid amp) Electric Vehicles in India] scheme from April 1 2017 The Ministry of Heavy Industries and PublicEnterprises has issued a notification in this regard

Delhi-based green body and advocacy group Centre for Science and Environment (CSE) has welcomed the move It said mildhybrids have blocked the scaling up of strong hybrids and battery-operated electric vehicles This is because although regarded ashybrids these vehicles do not offer a comparable level of fuel and emissions reduction as full hybrids

Over 65 percent of the FAME incentives have so far gone to mild diesel hybrid cars that already enjoy substantial excise cuts suchas concessional VAT in some states From April 1 2015 when the FAME scheme was launched till February 28 2017 a total of111897 vehicles have benefited with mild hybrid four-wheelers accounting for 73633 units Strong hybrid cars accounted for a

mere 17 percent and electric vehicles only 1 percent

By removing the mild diesel hybrids from the FAME scheme the entire incentive amount has now been unlocked for the benefit ofelectro-mobility programme These mild diesel hybrids are a marginal improvement over conventional diesel models butsignificantly more polluting and fuel inefficient compared to electric and strong hybrid cars said Anumita Roychowdhury executivedirector-research and advocacy CSE

The decision will largely impact the countryamprsquos largest carmaker Maruti Suzuki Marutis Ciaz sedan and the Ertiga MPV whichcome equipped with SHVS or Smart Hybrid Vehicle by Suzuki technology have benefitted from the scheme with around Rs 13000reduction in prices

The next-gen Hyundai Verna which will be equipped with mild-hybrid tech when it arrives in India later this year will also miss theincentives followed by the updated Creta SUV also due late this year with the mild-hybrid system

The government had launched the FAME India scheme to promote eco-friendly mobility Incentive on electric and hybrid vehicleswas Rs 1800 to Rs 29000 for bikes and on cars it ranged from Rs 13000 to Rs 138000 In Budget 2017 the government allottedRs 175 crore as subsidy to the scheme for FY18 up from Rs 1229 crore allotted the year beforehttpwwwautocarindiacomauto-newsfame-subsidy-on-mild-hybrids-withdrawn-404587aspx

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Honda reveals 150SS Racer concept Autocar India

At the 2017 edition of the Bangkok International Motor Show Honda Thailand took the wraps off a new concept bike called the150SS Racer Now the company has revealed absolutely no details on this bike but it looks more like a design exercise to flesh outfuture ideas rather than form the direct basis of an upcoming production bike

Looking at its proportions one is instantly reminded of the Husqvarna Vitpilen thanks to its minimal futuristic cafeacute racer stylingthough its size tends to gravitate a bit towards something like the Honda Grom but itamprsquos not entirely as small It gets asculpted fuel tank sitting atop massive radiator shrouds that endow the bike with a veneer of premiumness Its cafeacute racer lookscome from a stubby tail section low slung handlebars (not clip-ons though) and a proper retro-style round headlampThereamprsquos also a large empty space under the seat and a transparent panel along the rear subframe which lends this 150SSRacer a sense of lightness although no figures have been officially revealed

The premium design touches donamprsquot end there either There is liberal use of carbon fibre across the bike from the fenders tothe entire wheel discs And in truly high-tech fashion it also gets two on-board cameras one under the seat facing back and aforward-facing one under the instrument cluster With no built-in display we can always imagine the cameras feeding imagesdirectly into a futuristic rideramprsquos helmet Apart from that it gets chunky upside down forks up front radially mounted front brakecalipers and a stubby megaphone exhaust all signalling to its performance potential

Thereamprsquos absolutely no word on the engine apart from the fact that itamprsquos a 150cc single-cylinder mill thatamprsquos liquidcooled It might be safe to assume that this is a modified version of the motor from the Honda CBR 150R which is sold in Asianmarkets

As a pure design study at this stage there are no plans of making a production bike based on the 150SS Racer But it couldcertainly serve as inspiration for low-capacity high-performance naked bikes that Honda might want to bring to Asia in the futurehttpwwwautocarindiacomauto-newshonda-reveals-150ss-racer-concept-404586aspx

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New 2017 Maruti Swift Dzire spotted Autocar India

The all-new Suzuki Swift was revealed globally a few months ago and it was no secret that Maruti had begun work on the third-genSwift Dzire compact sedan for India The first set of leaked interior and exterior images of the new Dzire have surfaced on theinternet ahead of the caramprsquos official launch which is expected in May this year The images give us an almost complete viewof the third-gen Dzireamprsquos exterior and interior styling

Up front the new Dzire borrows heavily from the all-new Swift hatchback ampndash bonnet front fenders and headlamps appearcommon Lower variants will come with standard halogen bulbs while the higher trims are expected to get projector headlamps withLED daytime running lights The grille is similar to the Swift but gets a more rounded look instead of the angular shape seen on thehatch It gets a thick chrome surround and merges well with the all-new bumper which is unique to the compact sedan

Images of the Dzireamprsquos profile also reveal a much more balanced silhouette than the outgoing car The boot section appearslarger and is far better integrated giving the design a more cohesive look The curvier roof and C-pillar that flow more smoothly intothe tail helps the design

Styling at the tail is reminiscent of the existing Dzire but there are differences The tail lights appear larger the raised lip for the bootlid accentuates the caramprsquos shoulder line and thereamprsquos a chrome bar atop the number plate mount to enhance visual widthtoo

While the design and styling have clearly evolved from the second-to-third gen what is not yet confirmed is if the upcoming Dzire

will be built on the all-new Swiftamprsquos platform or if it will be the existing car with a new amplsquotop hatamprsquo The compactsedan segment is extremely cost-competitive and Maruti could have gone in for a comprehensive facelift rather than incur thesignificantly larger expense on developing a new model ground up

The leaked images also reveal the new Swift Dzireamprsquos cabin The photographed car features an all-new dashboard thatresembles the one in the all-new Swift Chief among the differences are the angular central air-con vents and auto climate controlinterface Interestingly enough the car in the images sports a flat-bottom steering wheel that adds some character to the cabinDual-tone black and beige plastics and a generous dose of faux wood can also be seen although the final trim and interior colourswill only be known closer to the launch

Whatamprsquos also clear is that Marutiamprsquos SmartPlay touchscreen infotainment screen will find use in the new Dzire This isthe first time a touchscreen infotainment system will be offered straight from the factory on the Swift Dzire

Under the hood the new Dzire is likely to carry forward the current crop of engines a 12-litre K12 petrol and the popular 13-litrediesel The gearbox options on offer are likely to be carried forward as well

Maruti is likely to launch the new Dzire in our market in May this year The new Dzire will see competition from the likes of theHonda Amaze the Figo Aspire the Tata Zest and the Volkswagen Ameo Expect keen pricing from Maruti for its huge-sellingcompact sedanhttpwwwautocarindiacomauto-newsnew-2017-maruti-swift-dzire-spotted-404583aspx

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BS-IV fuel launched across country Autocar India

On April 1 2017 the Minister of State (IC) for Petroleum and Natural Gas Dharmendra Pradhan formally launched thelow-emission and eco-friendly BS-IV grade fuel across the country from Bhubaneswar by symbolically commencing its sale

The event coincided with Utkal Divas (formation day of the state) celebration in Odisha and was telecast live to 12 different locationsampndash Varanasi Vijayawada Durgapur Gorakhpur Imphal Bhopal Ranchi Madurai Nagpur Patna Guwahati and Shillong

The petroleum minister stated that the launch signifies a new era of clean transportation fuels and is aimed at substantially reducingpollution levels everywhere

He complimented the OMCs (oil marketing companies) for working in unison to set up refining infrastructure and logistics in recordtime for the launch of BS-IV grade fuels as per schedule The OMCs are incurring an expenditure of Rs 90000 crore on phase-wiseupgradation of fuel quality in the country

The next step is to usher in BS-VI fuels by April 1 2020 to be on par with global standards he said

Indiaamprsquos path to green fuels

The increasing consumption of oil is directly linked to atmospheric pollution and health issues due to the deteriorating effect on airquality in urban areas worldwide Following is Indiaamprsquos journey with relation to air-pollution control

- Indiaamprsquos fuel quality standards have been gradually tightened since the mid-1990s The fuel upgradation programme took offwith notification of vehicular emission norms for new vehicles in 1991

- The emission norms were revised in 1996 Low-lead petrol was introduced in 1994 in the four metros ampndash Delhi MumbaiKolkata and Chennai

- On February 1 2000 unleaded petrol was mandated nationwide

- BS 2000 (Euro-I equivalent Bharat Stage-I) vehicle emission norms were introduced for new vehicles from April 2000

- Bharat Stage II (Euro-II equivalent) emission norms for new cars were introduced in Delhi from the 2000 and extended to the otherthree metro cities in 2001

- The emission norms for CNG and LPG vehicles were notified in 2000 and 2001 respectively BS-III was implemented in phasesduring 2005-2010

- The current BS-IV fuel with 50ppm (parts per million) sulphur was introduced in 2010 and it was to cover the entire country by April1 2017

- In 2016 the government of India decided to meet international best practices by leapfrogging directly from BS-IV to BS-VI normsby skipping BS-V altogether by April 1 2020

- As part of its focus on clean energy the Ministry of Petroleum amp Natural Gas is actively promoting city gas distribution networksand connecting major cities with green highways which will have vehicles running on CNG and LNG with adequate re-fuellingstations

- 275 lakh vehicles in the country are benefiting from availability of CNG

- So far 80 citiesdistricts of 19 statesUTs have been covered for development of PNGCNG network

httpwwwautocarindiacomauto-newsbs-iv-fuel-launched-across-country-404585aspx

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2017 Mercedes S-class facelift spied Autocar India

Four years after its introduction the Mercedes-Benz S-class is now due for a refresh and itamprsquos likely to make its global debut inthe coming months Some new images of the updated W222 S-class have emerged on the Internet with more information regardingthe upcoming engines and tech which this car will feature

Exteriors of this new car get subtle tweaks in the form of a revised front grille new elements inside the LED headlamp cluster and anew front bumper featuring an air dam that runs across its width garnished with chrome Also it gets new alloy wheels different taillamp elements and a revised rear bumper with chrome wrapped around its muffler tips On the inside the most notable change is itsnew steering wheel wrapped in wood and leather

The car that was spotted sports an amplsquoS560amprsquo badge and is powered by a 476hp 40-litre twin-turbo petrol V8 Thisengine will replace the S550 and despite being smaller in capacity than the 47-litre V8 it is 27hp more powerful and is likely to be12 percent more efficient There are talks of a new inline-six-cylinder petrol engine thatamprsquoll feature a new 48V mild hybridsystem making it up to 10 to 15 percent more efficient Reports suggest that this updated S-class will be available with an option offour completely new engines

Mercedes will be equipping this car with advanced autonomous capabilities including a newly developed Active Distance functionthat provides fully autonomous acceleration and braking over a preset route on its sat nav that works in tandem with its ActiveSpeed Limit Assist systemhttpwwwautocarindiacomauto-news2017-mercedes-s-class-facelift-spied-404557aspx

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2017 Mercedes-AMG E43 review test drive Autocar India

What is it

AMG Mercedes-Benzamprsquos in-house performance arm has always been famous for its thundering V8s Want more power TheAMG solution was always simple just install a V8 Over the years the company has produced them in all manner of sizes andconfigurations Its V8s have ranged from a seven-litre down to the current four and has used all types of induction naturallyaspirated supercharged and turbocharged the lot Of late however the Affalterbach-based tuning arm is looking at an all newaudience One step down from its full fat cars this new range is more affordable and less powerful The first car from this rangeampndash the 367hp C43 ampndash is already on sale in India at a price of Rs 776 lakh ex-showroom and that will be followed by thiscar the 401hp E43 at a price of approximately Rs 85 lakh early next year

The three-litre turbo-petrol engine is the same as that in the C-class but here it is tuned to put out a stronger 401hp Power as onthe C43 is transmitted through all four wheels and Merc has used its own nine-speed automatic gearbox to multiply all the powereffectively Whatamprsquos important to remember is that the E43 will be brought into India as a full import and so will use thestandard E-class wheelbase which will make it more agile and fun to drive The modifications to the E43 arent just limited to justthe engine A sports suspension with adjustable dampers and larger brakes are also part of the package The E43 V6 howeverdoes without the E63 V8amprsquos amplsquospeedshift multi-clutchamprsquo gearbox without its special four-link front axle and it alsogets a standard E-class steering system rather than the custom ones on the V8 AMGs

On the outside there are styling tweaks too with a more aggressive body kit attractive AMG wheels and a new quad exhaustsystem rounding off what looks like a restrained but sporty package

Whats it like on the inside

This biggest difference from the all new E-class sold in India is that this one isnt built on the longer wheelbase So get into the rearof the car and theres no reclining seat and no acres of legroom The back seat however is extremely comfortable with good thighsupport and a nicely inclined and padded backrest And legroom is more than sufficient too

Up front the cabin looks much sportier than the India car and truth be told a whole lot more attractive as well You get theS-class-like twin LCD panels on the dash that this car gets in other markets and that transforms the look and feel of the cabin Thedash is covered in red highlights and red mood lighting You also get sculpted sports seats a flat-bottom steering and attractivedouble-stitched leather on the dash and door pads that have a rich texture as well

Whats it like to drive

Extremely rapid to begin with It would be With the traction of the four-wheel-drive system and the zingy engine pulling hard all theway to the redline the E43 is capable of doing 0-100kph in 46 seconds hardly junior sedan performance And what makes it evenmore enjoyable is that this motor loves to spin fast In fact the faster you spin it the smoother it feels and is also so sweetsounding and characterful to listen to that you just revel in pulling it hard at every opportunity So if you are willing to work the millthe performance is there Still theres no getting away from the fact that you miss the effortlessness of the V8-powered carsespecially the explosion or torque and that NASCAR-like rumble from the exhausts

Also absent is the playful and crisp handling of the full fat AMG products The V8s have what is as close as you can get to apurpose-built chassis Sure in isolation the E43s steering is pretty good and because it is air-sprung it seems more stable athigher speeds The four-wheel-drive system however feels a bit slow to react and the E43 doesnt take corners with the samepoise and grip as other AMG cars used to So yes this is a clear step down by regular AMG sporting standards But on the flip sideits softer and more rounded character is likely to have a wider appeal It feels more Mercedes to begin with The car is still verycomfortable to sit in almost as comfy as a regular Merc and the driving controls are nice and light as well but dig a little deeperand it does have a hint of a sporty edge Ride however is a bit stiff at low speeds even in Comfort and the standard Merc-specgearbox feels a bit slow especially when you are waiting for the next gear under power

Should I buy one

If you are someone who enjoys driving a Mercedes enjoys all the smoothness and refinement of the regular car but at the sametime wants a lot more performance this AMG is for you No it isnt as sporty or as hard-edged as the V8-powered AMGs thattrack-car-like handling is missing and it isnt as refined as a regular Merc either But if you are looking for the perfect halfway housebetween one of AMGs extreme machines and a regular Merc E-class this probably is it Yes it is likely to cost around Rs 15 lakhmore than the E350d the one with the long wheelbase and air suspension and that isnt an insignificant amount But if you areself-driven and like a bit more punch power and individuality the E43 is likely to offer a lothttpwwwautocarindiacomauto-reviews2017-mercedes-amg-e43-review-test-drive-4045810aspx

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International News

US March new auto sales fall short of market expectations ReutersSee this story in The Economic Times

Detroit US sales of new vehicles in March at major automakers came in below market expectations according to figures releasedon Monday sending shares of General Motors and Ford Motor down more than 2 percent

The news also weighed on car retailer stocks The March sales offered the market a glimpse of the overall health of middle-classAmerican consumers

Car sales in America have risen ever since end of the Great Recession and hit a record last year of 1755 million Investors andanalysts have been watching for signs that the current boom cycle has begun to wane

Trucks and SUVs pushed sales at some major automakers higher in March at the expense of cars as American consumerscontinued to shun smaller vehicles amid low gasoline prices

No 1 US automaker General Motors reported a 2 percent increase in sales to just over 256000 vehicles with sales of its Tahoeand Suburban SUV models seeing their best sales month since 2008

But sales at Ford Motor fell more than 7 percent to 236000 vehicles with fleet sales to rental agencies businesses andgovernment entities down nearly 17 percent on the year On a conference call Ford executives said they expected the seasonallyadjusted annualized rate (SAAR) for US auto sales of over 17 million vehicles

Analyst polled by Reuters expected a SAAR of 173 million vehicles for March

Toyota Motor reported a 21 percent decrease in sales including a decline of more than 7 percent at its luxury Lexus brand

Honda Motor reported an overall decline in sales of 07 percent versus March 2016 but said truck sales were up 84 percent

Nissan Motor reported a 32 percent increase in sales and said sales of its trucks SUVs and crossovers were up 26 percent andhad hit record highs

In morning trading General Motors shares were down 38 percent at $3403 and Ford was off 25 percent at $1134

Car retailer Penske Auto Group was down 15 percent and Group 1 Automotive was down 33 percent on Monday morninghttpautoeconomictimesindiatimescomnewsindustryus-march-new-auto-sales-fall-short-of-market-expectations57994855

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Former Volkswagen patriarch Ferdinand Piech to sell bulk of Porsche stake ReutersSee this story in The Economic Times

Berlin Frankfurt Former Volkswagen Chairman Ferdinand Piech has agreed to sell a major part of his stake in the firm thatcontrols Europes biggest carmaker paring his ties with Volkswagen after more than two decades of undisputed rule

Volkswagens ruling Porsche and Piech families have agreed to buy part of the 147 percent stake Piech holds in Porsche which in

turn owns 522 percent of voting shares in Volkswagen exercising their right of first refusal on Porsche shares according to aPorsche statement published on Monday

It did not say exactly how much of the stake the families would buyhttpautoeconomictimesindiatimescomnewsindustryformer-volkswagen-patriarch-ferdinand-piech-to-sell-bulk-of-porsche-stake57995029

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Hyundai flags weaker China sales after missile row ReutersSee this story in The Economic Times

Seoul South Koreas Hyundai Motor and Kia Motors on Monday said weaker sales in China likely dragged down overseas sales inMarch when a diplomatic row over a missile system led to a rise in anti-Korean sentiment

At Kia Motors China sales likely halved from the year prior due to political tension and other reasons a person familiar with thematter told Reuters Kia declined to comment

Hyundai and sister Kia posted declines in March overseas sales without disclosing a country-by-country breakdown China theworlds biggest auto market accounted for over a quarter of the pairs 2016 overseas sales

China last month reiterated its opposition to a missile defence system that South Korea planned as a deterrent to nuclear-armedNorth Korea saying the radar was capable of penetrating its territory South Korean firms have since encountered difficulties inChina such as protests suspension of operations and cyber crime

The March sales results are gloomy The market is getting tougher and tougher said the person who was not authorised to speakpublicly on the matter and so declined to be identified

Hyundai Motor suspended production at one of its Chinese plants from March 24 to April 4 fuelling concern that tension over theTerminal High Altitude Area Defence (THAAD) system may be hurting sales

But industry officials said Hyundai and Kia have deeper longer-term challenges in the shape of local brands The likes of GeelyAutomobile have gained market share with affordable sport utility vehicles at the expense of Hyundai and Kia which rely heavily onsedans

Kia has also been in a dispute with over 100 of its Chinese dealers who said in January they might refuse to sell its cars unlessthey receive 25 billion yuan ($36320 million) in compensation for losses incurred from unsold stock

In March Kias overseas sales fell 13 percent to 190601 vehicles Last year around 50000 of its March sales were in China

Hyundais overseas sales fell 8 percent to 342164 vehicles the lowest for March since 2013 company data showed

Hyundai and Kia on Monday said overseas performance last month seems to have been impacted by weaker sales in China

We have seen a recent drop in dealership traffic in China as consumer sentiment towards Korean products overall is low andcompetitors are initiating special promotions targeting our customers they said in a joint statement($1 = 68832 Chinese yuan renminbi)httpautoeconomictimesindiatimescomnewsindustryhyundai-flags-weaker-china-sales-after-missile-row57991298

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Architect of modern VW cuts ties with share sale ReutersSee this story in The Economic Times

Berlin Former Volkswagen Chairman Ferdinand Piech has agreed to sell a major part of his stake in the firm that controls Europesbiggest carmaker reducing his links with Volkswagen after more than two decades of undisputed rule

Volkswagens (VW) ruling Porsche and Piech families have agreed to buy a large part of the 147 percent stake Piech holds inPorsche Automobil Holding SE which in turn owns 522 percent of voting shares in VW exercising their right of first refusal on theshares Porsche SE said on Monday

It did not say exactly how much of the stake the families would buy and gave no details on the price Piechs total stake in PorscheSE is worth about 1 billion euros ($11 billion) at current market prices

The withdrawal from Porsche SE of Piech who turns 80 on April 17 had been expected after the company said last month he wasin talks about selling his holding

It marks an end to the influence of one of the last towering figures in the auto industry who has had a rocky relationship with VWsince he was ousted as chairman in 2015 months before the company was engulfed in an emissions test cheating scandal

An industrial scion and engineer Piech transformed VW from a regional carmaker into a global powerhouse which during his reign

bought the luxury Bugatti Bentley and Lamborghini brands and integrated the mass-market Skoda and Seat businesses

The grandson of Ferdinand Porsche founder of the sports car maker that developed the classic VW Beetle under a 1934 contractwith the Nazis Piech led VW as chief executive from 1993 and later as chairman

But since quitting as chairman in April 2015 following a power struggle with former CEO Martin Winterkorn he has become arecluse and unwilling to defend the empire he helped build

In that struggle Piechs billionaire cousin Wolfgang Porsche the chairman of Porsche SE sided with Winterkorn as did other topplayers on VWs supervisory board

A media report in February said Piech had told investigators that his cousin and other VW board members knew about theemissions test cheating earlier than stated in public - something VW has denied That led some members of the Porsche and Piechclans to want to eject Piech from the supervisory board of Porsche SE a source at the holding company has said

Porsche SE said on Monday Piech would stay on the board until the closing of the stake sale which requires regulatory approvalPiechs Ferdinand Karl Beta foundation will retain a minor stake in Porsche SE it added without elaboratinghttpautoeconomictimesindiatimescomnewsindustryarchitect-of-modern-vw-cuts-ties-with-share-sale57996464

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Volvo opens Rs 140 cr driveline test facility in Sweden The Economic Times

New Delhi Volvo Construction Equipment (Volvo CE) has inaugurated its SEK 195 million (around Rs 140 crore) driveline testfacility in Eskilstuna Sweden The new equipment will support the companys technology shift towards electromobility informed theSwedish company in an official statement

The new building is home to several test rigs that will test both electric and conventional drivelines and components

ampldquoThis test facility will support Volvo on its journey towards electromobilityamprdquo says Peter Oumlsterberg vice president ofCore Technologies at Volvo CE

ampldquoWithout it we wouldnamprsquot be able to move forward and test concepts like our HX2 autonomous battery-electric loadcarrier and the LX1 electric hybrid wheel loader The equipment will allow us to test important factors and see how a drivelinetransmission components etc work in different situationsamprdquo

The first projects to enter the facility will be connected to electromobility and transmissions Although it has been designed to testdrivelines in wheel loaders and articulated haulers electromobility components from other machines could also be tested at the sitealong with truck axles added the company

ampldquoThis really is a Volvo Group investmentamprdquo concludes Oumlsterberg ampldquoItamprsquos a unique facility that will benefitmany areas of the Volvo business Volvo CE is at the forefront of the technological shift when it comes to electromobility in ourindustry In the future all of our competitors will need a facility like thisamprdquohttpautoeconomictimesindiatimescomnewsautomotiveconstruction-equipmentvolvo-opens-rs-140-cr-driveline-test-facility-in-sweden57986266

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Sale of premium gasoline restricted in Cuba IANSSee this story in The Economic Times

Havana Several service stations that sell only premium gasoline were closed here this weekend although Cuba has not officiallyannounced restrictions on sales of the special fuel

Some of the service stations that sell high-octane fuel which is hard to find on the island had been closed for several days withcones and yellow tape keeping drivers away Efe news reported

Long lines formed outside one service station on Friday and the Havana fuel outlet was closed a day later

An Efe reporter confirmed that other service stations were still selling premium fuel on Saturday but with cash payment requiredand the high-octane gasoline restricted to certain vehicles and cars rented to tourists

Cuba is trying to find a new source of oil amid a cut to the subsidized supply it has received since 2003 from Venezuela whichprovided the island with 100000 barrels per day (bpd) of petroleum

The flow of crude from Venezuela has been reduced to about 55000 bpd due to the economic crisis in the South American nationhttpautoeconomictimesindiatimescomnewsoil-and-lubessale-of-premium-gasoline-restricted-in-cuba57987712

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Yamaha XSR900 bike receives Red Dot design award The Economic Times

Iwata Japanese motorcycle manufacturer Yamaha Motors XSR900 has received Red Dot Product Design Award 2017 informedthe company in a media release

This marks the fifth consecutive year since 2012 that Yamaha Motor products have received this award and the third productselected for the ampldquoBest of the Bestamprdquo honor after the MT-07 motorcycle and JWX-2 assist-type electric power unit forwheelchairs received Yamaha Motoramprsquos first ampldquoBest of the Bestamprdquo awards in 2015

Also Read Yamaha Motor receives ampldquoRed Dot Awardamprdquo for fifth consecutive year

Akihiro Nagaya Chief General Manager of the Design Center said Continuing from the 2015 success of the MT-07 and JWX-2 webelieve that the XSR900 receiving the ampldquoBest of the Bestamprdquo honor in the ampldquoRed Dot Award Product Designamprdquoa leading global design competition is a recognition of the initiatives Yamaha Motor is taking with regard to design

The development of the XSR900 was lead not only by the designers but also engineering and manufacturing staff for a trueMonozukuri (Engineering manufacturing and marketing) approach to craftsmanship This year Yamaha Motor opened theInnovation Center as a new base for the Design Center

We plan to enhance our advanced development and product development bringing the global Yamaha family together to createdesigns expressing the unique style of Yamaha and new value which generates even more attractive Kando (Kando is a Japaneseword for the simultaneous feelings of deep satisfaction and intense excitement that we experience when we encounter something ofexceptional value) added Nagaya

The Red Dot Design Award is an international product design and communication design prize awarded by German DesignZentrumhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesyamaha-xsr900-bike-receives-red-dot-design-award57986466

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Hyundai Motor Kia Motors cut China output amid diplomatic tensions Reuters See this story in The Indian Express

Seoul South Koreaamprsquos Hyundai Motor Co and Kia Motors Corp have slashed vehicle production in China people familiar withthe matter told Reuters amid diplomatic tensions and competition from local brands China the worldamprsquos biggest auto marketaccounted for over a quarter of the pairamprsquos 2016 overseas sales but their March sales there were hit by anti-Korean sentimentand competition from local automakers like Geely Automobile Holdings Ltd

Kia Motors has cut production shifts at its China factories two of the sources said One of them said Hyundai also had eliminated asecond shift from its three factories in Beijing starting mid-March

The sources declined to be identified because the matter was not public The automakers declined to comment on Tuesday

Hyundai earlier said it had suspended output at its factory in Hebei from March 24 to April 4 It was unclear how the shift cut wouldaffect employment there

Political tensions have soared since late February when South Koreaamprsquos Lotte Group agreed to provide land for a US missiledefence system in South Korea The move angered Beijing although Seoul says the system is a response to North Koreaamprsquosnuclear threat and is not intended to contain China

South Korean firms including Lotte Group have encountered difficulties in China such as boycott calls in state media protestssuspension of operations and cyber crimeThe South Korean automakers said on Monday that weaker sales in China had likely dragged down overseas sales in Marchblaming poor ampldquoconsumer sentiment towards Korean productsamprdquo

At Kia Motors China sales likely more than halved in March from the year prior a person familiar with the matter told Reuters

But sources said the sales falls may have stemmed from competition from local rivals rather than the political fallout

The likes of Geely have gained market share with cheaper sport utility vehicles at the expense of Hyundai and Kia which relyheavily on sedans

Hyundai Motor shares fell 19 percent and Kia Motors declined 07 percent in the wider market which was down 02 percent inmorning trade on Tuesdayhttpindianexpresscomarticlebusinesscompanieshyundai-motor-kia-motors-cut-china-output-amid-diplomatic-tensions-4598492

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Meet Daimlers first amphibious vehicle - smart forsea concept car The Economic Times

New Delhi Daimler owned Smart Automobile is going to launch companys first amphibious vehicle the smart forsea concept carinformed the automaker in a statement The smart forsea is set to launch this summer in Italy

smart forsea concept car is an open boat with two seats and a wide transom lined with teak and inspired by the classic lobster boatIt features a small refrigerator and an ice bucket

The vehicleamprsquos interior was produced by Focaccia Group smartamprsquos Italian partner based in Cervia

Talking about the concept car Smart said Thanks to the careful study of fluid dynamics and innovative technology that allows thewheels to be angled at 35deg - thus lining up with the hull and the underbody - the smart forsea offers a cruising speed of 10 knotswith peaks at 15 knots and 3 hours of navigating autonomy

The steering wheel provides complete control over the boat guiding the jet of water with extreme precision in keeping with themarked agility of the fortwo

The 90 hp rear engine was easily paired with a custom-made water-jet propeller and connected to a joint shaft on the reardifferential Transferring traction from the rear wheels to the water jet is managed by an ECU that handles the differential lock andtransfers torque from the axles to the universal joint shaft added the companyhttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsmeet-daimlers-first-amphibious-vehicle-smart-forsea-concept-car57990760

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Tesla reports record deliveries of vehicles in first quarter

APSee this story in mint

Palo Alto (California) Electric car maker Tesla Inc says it delivered a record 25000 vehicles in the first quarter up 69 from thesame period last year

Tesla said Sunday that it delivered about 13450 Model S cars and about 11550 Model X SUVs

Tesla says another 4650 vehicles were being transported to customers at the end of the quarter and will be included insecond-quarter deliveries

Production in the first quarter totalled 25418 vehicles also a record Tesla said

Tesla posted its first profit in three years in the third quarter of 2016 but it followed that with a $121 million loss in the fourth quarterAnalysts expect another loss for the first quarter

Sundayamprsquos report indicates Tesla is on track to hit its forecast of 47000 to 50000 deliveries in the first half of 2017

CEO Elon Musk said recently that the Palo Alto-based company will produce 5000 cars a week later this year after productionbegins in July on the new Model 3

At $35000 the Model 3 will cost about half as much as the lowest-price Model S It will also be simpler and easier to make withmore automation during production Analysts say the Model 3 possibly along with other new vehicles including a small SUV couldsignificantly increase Teslaamprsquos sales volumes

Expectations for the Model 3 have helped drive Tesla shares up by 30 since the start of the yearhttpwwwlivemintcomIndustryYfWq8ZO82cqHGnvOtXguaOTesla-reports-record-deliveries-of-vehicles-in-first-quartehtml

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German court rebuffs Volkswagen complaint over prosecutors searches ReutersMunich A German court has rebuffed Volkswagens attempt to prevent prosecutors from using information seized during searchesof the law firm which the carmaker had hired to investigate its emissions scandal

Volkswagen said last week it had filed a complaint with a Munich court to prevent prosecutors from retaining and assessing materialconfiscated during a March 15 raid on US law firm Jones Day

Volkswagen whose supervisory board had commissioned Jones Day in late 2015 to investigate the diesel emissions test-cheatingscandal has said it would use every legal step to counter the actions by Munich prosecutors

But a Munich local court has now decided that the raids by prosecutors on Jones Day as well as on Volkswagen and Audi both ofwhich were also searched separately on March 15 were legitimate a court spokeswoman said on Monday

Munich prosecutors said the decision by the local court to reject Volkswagens complaint would also be checked by a Munich districtcourt

There is no change in our position a spokesman at Wolfsburg-based Volkswagen said on Monday We adhere to our legal

opinion

Jones Day had no immediate commenthttpautoeconomictimesindiatimescomnewsindustrygerman-court-rebuffs-volkswagen-complaint-over-prosecutors-searches57991362

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Teslas revamped Roadster could beat its fastest car The Economic Times

The Model S is one of the fastest cars out there -but it wont be Teslas fastest for too long

Tesla CEO Elon Musk said Teslas next-generation Roadster will beat the Model S when it comes to speed But we shouldnt expectanother Roadster for a few more years he said

In February the Model S beat a Porsche 911 Turbo S in a first-of-itskind acceleration test The Model S reached 30 mph 05seconds ahead of the 911 and held a 2-second lead from 60 mph through 90 mph All of this occurred while the car was operatingin Teslas `Easter egg mode -a hidden feature that requires a specific series of gestures to unlock

While it is rumoured that Teslas new Roadster will launch in 2019 an exact date hasnt been confirmed

The Roadster is Teslas flagship electric car

First released in 2008 the Roadster boasted a range of 245 miles and could accelerate to 60 mph in just 37 seconds Its base priceat the time was $98000 But it came with its share of prob lems When it was first released the car repeatedly broke down and gotstuck in second gear This is because the car used an `unsafe chassis made by sports-car maker Lotus Musk had said in May2016

Tesla issued a design reboot within a year that improved the Roadsters performance and gen erated a profit for the automakerTesla sold more than 2400 Roadsters across 30 countries the company wrote on its webpage

But it looks like the next Roadster could outshine Teslas Model S

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Tesla tops quarterly sales forecast sells over 25k vehicles AFPSee this story in The Economic Times

Washington Tesla sold more than 25000 vehicles in the first quarter a record that beat analysts forecasts the electric carmakersaid Sunday

The Palo Alto California-based carmaker saw deliveries bounce back by 69 percent compared to a rough first quarter in 2016Tesla produced 25418 vehicles a bit above its prior record in the third quarter of 2016

That puts Tesla on track to meet its target of 50000 units in the first half of the year In the first quarter it delivered 13450 of theModel S and 11550 of the larger Model X

Its upcoming Model 3 is priced at a moderate $35000 in the United States far below the price of its initial Models S and X vehicles

The Model 3 was designed from the outset to be more efficient to make a move intended to avoid production stumbles

CEO Elon Musk voiced confidence in February that Tesla electric car production would climb to 500000 next year

Tesla in January began mass production of energy-saving batteries that it vows will take electric cars mainstream

A Gigafactory created by Tesla and Panasonic is cranking out lithium-ion battery cells which will be used in Teslas energystorage products and the Model 3 according to the carmakers website

The Gigafactory located in the western state of Nevada is also working on residential energy storage technology that could beused to power homes with solar energyhttpautoeconomictimesindiatimescomnewsindustrytesla-tops-quarterly-sales-forecast-sells-over-25k-vehicles57982105

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Italian police force gets Lamborghini Huracan for patrolling The Economic Times

Move over Dubai Police theres a new squad on hot wheels that is sure to give criminals a run for their money Or drive

The Italian police force has been assigned modified Lamborghini Huracans to help them better enforce the law The supercar it is

reported will be used to patrol highways around Bologna and will primarily be targeted against drivers who violate speedrestrictions

The Huracan is a widely recognised supercar from the iconic Italian company It is powered by a V-10 engine which is belts out 610hp of power Going from naught to 100kmph takes a brazenly quick 32 seconds and the car maxes out at a top-speed of 325kmphThe cars for the Italian police department have been additionally modified to help personnel apprehend traffic violators and criminalsmore effectively

Presented in the official blue colour of Italian police the customised Huracans reportedly have pre-assigned police tablet PCsincorporated a standard-issue gun holster portable extinguisher among other features The supercar will soon also be used forother non-police emergency duties like transportation of blood and organs for medical purposes

When it comes to fighting crime and ensuring adherence to road-related laws the Italians are now on the heels of Dubai where thepolice force is well-known for patrolling cars in the official garage - an Aston Martin One-77 a Bentley Continental GT three hybridPorsche Panameras and two BMW i8shttpautoeconomictimesindiatimescomnewspassenger-vehiclecarsitalian-police-force-gets-lamborghini-huracan-for-patrolling57982378

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Spark Minda inaugurates its new plant in Mexico invests $10 million The Economic Times

Queretaro Mexico Automotive Component manufacturer amplsquoSpark Minda Ashok Minda Groupamprsquo in a BSE filingannounced the inauguration of its new manufacturing plant located at Queretaro Industrial Park Mexico

The company also said that its approximately invested $10 million in its new Mexican facility in the first phase New plant willmanufacture Interior automotive components such as Glove Box I Panel Parts etc for Volkswagen Group

The new facility at Queretaro which is Minda KTSNamprsquos 5th unit has a total area of 8500 Sqmtrs with manpower strength ofaround 130 employees The plant has an additional 5000 sq meters space in the similar premises for further growth and is targetingannual sales of 450 Mio Pesos (USD 24 Mio) from 2017-18 onwards

Ashok Minda Chairman amp Group CEO Spark Minda said ampldquoOur presence in Europe goes back to 2007 when Minda KTSNPlastic Solutions was acquired to oversee the European operations The support we have received from all the stakeholders inEurope has encouraged us to start manufacturing facility in North American Region The new manufacturing facility at QueretaroMexico marks a significant milestone in the history of Spark Minda Ashok Minda Group This investment shows the clearcommitment of our Group to the expansion of our activities here in the regionamprdquo

NK Taneja Group Chief Marketing Officer Spark Minda commented ampldquoThe new facility has been set up with intent to serveour customers through our advanced technologies and services This will also further strengthen our strategic presence as we reachout to OEs to supply quality automotive components and also offer state of art amp future technological solutions to our esteemedcustomers in whole continent We endeavour to give our Customers the best of our services in the future as we always have beendoingamprdquo

Vinayak Hegde CEO Minda KTSN said ampldquoMinda KTSN is proud to share the moment of opening of its new manufacturingfacility at Queretaro Mexico Queretaro today has emerged as a leading strategic commercial hub in the region with world-classinfrastructure and a highly competitive business environment Our new facility will enable us to meet the fast-growing demand weanticipate in this region even opening opportunities for us to export The project has not only been completed on schedule ampndashbut also met all customer requirements It has met the targets using the best industry practices in an environmentally friendly andsocially responsible manneramprdquo

Minda KTSN Plastic Solutions Germany is a wholly owned subsidiary of Minda Corporation Limited Interior products for such asGlove box I Panel Parts Storage boxes Cup holders Steering column covers Oil panel Cylinder heads and Structure parts forVW Group BMW Daimler as main customers Minda KTSN in Europe has state of the art of Injection moulding automatedassemblies and internal tool manufacturing facilitieshttpautoeconomictimesindiatimescomnewsauto-componentsspark-minda-inaugurates-its-new-plant-in-mexico-invests-10-million57984100

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BMW R 1200 GS xDrive Hybrid unveiled The Economic Times

Munich BMW Motorrad in a media release announced the launch of its BMW GS models which also includes R 1200 GS xDriveHybrid claiming to be the worldamprsquos first all-wheel drive travel enduro

The will also be the world premiere of the near-series test version of the R 1200 GS xDrive Hybrid BMW Motorrad opens up awhole new chapter in GS history and is set to launch the worldamprsquos first series-production all-wheel drive travel enduro withhybrid drive

BMW R 1200 GS xDrive Hybrid is based on the R 1200 GS Adventure The airliquid cooled flat twin generates an output of 125 hpand a peak torque of 125 Nm delivered to the rear wheel via shaft drive

The all-wheel drive of the front wheel of the R 1200 GS xDrive Hybrid claims better traction on slippery road conditions deep sand

or mud and can be operated automatically or manually by the rider via the 2WD (Two-Wheel Drive) switch located on the lefthandlebar operation unit

It activates the wheel-hub e-Drive system which functions both as electric motor and generator With the additional output of 45 hpand overall 125 170 hp system performance

A new generation of batteries derived from BMW i battery technology stores the energy recuperated during braking The e-Drivesystem on the front wheel is supplied with this energy and the R 1200 GS xDrive Hybrid rider can use it for accelerating in additionto the power delivered by the combustion engine

BMW xDrive Hybrid all-wheel drive has been integrated into the BMW Motorrad ABS system braking performance has beenimproved even further claims the release

Reiner Scherbeck the head of winter testing at BMW Motorrad rode it to the North Cape on a first stage and from there across thefrozen Barents Sea to the North Pole and back again and said

ampldquoWe were absolutely amazed how problem-free and reliable the all-wheel drive worked even at minus 56 degrees Thanks toour functional BMW rider equipment the cold temperatures were no problem for the rider too Probably the most thrilling conclusionwe can draw from our test runs is that for the first time we can offer a motorcycle that makes riding a motorcycle a pleasure at snowdepths of 125 metres in high winter with the new R 1200 GS xDrive Hybrid Special front section components have also beendeveloped for this purpose as well as high-speed suitable M+S all-season tyres This was also necessary in order to meet thenecessary requirements for high-speed winter operationamprdquo

BMW R 1200 GS xDrive Hybrid will be presented to the public in a suitable location very soon and will be on sale from the secondhalf of 2017 said the companyhttpautoeconomictimesindiatimescomnewstwo-wheelersmotorcyclesbmw-r-1200-gs-xdrive-hybrid-unveiled57985699

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Magna invests in Canadian artificial intelligence research facility The Economic Times

Aurora Global automotive components supplier Magna is going to invest $5 million CDN into the Vector Institute a newindependent Artificial Intelligence (AI) research facility in Toronto Canada

The automotive world is changing rapidly reacting and innovating in response to massive technological advances said DonWalker CEO of Magna International Canada is a leader in the potential game-changers of machine learning and AI and we wantto be at the forefront of its advancements in the automotive sector

The company informed in a statement Magnas AI strategy revolves around two key areas manufacturing and autonomousdriving From a manufacturing standpoint leveraging AI can provide human operators enhanced information for decision makingand it can automate quality sorting and material handling to help reduce production costs Secondly as future mobility continues toevolve AI will play a major role in dynamic decision-making in autonomous driving

In addition to the companys investment in Vector Magna recently announced its support for NextAI - a program that came out of aninnovation offsite with roughly 35 CEOs entrepreneurs and technology experts to help keep home-grown talent in Canada andattract leading thinkers to the country

Magna has built a legacy on manufacturing and innovation which started in Canada This year marks the companys 60thanniversary and we are not slowing down We continue to invest in our people operations and technologies all of which we expectwill bring continued success for another 60 years and more said Walkerhttpautoeconomictimesindiatimescomnewsauto-componentsmagna-invests-in-canadian-artificial-intelligence-research-facility57986760

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Rheinmetall wins new order for commercial vehicle steel pistons The Economic Times

New Delhi German components manufacturer Rheinmetall Automotive has been awarded a contract for commercial vehicle steelpistons worth over euro70 million (around Rs 480 crore)

The company in an official statement said The customer is a leading manufacturer in the premium truck segment Tipping thescales in favor of Rheinmetall Automotive were its state-of-the-art technologies outstanding customer service and competitive localpresence

Under the Group brand name Kolbenschmidt state-of-the-art steel pistons for the NAFTA market will be supplied over a period of sixyears starting in the fourth quarter of 2019 They will be manufactured at the KS Kolbenschmidt de Mexico plant in Celaya whichhas been producing steel pistons for the North American market since 2013

Besides making the actual pistons the Rheinmetall Automotive will also complete their assembly with rings and pins

The components will be installed in the commercial vehicle manufactureramprsquos six-cylinder inline engineshttpautoeconomictimesindiatimescomnewsauto-componentsrheinmetall-wins-new-order-for-commercial-vehicle-steel-pistons57986832

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US used car dealer CarMax shares could drop 20 as risky loans rise ReutersSee this story in The Economic Times

New York Shares of CarMax the biggest US used car dealer are vulnerable to a 20 percent decline if investors are unnerved byfalling used vehicle prices and weakening credit quality when it reports its results Barrons said on Sunday

The company is scheduled to report fourth-quarter and fiscal year ended February 28 2017 results on April 6

CarMaxs captive auto finance unit contributes about 40 percent of the companys operating income and could come under pressureas defaults and delinquencies rise the report said

Last year the company rolled out an online financing initiative to help customers pre-qualify for a loan before a store visit hoping toimprove customer conversion rates

The economy is becoming less friendly to used-car buyers personal bankruptcies have ticked up in recent months and interestrates are on the rise meaning CarMax might find itself underreserved for loan losses according to Barrons

CarMax seems sure to continue to grow sales by opening new stores but if the company encounters rude surprises in its loanportfolios and falling vehicle prices pinch margins investors could send the stock lower in its historical valuation range the reportsaid

CarMax shares closed down 14 percent at $5922 per share on Friday and have fallen more than 8 percent so far this yearhttpautoeconomictimesindiatimescomnewsaftermarketus-used-car-dealer-carmax-shares-could-drop-20-as-risky-loans-rise57987261

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Scania appoints Mikael Cato as its Chief Digital Officer The Economic Times

New Delhi Swedish commercial vehicles manufacturer has strengthened its digitalisation area with the appointment of Mikael Catoas the Chief Digital Officer effective from May 15 2017 Cato will report to Scaniaamprsquos President and CEO Henrik Henrikssonsaid the company in an media release

ampldquoThe digitalisation of Scania is delivering results and is now on the way to becoming one of our main processes and will be asuccess factor in our efforts to make continuous improvements in all areas of our business Mikael Catoamprsquos role as ChiefDigital Officer will be to develop accelerate and coordinate our digital transformationamprdquo says Henriksson

Mikael Cato born in 1972 has worked at the management and IT consulting company Acando since 2014 where he a member ofthe Group Management team as head of Area Digital Since 1998 he has held various management positions in digital businessdevelopment and technology at Connecta Valtech and Cybercom

ampldquoI am looking forward to the assignment It will be very exciting to work with digitalisation at Scania which operates in anindustry characterised by great change and where digitalisation is a vital issueamprdquo says Mikael Catohttpautoeconomictimesindiatimescomnewscommercial-vehiclemhcvscania-appoints-mikael-cato-as-its-chief-digital-officer57987459

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Economy

Rupee tumbles 18 paise to 6503 PTISee this story in The Hindu Business Line

Mumbai Retreating from multi-month high the rupee on Monday plunged 18 paise to close at 6503 against the US currency onfresh dollar demand from importers and banks This is the biggest one-day fall against the greenback in nearly two months

The domestic unit resumed higher at 6480 from last Fridayamprsquos closing value of 6485 at the Interbank Foreign Exchange(Forex) market and strengthened further to 6476 on steady dollar unwinding from exporters and speculators

However the home currency suffered a sudden jolt in late afternoon deal to skid below 65-mark to touch a intra-day low of 6509due to bouts of dollar demand It finally settled the day at 6503 revealing a sharp loss of 18 paisehttpwwwthehindubusinesslinecommarketsforexrupee-dollar-live-updatearticle9612693ece

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India Incacirceurotrades credit quality improved in FY17 says rating agency Crisil The Hindu Business Line

Mumbai Credit quality of India Inc gradually recovered in FY17 with credit ratio at 122 times (129 times in FY16) whiledebt-weighted credit ratio improved to a five-year high of 088 time compared with 031 times according to rating agency Crisil Theimprovement was driven by firm commodity prices stable macros improving capital structure and lower interest costs

The debt to income ratio is the percentage of oneamprsquos income that goes towards paying debts Lenders look at this percentageto help them decide whether or not one is a good credit risk Debt-weighted credit ratio is the total debt on the balance sheets offirms upgraded versus downgraded There were 1335 upgrades led by consumption-linked sectors and 1092 downgrades due toinvestment-linked sectors

Going forward Crisil expects gradual improvement in credit quality to sustain and the impact of demonetisation on the same isexpected to be transient ampldquoWe expect upgrades to outnumber downgrades in the near term driven by improving domesticconsumption demand after demonetisation Further several debt-intensive sectors such as metals (especially non-ferrous) andsugar are expected to see improvement in credit quality in fiscal 2018 because of rising pricesamprdquo it said

Fragile sectorsHowever the underpinning remains fragile as some sectors continue to struggle and several large companies remain highlyindebted Several investment-linked sectors such as real estate and capital goods continue to face headwinds Stress is alsobuilding up in some microfinance institutions And major corporate houses with high indebtedness will continue to strugglehttpwwwthehindubusinesslinecomtodays-papertp-money-bankingindia-incs-credit-quality-improved-in-fy17-says-rating-agency-crisilarticle9614161ece

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Bullish foreign investors take markets to all-time closing highs The Times of India

Mumbai Boosted by strong foreign fund buying in recent weeks the BSE sensex on Monday closed at a new all time high of 29910points up 290 points on the day as heavyweights like Reliance LampT ICICI Bank and HDFC rallied

The nifty on the NSE also closed at a new all-time peak at 9238 points up 64 points from its Friday close The sensex is now just115 points away from its all-time peak touched during intra-day trades on March 4 2015 The days session also pushed investorswealth as measured by BSEs market capitalisation to a new high at Rs 1221lakh crore

Since BJP got strong mandate in state elections in March foreign portfolio investors (FPIs) have been strong buyers in India Lot ofFPIs were under-invested in India since demonetisation and US election results (both in early November) With confidence in theIndian economy coming back because of the strong governance FPIs are buying in to India again said Dharmesh Mehta MDAxis Capital

Globally money is again flowing back into emerging markets he said Institutional dealers also sa id that the lack of good investment destinations for foreign fund managers is also prompting them to invest in India which is currently one of the bestperforming markets The recent appreciation of the rupee against major currencies and the governments push to roll out GST in atime-bound manner are also fuelling the Indian rush among FPIs

In March FPIs have pum ped in about Rs 31000 crore ($48 billion) into equities making it the best month ever for foreign fundinflows in rupee terms The previous best was exactly a year ago when in March 2016 these funds had net bought stocks worth Rs21143 crore official data showed In terms of dollar inflows with a nte inflow figure of $53 billion October 2007 is still the bestmonth

Compared to the March figures in February FPIs had net bought stocks worth Rs 9900 crore and in January they had recorded anet outflow of nearly Rs 1200 crorehttptimesofindiaindiatimescombusinessindia-businessbullish-foreign-investors-take-markets-to-all-time-closing-highsarticleshow57999909cms

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Closing

Last Financial Closing

Sensex 2991022 (+28972)NSE 923785 (+6410)US$ spot Rs6502US$ Y1106100US$ 6 months Rs

Yen Rs59Euro spot Rs6926

Gold (10gm) Rs28706Silver (1kg) Rs4232100

Crude Oil (WTI) Crude Oil (Brent) $5356 (+003)

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Apollo Tyres 1 21025Asahi Ind 1 21930Amara Raja B 1 90835Ashok Leyland 1 8410Bajaj Auto 10 278360Bharat Forge 2 107565Denso 1 Eicher Motor 10 2549345Escorts 10 53750Exide Ind 1 23000Force Motors 10 457500Gabriel India 1 12520Hero Motocor 2 320215Hind Motors 5 905Hi-Tech Gear 10 33300Jay Bh Maruti 5 42820

Jamna Auto 5 21490JK Tyres amp Inds 10 1333Kinetic Motors 10 Kinetic Engg 10 KOEL 2 38625Kirloskar Br 2 26480LML Ltd 10 1270LampT 2 166100Lumax Ind 10 137480Lumax Tech 10 49740MampM 5 128650Maruti Suzuki 5 607200Motherson SS 1 37545Minda Inds 2 44035MRF 10 6099355Omax Auto 10 7895Rico Auto 1 5780Sona Koyo St 1 8210

SRF 10 166205Tata Motors 2 47040 TVS Motors 1 43610

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Bhushan Steel 2 5735Hindalco 1 19360Hind Zinc 2 29160JSW Ispat S 10 Jind Steel 1 12315JSW Steel 1 18890Jindal Saw 2 8455National Aluminium 5 7490SAIL 10 6310Tata Steel 10 48585Visa Steel 10 2145

Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23755Binani Industries 10 7680Birla Corp 10 74835India Cement 10 16425Prism Cement 10 10170JK Cement 10 94355Shree Cement 10 1716965

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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

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News on Indian Auto Industry Copyright 1999 NURC MediaNext Pvt Ltd

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Scip on BSE Face Value (Rs) Last Traded Value (Rs)Ambuja Cement 2 23755Binani Industries 10 7680Birla Corp 10 74835India Cement 10 16425Prism Cement 10 10170JK Cement 10 94355Shree Cement 10 1716965

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