Indian Auto Industry Update

15 May 2017

IndustryAuto sector for steady approach in limiting vehicle registration

Automobile Society to give skill development push to auto sector

Fear and nervousness grip automakers after ransomware attack

Interviews & FeaturesComparison between Renault Duster, Hyundai Creta and Honda BR-V

Cars, SUVs, MUVsRenault India aims to launch one product a year till 2020 to hasten growth

Single product sales drive carmakers' growth

Isuzu ramping up component sourcing from India

Ford ups focus on service to win customers

West Bengal lifts halt on electric car registration, bookings rise

Andhra cops, Tamil Nadu auto plant hit as India too comes under cyber-attack

Luxury CarsLexus LX 450 d priced at Rs 2.32 Crore

Lexus ES300h review: Does this Japanese sedan stand up to the Germans?

BMW will start producing the 8 Series in 2018

Commercial VehiclesConstruction & Agri Machinery2/3 Wheelers

Premiumization and Scooterisation is here to stay: TVS Motor Company

Pre-owned two wheelers grow faster than new vehicles

E-BikesComponents

CCI approves JTEKT Corp's stake acquisition in Sona Koyo Steering Systems

Allied IndustriesEmissions / EnvironmentFinance & InsuranceOil, Lubricants & Alternative FuelsNews Magazines

BMW 2-series facelift revealed

BMW 4-series GT electric in the works

LaFerrari replacement to launch in 3-5 years

Ford Mustang facelift brochure leaked

International NewsRenault hit by global cyberattack: Management

Renault latest victim of global cyberattacks, management says counter attack on

Automaker Nissan's UK plant hit by cyber attack

Renault Koleos SUV to go on sale in Europe next month

Ford shareholders in confused tizzy over strategy

NLRB files complaint against VW over practices at Tennessee plant

Germany makes it mandatory for self-driving cars to have drivers at the back

Magna International posts strong growth in Q1 FY17

Electric taxis boost emission free environment

German prosecutors investigate works council pay at Volkswagen

Romanian carmaker Dacia halts production after global cyber attack

Great Wall eyes plant in North America but uncertain due to Trump’s US-first policy

World's Fastest SUV is a Toyota Land Cruiser

Audi, Porsche recall SUVs for possible fuel-pump leaks

EconomyA good monsoon outlook will be gamechanger for economy, stocks

Closing

Industry

Auto sector for steady approach in limiting vehicle registration Hrithik Kiran BagadeDeccan Herald (Web Edition)(May 14) Bengaluru: The auto industry has welcomed Niti Aayog’s suggestion of limiting registration of petrol and diesel vehicles, buthas called for a steady approach and ways to limit congestion and improve infrastructure.

Sharing his thoughts with DH, Toyota Kirloskar Motor (TKM) Vice Chairman and Wholetime Director Shekar Viswanathan said,“One should limit the production of petrol and diesel cars, not only from the point of view of reducing energy, but also fromthe view of reducing polution. But this must be done in a very gradual manner, and not abruptly.”

“The government must tread carefully, because a large part of the auto component ecosystem is dependent on internalcombustion engines, and livelihoods will be at stake if the government intends to move suddenly,” addsViswanathan.”

Niti Aayog on Friday pitched for restricting the registration of diesel and petrol vehicles, saying that the adoption of electric andshared vehicles could save $60 billion in fuel cost by 2030.

“Limiting registration would affect gradually and not overnight, and certainly not in the next five years. A way to encouragepeople towards electric is to limit registration, which must be done to reduce urban congestion,” Viswanathan said,elucidating that in Bengaluru, one may want to limit registration of fuel vehicles in some RTOs, or could have a system of auctioningto hand out licences.

It’s interesting to note that TKM has been bullish on pushing hybrid vehicles in India. “Eventually, consumers will bemaking the choice, and the state must be technology-agnostic. What the government should do is to look at issues like pollution,take old diesel and petrol vehicles off the road, and give more incentives to electric and hybrid vehicles,” he added.

PriceWater House Partner Abdul Majeed opined that it is important to move towards sustainable transportation in the country, andelectric vehicles would go a long way in aiding this.

“There are actually several points to be considered in terms of electric vehicles — a clean power source,infrastructure, and competitive cost. The cost of EVs especially are high, owing to low battery life. We need to have a mechanism tomake it more cost-effective. Obviously if these things are there, then we can urge people to move in that direction,” he said.

Suggesting incentives for EV customers, Majeed said that it is important for a nation of 1.2 billion people to limit congestion andprotect the environment.http://www.deccanherald.com/content/611377/auto-sector-steady-approach-limiting.html

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Automobile Society to give skill development push to auto sector ANISee this story in: The Economic Times (Web Edition)(May 15)

New Delhi: The Automobile Society (India) is planning to establish more student chapters and regional offices all over India topromote skill development programmes in the field of automobile and related sectors.

In 2014, the Society established a state private technical university in Arunachal Pradesh, namely North East Frontier TechnicalUniversity.

According to a statement, the Society also completed training for at least 5000 students under National Skill Development Council

(NSDC) star programme.

Society is the permanent member of Engineering Council of India and member of various Indian institutions and is a training partnerfor automobile skill sector with Council, NSDC and Government of India.

The Automobile Society (India), which is a professional body to promote various activities in the field of automobile industry, hasexpanded its new office to Gurugram, Haryana.

It provides different memberships such as Honorary Fellow, Fellow Member, Associate and Organisational Membership andStudent Membership.

The Automobile Society also conducts Technician Membership examination and senior technician membership examination for theirstudent members through Institution of Automobile Engineers India.

As per the direction of MHRD, Automobile Society India also submitted the file to the Statutory Council that is AICTE on April 24,2017 regarding its technician membership and associate membership programmes for the purpose of government employment.http://auto.economictimes.indiatimes.com/news/industry/automobile-society-to-give-skill-development-push-to-auto-sector/58666268

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Fear and nervousness grip automakers after ransomware attack Deepanshu TaumarThe Economic Times (Web Edition)(May 15)

New Delhi: Seeing the impact of the cyber attack on some of the global automobile companies like Renault, Nissan and Daciawhich halted their production at some of the sites. The Indian automobile manufacturers were gripped by fear and nervousness asthere were some reports that the malware has brought Nissan-Renault Chennai plant to a halt.

Eyeing a potential threat on the processes and critical data, auto majors issued the immediate advisory and took preventivemeasures to protect themselves from the malware.

The Indian arm of Japanese auto major Honda Cars India Limites also issued an advisory to not use the laptop from the othernetworks other than an office. The automaker informed ETAuto that the employees were informed that they should not downloadany kind of documents online and view which is dithering.

On another hand, Country's leading car manufacturer Maruti Suzuki India Limited spokesperson said, "We have not been impactedby the global cyber virus attack till now. Preventive countermeasures have been taken to counter any such attack. As a part of goodbusiness practices, we regularly issue advisories to employees not to access any unknown emails or links, which could led tomalware attacks."

While various automobile manufactured said that there has been no impact of malware that has impacted more than 57,000computers across 99 countries. Since it was a weekend so there were no reports of production halt from auto companies. However,there were few reports on Renault-Nissan Chennai plant which aired yesterday.

Wanna cry Ransomware encrypts data, lock the computer with help of a downloadable link and ask fo ransom to put back system inplace. In India two south India banks, two manufacturing companies from Delhi, an FMCG and corporate headquarters wereimpacted from the malware along with 102 computers of Andhra Police.

Roy Kurian, Sr Vice President, Sales & Marketing, India Yamaha Motor Private limited said, "We had not impact of Malware on us.Also, we have our IT cell in place to prevent all kind of cyber attacks. We have installed relevant firewalls to prevent attacks".

Till now there is no major impact of the malware on the automobile industry. However, things would be more clear tomorrow whenthe official work will resume.http://auto.economictimes.indiatimes.com/news/industry/fear-and-nervousness-grip-automakers-after-ransomware-attack/58670891

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Interviews & Features

Comparison between Renault Duster, Hyundai Creta and Honda BR-V Asian Age (Web Edition)(May 14)

The number of cars being sold every year is growing exponentially. However, our infrastructure isn’t developing at the samepace. This has lead to endless traffic jams which demand countless gear changes. Here's where automatic transmission comes intothe picture as it gives you a clutch-free driving experience.

Another trend, the growing popularity of SUVs/Crossovers in India, could be attributed to the possible lack of well-surfaced roads. Ifyou qualify as such a buyer, who is looking to buy a cheap automatic SUV, we have a new entrant in the segment - the Renault

Duster petrol automatic. It was recently launched at a price tag of Rs 10.32 lakh, ex-showroom, Delhi. It gets a new 1.5-litrefour-cylinder petrol motor that puts out 106PS of power and 142Nm of peak torque. Mated to a continuously variable transmission(CVT) gearbox, it returns 14.99 kilometres per litre. Not bad, eh?

Before concluding this is the one to go for, let’s look at its competition in the segment. Priced a little higher than the Duster isHonda’s BR-V petrol automatic and Hyundai’s Creta petrol automatic. How do they fare in this spec comparison?Let’s find out.

Before jumping right in, let us make it clear that the Honda BR-V is a seven-seat vehicle and other two are five seaters. All threevehicles get a spacious second row of seats and in the case of the BR-V, it can even seat five adults and a couple of kids at theback. The Duster gets the largest wheelbase among the three, which results in good cabin space and a boot capacity of 475 litres.The Honda BR-V can hold 223 litres of luggage with the third row on and a massive 691 litres with the third row folded. On the otherhand, the Hyundai Creta’s boot gets a rated boot capacity of 400 litres.

As far as the engines on offer are concerned, all the cars feature 4-cylinder petrol motors, mated to CVT transmissions in the caseof the Duster and the BR-V, while the Creta gets a more conventional torque converter automatic unit. The Creta gets the mostpowerful motor that churns out 123PS, but the most fuel efficient of the lot at 16 kmpl is the Honda BR-V. All cars get goodclearance figures to tackle bad roads. Among the lot, the Renault Duster stands tallest at 205mm. All the cars are offered in trimlevels below their respective top-end variants and get dual airbags, ABS with EBD. The BR-V automatic offers you the convenienceof paddle shifts but misses out on a touchscreen infotainment unit and navigation.

The Renault Duster is the most inexpensive car that you can buy at Rs 10.32 lakh, ex-showroom Delhi. Whereas the other cars aredearer by almost two lakhs. That is a considerable premium for someone looking at relatively cheaper options. On paper, for apotential buyer looking for a compact five-seat SUV with an automatic, the Duster petrol CVT looks like good value for money. Staytuned to Zigwheels for a detailed comparison.http://www.asianage.com/business/autos/130517/comparison-between-renault-dusterhyundai-creta-and-honda-br-v.html

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Cars, SUVs, MUVs

Renault India aims to launch one product a year till 2020 to hasten growth T E NarasimhanBusiness Standard (Web & Print Edition)(May 14)

Chennai: To accelerate growth in India, French automajor Renault is planning to bring down the launch time of new products in thecountry. The company, which launched three products in the past five years, is planning to launch one product each year till 2020.

Renault India's Chief Executive Officer (CEO) Sumit Sawhney said that the company is planning to launch one new car every yearas part of its mid-term strategy. While the target during 2017 is to sustain the growth propelled by Kwid in the previous year, the firmis planning to be among the top five by 2020 as against seventh position now.

While declining to give any specific details on segments or products, he said the new products will create new segments, like whatKwid did. The company will be launching a new car by the end of 2017.

New products which are integral part of Renault's strategy will be manufactured with parts sourced domestically to suit Indianconsumers taste. This is to ensure attractive car prices and competitive operating costs for all new Renault products, he added.

With three mainstream segment-defining products Duster, Lodgy and Kwid in India, Renault is working very hard to increase itsmarket share, said Sawhney. Current market share of Renault in India is around 4.5 per cent and expects to touch five per cent aspart of mid-term strategy.

Renault which has been in India for the last five years, is addressing only 30 per cent of the car market with Kwid, a small car, thecompact SUV Duster and the MPV Lodgy.

Kwid is the only product which could make inroads in the top 10 league of best selling cars in India. It may be noted that only Marutiand Hyundai are the other two companies whose products are part of the league, despite India having over two dozen carcompanies. Interestingly, while most brands in the top 10 are nearly 10-20 years old, Kwid is around 1.5 years old.

As part of its strategy to grow sales in India, the company is planning to expand the network from the current 270 dealer outlets toaround 320 outlets during the year. It would also increase the used car presence by expanding the used car outlets from the current20 to 50 during this year.http://www.business-standard.com/article/companies/renault-india-eyes-to-launch-one-product-a-year-till-2020-to-fasten-growth-117050900678_1.html

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Single product sales drive carmakers' growth Ajay ModiBusiness Standard (Web & Print Edition)(May 15)

New Delhi: Automobile companies Toyota, Renault, Ford, Nissan and Volkswagen have all reported double-digit growth in domesticsales last year. But, there is another common factor among these five leading global carmakers. They all rely heavily on asuccessful single model for the bulk of their India sales.

The reliance on a single model begins at about 40 per cent and goes up to 80 per cent in the case of some companies. Take thecase of Japanese carmaker Nissan. During financial year 2016-17, it got about 40 per cent of its local sales from a single vehicle,the rediGo, the entry-segment car launched in June last year.

For Nissan’s alliance partner Renault, a lot rides on the Kwid, the sports utility vehicle-styled entry hatchback it launched inSeptember 2015. This single model accounted for 81 per cent of the French carmaker’s sales in India and was instrumentalin helping the company grow its sales by an exceptional 88 per cent in FY17.

American carmaker Ford’s compact sports utility vehicle, the EcoSport, contributed to about 53 per cent of local sales inFY17. This model, launched in 2013, grew by double-digits last year in spite of new entrants, such as the Hyundai Creta and MarutiSuzuki Baleno, after the company affected a steep price cut of up to Rs 1.12 lakh in March 2016, days after Maruti launched theBrezza.

Anurag Mehrotra, executive director (sales, marketing & service) at Ford, said there was always a concentration of volume in certainmodels. “I can’t think of any manufacturer who has got huge spread of volume across models. There is mostly atendency of the 80-20 principle. Twenty per cent of products drive 80 per cent of volume. It has its pros and cons. Your resourcesget sharply focussed on a certain set of products. But, other models play a complementary role to complete the portfolio and helpthe brand grow.”

Japanese auto major Toyota gets 55 per cent of its volumes in India from the Innova Crysta, which commands a waiting period ofabout a month even after a year of its launch. High reliance on this single product had pulled down the company’s volumesfor months since December 2015 when the Supreme Court banned sales of diesel vehicles (2,000cc and above) in the large marketof the National Capital Region. “Our strength lies in the Rs 10 lakh-plus product. We will rely on the Crysta for the nexttwo-three years till BS-VI comes and allows us an opportunity to expand the hybrid range,” said N Raja, director and seniorvice-president (sales & marketing) at Toyota’s India operations.

Maruti Suzuki and Hyundai — the top two players in domestic car market — have a more diversified product portfoliowith no single product contributing even one-third of total sales. Market leader Maruti Suzuki’s most-sold model, the Alto,contributed to 17 per cent of the total domestic volumes of 1.44 million units in FY17. Together with the Dzire, its second-most soldmodel, the Alto made up 28 per cent of the volume. Korean carmaker Hyundai got 28 per cent of domestic volumes (509,705 units)from the i10 Grand last year.http://www.business-standard.com/article/companies/single-product-sales-drive-carmakers-growth-117051500039_1.html

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Isuzu ramping up component sourcing from India PTISee this story in: The Times of India (Web Edition)(May 15)

New Delhi: Japanese automobile manufacturer Isuzu is gradually ramping up component sourcing from India for its globaloperations as it develops local vendors here.

The company has already roped in around 100 suppliers which are primarily meeting local requirements for rolling out pick-up truckfrom its plant in Andhra Pradesh.

"We are already doing it," Isuzu Motors India (IMI) deputy MD Hitoshi Kono told PTI when asked about the company's plans tosource components from India for global operations.

While it is too early to quantify how much components are exported from India, he said Isuzu is looking to source componentsacross the board from the country for its global operations.

Isuzu's vendor development in India has been done with a long-term strategy of meeting global component requirements.

"When we look at parts suppliers, we don't look at their ability to supply only for India. We look at their ability to supply for us in thelong run even for our global requirements," IMI senior general manager communications Shankar Srinivas said.

On the company's role in vendor development in India, he said: "To some extent we advise and guide their engineering to level-upwith our requirements."

Giving an idea of potential for component sourcing from India, Srinivas said Isuzu has operations in 100 countries, out of which ithas leadership in 35.

It is a question of how much of those volumes can be tapped from the Indian market as there are suppliers elsewhere in the worldas well, he added.

A vendor from India would have to first meet quality requirements, he added.

"We are not in a hurry to push for volumes but we are ready to ensure that quality is up there," he added.

Isuzu is already planning to export vehicles from India to around 15-20 countries as part of its plans to make the country a hub of itsglobal manufacturing operations.

The company, which has invested Rs 3,000 crore in Andhra Pradesh to set up a manufacturing facility, has already startedexporting vehicles to Nepal.http://timesofindia.indiatimes.com/auto/miscellaneous/isuzu-ramping-up-component-sourcing-from-india/articleshow/58669968.cmsIsuzu ramping up component sourcing from India for global opsDaily News & Analysis (Web Edition)http://www.dnaindia.com/money/report-isuzu-ramping-up-component-sourcing-from-india-for-global-ops-2437763

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Ford ups focus on service to win customers Hrithik Kiran BagadeDeccan Herald (Web Edition)(May 14)

Bengaluru: American car giant Ford has set out on a new found after sales service strategy in India, in a bid to change perceptionfor the brand, apart from surging ahead in the country’s burgeoning auto market.

For the year ended March 2017, Ford emerged as the third largest carmaker in the country overtaking homegrown auto majorMahindra and Tata Motors. The company produced 2,52,959 vehicles, owing to a 43% rise in the volume of exports. Mahindraproduced 2,42,721 passenger vehicles, while Tata Motors produced 1,69,599 passenger vehicles, coming on the heels of Hyundaiand Maruti Suzuki. Ford recorded 30% growth in sales during 2017 (YTD), compared with 2016.

With robust sales in its kitty, Ford is going all out even on the service front. Being American, Ford has often been perceived as anexpensive car brand, especially in the service realm. But in recent times, Ford’s service initiatives have also geared towardsbringing customers to the legendary brand.

Explaining the company’s service strategy, Ford India Vice President (Customer Service Operations) Prabhu N said,“Sales teams sell vehicles, and subsequently, service teams ensure that customers get the best experience andsatisfaction.”

“Our aim is to change the prevailing perception, and our engineers are constantly working on designs that help make carownership cost-effective,” he told DH.

Over the last couple of years, Ford claims to have seen good trajectory in service — in customer satisfaction, dealershipexperience, and so on. “We have also been able to provide a reduced cost of ownership in design of components andprices,” Prabhu said, adding that in terms of affordability, competitively priced parts, rightly scheduled service intervals,sub-assemblies, and localisation have played a major role.

According to surveys conducted, the cost of ownership of Ford cars in terms of service, is found to be cheaper than the industry. Forinstance, the sum of all replaceable parts on the sedan Aspire is to the tune of Rs 40,604 for the petrol, and Rs 45,629 for thediesel, compared with Rs 54,100, and Rs 47,285 across the industry, respectively, considering similar vehicles in its class. Thistranslates to the cost of ownership being 16% cheaper for a Ford Aspire diesel variant, while for the petrol variant, it is 14%cheaper.

The company has also worked at making service accessible, with five parts warehouses across the country, apart from 13independent distributors who sell parts in the open market.

“We have 376 workshops across India, and we are keen to open more facilities, especially in Tier-II and Tier-III towns. Wewill have over 500 workshops open across India in over three-years time,” Prabhu concluded.http://www.deccanherald.com/content/611371/ford-ups-focus-service-win.html

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West Bengal lifts halt on electric car registration, bookings rise The Economic Times (Web Edition)(May 15)

Kolkata: Electric cars are being registered in Kolkata again. Sale of these cars had ground to a halt in the city as the public vehiclesdepartment (PVD) had stopped registering electric cars, citing the automaker’s inability to specify the cubic capacity andpower of engines of vehicles. The officials had refused to acknowledge that e-cars run on electric motors, and hence, do not haveengines from which the cubic capacity or brake horsepower can be derived.

The relief came after transport principal secretary Alapan Bandyopadhyay reacted to the TOI report that highlighted the plight ofe-car customers. They had bought e-cars at a premium to contribute positively to the environment but were unable to use themwhile shelling out EMI. Bandyopadhyay asked PVD officials to find a solution to end the stalemate. Bandyopadhyay made it clearthat Bengal should not be perceived as a state that discourages an environment friendly mode of transport.

PVD officials said the issue was a mere technicality. According to an official, it was non-uniformity in the unit of battery power usedin e-vehicles that was posed a problem.

“The tax of e-vehicle is calculated on the basis of kWh (kilowatt-hour). But e-vehicles have different units for their batterycapacity. This posed a problem for the registration authority. We have now prepared a conversion table to manually calculate thebattery capacity,” said a PVD official, stressing, that the arrangement was stop-gap and a more permanent solution had to beprovided by the Centre.

These arguments, however, are not in sync with the product specifications of Mahaindra Electric’s E2O Plus, the onlyelectric car on sale that is currently marketed in Kolkata. Its product brochure available on the internet clearly states the power oftwin variants in kWh. Yet, it has been unable to register its cars in Kolkata since January when it has been doing so in all othercities.

The problem, a source said, was lack of initiative and innovation among a section of transport department staff to accept thatelectric cars did not have an engine, and so, inputs on cubic capacity and power in bhp were not possible. “The kWh had tobe converted into bhp. They have done so now. In the cubic capacity column, they have to put in zero,” he said.

The transport department has written to the ministry of road transport and highways (MoRTH), seeking the inclusion of separatespecification for electric cars.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/west-bengal-lifts-halt-on-electric-car-registration-bookings-rise/58669168

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Andhra cops, Tamil Nadu auto plant hit as India too comes under cyber-attack The Economic Times (Web Edition)(May 15)

New Delhi: India was among the 99 countries affected by a global cyberattack that took down health services in the UK, a telecomnetwork in Spain, and government computer systems in Russia this weekend.

As many as 102 computer systems of the Andhra Pradesh police were hacked on Saturday. There were also reports of the malwarehalting production at a Nissan-Renault Alliance plant on the outskirts of Chennai.

However, the company did not comment on these reports. National Cyber Security Adviser in the Prime Minister’s OfficeGulshan Rai told TOI: “About 100 systems were attacked but as of now there are no more threats.” The internationalcyberattack was carried out using a malware called Wanna Decryptor or WannaCry. This is a “ransomware” a digitalextortion system that locks down systems by encrypting the data on it, only to decrypt and release it back for a ransom amount.

70% of ATMs in India easy prey for cyberattackerWhat was more worrying about the global cyberattack was the fact that the outdated Windows XP version that turned out to be theweak link, crippling information systems around the world, is used by 70% of Indian ATMs.

Their complete control rests with vendors who provide banks with these systems.

Microsoft stopped providing support security patches and other tools for Windows XP in 2014.

However, on Saturday, Microsoft said it had released updates for older systems. “Given the potential impact to customersand their businesses, we have also released updates for Windows XP, Windows 8, and Windows Server 2003,” a Microsoftspokesperson said.

Michael Gillespie, who runs ID Ransomware, a free website that helps victims of ransomware identify malware and work aroundencrypted data, said he got an unusually high number of submissions from India since Friday which he diagnosed as WannaCry.

“I’ve received about 24 submissions since yesterday that were identified as Wanna-Cryptor and came from IPs basedin India. I’d say that’s pretty low compared to other countries, but pretty high for submissions from India,” hetold TOI over email, pointing out that his stats only cover those who upload to the website, and are not indicative of total number ofvictims.

Ranchi-based NGO Cyber Peace Foundation (CPF), which is running a research project monitoring cyberattacks, saw nearly a56-fold increase in breach attempts at sensors installed across eight states in the country. These sensors called“honeypots” lure cyberattackers so that they can be monitored and studied.

CPF founder director Vineet Kumar said that there was a 56-fold increase in the number of attacks over honeypots installed inGujarat, Andhra Pradesh, Maharashtra, UP, Jharkhand and Rajasthan.

Attacks and “cyber-recces” of sorts point to the scale of the problem in India.

According to data accessed from CERT-In, in the past 12-14 months, nearly 11,000 networks in India have been victims ofprobing/scanning by hackers or cyber criminals.

Scanning and probing is the first step used by hackers to test the waters, and is generally followed by insertion of malware orransomware.

“Network probing is people looking for vulnerabilities in systems which will eventually be breached. Amateurs don’t doit, these are professionals.

Also, malware propagation and web intrusion are indicators of hired tools if not services,” said cyber expert Mirza Faizan

Asad.

CAAS and ransomware on the riseCyber crime-as-a-service (CAAS) refers to organised crime rings offering services such as on-demand distributed denialof-serviceattacks and bulletproof hosting to support malware attacks, among other things. Although there is no professional study conductedin India, according to a CIO Insight 2016 report, there has been 33% spike in CAAS, and “exploit kits” globally.

Cybercriminals employing ransomware or crypto-ransomware a sophisticated software that incorporates advanced encryptionalgorithms to block system files are increasingly attacking Indian entities.

January saw at least four attacks into the system of a Bengaluru IT firm, while over a dozen were attacked in the last quarter of2016. Multiple cases have been seen in Delhi. Software security group Kaspersky Lab says India is among the top five nationsaffected by ransomware attacks.http://auto.economictimes.indiatimes.com/news/industry/andhra-cops-tamil-nadu-auto-plant-hit-as-india-too-comes-under-cyber-attack/58666100

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Luxury Cars

Lexus LX 450 d priced at Rs 2.32 Crore Asian Age (Web Edition)(May 14)

Yes, we too were surprised to know the price tag of Lexus' flagship SUV, the LX 450 d. It costs Rs 2.32 Crore (ex-showroom, Delhi),which means the on-road price will be around Rs 3 Crore.

However, it is one of the best SUVs money can buy. The little 'd' in the nameplate means is has a diesel engine and as it is Lexus'flagship, it doesn't have a V4 or V6 but a full-fat 4.5-litre V8. The engine produces 265PS of power and 650Nm of torque, which is50Nm more than the Huracan Performante, the fastest car to lap the Nurburgring.

Of course, the big Lexus has nearly thrice the weight to lug around as well. It's unabashedly heavy, tipping the scales at 3350kg.Power is sent to all four wheels through a 6-speed automatic transmission. Lexus also claims that the LX450d will return 9.6kmpl.We will take that with a pinch (or packet?) of salt, though.

By now, you must've figured out that the Lexus' mantra is 'go big or go home'. Gargantuan is possibly an understatement todescribe the size of this thing. At 5080mm x 1980mm x 1865mm (l x w x h) - it is 285mm longer and 125mm wider than a ToyotaFortuner - something we consider to be a big SUV. It is based on the Toyota Land Cruiser (which we hear has just set a worldrecord) and the overtones are hard to miss. But, there are unmistakably Lexus elements that include the massive front grille,all-LED headlamps with the trademark L-shaped daytime running lamp, and the LED tail lamps. And, while we'd have loved to seethe gorgeous 20-inch wheels that other markets get, the 18-inch wheels are definitely more pothole-friendly. On a related note,there's air suspension on all four corners to make sure you don't feel any of them.

As one would expect of a Lexus, there are leather and wood trimmings everywhere and a bucket load of tech to go along with it.Highlights include a moonroof, four-zone climate control, electric adjust for the front seats and the steering wheel (with memory) andwireless charging. Then there's the 12.3-inch touchscreen paired with a 19-speaker Mark Levinson audio system, and the rearscreens that should keep the seth ji happy.

Like most things Japanese, Lexus is known for its bullet-proof reliability. The LX is expected to be no different. As a matter of fact,the manufacturer is offering a 3 year / 100,000 km warranty on the big SUV. Yes, Rs 2.32 Crore is a hell lot of money. But, you can'treally put a price on peace of mind, can you? It looks like Lexus has, though.http://www.asianage.com/business/autos/130517/lexus-lx-450-d-priced-at-rs-232-crore.html

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Lexus ES300h review: Does this Japanese sedan stand up to the Germans? Nikhil BhatiaHindustan Times (Web Edition)(May 14)

The ES 300h sedan is Toyota’s luxury brand, Lexus’ range starter in India. But at Rs 55.27 lakh (ex-showroom,Delhi), it’s anything but cheap. That’s because it’s imported into India from Japan, which means it’ssubject to the full bevy of Indian customs duties and taxes. What makes the price pinch more is that the ES has a lot in commonwith the Toyota Camry, its hybrid powertrain for one.

But before you rule out the ES 300h as Camry with a Lexus badge, know that the similarities between the two are deep under theskin. On the outside, there’s nothing to link the two cars. The ES 300h looks like a proper Lexus with a design that is elegantand sporty in parts too. Its oversized ‘spindle’ grille – a styling element common to all modern Lexus’– gives the front end an imposing and distinctive look. The sharp headlights, with arrowhead LED daytime running lights, andthe angular fog lamps add their own drama to the front end.

The rest of the car isn’t quite as dramatic but the ES does manage to carry off its 4.9m length with grace. Around the back,

the tail-lights with the L-shaped LEDs also add a degree of distinction to the rear and you’ll also like the boot for the amountof luggage it can hold; plus it also holds a full-size spare tyre as standard.

The Lexus experience starts in earnest the moment you shut the doors. Little of the outside noise creeps in, and drivers will like theeasy access to their seats – the steering rises and seat rolls backwards to ease ingress/egress and get back into pre-setposition once the ignition is switched on.

The dashboard is split horizontally into display areas (instruments cluster and centre screen) and control areas (centre console andsteering buttons), and the layered design looks quite attractive. The classic analogue clock adds in a bit of class too. Quality is reallyimpressive in places, but somehow you don’t get quite the same sense of luxury as you would in European luxury sedans ofsimilar asking price like say the BMW 5-series and Volvo S90. The power window switches and mirror adjust controls are a straightlift from the Camry and that’s a bit of a downer too.

The ES 300h uses Lexus’ screen-based infotainment system. It’s not a touchscreen but you operate it via a centralcontroller near the gear lever. The system takes some time getting used to, but it is intuitive to use on the go. The infotainmentsystem offers the essentials but does miss out on Apple CarPlay, Android Auto, and satnav. What does more than make amends isthe superb 15-speaker Mark Levinson sound system.

In terms of other features, the Lexus ES 300h gets quite a lot. The sole, fully loaded variant that it comes in, gets 10 airbags, LEDheadlights, a sunroof, electrically adjustable and cooled front seats with memory, electric rear sunblind, three-zone climate controland a reverse camera. Curiously, the rear seats don’t recline as in the Camry.

The general look of the cabin is rather nice too. Seat comfort is largely good, and the large front leather seats are veryaccommodating. There’s loads of legroom in the back but a longer seat squab would have made the rear seat experiencenicer still. Still, it’s a seat you will happily slouch down on after a tough day at office while sinking your feet on the thick floorcarpets.

The Lexus ES 300h uses a hybrid powertrain that comprises a 160hp, 2.5-litre petrol engine and a 105kw (140hp) electric motor,both of which put out a combined output of 205hp. The electric motor draws power from a 245V nickel hydride battery packpositioned behind the rear seats.

The ES 300h can run in pure electric mode, provided there is adequate charge in the battery. This EV mode allows near-silentprogress but the all-electric range is limited to a few kilometres and also requires feather-light throttle inputs. It’s when theengine kicks in that you can tell where Lexus has spent its money. Noise levels remain admirably low at all times and, even whenyou drive in an enthusiastic manner, the engine note is never loud.

Lexus claims a 0-100kph time of 8.5sec for the ES 300h, which is respectable. Acceleration is brisk and the ES picks up pace fromall speeds with ease. You can also fine-tune the driving experience with the three driving modes on offer – Eco, Normal andSport, all of which offer decent amount of performance. However, more than driving it hard, you’ll find yourself naturallyadopting a more relaxed driving style. It’s a calming car to drive and its easy-going nature makes it likeable in its own way.Still, if and when you do drive it hard, you’ll find that the CVT gearbox makes the engine sound strained; thankfully, thesystem is responsive to manual shifts at the gear lever.

What will be of interest to all and sundry is the ES 300h’s ride quality. The suspension is really absorbent and works reallyquietly too. There’s an underlying firmness to the ride, but the overall experience is rather plush.

The ES 300h is expensive and will remain so until Lexus starts locally assembling it some time down the line. Its strengths lie in itsrelaxing persona, efficient powertrain (the official ARAI figure is 17.8kpl) and the fact that it’s got a degree of novelty thatmany luxury buyers want from their Rs 50 lakh plus cars. But then again, in certain areas, the ES isn’t quite up there withrivalling European luxury sedans.

But the Lexus experience, the carmaker promises, is not going to be about only what you can see and feel. Lexus cars arerenowned the world over for reliability and a relatively low cost of ownership and these are aspects that count for a lot in India.

As things stand, Lexus already has a ready market, comprising satisfied Toyota Fortuner and Innova owners looking for anupgrade. If the brand lives up to the promised experience, positive word of mouth publicity could help steal buyers away fromGerman luxury sedans too.http://www.hindustantimes.com/autos/lexus-es300h-review-does-this-japanese-sedan-stand-up-to-the-germans/story-qUp37Dq21523jQQAmyYUgI.html

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BMW will start producing the 8 Series in 2018 The Financial Express (May 15)

New Delhi: Last week, BMW released a teaser image of the upcoming 8 Series. The Mercedes-Benz S-Class coupé and BentleyContinental GT rival will be previewed as a concept at the 2017 Concorso d’Eleganza Villa d’Este—perhapsthe most significant of all events celebrating the mystique of historic cars—that is scheduled to take place from May 26-28 atCernobbio, a town on the Italy-Switzerland border.

According to a Bloomberg report, the sporty 8 Series two-door car is set to hit dealerships next year and will compete withMercedes-Benz’s S-Class coupé that’s priced at around 100,000 euros ($110,000). “BMW is plotting therevival of a high-end coupé to claw back market share lost to arch-rival Mercedes, part of a model blitz that BMW is billing as thebiggest in its history,” the report said.

The original 8 Series was built from 1989 to 1999 as a two-door coupé. By reviving it, BMW is betting that high-end customers willwarm up to a model that it discontinued amid faltering sales.It’s unlikely to be launched in India any time soon.http://www.financialexpress.com/industry/bmw-will-start-producing-the-8-series-in-2018/668415/

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Commercial Vehicles

Construction & Agri Machinery

2/3 Wheelers

Premiumization and Scooterisation is here to stay: TVS Motor Company Ronak ShahThe Economic Times(May 14)

New Delhi: After posting its highest ever motorcycles sales last financial year, Hosur based, TVS Motor Company plans to beaggressive and will roll out a new motorcycle and a new scooter this year.

In 2013, TVS announced a long-term strategic partnership with German two-wheeler manufacturer BMW Motorrad to venture intosub-500 cc bikes for both domestic and international markets. The company confirms that the product will be launched in July orAugust 2017 (Second quarter).

TVS is known to keep its cards close to its chest and so while not many details about the product is out, we can now confirm thatwhile the new product which will be based on the platform developed with BMW Motorrad but will cater to a complete differentcustomer base than the target customers of that of BMW Motorrad.

It will also for the first time introduce a motorcycle with displacement of more than 300 cc and TVS will keep its new premium sportbike very similar to the Akula 310 concept which was showcased at the 2016 Auto expo.

Arun Siddharth, Vice President (Marketing), Motorcycles, TVS Motor Company said “BMW Motorrad also has a bike on thesame platform, we will be showing our bike soon, despite being on the same platform they will cater to different customers and theintent will be very different. As far as the partnership with BMW is concerned the idea is to bring the synergies on the hardwaretogether though the brand positioning will be very different.”

Despite the various challenges that the two-wheeler industry witnessed towards the end of 2016 with demonetisation, TVS MotorCompany recorded its highest ever motorcycle sales in the company history. The company sold over 7.73 lakh units of itsmotorcycles in the domestic market.

Till a huge extend the home-grown manufacturer has attributed its success in motorcycles to its Apache RTR brand. It has been tenyears since the first Apache RTR was launched and slowly and steadily the company has introduced many variants under Apacheumbrella and has managed to sell over 2.2 million units of Apache branded motorcycles across the world. Complete R&D of all of itscurrent entry premium and premium motorcycles have been done in-house.

“RTR has been one of the biggest success for TVS. We have sold over 2.2 million Apaches worldwide with this brand, this isa significant number if you consider motorcycle landscape for an Indian brand. In the last ten years Apache has developed itselfacross South America, Africa, India, South Asia and several parts of Europe. TVS Racing is the mother brand for the Apache brand.“ added Arun Siddharth

Overall last financial year the motorcycle segment grew by about 3.68% in the domestic market and TVS Motor Company recordeda growth of 8.5% second best after Royal Enfield who sold about 6.51 lakh units of its motorcycles in India.

Its overall sales including motorcycles, scooters and mopeds, TVS sold about 24.89 lakh units growing by 12.69%. The company'salso marginally expanded its market share to 14.15% in FY 2016-17 as against 13.42% in FY 2016-16.

Within two-wheeler industry automatic scooter segment has registered a growth of over 11.39%. The industry sold over 56.04 lakhscooters and has witnessed a drastic shift in momentum and focus onto the scooter segment.

With this TVS still believes that commuter motorcycles will reinvent itself and it will be present in all segments to cater to a wideraudience.

“There is a market for all segments, the overall penetration level when compared to Indonesia of China the penetration ismuch less in India. There is high possibility of growth and as long as every segment has something new and unique to offer whichcaptures the customers’ needs.

Entry-premium segment (150 cc and above) in India contribute to less than 15% of overall motorcycles sales in India. TVS clamsthat about 60% sales of its Apache motorcycles comes from Tier-3 and Tier-4 cities. The company’s current focus is to grow

this segment further and might introduce fresh variants later.

Premiumisation in two-wheelers is here to stay, addressing customers at every price point is very necessary and that’s thereason the company on its TVS Apache RTR 200 4V introduced different engine options, option of ABS, Pirelli tyres. This helpedthe company to cater to a wider audience and managed to appeal customers who did not want to spend over Rs 1 lakh.

Currently, TVS is not planning to introduce new variants on the Apache brand or bring in a full flared version of Apache RTR 200 orventuring into a new segment like a cruiser of adventure touring motorcycle.

“We don’t want to overdo and get distracted, we have a good clip rate with how we are progressing and we wouldwant to maintain that. RTR’s job is grow the market, This market is about 15% of overall industry. This kind of format is theneed at the moment, in the world also naked sport bike is a bigger segment, this where we want to be and grow the market withrelevant technologies and refreshed variants.” Said Arun Siddharth.

TVS is also planning to be aggressive on the export front. It has recently tied up with a MASESA to expand its presence in CentralAmerica. With this partnership, TVS gets access to 500 touch points across Guatemala, El Salvador, Honduras, Nicaragua andCosta Rica. In 2016 the company’s exports declined marginally by 1.7%.http://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/premiumization-and-scooterisation-is-here-to-stay-tvs-motor-company/58653621

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Pre-owned two wheelers grow faster than new vehicles Sohini DasBusiness Standard(May 14)

Ahmedabad: Pre-owned two-wheeler sales have beaten the growth rate clocked by the new two-wheeler segment in India in recenttimes. While the new two-wheeler space had seen some setback thanks to demonetisation as well as the transition from BS III toBS IV emission norms, surprisingly, the used segment has proven to be immune to the same, both in the offline and onlinesegments. Research shows that between 2010-2015 it witnessed a 17.9 per cent growth in revenue terms.

Sample this: Transactions based online vehicle platform Droom has seen a 112 per cent growth rate in FY17 over the previous yearwhen it came to two-wheeler sales on its platform. Sandeep Aggarwal, founder and CEO of Droom said that compared to justaround 10,020 two-wheelers they had sold in FY16, they finished FY17 with 21,300 units. For April 2017, it grew 50 per cent yearon year to 2,400 units. In fact, Droom revealed that such is the demand for pre-owned two wheelers that 59 per cent of all queriesand online sales comprised two-wheelers (41 per cent bikes and 26 per cent scooters).

Aggarwal said that of the total 1.2 lakh transactions on its platform in the last two years which is valued at Rs 1800 crore, twowheelers contributed to around Rs 500 crore or so.

Another online platform Bikewale, a part of Mumbai-based auto portal CarTrade, has seen 100 per cent year on year growth sinceDecember 2016, informed Vinay Sanghi, Founder & CEO, Cartrade.com.

Offline dealers, who are mostly unorganised, too said that they have not seen any demand slowdown since demonetisation. "Thedemand for used two wheelers has seen a consistent rise in the last two years or so. Models like the Honda Activa, Aviator, TVSJupiter, Bajaj Pulsar and Discover are evergreen models, always in demand. The availability of easy finance options and morewomen opting for personal transport are the key drivers behind this growth," informed an Ahmedabad-based dealer of used twowheelers who operates two showrooms in the city.

In comparison, the 'sharp drop in two wheeler sales volumes in the ensuing months of demonetization resulted in pare back inindustry volume growth from 16 per cent during Apr-Oct period to 7 per cent for full year FY17," informed Subrata Ray, Group Head,Corporate Sector Ratings, ICRA Ltd.

So what are the major triggers behind this sustained growth?

YS Guleria, vice president, sales and marketing, Honda Motorcycle and Scooter India (HMSI) explained, "Our experience showsthat the pre-owned industry is evolving very fast. The replacement cycle for 2wheeler has come down from 7-8 years to 3-5 years ina decade. With shrinking replacement cycle of the 2wheeler industry, Honda sees immense future potential in pre-ownedtwo-wheeler retails and we are aggressively scaling up this business. We aim to increase the Best Deal count to 200 outlets by theend of FY 17-18." HMSI had introduced the concept of Certified Pre-owned Outlets-Best Deal some years back, which basicallyallows the company to create more touch points for interacting with customers and the tap the potential of the pre-owned twowheeler market.

Honda has rapidly expanded its Best Deal network footprint and is now covering 117 cities across 21 States of India. Honda added52 per cent of the network in last two financial years itself, Honda has already served over 70,000 pre-owned two-wheelercustomers. In terms of pre-owned sales through Best Deal outlets, Honda has achieved a growth of 23 per cent in FY17

Responding to Business Standard queries, Ken Research Report on India Used Two Wheeler Industry informed, "The usedtwo-wheeler market in India has witnessed unparalleled growth over the period 2010-2015. The market has witnessed anunprecedented compounded annual growth rate (CAGR) of 17.9 per cent during the period 2010-2015 in terms of revenue."

Ken Research attributed the growth of this sector to be driven by rising aspirations of Indian consumers, frequent launches oftwo-wheelers and availability of easy financing options which have led to a greater supply of pre-owned vehicles in the market.Additionally, the reduction in the ownership period of two-wheelers has also been an important factor that has driven the used

two-wheeler market in the country.

The used two wheeler market which is currently dominated by the offline players including self-appointed dealers, roadside garagemechanics, small brokers and two-wheeler owners among others has been observing a structural shift. Online classifieds and autoportals have been inducing a shift to transactions which are conducted without the involvement of intermediaries.

Pune-based player Bikers Highway was the first player to disrupt the online space. Later in 2014, the market observed the entry ofonline marketplaces such as Droom and CredR which have revolutionised the used two wheeler markets.http://www.business-standard.com/article/companies/pre-owned-two-wheelers-grow-faster-than-new-vehicles-117051100967_1.html

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E-Bikes

Components

CCI approves JTEKT Corp's stake acquisition in Sona Koyo Steering Systems PTISee this story in: The Economic Times(May 14)

New Delhi: Fair trade regulator CCI has given its nod to Japanese firm JTEKT Corporation's proposed acquisition of further stake inits Indian joint venture Sona Koyo Steering Systems Ltd (SKSSL).

In a tweet, the Competition Commission of India (CCI) said it has approved the "acquisition of stake in Sona Koyo Steering SystemsLtd by JTEKT Corporation".

According to the notice submitted to the CCI, JTEKT Corporation would purchase 4.99 crore shares of SKSSL from its Indianpartner Sona Autocomp Holding.

The shares amount to 25.12 per cent of the issued, subscribed and paid up capital of SKSSL, according to the notice.

JTEKT Corporation, in India, is mainly engaged in the manufacture and sale of various types of bearings, machine tools andmechatronics through its subsidiaries.

SKSSL manufactures steering systems for passenger cars and utility vehicles. It supplies steering assemblies to Maruti Suzuki andseveral global automakers, including Toyota, Tata Motors, Mahindra & Mahindra, Honda, Renault Nissan and Ford.http://auto.economictimes.indiatimes.com/news/auto-components/cci-approves-jtekt-corps-stake-acquisition-in-sona-koyo-steering-systems/58656226

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Allied Industries

Emissions / Environment

Finance & Insurance

Oil, Lubricants & Alternative Fuels

News Magazines

BMW 2-series facelift revealed Autocar India(May 15)

The updated BMW 2-series Coupé and 2-series Cabriolet models have been revealed with a fresh look.

Among the subtle exterior design changes to BMW’s entry-level two-door model are a wider kidney grille, new LEDheadlights, revised tail-light lens graphics and redesigned alloy wheels ranging from 16 to 18 inches.

Inside, the Coupé and Cabriolet also get a lightly altered dashboard with redesigned instruments and an updated 8.8-inchtouch-operated display supporting a revised operating system for the iDrive infotainment system.

The subtlety of the facelift is reflected in the engine line-up, which remains the same as before; the petrol units range from a 136hpin the base 218i to 340hp in the top-of-the-line M240i, while the diesels extend from 150hp in the 218d to 224hp in the 225d.

Buyers can choose between a standard six-speed manual and an optional eight-speed automatic gearbox in most models.Alongside standard rear-wheel drive, the more powerful engines can also be paired to an optional xDrive four-wheel-drive system.http://www.autocarindia.com/auto-news/bmw-2-series-facelift-revealed-404886.aspx

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BMW 4-series GT electric in the works Autocar India(May 15)

A major realignment of BMW’s strategy is set to result in electric versions of up to three models in its current line-upincluding a secret zero-emissions variant of the upcoming 4-series GT alongside new and updated versions of its dedicated electric‘i’ brand models within the next three years.

While the new 4-series GT is set to be launched internationally in petrol, electric and plug-in hybrid variants in 2019, thebattery-powered variant is tentatively scheduled to go on sale in international markets in 2020. It is one of a raft of models to bebased on the newly developed underpinnings of the eighth-generation 3-series, according to highly placed insiders at the Germancarmaker.

Intended to compete with the Tesla Model 3, the electric 4-series GT has been conceived to offer performance on par with thefastest of today’s 3-series GT models the 321hp 335d GT together with an overall range of up to 500km.

BMW is weighing up two electric driveline options for its new Model 3 rival, with a decision expected by the end of this year prior tothe construction of road-going prototypes early next year.

The first driveline uses a front-mounted electric motor in combination with a fixed-ratio gearbox and so-called electric propeller shaftto channel drive to the rear wheels. This layout would provide the new model with traditional BMW traits and, according to at leastone of our sister publication Autocar UK’s sources, the best possible weight distribution.

The second, more complex and costly, solution proposes the use of two electric motors – one mounted up front, driving thefront wheels and a second at the rear within the axle assembly to drive the rear wheels. Similar to the system that is set to appearon the electric-powered X3, it offers the choice between front- and four-wheel drive, depending on the drive mode selected.

BMW’s first battery-powered version of an existing standard model will be a zero-emission Mini hatchback, due to launchinternationally next year. That will be followed by an electric variant of the upcoming third-generation X3 in 2019.

Although the carmaker is banking on the Mini Cooper E and X3 Electric to extend its electric car sales in the short term, it is the new4-series GT Electric that BMW chairman, Harald Krüger, considers key to the firm’s long-term plans.http://www.autocarindia.com/auto-news/bmw-4-series-gt-electric-in-the-works-404895.aspx

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LaFerrari replacement to launch in 3-5 years Autocar India(May 15)

Ferrari’s chief technology officer, Michael Leiters, has revealed that the carmaker’s new limited-edition hypercar areplacement for the LaFerrari is three to five years away from launch.

He added that Ferrari is currently updating its research and development strategy for the medium term and the LaFerrari’sreplacement will be born from fresh innovations.

“When we define our new roadmap of technology and innovation, we will then consider a replacement for LaFerrari,”said Leiters.

“We want to do something different. It won’t be a road car with a Formula 1 engine because, to be realistic, it wouldneed to idle at 2,500-3,000rpm and rev to 16,000rpm. The F50 used an F1 engine, but it needed to be changed a lot,” hesaid of the limited-edition successor to the F40.

At the time, Ferrari made much of the fact that the F50 was a serious attempt to harness as much Formula 1 technology aspossible. From Leiters’ muted enthusiasm for this approach, it is assumed he won’t be advocating a hypercar thatattempts to recreate the F1 dynamic experience, given the need to comply with regulations and for the car to be usable.

“The roadmap will be finished in about six months,” he said. “So my guess is that we could be three to fiveyears away from a new limited-edition hypercar. Part of the plan is to ensure that the technology used in the next hypercar can becascaded through the rest of the range.”http://www.autocarindia.com/auto-news/laferrari-replacement-to-launch-in-3-5-years-404876.aspx

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Ford Mustang facelift brochure leaked Autocar India(May 15)

A leaked spec list, courtesy of the Mustang6g forum, reveals that the 2018 Ford Mustang will be faster and more economical thanits predecessor.

Available in both coupé and convertible forms, the car’s new 10-speed automatic gearbox can be controlled via paddleshifters and is claimed to improve shift times over its predecessor, as well as offer different settings for the three drive modes.

The new Mustang will produce more power from its 5.0-litre V8 engine and there could also be gains for the 2.3-litre Ecoboostversion, if the 'to be determined' power outputs on the leaked brochure are anything to go by. The current 2.3-litre model produces316hp, while the V8 has 416hp. Ford also claims that better fuel economy is achieved, while tweaks to the clutch of the V8’ssix-speed manual gearbox are set to increase torque.

In addition to tweaked front and rear styling – which Ford claims offer aerodynamic benefits – new, all-LED headlightunits and three new paint colours, the Mustang gets a digital display that replaces the outgoing model's traditional dials. Thecarmaker showed the same function in the GT supercar earlier this year, with a similar level of personalisation features on theMustang.

Under the skin, Ford has upgraded the shock absorbers, claiming an improvement in ride quality, and has also fitted a newcross-axis joint and tweaked the stabiliser bars – all of which are claimed to improve handling. Buyers who pick the MustangPerformance Package will now benefit from Ford’s Magneride adaptive dampers too. Exhaust note can be modified byadding the active valve exhaust option.

After the outgoing Mustang achieved a two-star Euro NCAP rating, Ford is now including pre-collision systems and pedestriandetection on the new Mustang. Standard kit now also includes a memory function on the car’s computer system, whichsaves preferred drive settings, such as tweaks made to the steering and suspension.

Ford has also extended its Fordpass smartphone app to be compatible on the Mustang, so owners can unlock, lock, find and starttheir car using their phone.

The facelifted Mustang is due to launch in international markets in the beginning of 2018.http://www.autocarindia.com/auto-news/ford-mustang-facelift-brochure-leaked-404872.aspx

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International News

Renault hit by global cyberattack: Management AFPSee this story in: The Times of India(May 14)

Paris: French carmaker Renault is the latest major organisation to be hit by the massive wave of cyberattacks sweeping the globe,the company's management said on Saturday.

"We have been affected," a spokeswoman told AFP, saying they were assessing the situation to try to find a solution. "Work is goingon since last night. We are doing what is needed to counter this attack," she added.

Car production was halted in Slovenia after computers at the headquarters of Renault's subsidiary Revoz in Novo Mesto wereaffected, a spokeswoman told AFP.

"We can confirm that on Friday, May 12, some problems occurred on certain parts of Revoz's information system that led to thehalting of production during the night," said the spokeswoman.

Production remained suspended on Saturday, she added.

"The problems were mainly related to France where some of Renault's factories also faced a malfunctioning of certain parts of itsinformation system," the spokeswoman also said.

Renault is the first French company to confirm it has been affected by the attack.

Friday's wave of cyberattacks, which affected dozens of countries, apparently exploited a flaw exposed in documents leaked fromthe US National Security Agency.http://timesofindia.indiatimes.com/auto/miscellaneous/renault-hit-by-global-cyberattack-management/articleshow/58657434.cmsRenault hit by global cyberattack: ManagementThe Economic Times

http://auto.economictimes.indiatimes.com/news/industry/renault-hit-by-global-cyberattack-management/58657256Renault stops production at some sites after cyber attackThe Hinduhttp://www.thehindu.com/business/renault-stops-production-at-some-sites-after-cyber-attack/article18446622.eceRenault halts production at French sites after cyberattackHindustan Timeshttp://www.hindustantimes.com/autos/renault-halts-production-at-french-sites-after-cyberattack/story-5OO6hULMAvPZkR5PGneoRN.htmlRenault hit by global cyberattack: managementDeccan Chroniclehttp://www.deccanchronicle.com/business/companies/130517/renault-hit-by-global-cyberattack-management.htmlMassive wave of cyber attack hits RenaultAsian Agehttp://www.asianage.com/business/companies/130517/massive-wave-of-cyber-attack-hits-renault.html

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Renault latest victim of global cyberattacks, management says counter attack on AgenciesSee this story in: Hindustan Times(May 14)

French carmaker Renault is the latest major organisation to be hit by the massive wave of cyberattacks sweeping the globe, thecompany’s management said on Saturday.

“We have been affected,” a spokesperson told AFP, saying they were assessing the situation to try to find a solution.“Work is going on since last night. We are doing what is needed to counter this attack,” she added.

The cyber attacks, believed to have been done by the US National Security Agency-developed malware, have infected tens ofthousands of computers in nearly 100 countries, Reuters reported.

The ransomware encrypted data on the computers, demanding payments of $300 to $600 to restore access, the report said. Manyorganisations including Britain’s health system, global shipper FedEx, aerospace giant Airbus, and German train network.

More details on this case are awaited.http://www.hindustantimes.com/autos/renault-latest-victim-of-global-cyberattacks-management-says-counter-attack-on/story-ThnlBQnQlIqNZAYRIMIbGP.html

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Automaker Nissan's UK plant hit by cyber attack ReutersSee this story in: The Economic Times(May 14)

London: Production at Nissan's manufacturing plant in Sunderland, northeast England, has been affected by a cyber attack that hashit nearly 100 countries, a spokesman for the Japanese carmaker said on Saturday.

"Like many organisations, our UK plant was subject to a ransomware attack affecting some of our systems on Friday evening. Ourteams are working to resolve the issue," said the spokesman.

He declined to confirm media reports that production at the plant, which employs 7,000, had been halted.

On Friday, cyber extortionists tricked victims into opening malicious malware attachments to spam emails that appeared to containinvoices, job offers, security warnings and other legitimate files.

The attack disrupted Britain's health system and companies including carmaker Renault and global shipper FedEx.http://auto.economictimes.indiatimes.com/news/industry/automaker-nissans-uk-plant-hit-by-cyber-attack/58658940

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Renault Koleos SUV to go on sale in Europe next month The Economic Times(May 14)

Paris: Renault has released pricing and range line-up details for New Koleos for its European markets in a media statement. Thesame model is already available in many South American, Asian and Australian markets and is poised to hit its European marketsincluding France from June 2017.

In addition to embodying Renault’s top offering together with Talisman, Talisman Estate and Espace, New Koleos SUV sitsstrong alongside Renault Captur and Kadjar. It is also the fifth Renault model after Clio, Espace, Talisman and Captur to feature anInitiale Paris signature version and Renault family desgin concept.

The SUV will be available with 4x4i four-wheel drive technology developed by Renault-Nissan Alliance and has a wheelbase of 2.71metres and a total length of 4.67 metres. Inside the cabin the dashboard gets a R-LINK 2 multimedia tablet with touchscreendisplay.

Renault Koleos range features a selection of proven powertrains and technologies, with a choice of 130- and 175-horsepower dieselengines mated to either X-Tronic automatic transmission or a manual gearbox to meet the demand of customers in themodel’s European markets.

Prices in France are expected to start from €29,900.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/uv/renault-koleos-suv-to-go-on-sale-in-europe-next-month/58654512

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Ford shareholders in confused tizzy over strategy Reuters / Antony CurrieSee this story in: The Economic Times(May 14)

New York: Ford Motor shareholders are in a confused tizzy over the company’s strategy. There are good reasons toquestion executives about their plans - not least the stock’s 37 percent drop since Mark Fields took over as boss almostthree years ago. Railing against the Ford family's supervoting stock, as many did at Thursday’s annual meeting, feels goodbut won’t fix the automaker’s immediate issues.

More than 35 percent of shareholders supported scrapping the dual-class share structure that gifts the descendants of Henry Fordtwo-fifths of the vote with less than 2 percent of outstanding stock. That’s one of the highest percentages in over a decade ofthe resolution being on the proxy. Stripping out the family’s votes, at least 58.5 percent of investors favor moving to oneshare, one vote.

That’s a basic tenet of democratic shareholder capitalism, and Ford’s owners deserve plaudits for taking a stand. Butthe automaker’s history suggests a little nuance is in order. It was arguably the family’s longstanding role –and voting power - that allowed then-Chief Executive Bill Ford to take drastic steps before the financial crisis to safeguard thecompany. He mortgaged Ford’s assets to raise $23 billion. And he recruited as his successor Alan Mulally, to whom thefamily gave free rein to take whatever steps necessary to keep Ford afloat. Between them, they succeeded.

Targeting B shares doesn’t deal with concerns about the share price, capital allocation or investments in electric andautonomous vehicles – topics raised at Thursday’s meeting. A better way to register disapproval would be to voteagainst executive pay. Yet that received a 96.5 percent “yes” vote – or 94.25 percent, after eliminating thefamily bloc.

In any event, the beef about Ford’s plummeting market value misses a key point: Ford’s stock had raced ahead ofGeneral Motors and Fiat Chrysler as the company was further along in its turnaround plan. Its local rivals have been catching upsince then, but at around 5.5 times next year’s estimated earnings both still trade at a discount to Ford’s 6.7 timesmultiple.

With U.S. car sales starting to slow, that suggests Ford is better prepared for a downturn – or an autonomous future –than its Detroit competitors.

Context News- Some 35.5 percent of Ford shareholders voted to scrap the car company’s supervoting stock, the highest percentage inover a decade of the resolution being in the annual proxy.

- B shares give the Ford family 40 percent of the vote even though the structure gives it an economic interest of just 1.78 percent.After stripping out their stake, 58.5 percent of shareholders would have voted to get rid of the dual-class shares, had all of them casta vote.

- A vote on compensation for the top five named executives received approval from 95.5 percent of shareholders – or 94.25percent after stripping out the family bloc vote.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/ford-shareholders-in-confused-tizzy-over-strategy/58656282

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NLRB files complaint against VW over practices at Tennessee plant ReutersSee this story in: The Economic Times(May 14)

Detroit: The U.S. National Labor Relations Board has filed an unfair labor practices complaint against Volkswagen AG for hikinghealth insurance premiums and changing working hours of a group of skilled workers who voted for union representation in 2015.

The complaint is part of a lengthy battle over the NLRB's recognition of the vote by roughly 160 skilled workers at VW'sChattanooga plant in Tennessee to be represented by the United Auto Workers union.

The German automaker has argued against allowing a small group within the plant to have union representation, maintaining that all

1,500 hourly workers should be treated as one unit.

The union sought to represent only a portion of the plant's workers after it narrowly lost a February 2014 election to represent allhourly workers at the plant.

The NLRB complaint states that issues like working hours and conditions of employment are "mandatory subjects for the purposesof collective bargaining."

In an emailed statement, VW spokesman Scott Wilson said, "We fundamentally disagree with the decision to separate" the skilledworkers from the rest and "will continue our effort to allow everyone to vote as one group on the matter of union representation."

In an affidavit provide by the UAW, a worker at the plant said that the company has "refused to bargain with the Union over" thechanges.

The UAW has never been able to win an organizing vote at a foreign-owned auto assembly plant in the U.S. south. A victory, evenfor only a portion of workers at the VW plant, would give the union a stronger foothold in the south, where most foreign-owned autoplants are located.

Steven Bernstein, a Tampa-based labor attorney at Fisher Phillips LLP, said the NLRB complaint will likely be followed by others ina legal process that could take three to four years.

"VW is rolling the dice and betting they will eventually get relief through the courts," he said.

Bernstein said that if VW loses, it could be forced to compensate the skilled workers in Chattanooga. But the consequences ofallowing a small group to unionize could be much broader as it would affect other companies across the U.S. south.

"Both sides have a lot to lose in this case," he said.http://auto.economictimes.indiatimes.com/news/industry/nlrb-files-complaint-against-vw-over-practices-at-tennessee-plant/58653775

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Germany makes it mandatory for self-driving cars to have drivers at the back ReutersSee this story in: The Economic Times(May 14)

Berlin: Germany cleared the way for its giant automotive industry to develop and test self-driving cars, when the upper house of itsparliament approved on Friday a law setting out the conditions under which they could take to German roads.

Under the law, first mooted by Chancellor Angela Merkel last year, a driver must be sitting behind the wheel at all times ready totake back control if prompted to do so by the autonomous vehicle.

Germany is home to some of the world's largest car companies, including Volkswagen, Daimler and BMW, all of which are investingheavily in a technology seen by transport minister Alexander Dobrindt as the "greatest mobility revolution since the invention of thecar".

The new legislation allows them to road-test vehicles in which drivers will be allowed to take their hands off the wheel and their eyesoff the road to browse the web or check e-mails while the vehicle handles steering or braking autonomously.

The legislation requires that a black box record the journey underway, logging whether the human driver or the car's self-pilotingsystem was in charge at all moments of the ride. This will be crucial for apportioning blame in accidents.

The driver will bear responsibility for accidents that take place under his or her watch, under the legislation, but if the self-drivingsystem is in charge and a system failure is to blame, the manufacturer will be responsible.

The law will be revised in two years' time in the light of technological developments, with data protection and the use of the datacollected during rides a key point that has yet to be fully addressed.

Companies around the globe are working on prototypes for self-driving vehicles, but such cars are not expected to be available forthe mass market before 2020.http://auto.economictimes.indiatimes.com/news/industry/germany-makes-it-mandatory-for-self-driving-cars-to-have-drivers-at-the-back/58653897

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Magna International posts strong growth in Q1 FY17 The Economic Times(May 14)

New Delhi: Magna International Inc posted a strong YoY growth in the first quarter ended 31 March 2017 with sales of $9.37 billion,an increase of 5% over the first quarter of 2016. This growth was achieved despite North American light vehicle production decliningby 1% and European light vehicle production increasing only 2% compared to the first quarter of 2016.

“Our complete vehicle assembly sales decreased 31% in the first quarter of 2017 largely reflecting the end of production of

the MINI Countryman and Paceman in 2016, partially offset by the start of production of the BMW 5-Series at our assembly facilityin Graz Austria,” says a company statement.

During the first quarter of 2017, income from operations before income tax was $806 million, up 19% compared to the first quarter of2016. Net income attributable to Magna International Inc. was $586 million, 19% higher than the first quarter of 2016. Dilutedearnings per share increased 25% to $1.53 in the first quarter of 2017, which includes the favourable impact of a reduced sharecount.

During the first quarter of 2017, adjusted EBIT increased 19% to $831 million, compared to $698 million for the first quarter of 2016.The company’s North American, European, Asian and rest of world segments all posted higher adjusted EBIT and adjustedEBIT percentage of sales, compared to the first quarter of 2016.

During the first quarter, cash provided from operating activities totaled $443 million, up 46% from the first quarter of 2016. Thisincludes cash generated from operations of $870 million before changes in operating assets and liabilities, and $427 millioninvested in operating assets and liabilities. Total investment activities for the first quarter of 2017 were $392 million, including $309million in fixed asset additions and $83 million in investments, other assets and intangible assets.

"We delivered another very strong quarter, with continued production sales growth above vehicle production, all segments postinghigher margins, and all-time record earnings per share. Overall, the first quarter was a great start to the year for the company andour shareholders."said Don Walker, Magna's Chief Executive Officer.http://auto.economictimes.indiatimes.com/news/auto-components/magna-international-posts-strong-growth-in-q1-fy17/58656688

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Electric taxis boost emission free environment The Economic Times(May 14)

New Delhi: For millions of people around the world looking for a comfortable taxi journey, riding in a taxi became a more enjoyableexperience and better for the environment in 2013 when a taxi company in Japan went all out and converted its entire fleet ofconventional taxis to zero-emission Nissan LEAFs. It was the first step in a global electric taxi revolution, maintains a companystatement from Nissan.

Since then, taxi companies in Spain, The Netherlands, Hungary, the UK, Jordan, Mexico and Poland have all adoptedzero-emission electric taxis. At present Nissan taxis, LEAF, e-NV200 or both are in service in five continents, 26 countries and 113cities around the world.

Reduced emissions, significant savings and cheaper maintenance for taxi companies – plus a quiet and comfortable ride forpassengers are benefits accruing from electric taxis.

With business results and cost savings, electric taxis are bringing Nissan’s intelligent mobility to customers and taxi liveriesworldwide. Through electric vehicles, intelligent mobility transforms how cars are driven, powered and integrated into wider society.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/electric-taxis-boost-emission-free-environment/58657299

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German prosecutors investigate works council pay at Volkswagen ReutersSee this story in: The Economic Times(May 14)

Hamburg: German prosecutors are investigating current and former executives at Volkswagen on suspicion that they paid workscouncil chief Bernd Osterloh an excessive salary.

In Germany, wasting corporate funds is legally a breach of fiduciary duty.

"I can confirm that the Braunschweig prosecutor's office currently has a case on early suspicion of breach of fiduciary trust,"Braunschweig prosecutor Julia Meyer said in an emailed statement.

She declined to name any suspects or provide details of the investigation.

Volkswagen said its pay for works council members conformed with German rules and that external legal experts had confirmedthat Osterloh's remuneration was appropriate.

The Volkswagen works council separately said it had been informed about the probe against current and former companyrepresentatives, whom it also did not name.

Works council chief Osterloh receives a salary equivalent to a business unit manager at Volkswagen, which is below that of amanagement board member, it said.

"Had he decided to accept an offer to become head of personnel, his remuneration would have been significantly higher. He insteaddecided to continue to devote his time to the workforce," it said in a statement.

In an interview with the Braunschweiger Zeitung, Osterloh said he felt at ease with the level of his salary.

He told the paper his basic pay was around 200,000 euros, not including bonuses, meaning his pay had peaked one year at around750,000 euros, though it was much lower now. He added he had told the company in 2015 following the dieselgate scandal that hewanted his bonus to be cut by the same percentage as the workforce's bonus payments.

"If it was about wanting more money I would no longer be head of the works council but would be head of personnel," he said.http://auto.economictimes.indiatimes.com/news/industry/german-prosecutors-investigate-works-council-pay-at-volkswagen/58658595

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Romanian carmaker Dacia halts production after global cyber attack ReutersSee this story in: The Economic Times(May 14)

Bucharest: Romanian carmaker Dacia, owned by France's Renault, said on Saturday some of its production had been hit by whatappeared to be the global ransomware cyber attack that has infected computers in nearly 100 countries.

Renault stopped production at several sites earlier on Saturday to prevent the spread of the cyber attack.

"Part of Dacia's production in Mioveni has been affected by disfunctionalities of IT systems and some employees were sent backhome," Dacia said in a statement. "The measure was taken to prevent extending the disfunctions, which at first glance are aconsequence of the global cyber attack."http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/romanian-carmaker-dacia-halts-production-after-global-cyber-attack/58659869

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Great Wall eyes plant in North America but uncertain due to Trump’s US-first policy ReutersSee this story in: Hindustan Times(May 14)

Chinese carmaker Great Wall Motor Co Ltd is planning to build a plant in Mexico or the United States, the firm’s chairmansaid on Friday, but added an uncertain policy environment meant the details of the plan were still in flux.

Reuters reported last month Great Wall, which says it is China’s largest SUV and pickup maker, was eyeing an auto plant intwo Mexican states hit by US President Donald Trump’s drive to make American companies invest at home.

The carmaker’s chairman Wei Jianjun said the firm had looked at three possible states in Mexico and two states in theUnited States. He added that significant shifts in US policy were having a large impact on the plans for the plant.

“Our plans to go to the American market haven’t changed,” he told reporters on the sidelines of a conferencein Shanghai. “First we want to see how things work and then make a decision.”

Under pressure from US President Trump to keep jobs in the United States, some carmakers have scaled back or slashed plans tobuild plants in Mexico. Ford Motor Co in January cancelled a $1.6 billion plant in San Luis Potosi.

A senior Great Wall Motor executive told Reuters previously the choice between setting up plants in the United States or Mexicolocations would depend on trade issues involving the United States, Mexico and China.

Wei said Great Wall would build plants in Russia as well as North America. He added the firm aimed to sell 100,000 cars globallyoverseas by 2020, up from 20,000-30,000 vehicles now.http://www.hindustantimes.com/autos/great-wall-eyes-plant-in-north-america-but-uncertain-due-to-trump-s-us-first-policy/story-hwpIdVGzIZcbqM4iLqWipO.html

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World's Fastest SUV is a Toyota Land Cruiser Asian Age(May 14)

Speed is the last thing you think of when you hear the words like Toyota or SUV. SUVs like Land Cruiser have the capability to bedriven on most extreme terrains. However, the Japanese automaker has been able to claim the title of the ‘World’sFastest SUV’ with a custom Land Speed Cruiser. The Land Speed Cruiser packs 2000 horsepower and clocked a recordspeed of over 230.02mph (370.18kmph).

The Land Speed Cruiser’s engine is based on the stock 5.7-litre petrol V8 from the production car. The team of engineersfrom Toyota’s Motorsports Technical Centre (MTC) then added two gigantic turbochargers to it so it could gulp in air faster.The engine was also modified slightly with stronger pistons, rods and a custom-made intake manifold to help it take the punishment

of producing over 2000 horsepower. The engineers then added a custom racing transmission which was strong and reliable enoughto handle all those horses at high speeds.

In terms of the exterior design, the Land Speed Cruiser was lowered and given an aerodynamic body kit. The engineers evenmanaged to make the frame narrower by 3-inches to accommodate wider and stickier Michelin Pilot Super Sport tyres.

Driven by former Toyota NASCAR driver, Carl Edwards, the Land Speed Cruiser broke the previous record by 30kmph on the 4kmstretch at the Mojave Air and Space Port in California. Toyota claims that on a longer piece of tarmac, the SUV will go even faster.The first glimpse of the Land Speed Cruiser was seen at the 2016 Specialty Equipment Market Association (SEMA) Show, where astock Land Cruiser heavily modified by the MTC team was showcased.

On the first warmup run, this beast of an SUV touched 318kmph. On the second run, Edwards manages to reach 339.5kmph. Forthe third stint, the engineers allowed, more boost to reach the engine and this resulted in the record-breaking run where the SUVmanaged to set a top speed of 370.18kmph.

After the record, Edwards said, “At 225mph (362.1kmph), the thing was wandering a little bit. All I could think was that Craigsaid, ‘No matter what, just keep your foot in it,’ and we got 230mph (370.18kmph).” “It’s safe tosay that this is the fastest SUV on the planet.”

Records are meant to be broken, and hence we have a new SUV sitting on top of the mountain with a new speed record. It wouldbe very interesting to see when and who will challenge the Land Speed Cruiser to snatch the crown. While Toyota Land SpeedCruiser may have claimed the title of the ‘World’s Fastest SUV’, the Bentley Bentayga still holds the record forthe fastest unmodified production SUV when it touched 301kmph during its testing phase prior to its launch in September 2015.http://www.asianage.com/business/autos/130517/worlds-fastest-suv-is-a-toyota-land-cruiser.html

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Audi, Porsche recall SUVs for possible fuel-pump leaks APSee this story in: The Economic Times(May 14)

New York: Audi and Porsche are recalling a total of nearly 300,000 SUVs because they may develop cracks that cause fuel to leak,which raises the risk of fire.

Volkswagen Group of America's Audi recall covers 240,487 Q5 and Q7 vehicles, with model years ranging from 2013 to 2017.Dealers will replace fuel-pump flanges that have cracks and apply a protective film to those that do not.

Porsche's separate recall covers 51,497 vehicles, including certain 2015-17 Macan S and Macan Turbo vehicles and 2017 Macan,Macan Turbo with the Performance Package and Macan GTS vehicles. It will also replace any flanges that are cracked and apply aprotective film to those that aren't.

Owners can contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 or visitwww.safercar.gov.http://economictimes.indiatimes.com/news/international/business/audi-porsche-recall-suvs-for-possible-fuel-pump-leaks/articleshow/58662544.cms

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Economy

A good monsoon outlook will be gamechanger for economy, stocks D K AggarwalThe Economic Times(May 14)

India being an agrarian economy, monsoon rains are very important. The agriculture sector accounts for roughly 15 per cent ofIndia’s GDP and 40 per cent of the rural economy and nearly 20 per cent of agriculture GDP is directly dependent on themonsoon rains.

The Indian Meteorological Department (IMD) has said monsoon rains could be ‘normal’ this year and may bring 100per cent rainfall instead of 96 per cent it had projected earlier. Notwithstanding the modest contribution of agriculture to the overallGDP, good monsoon augurs well for India’s macros and this will give enough leg room to the government to support growthin the economy. To note, a good monsoon outcome can raise agricultural output, and thus improve gross value added (GVA)growth.

Recently, the International Monetary Fund (IMF) forecast India’s growth to rebound to 7.2 per cent in financial year 2017-18and 7.7 per cent in 2018-19.

There is anticipation that good monsoon rains this year would revive rural demand and give more room to the Reserve Bank of Indiato cut interest rates going forward, as monsoon rains influence RBI’s policy decision due to its impact on agri-inflation. RBI

has raised its inflation estimate for 2017-18, expecting it average at 4.5 per cent in the first half and 5.0 per cent in the second half,which is higher than its target. The next bimonthly policy review of the Reserve Bank of India is due in June and RBI is expected tokeep interest rates unchanged.

The expectation of normal monsoon boosted sentiments among market participants, domestic investors in particular, and Nifty50breached the psychological level as stocks of consumer goods, FMCG and agriculture dependent sectors rallied. The market wascheered as a normal monsoon can increase spending ability of the rural population, which is dependent on agriculture, which can inturn help earnings growth of FMCG, consumer durables, agri inputs, fertiliser and cement companies.

Actually, the government’s demonetisation drive, which was announced on November 8, 2016, badly impacted thesesectors. Among all, the FMCG sector witnessed a noticeable slowdown.

However, the long-term outlook for these sectors is positive as earnings of the companies from these sectors have beenencouraging so far. With a normal monsoon, earnings are expected to grow faster and that would in turn drive stock prices higher.Investors who have invested or would invest in stocks such as Dabur, HUL, Bajaj Corp, Meghmani Organics, PI Industries, UPL,Havells and Voltas are expected to get good return in the days ahead.http://economictimes.indiatimes.com/markets/stocks/news/a-good-monsoon-outlook-will-be-gamechanger-for-economy-stocks/articleshow/58654648.cms

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