MSI has both direct and indirect exposure to foreign currencies while importing components. It imports about Rs. 80bn worth of parts annually, added reports.
Top Stories
Maruti Suzuki India plans to raise prices of its products: reports
Maruti Suzuki India (MSI) reportedly said that it is considering an increase in prices of its products from January next year to offset the impact of rupee depreciation.
Mayank Pareek, Managing Executive Officer (Marketing and Sales), Maruti Suzuki India (MSI) was quoted as saying "Considering the amount of pressure that we are having on our margins due to currency fluctuations, we have to do something. We are looking at a price hike in January."
MSI has both direct and indirect exposure to foreign currencies while importing components. It imports about Rs. 80bn worth of parts annually, added reports
Hyundai Motor India's workers threatens to go on strike: reports
Few workers of Hyundai Motor India Ltd's (HMIL) plant have reportedly threatened to go on strike demanding reinstatement of 18 sacked colleagues.
A Soundararajan, Honorary President, Hyundai Motor India Employees Union (HMIEU) was quoted as saying "What we want is that the dismissed employees must be reinstated. We are planning to strike in front of the plant tomorrow."
According to reports, the company management, HMIEU and Tamil Nadu Labour commissionerate had signed a tripartite agreement last year in December and the company reinstated 14 employees out of 32 workers, who were dismissed during a three-day long stir at the plant in June. Those workers who were "found guilty of major offences" during the strike were asked to seek legal recourse.
Agitation on this issue would be a violation of this tripartite agreement. Hence as per the terms of this agreement the matter stands closed. In the interim, HMIL has as matter of routine been receiving strike notices from HMIEU and the last one was received in August this year, added reports.
In Focus Stories
IIFL recommends ‘Reduce’ on Ashok Leyland
IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends ‘Reduce’ on Ashok Leyland.
High levels of inventory with dealers, demand weakness in south India which is a key market for the company, and an adverse shift in industry segment mix will put pressure on industry growth as well as Ashok Leyland’s market share, the report said.
IIFL sees downside risk to the company’s volume guidance and is cautious about the high EPS sensitivity due to high operating/financial leverage.
“Our FY12-14 EPS estimates are 4-6% below consensus,” IIFL said.
Sales Watch
Tata Motors sales soar 41% in November
Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles in November 2011 were 76,823 vehicles, higher by 41% over November 2010. The company’s domestic sales of Tata commercial and passenger vehicles for November 2011 were 72,474 nos., higher by 44% over 50,419 nos., sold in November last year.
Cumulative sales (including exports) for the company for the fiscal are 544,492 nos., a growth of 9% over 499,510 nos., sold last year.
Commercial Vehicle
The company’s sales of commercial vehicles in November 2011 in the domestic market were 44,737 nos., a 28% growth, compared to 35,079 vehicles, sold in November last year. LCV sales were 28,673 nos., a growth of 41%, compared to 20,376 vehicles sold in November, last year. M&HCV sales stood at 16,064 nos., a growth of 9%, compared to 14,703 vehicles sold in November, last year.
Cumulative sales of commercial vehicles in the domestic market for the fiscal are 361,227 nos., a growth of 19% over last year. Cumulative LCV sales are 197,465 nos., a growth of 26% over last year, while M&HCV sales stood at 129,120 nos., a growth of 10% over last year.
Bajaj Auto sales rise 25% in November
Bajaj Auto Ltd. announced on Friday that its total vehicle sales in November were up 25% at 374,477 units as against 299,231 units sold in the same month last year. The Pune-based two-wheeler major had sold 395,274 vehicles in October.
Bajaj Auto said that its motorcycle sales in November were up 25% at 331,967 units while Commercial Vehicle (CV) sales for the month rose 24% to 42,510 units. The company's exports for the month under review jumped 42% to 129,256 units from 90,869 units sold in November 2010.
For April-November 2011-12, Bajaj Auto's total vehicle sales are up 16% at 3,026,703 units. Motorcycle sales in the first eight months of FY12 are up 16% at 2,673,458 units while CV sales during the same period have jumped 21% to 353,245 units. Exports during the April-November 2011-12 period surged by 34% to 1,112,702 units.
M&M Auto sales surge 53% in November
Mahindra & Mahindra Ltd. (M&M), a part of the US$14.4bn Mahindra Group announced a 53% rise in its auto sales numbers, which stood at 40,722 units during November 2011 as against 26,666 units during November 2010.
Bucking the industry trend, the company’s domestic sales stood at 38,159 units during November 2011, as against 25,166 units during November 2010, an increase of 52%.
The 4-wheeler commercial segment, which includes the passenger and load categories, has registered an impressive growth of 74% at 13,362 units.
Speaking on the numbers, Rajesh Jejurikar, CEO, Automotive Division, M&M said, “We are delighted with our outstanding growth in November wherein in spite of the market slowdown post the festive season, we have been able to maintain a consistent performance. All our brands are doing well with the excitement around XUV5OO continuing, as we ramp up production".
Hyundai domestic sales up 11%
Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer and the largest passenger car exporter has recorded a 10.9% jump in domestic sales in a difficult market. Exports have climbed 69.8% taking aggregate growth for the month to 28.1%.HMIL’s domestic sales for the month were 35,000 units against 31,540 units in November last year; exports were 22,080 units against 13,000 units in the corresponding month last year. HMIL’s aggregate sales for the month were 57,080 units against 44,540 units in November 2010.
Commenting on the November 2011 sales, Arvind Saxena, Director Marketing and Sales, HMIL said, “In a challenging market we have been able to grow volumes and market share on the strength of our new launches -- Verna and Eon. Our immediate outlook on the market is not too bright as interest rates and fuel prices are unlikely to soften in the foreseeable future.”
The segment-wise cumulative sales for November 2011 are: A2 segment 48,732 units (Eon, Santro, i10, i20); A3 Segment 8,223 units (Accent and Verna); A5 segment 3 units (Sonata Transform); Santa Fe (SUV) 122 units.
Domestic News
MRF net profit accelerates 73% at Rs. 6.19bn
MRF Ltd has reportedly posted a higher net profit for 2010-11 overcoming the impact of high raw material (rubber) prices and rupee depreciation. The company follows October-September financial year.
According to reports, Net profit for 2010-11 stood at Rs. 6194.2mn, against Rs. 3539.8mn for last year. Profit before tax and exceptional item stood at Rs. 4890mn, lower than the previous year's Rs. 5340mn. MRF has reported a turnover of Rs. 10,6700mn for the year 2010-11, exceeding the Rs. 10,000 -crore mark for the first time. Turnover was up 32% over the previous years.
Koshy Varghese, Executive Vice-President – Marketing, MRF was quoted as saying “The growth in the car industry has come down this year. We hope next year would be better. We are also awaiting decisions on rubber duty structure and anti-dumping duty.”
Reports further stated that Competition Commission of India (CCI) is investigating charges that domestic firms MRF, Apollo Tyres, JK Tyre, Birla Tyres and Ceat have colluded to fix prices and scuttle imports.
The CCI has sought specific information from the company relating to production, costs and have been furnished with all the details, added reports.
Tata Motors to send Nano car to NID: reports
Tata Motors has reportedly approved to send a Nano car to India's premier design institute for its students to study it and give possible suggestions to redesign the car.
According to reports, the sales of the car fell down and the Sanand factory running at less than 50% of the installed capacity of 2.50 lakh cars a year.
Prof Pradyumna Vyas, Director, NID was quoted as saying that the world-class design institute had approached Tata Motors in this regard as Ahmedabad has emerged as an automobile hub with many global and national companies setting up shop in Gujarat. NID has a world-class academic course at the post-graduate level and latest facilities in transportation and automobile designing. Other disciplines, like textile design, product design and lifestyle accessories, may also provide inputs in Nano's design.
NID had proposed an industry-institute partnership to which Tata Motors agreed, which will mutually benefit both, added reports.
Honda sees India as global hub for entry-level bikes
Honda Motor Co will reportedly start exporting bikes by next year from India. The company sees India as a future global hub, particularly for mass market models.
Tatsuhiro Oyama, Honda Motor Company COO (Motorcycle Operations) was quoted as saying “We will soon start exporting from India... Earlier some of the motorcycle models were being produced by Hero. Now we would like to do it ourselves by next year from the new plant.”
“Therefore, we have lots of expectations towards its capability to export to the global market...Specially talking about motorcycles, we do believe India will become a global hub, particularly for the commuter type of models,” added Oyama.
According to reports, Honda Motor is also building a global procurement centre for large-sized motorcycles as well as commuter bikes in India as it looks to enhance exports from the country along with components.
The new plant the company will be making motorcycles that can be sold within India and some can also be exported. Honda Motor will start exporting to neighbouring countries like Nepal, Bangladesh, added reports.
Mahindra to re-open XUV5OO bookings in January
Mahindra & Mahindra Ltd. (M&M), a part of the US $14.4bn Mahindra Group announced that it would re-open bookings of its XUV5OO in January 2012.
The XUV5OO had received over 8000 bookings in just 10 days, making it one of the most overwhelming responses to a new car launch in recent times. Mahindra had sold out 4 months production of the XUV5OO and had hence temporarily deferred new bookings since October 11th across the 5 centres of Mumbai, Pune, Delhi, Bengaluru and Chennai. Mahindra expects to complete deliveries of these bookings by January 2012.
The production for the XUV5OO is as per schedule and the company is also in the process of ramping up production at its plant in Chakan which will enable it to re-open bookings next month. The XUV5OO has been buoyed by the excellent response from customers who have got deliveries till date. In addition, there has been an overwhelming demand from potential customers to re-open bookings.
Suzuki may launch electric vehicles in India
Suzuki Motor Corporation is reportedly considering to launch electric vehicles in India, although it sees infrastructure as a big challenge.
According to reports, the company has also lined more diesel engine cars after its rising demand in the country.
Toshihiro Suzuki, Suzuki Motor Corporation Representative Director and Executive Vice-President, Executive General Manager (Corporate Planning Office) was quoted as saying “We cannot tell you what are the specifications. There is possibility, but the only problem is infrastructure in terms of electric plugs. Even in CNG models, there is limitation in the number of gas stations. So it is more difficult to introduce electric vehicles in India, but we will introduce at the right time and it is under consideration.”
The company also showcased Swift electric vehicle hybrid, new version of Alto — Alto Eco, which the company claims to have a fuel efficiency of 30.2 km per litre and its new Swift Sport and a concept electric scooter, added reports.
Bosch to invest upto Rs2.5bn in aftermarket business: reports
Bosch Ltd will reportedly invest up to Rs. 2.5bn in its aftermarket business in the next three years as it aims to increase revenue from the division to Rs. 30bn.
S Muralidharan, Bosch Ltd Vice-President (Automotive aftermarket) was quoted as saying "We will invest Rs. 2bn to Rs. 2.5bn in the next three years to expand our aftermarket business. This will include ramping up of car service centers from 750 to 800 outlets from the current 500 across the country."
According to reports, the revenues from the aftermarket division are growing at a strong double digits rate and are expected to continue. The company is hoping to cross Rs. 30bn turnover in the next three years from about Rs. 20bn that we are expecting in this fiscal.
Bosch expects to train about 25,000 people this year and it will be doubled in the next three years, added reports.
Global News
Bentley apprentice amongst Volkswagen group's global best
The Volkswagen Group has just presented its “Best Apprentice Award” to its top young achievers from all over the world. Bentley’s Louis Warburton, Apprentice Ambassador for the UK’s National Apprenticeship Service and a junior engineer, was one of the 27 apprentices from twelve countries recognized for outstanding professional competence. The ceremony took place on the occasion of a meeting of the Volkswagen Group Board of Management and the Global Group Works Council in Stuttgart. The awards were presented by Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, Dr. Horst Neumann, and Member of the Board of Management responsible for Human Resources, and Bernd Osterloh, President of the Global Group Works Council.
Speaking on the Occasion, Christine Gaskell, and Bentley Motors’ Member of the Board for Personnel, said, “Bentley has always been strongly committed to skills development and apprenticeships and is very active in promoting careers in the industry. This award for Louis is testament to his own passion and enthusiasm and to the commitment of the Company in developing the very best from all our staff.”
Rolls-Royce secures order from Paxocean Engineering
Rolls-Royce, the global power systems company, has received an order from Singapore-based offshore company, PaxOcean, to design and equip two oil platform supply vessels. The vessels are to be built at PaxOcean Engineering’s ship yard in Zhuhai, China. The £10 million contract includes vessel design, a fully integrated Rolls-Royce diesel electric propulsion system and deck machinery.
Ronny Pål Kvalsvik, Rolls-Royce, Sales Manager, Ship Technology - Offshore, said: “We are delighted to continue our strong relationship with PaxOcean Engineering and to add to their fleet of Rolls-Royce designed ships. These vessels combine a proven Rolls-Royce design with a range of mission-critical onboard technology, enabling safe and efficient operation in the challenging environments of offshore oil and gas fields.”
Rolls-Royce agrees pension fund longevity swap
Rolls-Royce and the Trustees of the Rolls-Royce Pension Fund have agreed a longevity swap that will give additional security to all members of the company’s final salary pension scheme. The contract with Deutsche Bank reduces the risk on approximately £3bn of the fund’s liabilities. The cost of this transaction will be borne by the pension fund and will have no material effect on the funding arrangements. Around 37,000 pensioners are covered by this agreement.
Andrew Shilston, Rolls-Royce Finance Director, said: “We have made sure that as our pensioners live longer in retirement we have made proper provision for them. This is the latest in a series of measures we have taken to achieve greater certainty for our future funding requirements”. Paul Spencer CBE, Chairman of the Rolls-Royce pension fund trustees said: “We have been working closely with Rolls-Royce for some years to enhance the security of all our members’ benefits. This is another important step forward.”
Source : indiainfoline.com