Demand outstrips supply in Auto Industry
Royal Enfield, the Eicher Motors Ltd unit that makes the iconic Bullet motorcycle, may set up a second factory near Chennai to overcome capacity constraints that make it difficult for the company to meet demand. Royal Enfield is looking to grow at 15% annually, and expects the factory to be utilized fully by 2020….. Read More.
Royal Enfield has been unable to meet demand for its Classic 350 and 500 models, which were launched in November, with the waiting period extending to as much as nine months for some variants. The new plant it’s considering, will have an investment of Rs200 crore, with an installed capacity of 250,000. “While the company is trying its best to deliver the bikes as fast as possible, it’s not bad to have a little demand-supply gap for a leisure, high-energy brand,” said Siddhartha cialis mail order Lal, managing director and chief executive at Eicher. Enfield’s July domestic sales rose 10% to 4,775 units and it plans to sell 100,000 units by 2012. To make its bikes Bharat Stage 3 emission compliant, Enfield is changing engines. It’s also preparing to roll buy cialis doctor online out a new model every two years with more features and higher displacement. The company will launch the Cafe Racer model in 2012.
Mahindra & Mahindra is also looking at enhancing production of its two-wheelers within next 2-3 years. “We are already working on our future expansion plan as we think the existing capacity will not be sufficient in a couple of years time,” M&M’s two-wheeler sector President Anoop Mathur stated. He said that the company is looking at various options including the expansion in capacity of the existing Pithampur plant in Madhya Pradesh or other locations. The company had acquired the scooter business from Kinetic Motor last year. M&M’s scooter sales in the last 11 months has crossed one lakh units. Mathur also said the company is set to enter the motorcycle market with its first model expected to be launched befor December this year. Speaking about the future model line up he said: “For the next five years we are looking at a minimum one to two models per year which could be new or refurbished ones. In all we should be have a total of 5-8 models in the market in the next five years.”
Source: Live Mint , Business Standards
Auto components $3 bn investment every year
The Indian auto component sector is expecting an investment of USD 3 billion every year for the next decade, mainly in capacity enhancement, to meet the growing demand, industry body Automotive Component Manufacturers Association of India (ACMA) said in a statement.
“In this year, the industry is expected to add USD 2 billion in capacity enhancement. We hope that this will be USD 3 billion on an annualised basis from next year for the next one decade,” ACMA President Jayant Davar said. The industry is growing at a rapid pace of about 20 per cent and the momentum cialis free is expected to continue, he added. Davar said the demand-supply mismatch of auto parts is limited to only some specific components for some particular models. “While adding the new capacity, there is still a level of scepticism, whether this growth is sustainable or not in the long term,” he added.
According ACMA estimates, the sector witnessed a total sales of about USD 22 billion in 2009-10, out of which exports contributed approximately USD 3.8 billion. Driven by record sales in passenger car and two-wheeler segments, the Indian automobile industry posted its best ever monthly sales in July, growing by 31.50 per cent at 12,37,461 units compared to 9,41,070 units in the same month last year. ACMA also said it is pressing the government for safeguard measures against cheap imports of finished parts, primarily for those coming from China.
Source: Economic Times India cialis buying Times
TVS Motor to Spend $32 Million
TVS Motor Co., India’s third-largest motorcycle maker, plans to spend generic cialis prices as much as 1.5 billion rupees ($32 million) to add capacity and develop new products this financial year as demand increases.
The company will boost maximum production of motorcycles, scooters and mopeds by 17 percent to 2.8 million units a year by March, informed S.G. Murali, executive vice president, finance . Three-wheeler cialis for sale capacity will rise 80 percent to 90,000 units at the Chennai-based company, he said. “A huge middle class, double-income families in larger towns and people requiring mobility point to a huge growth in the market,” said Murali. “There is enough money in the rural market with government spending on infrastructure.”
TVS Motor in November unveiled an automatic Jive motorcycle and Wego scooter, increasing sales, as economic growth and higher disposable incomes boost consumer spending in the world’s biggest market for motorcycles after China. The company expects to sell 1.95 million motorcycles, scooters and mopeds in India and abroad in the year ending March 31, 2011, or 30 percent more than the year-earlier period, Murali said, declining to provide a break up. Sales of three wheelers may more than triple to 50,000 units from 15,000 last year, he said. Industrywide sales of motorcycles may increase by 9.5 percent to 8.04 million units in the year to March 31, the Society of Indian Automobile Manufacturers said in July. Scooter sales are forecast to rise 13.7 percent to 1.66 million units.
Source: Business Week
Mahindra set to buySsangyong
Mahindra and Mahindra Ltd (M&M), the country’s largest utility vehicle (UV) maker, is set to take control of troubled South Korean auto maker Ssangyong Motor Co., beating out five other bidders as it actively seeks to extend its reach into more markets across the world… Read More.
“We went for this with a clear strategic intent,” said Anand Mahindra, vice-chairman and managing director of M&M. “Our intent is to accelerate Ssangyong’s turnaround process and bring back its lost lustre.” The acquisition, the largest investment by an Indian company in South Korea, will provide the company opportunity to accelerate programme of becoming a global entity in utility vehicles. It follows Mahindra’s takeover of Punjab Tractors Ltd, Kinetic Motor Co. and more recently, Reva Electric Car Co.,. The troubles at Ssangyong, which commanded a one-fourth share in Korea’s UV market in 2003-04, started after rising oil prices and slowing demand due to the global slump hit sales of its UVs. In February 2009, the company was granted court protection from creditors.
The company did not disclose the bid price, saying it was confidential. The other bidders included an alliance of French auto maker Renault SA and Japan’s Nissan Motor Co. Only three, including Indian tyre maker Ruia Group and a local headgear company, remained in the fray until the deadline cialis instructions for the bid ended. Analysts are questioning the implications of the deal on the firm’s financials as M&M hasn’t disclosed what it will pay. They said similarities in the product range of both firms would work to M&M’s does female cialis work advantage.
Source: Livemint
$450 million offer for Ssangyong by Mahindra
India’s Mahindra & Mahindra (MAHM.BO) is expected to offer around $300 million to $450 million for South Korean sport utility vehicle maker how to get cialis Ssangyong Motor. … Read More.
Mahindra would fund the bid through a combination of debt and internal accruals and Kotak Mahindra Bank (KTKM.BO) is likely to finance the debt along with other third party bankers that have not yet been finalized. Mahindra was not looking at pledging its shares or opting for an equity dilution to raise the money. Mahindra, India’s largest utility vehicles maker, is among the six bidders shortlisted to make a bid, including Renault-Nissan and other local companies, for cash-trapped Ssangyong.
Ssangyong Motor has been under court-led bankruptcy protection since early 2009 after suffering cash exhaustion. The company is the fourth-largest car maker in South Korea, although its market share is just 2 per cent. It manufactures sport utility vehicles (SUVs), recreational vehicles and cialis 20 mg tadalafil sedans.
Source: Reuters
Indian Commercial vehicles’ market still remains formidable to China
In the last year or so, the ascendance of Chinese economic power has been near total, an even more remarkable development when viewed against much of the world struggling to clamber out of a recession.
China vaulted past the US to become the world’s biggest automobile market, toppled Germany as the biggest exporter of manufactured goods and is poised to become the world’s second-largest economy by nudging out Japan. But it will have to relinquish bragging rights to India in one sector: the commercial vehicles market.
Sales of commercial vehicles in India rose 77% in the first five months of 2010 from a year ago, thanks to a voracious demand from the fast-growing freight market, overshadowing a 60% surge in China. India posted a better-than-expected GDP growth of 8.6% in the quarter to end-March and is forecast by IMF to grow as much as 9.5% this year.
India’s economic surge cialis how it works has resulted in an increased demand for bulk transport of commodities, which, in turn, is driving the freight market, valued at more than Rs 3 lakh crore and growing at nearly 20% a year. China still is the world’s largest truck market, with almost every second medium-duty and heavy-duty commercial vehicle finding a buyer.
China also sold more than 30.41 lakh units in the first five months, compared to India’s 1.23 lakh units. Nearly 8.67 lakh trucks were sold in China in the past year while 5.31 lakh Indian trucks went to a buyer. Daimler, the world’s largest truck maker, will launch its fully-built trucks in acomplia weight loss pill India next year. Likewise, easy financing and increased spending on infrastructure, which propelled the market’s leap in recent months, are expected to continue.
All these factors are expected to help India cling to at least one economic triumph over China.
Source:[EconomicTimes]
Vehicle sales in India continue to rise
Vehicle sales in India rose more than 31 percent in June, nearly matching the jump from the month before, and an industry group said it expected the trend to continue.
Car sales rose nearly 31 percent to 141,184 vehicles last month, while commercial vehicles jumped more than 44 percent to 52,211 vehicles, according to data released Thursday by the Society of Indian Automobile Manufacturers, an industry body that represents over 40 vehicle manufacturers in India.
In June, the company sold 7,704 units of the Nano. It sold 3,550 units of the small car in May. The company has indicated that a capacity of one lakh units may be added to the Nano plant, if demand arises.The Mumbai-based company is already the rimonabant kaufen market leader in the commercial vehicle segment with sales growing 38 per cent in 2009-10 to 3.22 lakh units
Tata Motors has emerged as the second largest passenger vehicle maker in the country behind Maruti Suzuki, according to domestic sales records for the first quarter.
India’s rapidly recovering economy has encouraged buyers. From 2003-2008, economic growth averaged 8.8 percent a year, before slumping as the global recession roiled the economy. Since then, growth has recovered to nearly pre-recession levels, hitting 7.4 percent in the fiscal year that ended March. Overall vehicle sales were up more than 31 percent to 1.2 million vehicles, compared with 917, 645 in June 2009, the data showed. The organization also said that car sales for the fiscal year that cialis vs generic cialis began April 1 were likely to touch 1.7 million, a growth of more than 12 percent.
Source:[msn,The Hindu Businessline]
Renault-Nissan, Bajaj Auto sign pact for new car
Renault-Nissan Alliance has signed an accord with Bajaj cialis 20 mg cost Auto for making a new car for the Indian and other emerging markets.
Bajaj-Renault are already making an ultra-low cost car, which it plans to launch in 2012. Bajaj Auto, India’s second-largest motorcycle maker makes Pulsar and Discover motorcycles as well as three-wheelers.
Automobile sales in India grew by 31.42 per cent during June, benefiting from favorable macro economic conditions and new models buy acomplia in usa launches across categories, including cars, two-wheelers and commercial vehicles. There were eight new models and 11 facelifts during the first quarter of the fiscal that helped boost sales in June.
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Source: [Economic Times India Times]