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July, 2013
EDITORIAL Faced with one of the worst slowdowns in the past decade, Indias car market is still considered as an Eldorado when comparing with Europe, especially for foreign car manufacturers. And they all have their own ideas about the best way to succeed. Carlos Ghosn, CEO of Renault Nissan and well known for its success regarding low cost cars plans to renew this success with the Datsun Go. Fun, reliable and sporting modern technology are the words he used to describe what Indian customers want when buying a car. He is all set to go for the Indian jugaad way to design and develop small cars for India. Japanese giants such as Honda and Toyota are eyeing India too. With their specific issue: bring the concept of kei cars (kei means light) in India. They are thinking of an affordable car to fit Indias needs. India, be ready for kei cars! You can also add the Ford B562 codenamed project that is part of a large restructuring plan which gives India more importance. Three different compact cars may be spawned within this project. A hint? We are CEO. And last but nos least, do not forget that Hyundai plans to launch new cars every year for the next five years. Then you realize that India could become worlds 3rd largest car market by 2016, as HIS automotive said. That is ahead of Brazil, Germany and Japan, just before China and USA. accelerating the new vehicles. Customers want value. said Alan Mulally,
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RAILWAYS
INVITING PRIVATE CORRIDORS INVESTORS IN DEDICATED FREIGHT
NEW METRO HUB AT MANDI HOUSE Phase III of the Delhi Metro Project promises to make travel a little easier for commuters who, at present, do not look forward to having to use the highlycongested Rajiv Chowk station. Rajiv Chowk metro station is the busiest operating hub at present and sees no less than 500,000 commuters pass through its turnstiles every day. For many commuters, especially those who have to change lines, going through Rajiv Chowk is unavoidable. More information in ITP NAGPUR: METRO PROJECT Famous for its orange harvest, the city of Nagpur in Maharashtra has been fast developing from a quiet town to a world class city. Today, as a growing metropolitan centre, Nagpur has quietly and quickly attained the status of third largest city in the state of Maharashtra after Mumbai and Pune. With a large number of industries being set up in Nagpur, it has attracted thousands more people who have moved there to look for work and establish their lives. And if all goes as planned, very soon, Nagpur will be able to boast its own mass rapid transport system. More information in ITP
Indian Railways is seeking participation from the private sector for construction of the Dedicated Eastern and Western Freight Corridors. More information on ITP INDIAN RAILWAYS CUTS HAULAGE CHARGES Indian Railways has moved to cut haulage charges as of 1st April 2013 in an effort to increase growth in rail-based container transport. More information on ITP DIRECT RAIL LINK TO BE CONSTRUCTED BETWEEN KALYAN AND NAVI MUMBAI Kalyan and Navi Mumbai will soon have direct suburban rail connectivity, thanks to the Mumbai Rail Vikas Corporation. This is good news for all those who work in the Belapur-Panvel region and live in Kalyan and the surrounding area. More information on ITP BHOPAL-DELHI SHATABDI: EXTRA 20 MINS IF STARTING AT HABIBGANJ Madhav Rao Scindia Railways Minister under Rajiv Gandhis leadership was the brain behind the Shatabdi, which he introduced in 1988 to commemorate what would be the 100th birthday of Indias first Prime Minister, Pandit Jawaharlal Nehru. More information on ITP MUCH-AWAITED SERVICE DAHANU-CHURCHGATE: LOCAL TRAIN
To commemorate the completion of 160 years of Indian Railways, the Western Railway inaugurated the Churchgate-Dahanu local train service on April 16, 2013. More information on ITP
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CAR SALES
MAHINDRA REGISTERS GROWTH IN MARCH 2013 Racing ahead, Mahindra & Mahindra are not feeling the slumpMahindra and Mahindra (M&M) remains a trusted name in the Indian automobile market as was reiterated by the company results for the first quarter of 2013. In the month of March, M&M sold 51,904 vehicles in comparison to 46,919 vehicles in March last year. In the domestic market, M&M managed to sell 49,225 units in March this year as opposed to 44,260 last year, taking growth rate to an impressive 11%. More information on ITP MAHINDRA & MAHINDRA: SUVS PRICE RISE Car manufacturers in India have decided to increase the sale prices of their cars to balance the increased cost of on-board-diagnostics compliance changes and freight charges. Hyundai Motor India and Honda Cars India increased the prices of their vehicles in early April by about 2% and Mahindra & Mahindra (M&M) has announced its decision to follow suit. Pawan Goenka, the President of Automotive and Farm Equipment Sectors for M&M said, We will be soon announcing a price hike of 1 to 2% in order to offset increasing input costs and inflation. With the governments budget proving to be unfavourable this year, the Ministry of Heavy Industries and Public Enterprises as well as the Society of Indian Automobile Manufacturers have taken up the issue with the Finance Ministry. Until a decision has been made, the company cannot offer more clarity. More information on ITP GREEN INITIATIVES: CAR PRICES INCREASES IN 2015 For consumers all set to buy their dream car, the wait may have just got a bit longer as car prices are expected to rise in 2015. The Indian Government will require passenger vehicles to adhere to the Bharat Stage V emission norms, in a bid to improve environmental standards. Manufacturers will have to re-design their engines to make them more fuel efficient to adhere to the standards. Costs incurred will no doubt be passed onto the customers in the near future. The car prices are likely to rise by about 1.5-2.5% by 2015. More information on ITP
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TYRES ISSUES
INDIANS SATISFIED WITH COMPANY FIT TYRES According to the latest survey results of the Tyre Consumer Satisfaction Index or TCSU study, Indian car buyers seem to like the tyres that are fitted on the cars they buy. Factory-fitted tyres, known also as original equipment tyres refer to the tyres of a car that are integrated with the vehicle model and sold together. In fact, factory-fitted tyres on automobiles seem to have reached new levels of customer satisfaction with Indian car owners according to the survey, which was conducted in various Indian cities by a well-known organisation. More information on ITP TWO-WHEELER MARKET: TVS AND BMW PARTNERSHIP German Auto giant, BMW, and Venu Srinivasanled TVS, are all set to collaborate to produce bikes in the sub-500cc category. This is the first time in the history of BMW that it will be manufacturing such bikes. Both companies have their own reasons for the collaboration: BMW, which is heavily dependent on the Western market, will use the partnership to produce small and less powerful motorcycles in order to penetrate the emerging Indian marketplace. TVS hopes to use their technology to optimise quality and productivity. More information on ITP MRF: ALL-TERRAIN MOGRIP TYRES
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MRF, Madras Rubber Factory, has grown from its humble beginnings as a toy balloon maker in 1946 to a dominant figure in the tyre industry today. It belongs to the same group that owns the Malayalam Manorama a leading Malayalam newspaper in Kerala. With diverse interests, the companys manufacturing portfolio includes paint, coats, toys, pretreading, a variety of tyres, conveyor belts, tubes and tread rubber. A top exporter, the company has received numerous awards for its premium products. More information on ITP
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