A month in the India Transport Sector

October, 2012

INDIAN TYRE MARKET WEAKENING After enjoying successful stints for the last couple of years, the tyre industry in India has taken a sudden jolt in the current financial year. More information on ITP METRO TYRES AIMS TO INCREASE ITS HOLD IN THE INDIAN TYRE MARKET With the Indian market for two-wheelers witnessing a major suppuration as evident from the double digit sale figures of major two-wheelers companies in 2011, the tyre market for this sector is also poised for a major growth. Metro Tyres, which has approximately a share of 25% in the bicycle tyre market, has decided to increase its hold in the Indian tyre market. More information on ITP TAIWAN’S CHENG SHING RUBBER COMPANY INTERESTED IN EXPLORING THE INDIAN MARKET India along with China has been identified at a global level as the most promising market for automobiles as it is predicted to witness a compounded annual growth of 10.7% by 2017. This flourishing automobile market has prompted many foreign companies to focus on India. The latest to join the rush is Taiwan’s Cheng Sing rubber company. More information on ITP “HIGH-QUALITY TIRES CAN REDUCE BRAKING DISTANCE BY 50 PERCENT” RUPESH SHAH, ASSOCIATE GM AND HEAD – MARKETING, INDIAN SUBCONTINENT, BUSINESS UNITS – PERFORMANCE BUTADIENE RUBBER AND BUTYL RUBBER Rupesh Shah is Associate GM and Head – Marketing, Indian Subcontinent, Business Units – Performance Butadiene Rubber and Butyl Rubber since August 2010. In this capacity, he is responsible for achieving the overall growth vision of the BUs for Indian subcontinent and for implementation of global strategy in the region by devising suitable account specific strategy. More information on ITP

It is crucial not to confuse short term feelings with long term strategies. If the future is rooted in present actions, it is certainly not a direct evolution of these. Inertia and uncertainty have to be taken into account in order to design a long term strategy based upon consistent evidences. In the case of an industrial player, decisions, movements are not made in answer to present issues but are designed to tackle future challenges. Rajiv Budhraja, director general, Automotive Tyre Manufacturer Association, must be right when he explains that the tyre industry will be facing a short term oversupply situation if an economic recovery is delayed. But it is also true that this statement must not be taken as a fatalistic prediction for the transportation and tyre industry. Still, skepticism is an understandable feeling when considering current numbers: sales of trucks and buses in India dropped 24% in October, despite the festive seasons and the numerous incentives made by commercial vehicles manufacturers. Fuel price, economic crisis, loans etc. are a definite reality affecting current trends. In view of this, how should tactical moves such as the INR 4,000 crore Michelin Chennai facility be considered? And Bridgestone’s, Yokohoma’s and Continental’s investments in India? Are they misguided? Are they the only ones betting on the development of Indian transportation? That’s not sure. Just a few days ago, Scania announced its move into the onroad truck market in India. There are many such examples. Even Suzuki is exiting the US to focus on emerging markets like India. Obviously, these players must have considered some macro data before moving. India is growing at a rate of 18 million people per year. 50% of the population is below 25 and 33% is below 15. Freight movements are forecast to reach 1,000 billion tons in 2020. It is estimated that truck sales will grow by more than 250,000 trucks per year reaching 10 million commercial vehicles in 2020. As said earlier, these figures are representative of future challenges. But because the companies moving into India are industrial players, the time horizon is important for them. A day is coming when an oversupply situation will be a thing of the past. And it is time to get ready.

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A month in the India Transport Sector INFRASTRUCTURE: ROADS
FINANCIAL IMPLICATIONS OF ROAD CONSTRUCTION Road construction is definitely one of the primary infrastructures that can help a country significantly develop. It is indeed the case for India as well. Until March 2012, the Highway Ministry of India was building 12 km of road per day resulting in around 1,863 km of highway construction being successfully implemented. More information on ITP ROAD MAINTENANCE An efficient, well developed and well maintained means of transportation is a vital pre-requisite and is integral to the socio-economic development of a country. Thus, the adequate maintenance of existing roads and highways and their timely repair is essential to preserve public asset and must be given as much importance as the construction of new roads. More informations on ITP ROADS – THEIR MONSOON MAINTENANCE DURING AND POST

October, 2012 FUEL ISSUES
MAINTENANCE OF DIESEL CAR Diesel cars have become the new obsession in India. The primary reason behind this lies in the ever increasing price of petrol. Diesel, despite all the vacillating prices, and thanks to government subsidy, remains much cheaper than petrol. Naturally, apparently in terms of sheer cost-effectiveness of running the car, diesel cars have become the hands down favourite than their costlier cousin petrol cars. More information in ITP FUEL PRICE OFFERED BY PUBLIC AND PRIVATE OIL COMPANIES IN INDIA The government monopoly over various sectors of the economy ended with the onset of liberalisation in India in the 1990s. The Petroleum Industry was no exception. With the dismantling of the Administered Pricing Mechanism (APM) which the government used to fix prices of petroleum products, private players got an opportunity to market transportation fuel including High Speed Diesel (HSD). Henceforth, with an objective to promote competition, HSD was marketed by both public sector oil companies like Hindustan Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and private companies like Shell, Reliance Petroleum Ltd., (RPL) and Essar. More information in ITP

Roads in India have over the years earned the dubious distinction for their poor state and the situation becomes even worst during the monsoon season. Monsoons in India can hardly be imagined without waterlogged roads, uprooted tress, chaotic traffic and people stranded in flooded streets. Flooding of badly maintained roads in India is one of the primary reasons behind these troubles. Hence, it is of critical importance that adequate attention should be directed towards road maintenance during, as well as, post monsoon seasons. More informations on ITP OPEN DRAINS AND MANHOLES ON THE ROADS LEADING TO INCREASING NUMBER OF ACCIDENTS Uncovered manholes and open drains are a regular feature and a common sight on Indian roads. While the increasing number of fatal accidents caused by these open drains has become a major concern for the pedestrians and residents, the civic authorities appear unfazed. Despite repeated incidents, the government has refused to learn any lesson and failed to take precautionary measures. More informations on ITP

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A month in the India Transport Sector RAILWAYS / METRO
LUDHIANA TO BE THE NEXT INDIAN CITY TO GET A SUBWAY After Kolkata, Delhi and Bangalore, the next Indian city to get a subway or metro will be Ludhiana in the Indian state of Punjab. The Delhi Metro Rail Corporation (DMRC) was approached by the Punjab Infrastructure Development Board (PIDB) in 2007, to help prepare a Metro project report for Ludhiana city. More information on ITP ECO-FRIENDLY SUBWAY STATIONS IN HYDERABAD In the context of growing climatic concerns across the world, the subway has become one of the most popular modes of transport. This is also the case in India, where subways or metro rails as they are more popularly called in the country, have enjoyed increased popularity. More information on ITP HOW SAFE ARE SUBWAYS? The subways built for convenience and safety of the people are often converted into unsafe public spaces. Many surveys carried out in different cities reveal that a considerable percentage of women encountered harassment and have been victims of eveteasing in these dark, poorly lit and lonely tunnels. The majority of women view underground subways as unsafe. More information on ITP

SUV’S: INDIAN OR FOREIGN ONE? The need for more car space, the condition of Indian roads, rising consumerism and increased purchasing power have given a tremendous boost to the sale of Sports Utility Vehicles (SUVs) in India. A perfect family car well suited for the Indian terrain is what makes SUVs a lucrative choice. The booming small car market is fast giving way to the car with an attitude. The growing popularity of SUVs in India and increasing demands have converted the country’s SUV market segment into a virtual battlefield. More information on ITP

PREPAID AUTO SERVICES – LOOTING PASSENGERS Cutting across cities, three-wheeled autos are a popular, cheap and essential means of transportation in India. Kolkata, Delhi, Bangalore, Hyderabad, Chennai and several other cities have autos operating extensively on their roads. While some cities have adopted the prepaid payment system for autos, many have continued with the meter system. The meter system has for a long time given the drivers a free hand to take advantage of passengers. They have looted commuters at will by installing faulty meters or taking a longer route to increase the meter reading. More information on ITP

HEAVY RAINS: SUBMERGED RAILWAY LINES LEAVE MUMBAI IN TOTAL CHAOS The monsoon is the most anticipated season in India but it brings with it, a plethora of woes and worries for its citizens. Cities like Mumbai get their yearly quota of troubles once the monsoon season sets in. More information on ITP INDIAN RAILWAYS’ GROWING FREIGHT TRAFFIC Freight has always been an important revenue generator for Indian railways and has played a significant role in neutralising losses incurred from passenger fares. More information on ITP

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A month in the India Transport Sector TRAFFIC ISSUES
ALL INDIA TRANSPORT STRIKE – A COMMON FEATURE Recently, in May 2012, newspapers were rife with reports on the impending woes that people in Karnataka will face due to the indefinite transport strike called by the India Motor Transport Congress (AIMTC). However, this is not a unique case in India. In the same month another all India transport strike was called for a day by the All India Road Transport Worker’s Federation. Transport strikes can be called in isolation or at times they are part of the large all-India bandh (strike) programme. More information on ITP

October, 2012 ADVERISE WITH US

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Indian Transport Portal is an online news center covering the most critical industrial issues related to transport markets in India. India Transport Portal is edited by Digital Bizzline Ltd. a UK based press agency recently launched by a group of freelance journalists. Digital Bizzline Ltd. is registered at the Companies House UK: 07301455 contact@indiatransportportal.com

ELEVATED HIGHWAYS-HOW EFFECTIVE ARE THEY TO EASE OUT TRAFFIC A growing economy, increasing incomes and a flourishing auto industry are pushing Indians to travel around in their own vehicles. A steady increase in the number of cars on the roads is contributing to the growing traffic congestion in all major cities of the country. Travelling on Indian roads is a nightmarish experience for the traveller and the pedestrian posing a challenge to the civic authorities. The quest for a solution revealed the growing popularity of elevated highways across the world. More information on ITP


THE CONTROVERSIAL BRT CORRIDOR BRT or bus rapid transit refers to a popular public transportation system which allows buses to move faster and with greater ease, facilitating efficient flow of traffic. Several countries in Europe, the United States, Australia and Indonesia have successfully experimented with this. Following these examples, India too has implemented a number of BRT corridors in different cities. However, ever since its inception in 2008, the BRT corridor in Delhi has been plagued with controversies. More information on ITP


December 15 – 19, 2012 New Delhi 3RD ITS 2013 February 21 –22, 2013 New Delhi TYREXPO 2013 January 9 – 13, 2013 Chennai

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