A month in the India Transport Sector (No 29

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October, 2013

TRUCK MARKET
INDIAN TRUCK, TIPPER AND TRAILER APPLICATION INDUSTRY Industrial growth in India has given a boost to the truck, tipper and trailer industry which must work to keep up with changing customer demands. The application industry in India is worth over 172 million USD. More information on ITP ASHOK LEYLAND OPTIMISTIC ABOUT THE FUTURE Though the market is currently going through a slow phase, Ashok Leyland believes that it can sustain its promising results with the launch of three new products including an engine. More information on ITP NISSAN AND ASHOK LEYLAND JOINT VENTURE UNVEILS THE STILE Japanese auto makers, Nissan and India’s Ashok Leyland entered in to a joint venture in 2007 to capitalise on gaps in the model range on offer. Both these brands have entered the partnership to manufacture and develop LCV (light commercial vehicles). More information on ITP TATA MOTORS TARGETS MAJOR MARKET SHARE WITH READYTO-USE CEMENT BULKERS An example of machinery being manufactured for specific functions is the cement bulkers by Tata Motors in India. Bulkers are trucks designed to carry cement and fly-ash in large quantities as opposed to bagged cement. More information on ITP AMW TIES UP WITH SBI FOR VEHICLE FINANCE Thus AMW has a wide product range of highpriced goods, the sales of which may suffer due the current phase of recession. Thinking ahead, AMW has formed an alliance with the SBI, whereby it will be able to provide financing to buyers on its entire range of vehicles. More information on ITP

EDITORIAL In 2005, the NHAI decided to ban overloaded vehicles from Indian roads. To empower this decision, a recent decision has been taken at the beginning of October that will penalize overloaded vehicles ten times predefined toll charges. Excess cargo will also have to be off loaded. This is a good move, for several reasons. First, this empowerment will stop damaging roads, encourage better road use behavior and this will have a significant impact on road safety. Today, cargo vehicles are involved in 22 per cent of India’s road accidents and national highways account for only 2% of the total road network but carry 80% of trucks. It could also help additional truck sales and put newer trucks on the road. This will also increase the efficiency of the trucking industry with the rise of multi axles vehicles and the spreading of radial and tubeless tyres that are more fuel efficient and environment friendly. Being technology driven will help India transportation sector to tackle these great challenges and achieve a sustainable transport system. There is still a long way until the awareness on such issues is well spread among India. Several cases of racket and corruption are still reported, regarding policemen asking for money and letting overloaded trucks go. On a short term basis, this move will increase the financial burden that is already on the transportation shoulder. But this is the only way to enter a modern and sustainable transportation era.

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A month in the India Transport Sector (No 29)

October, 2013 FTA AGREEMENT
DELAY IN INVESTMENT DUE TO EU FTA HOLD UP Despite a number of summits and technical meetings, negotiations still haven’t come to a close. The scale of an India-EU Free Trade Agreement (FTA) would certainly be impressive as India currently stands as the European Union’s ninth most significant trading partner. More information in ITP INDIA TO ALLOW EU TO IMPORT CARS In April this year, the Indian government announced its intention to allow the import of 250,000-300,000 cars from the European Union (EU) at a concessional duty of 10% between 2017 and 2021. For vehicles costing more than $40,000, the EU had to pay a customs levy of 100% and for cars costing less, the import duty is 60% (the EU wants this to be reduced to 30%). More information on ITP CHEAPER LUXURY CARS SET TO BOOST THE INDIAN AUTOMOBILE INDUSTRY Luxury cars priced in the economical bracket, in the price range of Rs. 20 lakh to 30 lakh (approx. 32,000 to 46,000 USD), will soon capture a 25% market share of the luxury car sector in India. Experts believe this will be the scenario soon due to the fact that several foreign auto giants are set to introduce new models of their luxury cars at the entry level to entice the domestic Indian buyer. More information on ITP

AUTO MARKET
BAJAJ FOCUSES ON DIESEL VEHICLES The Indian automobile market which is experiencing its first slump in over a decade, is expected to enjoy an upturn and acquire third place among global markets. It thus attracts the best and biggest car manufacturers from all over the world, with each entity trying to carve a niche for itself. Amidst this competitive environment, one Indian company has successfully held its leadership in the segment of its choice and continues to grow on the strength of innovative thinking. More information on ITP NISSAN & RENAULT TO HALT BADGE ENGINEERING Prominent Japanese car brand, Nissan and French car manufacturers, Renault currently share an alliance partner status. However the alliance is due to come to an end in the near future and the companies will cease sharing products in the Indian market. The concept of badge engineering is used by partner manufacturers to sell a single car under different brand names. More information on ITP TATA MOTORS’ BID TO POPULARISE USE OF GENUINE SPARES Indian’s Tata Motors launched the Tata Motors Original Parts (TOP) program in 2010. For the implementation of this plan, Tata Motors has launched TOP showrooms in even the most remote parts of India. At these showrooms, the customers may purchase original spare parts at reasonable prices. Tata also provides the buyers with a one-year warranty for the spare if it has been fitted by an authorised Tata Motors service centre, and as yet, is the only company to do so. More information on ITP

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A month in the India Transport Sector (No 29)

October, 2013 TYRES NEWS
TYRE SALES PLUMMET WITH DROP IN AUTO SALES Auto sales have been dropping for eight consecutive months. Due to this trend, the tyre industry has reformulated the production strategy and is confident of a boost in sales with the help of incentives that are expected from the government. The drop in passenger automobile sales has forced tyre manufacturers to cut back production or increase export to ensure that their inventories are in check. More information on ITP JK TYRE TO INVEST HEAVILY TO EXPAND PLANT CAPACITY JK Tyres and Industries Ltd is an Indian tyre company which has set up plants in Mysore Karnataka, Banmore Madhya Pradesh, Kankroli Rajasthan, and Chennai Tamil Nadu. The company is ranked 75th in the list of 100 most valuable companies in India, and has a market share of 22% in India. More information on ITP TVS FORMS JOINT VENTURE WITH USBASED MYERS TIRE SUPPLY Myers is in the business of manufacturing tools used for the repair of tyres and tubes, puncture repair kits, radial and tubeless tyres, valves, wheel balancing weight, accessories, and so on. The joint project aims to consolidate India’s largely un-organised tyre repair market, becoming the first company to offer quality tyre repair services. More information on ITP

FOREIGN PLAYERS STRATEGY
RENAULT TO CREATE AN INDIA-MADE SMALL CAR MODEL While Renault already has a small car, the Clio, which is sold in Europe, it opted not to launch it in India, admitting that it would be too expensive to be successful in a low-price segment. The company aims to create a small car from scratch in India. Renault intends to create a car priced at around four lakh Rupees (approx. 6,500 USD). This engine is being developed in Renault’s Chennai plant in collabo ration with Nissan. While the company had earlier entrusted Bajaj with the development of a low-cost car, it is now focusing on building an entry level car. In opting for an engine made in India, Renault is following the example of car makers like Tata motors, Hyundai and Suzuki, each of which have done the same in order to lower manufacturing costs. More information on ITP HYVA PREPARES FOR LONG HAUL IN BRIC MARKETS Founded in 1979 in the Netherlands, Hyva ventured into Indian markets in 1997. Since then it has established itself as a leading manufacturer of industrial equipment including tippers and hydraulics. The company is now recognised as a leading manufacturer and supplier of commercial vehicles and equipment, and its clientele includes companies like AMW, Tata Motors, Ashok Leyland and Daimler among many others. Hyva has established five manufacturing plants in India; in Bangalore, Jamshedpur, Pune, Mumbai and Pithampur. More information on ITP ZF VIEWS INDIA AS MAJOR HUB FOR OFF-HIGHWAY SEGMENT ZF is a German company which has been present in Indian markets since 1980 through joint ventures. It is a reputed manufacturer of auto components and is specialised in driveline and chassis technology. In collaboration with the Kinetic group, ZF has been manufacturing automotive steering systems. It has also paired up with Bosch to manufacture worm and roller mechanical steering systems, ball and nut, and integral hydraulic power steering systems. In addition, ZF also has partnerships with the TVS group and the Hero group. More information on ITP

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A month in the India Transport Sector (No 29)

October, 2013 ADVERTISE WITH US

RAILWAYS / METRO
INDIAN RAILWAYS TO OPEN ALL SERVICES FOR SERVICE TAX REGISTRATION Not only is Indian Railways the mode of transport for the majority of the Indian population, it is also the largest employer in the country. The department is so important to the economic and social fabric of the country that the Railway Minister presents a railway budget which is separate from the general budget of the country. More information on ITP WEEKLY KAMAKHYA—LOKMANYA TILAK TERMINUS INTRODUCED The Chief Minister of Assam, Tarun Gogoi, waved the flag and set off the first air-conditioned train to run between these two stations. The Chief Minister emphasized that the state needed more high-speed trains and flagged off this train calling it a ‘gift to Assam’, on the auspicious occasion of Bihu. More information on ITP BRAND NEW METRO LINE TO CONNECT THANE AND SOBO IN MUMBAI The Government of Maharashtra has planned to introduce a metro railway line that will connect the South of Mumbai to neighbouring Thane. The project is expected to be completed within the target time in the next four years. The line will begin in Wadala and will end at Kasarvadvali. More information on ITP SAIL TO PRODUCE SPECIALISED RAILS FOR INDIAN RAILWAYS Indian Railways and SAIL have a relationship that goes back many years. However SAIL shipped out its first consignment of 'thick web asymmetric rails' from its Bhilai Steel Plant on July 13. These switch rails or point blades help trains move over to another track and will go a long way in helping the Indian Railways cope with the high speeds and increased axle loads. More information on ITP

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ABOUT US
India Transport Portal is the leading independent hub on indian transportation (road safety, fuel savings, carbon emissions, transportation infrastructure, sustainable transportation etc.). 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

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