A month in the India Transport Sector

November, 2011

ENVIRONMENTAL ADVANTAGES OF RADIAL TYRES Michelin, one of the leading tyre manufacturers in the world, was the first to introduce radial tyres in 1946. Within a very short time, radial tyres became increasingly popular owing to their various advantages. Radial tyres are environmentally friendly as they last longer and help in reducing the fuel consumption of the vehicles. Radial tyres have a different design from that of the traditional biasply or cross-ply ones and are slightly more expensive. More information on ITP

What future for Indian road transportation? Once again, car sales in India slid more than 20% in October compared with the same month last year. It is more and more expensive to buy a car because of interests’ rates and oil prices. It is the second time that the forecasts are revised downward. Growth forecast has declined from up to 15 to 3%. It would be easy to draw bleak scenarios from these observations. However, sales of commercial vehicles and motorcycles have risen. And some issues have to been closely watched: Petrol prices may fall by next week as RS Butola, the Chairman of Indian Oil Company announced. Furthermore, some companies keep hope and continue efforts to develop Indian road transportation. It is said that Daimler, the world biggest truck maker, is to enter the Indian market. On top of that, $60 bn are going to be spent in Mumbai Infrastructures. And finally, with NHAI going to launch its Rs 100 bn retail tax free bonds, we could consider that future of road transportation is not so gloomy!

SAFETY ADVANTAGES OF RADIAL TYRES According to reports from CARE Research, the tyre industry in India is on the verge of a massive structural change. Thomas & Betts (T&B) is presently witnessing a slow rise in radial tyres. More information on ITP “MICHELIN FACILITY AND OTHER INVESTMENTS WILL MAKE CHENNAI A GLOBAL AUTOHUB: KURIAN ABRAHAM, DHANAM PUBLICATIONS” Growth of Chennai as the major automobile hub of India would immensely help the motor transport industry in the country. Domestic and Overseas tyre producers are putting up new ventures in Tamil Nadu noticing the growth in demand for tyres ahead. Competition will intensify in the coming years. This would help them to produce cost-effective tyres for the overseas market also. Their presence in India would help the indigenous units acquiring better improving the product quality. This would ultimately be to the advantage of the motorists in the country. More information on ITP


ASIAN TYRE & RUBBER CONFERENCE December 2 – 3, 2011 Chennai

TRAFFIC INFRA TECH EXPO May 17 - 19, 2012 Chennai

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A month in the India Transport Sector TRAFFIC ISSUES
WHY EFFICIENT AND SPEEDY TRANSPORT FACILITIES ARE MISSING FROM INDIAN ROADS Better urban planning, infrastructure improvement and effective policy measures are quintessential requirements for the growth and prosperity of a country. Transportation constitutes one of the most important factors of socio-economic progress of a nation. However, in India, there is a severe lack of public transit systems such as inter-city high speed rail connectivity, Bus Rapid Transit (BRT) or light rail. The lack of an affordable, clean and safe public transport system is severely affecting commuting and travelling in India. More information on ITP TRAMS AS TRANSPORT AN EFFECTIVE MEANS OF EMISSION-FREE

November, 2011 METRO
WORK ON PHASE 1 OF GUJARAT METRO TO START SOON Gujarat is soon to get a metro rail that will run between the cities of Gandhinagar and Ahmedabad. Very aptly named, Project MEGA or Metro Link Express for Gandhinagar and Ahmedabad, will soon give the state of Gujarat its first Metro Rail. MEGA, a government of Gujarat undertaking, is committed to build the Metro Rail in the shortest time possible and with a definite cost advantage. More information on ITP THE KOLKATA METRO RAIL The city of Kolkata became the first in India to operate the Metro Rail. Post independence, the need for a rapid transit mass transport system became evident with the increase in traffic and subsequent transport problems. The fact that the city's roads occupied less than 5% of the surface area of Kolkata meant enhancing the public transport system could only marginally solve the problem. More information on ITP

Trams were a popular means of transport in India in cities such as Kolkata, Mumbai, Chennai, Nasik, Kanpur, Patna and Delhi during the pre-independence era. In 1916, petrol-driver tram-cars were introduced in the city of Nasik. However, one by one, trams in all cities except Kolkata went out of operations. The first city to shut down its tram operation was Patna in 1903 due to the lack of usage. With the advent of commuting trains, Mumbai shut down its tram operations in 1964. Today, Kolkata remains the only city in India with tram services. More information on ITP INTRODUCTION OF METRO RAILWAYS HELPS TO EASE CITY TRAFFIC The metro rail is a popular mode of transport in India and is considered to be the best solution to heavy road traffic congestion. The rising population, unprecedented growth of personal vehicles and extreme traffic congestion are some of the key problems the transport network of the country faces. Metro rail, as a mass rapid transit system was designed to cater the transportation needs of a large population keeping in mind the issue of decongestion. Metro railway was considered to be a key solution in easing out city traffic. More information on ITP


The Indian bus sector is in dire straits. Its financial condition is poor, due to a rise in operation costs which is denting profits of the bus industry. More information on ITP

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A month in the India Transport Sector CARS
INDIAN MANUFACTURERS The car industry in India is experiencing an astounding growth and on a global level, country is considered to be one of the leading markets. Since the post-liberalisation reforms and de-licensing policies of 1991, the country has witnessed a tremendous resurgence in many sectors and the automotive industry is no exception. The growing economy has consolidated the domestic market as well as attracted foreign companies to invest and expand their base. More information on ITP INDIAN CARS The ever-evolving car models, colours and technology have made this market extremely competitive. Two of the major car manufacturers in the 1940s were Premier Automobiles and Hindustan Motors which have enhanced their technological prowess and production capacity over the years and offer some of the best car models in India. Later on, Tata Motors and Mahindra & Mahindra took over as leaders in the country. Today, they have increased their presence in India and the number of business opportunities for these companies has grown significantly. More informations on ITP THE INDIAN LUXURY CAR MARKET In recent times, India has emerged as the most sought-after market for luxury cars and manufacturers are indeed making a beeline to tap the booming demand in this sector. According to a report in the Times of India, the luxury car market in this country has witnessed an annual average growth rate of 40% in the current financial year. A rising economy has meant more disposable income, which coupled with government initiatives, like relaxation of equity regulations, reduction of import duties on automobile industry alongside easy loan schemes from car makers and financial institutions, has turned India into a top destination for luxury car makers. More informations on ITP

November, 2011 ROADS
IMPROVEMENT OF ROAD SAFETY IS URGENTLY NEEDED Road safety and efficiency of road transport operations in India is a hot topic at the moment. The state, provincial and local authorities have been urged to join forces to tackle this problem appropriately. More information on ITP

BROADENING ROADS BY CUTTING DOWN SIDEWALKS – ADDING TO PEOPLE’S MISERY Traffic jams at intersections is a common sight nowadays, however, traffic congestion has also increased owing to road works. Commuters have to bear the brunt of it. More information on ITP



In the midst of reports suggesting huge military infrastructure development in China, some of the top officers of Border Roads Organisation (BRO) recently called for a meeting to pursue plans to build 61 roads along the Indo-China border. Some of the most notable dignitaries attended this meeting such as Border Roads Development Board, Engineers-in-Chief, Army Headquarters, Army Staff, Defence finance and Raksha Rajya Mantri. More information on ITP

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PAVING GROWTH PATH FOR THE COMING TIMES! For companies, whether Indian or global, interested in taking the standards of Indian Railways to new highs, the recently held 9th International Railways Equipment Exhibition (IREE) 2011 was a must place to be present in. Organised by Indian Railways in association with Confederation of Indian Industry (CII), the event took place in the heart of the Capital at Pragati Maidan. More information on ITP PUBLIC-PRIVATE PARTNERSHIPS: IMPERATIVE FOR SUCCESS OF INDIAN RAILWAYS After starting its journey in April 1857, Indian Railways has performed a phenomenal task in making the Indian rail network fourth largest in the world only after China, Russia and United States of America. In fact, in terms of passenger traffic, it is second in size following China. However, there is still a long way to go in terms of modernization of infrastructure and trains. It has been estimated that the investment required for rail development would be around 14,00,000 crore till year 2020. Experts agree that for making the dreams turn to reality, participation from the private sector will be needed as the sector moves ahead.. More information on ITP “INABILITY TO EXECUTE, A BIG PROBLEM FOR INDIAN RAILWAYS”: MANISH PURI, CEO, QUANT PARTNERS We are currently in a situation where the growth in the Indian Rail sector will reflect on the growth of the economy. In fact, if the government is targeting a growth of 10% and if the infrastructure is now growing at a similar pace, the economy will start hitting barriers sooner than later. Railways have been growing at 6.5-8% in the past but that is not good enough. In an ideal situation, the railways need to grow at 1.2 to 1.3 times the growth of the economy. The problem for the railways is not at all the lack of ideas rather it is about the ability to execute and execution not in the terms of being able to put operations into play rather in terms of putting things in place. More information on ITP

November, 2011 TAXES
CONGESTION TAX ON VEHICLES TO BE LEVIED SOON IN INDIAN CITIES In an effort to curb heavy traffic on city roads, the government plans to implement congestion charges on vehicles. More information on ITP

VOLVO Volvo Trucks, established in 1927 in Sweden, is one of the world's leading manufacturers of heavy commercial vehicles and diesel engines. In addition to trucks, the company also makes intercity buses, coaches and city buses. More information on ITP

More information on ITP

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