The steel makers not to take advantage of demand in the automotive sector
by Ajay on Dec.16, 2009, under Uncategorized
Despite the increasing demand from the automotive industry, which recently reported a significant increase in sales, steel players are yet to capitalize on this demand, the pressure on international prices and excess capacity in China have prompted domestic firms to cut prices of flat products.
Flat steel prices saw a fall of INR 1000 per tonne in the past two months. Largest steel producer in the country, Steel Authority of India Ltd had lowered its prices for flat products again around INR 500 per tonne. However, others have not decided on any price cuts yet.
Growing at a rate of 20% to 25% a year, car production in India will increase in coming years. Of the total 4.1 million tonnes cold rolled coils produced in India, 2 million tons is consumed by the automotive industry in India.
Players Steel said demand for flat steel products increases as the top line of the automobile industry is growing. Moreover, the expected volume growth in new contracts that are set for the renewal of the automotive industry. However, prices are expected to remain at current levels.
Although expected that contracts for steel automotive companies to be signed at higher prices for the next six months, manufacturers say steel prices are expected to remain at current levels due to pressure on international prices.
Tata Motors launches an upgraded version Grande MK II of its premium Sumo
by Ajay on Dec.16, 2009, under Uncategorized
Tata Motors today launched Grande MK II, an upgraded version of its premium Sumo offering in the domestic market and expects to sell around 4,000 vehicles per month.
Priced in the range of Rs 6.43-lakh to Rs 7.50-lakh (ex-showroom Delhi), Grande MK II is cheaper by Rs 25,000 to Rs 30,000 than the available version-Grande MK I, which was launched in the beginning of the last year.
“We are selling around 2,500-3,000 vehicles per month in this (Utility Vehicle
) segment. The equity the Grande has acquired in the last one year and on the basis of this launch, we should be able to have a growth of 800-1,000 vehicles per month,” Tata Motors Head (Passenger Car
Division) Rajiv Dube, told reporters here.
The company is going to replace the Grande MK I model with the new Grande MK II, he said.
The Grande MK II would be manufactured at the company’s Pimpri plant near Pune, he said, adding that the vehicle would have three variants–top of the line GX, EX and LX.
The company plans to increase its market share in the UV to 20-21 per cent. “Presently, our share in the UV segment is 18 per cent and we are eyeing a market share of 20-21 per cent with this launch,” Dube said.
The company would showcase a few new vehicles in the upcoming Auto Expo to be held early next year in New Delhi, Dube said.
When asked about the increase in the prices of vehicles due to rise in input costs, Dube said the company has not decided anything as of now.
He also said that the company is feeling the heat in exports due to a slump in demand. Exports have been down for us as there is contraction in demand. We hope to offset the losses by launching new vehicles,” Dube said.
On the Nano car, Dube said that the company so far had delivered around 15,000 cars to the customers and is aiming 1.5-lakh deliveries (all booked) by the end of next calender year.
“Around 15,000 Nano have been delivered. We have set a target to deliver all 1.5-lakh booked Nano cars by December 2010,” Dube said.
The Tata Nano, designed to be the world’s most affordable car.
by Ajay on Dec.16, 2009, under Uncategorized
The Tata Nano, designed to be the world’s most affordable car, will be on view at prestigious Smithsonian’s Cooper-Hewitt, National
Design Museum in New York’s from Feb 18 through April 25 next year.
A bright, sunshine yellow Nano, built by Indian auto major Tata Motors, will be on display in Cooper-Hewitt’s Great Hall, along with diagrams and a short film describing its concept, development and production, the Smithsonian Institution announced Friday.
The name “Nano” connotes high technology, small size and low price, it said, noting Tata Motors is currently developing versions of the Nano for European and American markets.
This ultra-cheap compact car contributes to the world of affordable motoring, and like its predecessors, Henry Ford’s Model T, the Volkswagen Beetle, Citroen 2CV and the original Fiat 500, the Tata Nano continues the tradition of inexpensive cars made in large numbers, it said.
“Cooper-Hewitt’s mission is to present the very latest developments in design and technology and the Tata Nano
introduces more families in India to the new world of affordable and safer mobility,” said Cara McCarty, curatorial director of the museum.
“We’re eager to display the Tata Nano at the museum, where many visitors will see it for the first time.”
Unveiled last year in India, the Tata Nano is targeted to families who had not previously been able to afford a car.
Billed as “the people’s car,” the base model starts at $2,200 in India and can accommodate up to five adults.
Conceived by Ratan Tata, chairman of the Tata Group, the Tata Nano is intended as an all-weather form of personal
transportation that provides a safer and cleaner alternative to the two-wheelers that are pervasive in India, where often entire families ride clinging to a motorbike or a scooter.
The Nano offers a high fuel efficiency of 50 miles per gallon, making it more fuel efficient and less polluting than all other cars on the road today in India, the Smithsonian noted.
Designed by a team of 500 Indian engineers, the 35-horsepower, four-door vehicle has been pared down to the essentials: It is about10 feet long, weighs approximately 1,300 pounds, has an all-sheet-metal body, a rear two-cylinder engine, small tubeless tires, a reinforced passenger compartment, crumple zones, seat belts and achieves a top speed of 65 miles per hour.
To allay concerns about safety, the car passed a roll-over test and offset impact, which are not regulated in India. Its barebones design, as of now, does not include more costly features such as power steering, air bags, antilock brakes or an exterior left passenger-side mirror, which are not mandatory in India, it said.
New offer for Swaraj Mazda and Tata Motors.
by Ajay on Dec.16, 2009, under Uncategorized
Tata Motors’ likely acquisition of Swaraj Mazda
will be a win-win for both the companies. While Tata Motors will, in one shot, become a dominant
player in the intermediate commercial vehicles (ICVs) segment that straddles between the medium and heavy commercial segment and LCVs, Swaraj Mazda will have access to one of the best management and vendor pools in the automobile industry.
Chandigarh-based Swaraj Mazda is India’s leading manufacturer of commercial vehicles in the 5.5-10.5-tonne category. The company is also India’s largest supplier of customised buses and trucks, with nearly 95 models and variants on offer. With a major presence in the national capital region (NCR), Swaraj Mazda also has one of the widest portfolios of CNG power buses and trucks used on intra-city routes.
Tata Motors, on the other hand, is a market leader in all segments of CVs except ICVs. However, given its huge volumes and multiple manufacturing units, the company is a mass manufacturer of standard models with little customisation. The acquisition of Swaraj Mazda will prove handy in tapping the market for customised vehicles, which despite offering higher margins are best handled by a small company rather than a monolith like Tata Motors.
Swaraj Mazda’s operational expertise is, however, undone by its poor quality of management. This is visible in its inadequate operating cash flows and working capital woes. It takes nearly four months for the company to get payments from its dealers and customers, but it has to make payments to vendors and suppliers in around two-and-a-half months on an average.
This creates cash flow problems for the company and forces it to make short-term borrowings to sustain operations. Industry observers attribute it to the repeated change in the company’s top management in the past few years.
Tata Motors runs one of the most lean operations in the industry, with negative working capital and strong operating cash flows. The company can easily transplant its best practices in Swaraj Mazda, and make its operations equally efficient. According to ET Intelligence Group estimates, bringing Swaraj Mazda operations at par with Tata Motors will generate annual operating cash flows of Rs 100 crore, besides savings on interest cost, as Swaraj Mazda will no longer need to raise short-term loans.
Given the complementarity between the product portfolio of the two companies, the acquisition will make Tata Motors an even bigger player in the domestic market and improve its pricing power. This is significant, as the commercial vehicle market is set to get crowded with most international commercial vehicle majors in various stages of launching their products in India. This includes Navistar, USA, Hino, Japan, Volkswagen, General Motors and Hyundai. Besides, global truck majors such as Mercedes, Volvo and MAN, Germany have already launched their products in India.
13 other models at Auto Expo, Toyota to unveil small car.
by Ajay on Dec.16, 2009, under Uncategorized
Japanese car giant Toyota on Thursday said it will display 14 production and concept vehicles, including its low-cost compact car , at the forthcoming Auto Expo in the Capital.
Toyota’s futuristic technologies in the form of concept and hybrid cars, highlighting the world’s largest car maker’s environmentally-friendly technology, will be on display during the event, the company said in a statement here today.
“The Auto Expo in Delhi is the most ideal platform in India to highlight our new product range that will showcase Toyota’s technological advancement and innovation,” Toyota Kirloskar Motor deputy managing director-marketing Sandeep Singh said.
He also said the company will unveil the concept of its compact car, specially developed for India.
Toyota Kirloskar Motor, the joint venture between Toyota and Kirloskar Group, will start production of the compact car next December at its upcoming second plant in Bangalore.
The compact car project is Toyota’s most ambitious venture in the country in its 11-year existence and the company is betting big on this in its bid to become a volume player in the domestic market.
It is supposed to showcase both the hatchback and sedan versions of the vehicle during the Expo. Toyota also has plans to roll out 70,000 units of the proposed compact car in the first year of production.
It had also announced plans to showcase its Toyota Prius hybrid car in the biennial event in the national capital and is looking for its launch in the domestic market.
Activists demand action on climate change, While delegates meet.
by Ajay on Dec.16, 2009, under Uncategorized
The world’s attention is focused on Copenhagen, Denmark, where on December 7, the United Nations Climate Change Conference began. The two-week meeting—the 15th Conference of the 193 Parties to the United Nations Framework Convention on Climate Change and the fifth meeting of the 189 Parties to the Kyoto Protocol—is supposed to be the culmination of a process set in motion in Bali in 2005, where Parties to the UNFCCC agreed to conclude negotiations on a new global deal by 2009. Highlighting the growing alarm at the effects of climate change, 110 leaders of countries will have attended the conference by its conclusion.
While delegates gathered inside the Bella convention center in suburban Copenhagen, thousands of protesters mobilized to demand real action to stop climate change.
On Saturday, December 12, as many as 100 thousand people marched demanding, “Change the system, not the climate.” In a pre-emptive move against a youth contingent, Danish police arrested nearly 1,000 activists. In the subsequent days, hundreds more have also been detained. Protesters have come from all over the world including from many European countries as well as the United States, Kenya, Belarus, Japan, Mongolia, China and Turkey.
Demonstrators plan to attempt to invade the conference on Dec. 16, in a massive non-violent civil disobedience action to turn the conference into a Peoples Summit for Climate Justice. According to the Rising Tide Network Web site: “Our goal is not to shut down the entire summit. But this day will be ours, it will be the day we speak for ourselves and set the agenda: climate justice now! We cannot trust the market with our future, nor put our faith in unsafe, unproven and unsustainable technologies”
Debunking ‘climate skeptics’ on eve of Copenhagen
In an op-ed article in which she urged President Obama to boycott Copenhagen, former Alaska governor Sarah Palin wrote, “We can’t say with assurance that man’s activities cause weather changes.” Like many prominent “climate change skeptics” (many of whom happen to be on the payroll of the energy industry), Palin took heart at the revelation of stolen private emails among climate scientists in the UK to once again cast doubt on the scientific basis for the dangers of climate change.
Alan Leshner, executive publisher of Science magazine, sharply rebuked Palin on the science of climate change: “It is wrong to suggest that apparently stolen emails, deployed on the eve of the Copenhagen climate summit, somehow refute a century of evidence based on thousands of studies.”
Leshner is unequivocal that climate change caused by fossil fuel burning and deforestation is now underway and its scientific basis is clear. “Now, policymakers must decide whether to act on the evidence or to avoid facing one of the most crucial issues of our generation,” he wrote.
Because of human activity, carbon dioxide is rapidly accumulating in the atmosphere. These gases trap the sun’s radiation, causing temperatures on Earth to rise. Research on tree rings shows that there is now more atmospheric carbon than there has been for at least the past 650,000 years. Data also show that the global temperature has increased by about 1.1 degrees Fahrenheit over the past century. Because of climate change the planet faces melting glaciers, rising sea levels, shifts in species ranges, and other effects.
Who is to blame for climate change?
Often, developing nations such as China and India are blamed for the deepening crisis. But the United States, with just 5 percent of the world’s population, is responsible 25 percent of greenhouse gases, the most of any nation.
The primary source of carbon and other greenhouse gas emissions is the burning of fossil fuels. The bulk of these come from energy industry emissions and from the use of private automobiles. The energy and auto industries have fought tooth and nail to oppose any controls on carbon emissions, because this would cut into their profits.
Meanwhile, developing countries bear over nine-tenths of the costs of climate change, including an annual death toll of 300,000 from weather-related disasters, and economic losses amounting to $125 billion per year.
Negotiations in Denmark have bogged down as the world’s richest nations demand binding emissions reductions be imposed on poor and underdeveloped countries, while seeking to lock in a higher rate of emissions in perpetuity for the richest nations. This was evidenced by the “Danish text,” a leaked secret draft agreement written by the United States and Denmark.
A relatively moderate draft agreement was strongly criticized by the United States, the European Union, Japan and Australia. The language of this draft called for major developing nations to reduce emissions with outside financial help. The imperialist nations want binding emissions reductions from poor countries even if they do not receive outside financial assistance in making these reductions.
The arrogance of wealthy nations is nowhere more apparent than in this demand. The richest imperialist countries created a profound, deepening crisis with their unfettered industrial production. Now they demand the countries they exploited in their pursuit of profit be the ones to make the sacrifices urgently needed to reduce emissions.
According to Don Marut of Peoples Movement on Climate Change, “A deal like this will effectively lock rich countries’ disproportionate share of the atmospheric space, and take away from developing countries and their poor majorities the right to develop. It asks the poor to remain in poverty, while they suffer from climate change. Poor countries cannot be expected to prioritize emissions cuts, not while millions in them still struggle to overcome poverty and realize their rights.”
Protesters are also demanding an end to market-based “solutions” to global warming. “Nuclear energy, biofuels, carbon trading, carbon capture and storage, biochar, genetically modified crops, geo-engineering—they all try to keep the unsustainable corporate-led and profit-centered economic system that caused climate change in the first place, and they also pose threats to the health, security, and livelihood of local and indigenous communities. They should all be rejected,” said Wahu Kaara of PMCC.
In fact, nothing of real substance could ever emerge from the Danish conference. Capitalist methods will never solve the crises caused by capitalism itself. Only a progressive people’s movement can do that, led by those who place the needs of humanity over the growing wealth of a small clique of rulers. Climate change might one day become the urgent catalyst for a global movement of resistance to the domination of the world’s resources by a tiny rich minority.
The real jet-setter, Have a look
by Ajay on Dec.16, 2009, under Uncategorized
“It’s about exploring newer avenues,” insists 26-year-old Shraddha Kadakia who is India’s first female photographer of the corporate aviation sector. In simple terms, Shraddha’s profession takes her to dizzying heights of 25,000 feet above land to shoot photographs of airplanes zooming past her. “Risk is a part of everyday life, whether it is to hang from a makeshift crane from 500 feet to take images of airplanes on the ground, or taking help of the Indian Air Force to click pictures of aircrafts zooming past at 25,000 feet beside me.”
She has landed plush projects in the recent past — cataloguing automobiles from leading brands to photographing cars that are shipped abroad to different countries like Africa, UK and the US. The market for commercial automobile photography is growing in India. She says, “I recently shot an entire range of 35 trucks that were going to be sent abroad along with cars that were for the South African market. Compared to the West, the international units find it much cheaper to get their foreign cars shot in India.”
Her expertise at commercial photography caught the attention of the authorities at the SVKM Aviation Academy in Nashik that uses several aircrafts to teach budding commercial pilots. But a plush assignment brought along plenty of risks. Shraddha recounts, “The supporting equipment for risk photography is not so advanced. I had a makeshift crane to hang from above 500 feet and shoot a resting aircraft. Plus each of these shoots are expensive and help is also needed from the Indian Air Force. You need special permission to shoot on runways.”
Her job requires not only mental fortitude, but physical fitness too. She explains, “At 25,000 feet, where oxygen is negligible, you look out of a window to shoot an aircraft zooming by at breathtaking speeds. It leaves you dizzy.”
Anyone demanding premium on cars to face legal action
by Ajay on Dec.16, 2009, under Uncategorized
If anyone demands premium on purchase of any car or was indulged in any kind of black-marketing, it must be brought to the knowledge of the Ministry of Industries and Production so that legal action could be taken immediately.
Federal Minister for Industries and Production Mian Manzoor Ahmed Wattoo stated this a meeting held between the officials of the Ministry of Industries and Production and Pakistan Automobiles Manufacturing Association (PAMA) on Tuesday.
The minister asked the PAMA to workout a plan for the production of such new models of small cars, which should be cheaper as compared to the present ones and which should be easily assessable and within the purchasing power of a common man. The PAMA assured the Ministry of Industries and Production that there would be no shortage of any model of car in the country by January 2010.
Production of cars in full capacity was going on, resultantly cars production has increased to the maximum and the premium on cars was coming down, PAMA representatives added. It was agreed in the meeting that black-marketing must be routed out completely.
UK dealer numbers will fall 20%, car boss says.
by Ajay on Dec.15, 2009, under Uncategorized
Fiat Group managing director Andrew Humberstone says UK franchised dealer networks will decline by a fifth.
He forecast that weaker dealers will suffer when the scrappage scheme comes to end in early 2010 and it will be “very difficult” for them.
The Fiat network has lost a quarter of its network – 40 dealers – over the past two years. Humberstone aims to grow this to 185 by year-end and 200 by the close of 2011. The company recently took part in the Motor Trader Open Points show to target new recruits to the franchise.
Humberstone said he would like some of the dealers in the network to increase the size of their showrooms to display more of the Fiat range. He said up 35-40 per cent of dealers in the network had the potential to expand.
Humberstone said Fiat had not made a profit contribution to its parent in Italy for about 20 years.
At the current currency rate for Sterling against the Euro, it is running at a loss. It needs a rate of Euro1.25 to £1 to be in profit, he said.
For luxury brand satisfaction, jaguar named top.
by Ajay on Dec.15, 2009, under Uncategorized
Customers who bought new Jaguar cars said they were the most satisfied among luxury brands with the sales process, according to a report by J.D. Power and Associates. Jaguar received the award for the second year in a row.
Following Jaguar in the luxury brand rankings are Cadillac, Lexus and Mercedes-Benz (in a tie) and Land Rover, respectively.
J.D. Power based on responses from approximately 48,000 new-vehicle buyers, who purchased or leased their new vehicles in May or June 2009, who rated their new cars on five criteria, including dealership facility, salesperson, paperwork/finance process, delivery process and vehicle price.