TOYOTA KIRLOSKAR TO INCREASE PRICES FROM JAN '09

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 26 : TOYOTA Kirloskar Motor (TKM) will increase the price of its key models, Innova and Corolla Altis from January 1, 2009. The price increase will be in the range: Innova - Rs 10,000 to 25,000 and Corolla Altis - Rs.16,000 to 25,000

Commenting on the increase, Mr. Sandeep Singh, Deputy Managing Director, Marketing, TKM, said that, "Due to circumstances beyond our control, such as the increase in the rupee / dollar exchange rate by 20 per cent in the last 3 months, we have been forced to increase the price of our vehicles. However, TKM has tried to absorb the price increase as much as possible, limiting the increase to the customer.

Despite the recent reduction in CENVAT, where TKM had reduced prices, passing on the excise duty benefits of 4% reduction entirely to the customer, the current increase is inevitable.

However, Mr. Sandeep Singh indicated that TKM would be actively promoting the Corolla Altis and Innova and would be able to maintain it's market share for both the models in 2009. ( editor@thesynergyonline.com)

MARUTI SUZUKI TO SET UP SERVICE CENTRE IN PARTNERSHIP WITH UTTARAKHAND GOVT

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 22 :
IN a new initiative towards `Road Safety' car market leader Maruti Suzuki India has signed an MoU with Government of Uttarakhand to set up, manage and run Motor Driving Institute (UMDI) at Jhajra village in Dehradun, Uttarakhand.

The MoU was signed by Mr Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India and Dr Umakant Panwar, Transport Secretary, Government of Uttarakhand, in the presence of the Chief Minister Maj. Gen. (Retd.) Bhuwan Chandra Khanduri, Chief Minister Uttarakhand, Mr Banshidhar Bhagat, State Transport Minister and Senior State government officials and dignitaries.

The Uttarakhand Motor Driving Institute is the flagship corporate social responsibility initiative of Maruti Suzuki that works on the principle of public private partnership and has seen active involvement of many State Governments in recent years.

Speaking on the occasion, Chief Minister, Maj. Gen. (Retd.) Bhuwan Chandra Khanduri, Chief Minister Uttarakhand said, "Studies have indicated that driver's fault is one of the main causes of road accidents with proper driving training, I am sure such road accidents can be reduced. We have chosen Maruti Suzuki as they are renowned and have vast experience in running such training institutes. I am sure this institute will help reduce road accidents."

On the occasion Mr. Shinzo Nakanishi Managing Director and CEO, Maruti Suzuki said, "We feel proud to be associated with Government of Uttarakhand for this unique initiative. Road safety is our flagship CSR initiative and we are happy to have a partner in Uttarakhand Government in this endeavor. As a subject, Road Safety is very vast and requires many more hands. "

"It requires an integrated approach of different stakeholders such as public, vehicle manufacturers, government, civil society etc. Inculcating Safer Driving practices through different formats like IDTR's and Maruti Driving Schools is a small step in that direction by Maruti Suzuki. I am confident our initiatives towards road safety will have an impact on the society and make the roads safer", he added.

"I am doubly excited that this project would also enhance employability of unemployed youth." he added.

In addition to imparting motor driving skills and technical training to the public, UMDI Uttarakhand would also assist, advice and support the State Government in activities that contribute to safety on roads and facilitate in improving the transport system in the State.
( editor@thesynergyonline.com)

TOYOTA KIRLOSKAR UNVEILS NEW CUSTOMER SERVICE

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 16 :
TOYOTA Kirloskar Motor (TKM) has unveiled a new global service initiative, the Express Maintenance (EM) Service, that provides one-hour periodic maintenance servicing for all Toyota models including the newly- launched Corolla Altis - in Gurgaon . This service option is available to customers at the same price as the normal service.

EM Service, stems from Toyota Production System and Kaizen methodologies. It aims at increasing customer satisfaction and retention. It also strengthens dealer foundations by ensuring thorough after-sales basic operations that consolidates the existing Parts and Service programs. It will bring Indian Toyota dealers up to a global standard in Customer Service.

The EM Service reduces the servicing time of a vehicle from the existing 17 hours to 1 hour by eliminating the stagnation time of in-between processes. Kaizen will also enable reduced lead-times and guaranteed vehicle delivery times. For Dealers, the implementation of the TSM Advanced Program will bring a significant increase in workshop productivity.

Evaluating the success of the pilot project at Lakozy Toyota, Mumbai, and the EM Service will be extended to 14 dealerships across the country by the end of 2008.

EMS is a part of Toyota Customer Service Marketing (TSM) Advanced program that was introduced globally in 2001. TSM Advanced programme addresses the fact that more than 50 % of the servicing time is spent in stagnation of the vehicle in between processes.

TSM removes this Muda (Waste) from the system by redesigning the layout of the maintenance bays to ensure that no time is lost searching for equipments etc. Toyota's TSM implementation strengthens the foundations of Dealer after-sales operations and recognizes excellent levels of achievement in standards of customer care

Inaugurating the EM Service, Mr. Hiroshi Nakagawa, Managing Director, TKM, said "Toyota believes in putting the customer first, and Express Maintenance Service was yet another step towards achieving total customer satisfaction. Since its launch in Lakozy Toyota, Mumbai, in 2005, we have implemented this programme in 14 Toyota dealerships across the country. Express Maintenance Service has been well received by customers, providing them speedy, efficient and reliable after sales services. From 2010 onwards all the existing and newly opened dealerships will offer EM Service to the customers. "

I believe I was the first customer to use your express maintenance service; I was a little skeptical as to how an operation which took
almost two days could be done in one hour ; I must admit to being very pleasantly surprised at the military precision and efficiency with which the service was handled said Mr P Ramachandran , Managing Director, GR TECH SERVICES PVT. LTD.

This service requires 3 people at the maintenance bay and requires specific tools and equipments that are procured locally. A customer
could avail this service by prior appointment.

TKM has 66 "3S facilities" dealers across the country with a total service staff of 3315 personnel. Over 80000 vehicles are serviced every month. More than 2400 personnel are trained by TKM annually.

TKM has also introduced Express Body and Paint Line. This advanced Kaizen activity, provides speedy servicing and repair for
vehicles that require servicing other than the normal servicing. In case of three panel damages the servicing and repair can now be done in 1 day as compared to 10 days. Utilizing the TPS concept, systematical TPS Line Operations are used to repair light damage conditions. B&P-TSM Advanced Kaizen Activity has reduced repair time.

The Pilot project was implemented at Lanson Toyota - Koyambedu, Chennai in 2006.Till date this program is implemented at 3 Locations ( Lanson Toyota- Chennai , Ravindu Toyota- Bangalore, and MGF Toyota - Gurgaon).In 2009 TKM plans to spread this project to 4 more locations. ( editor@thesynergyonline.com)

Mr. Anil Reddi, 36, has over 16 years of professional experience in Sales and Dealer Development. He holds a Degree in Commerce and Masters in Business Administration from Pune University. Prior to joining Audi, Mr. Reddi has worked with Daimler AG Germany and Mercedes-Benz India, in Sales, in addition to other assignments in different organizations.

"Audi is at a great stage in India currently. The sales this year, in spite of many adversities, has been very good. With an aggressive product and dealership strategy Audi is poised for greater success," commented Mr. Reddi on his appointment.

Audi India is structured in five main departments: Marketing (Head: Martin Birkner), Sales (Head: Anil Reddi), After Sales (Head: Martin Freudenhagen), Dealer Development (Head: Rishi Goel) and Press Communications (Head: Bettina Bernhardt) directly reporting to the Managing Director Mr. Benoit Tiers. The entire organisation will expand to around 40 mainly Indian professionals until 2010.

Audi model range in India consisting of the Audi A8, Audi Q7, Audi A6, the new Audi A4, Audi TT and the recently launched super sports car Audi R8 is available at twelve dealerships across the country: in Ahmedabad, Delhi, Gurgaon, Chandigarh, Mumbai, Pune, Bangalore, Hyderabad, Ludhiana, Chennai, Kochi and Kolkata. ( editor@thesynergyonline.com)

MARUTI SUZUKI COMPLETES 25 YEARS

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 14 :
THE car -maker Maruti Suzuki, also referred to as the people's car-maker, today completed 25 years of its presence in India .

On December 14 , 1983, first Maruti 800, India's iconic car rolled-off the assembly line at company's Gurgaon plant. Late Mrs. Indira Gandhi, the then Prime Minister of India, handed over keys for this car to the first Maruti customer. Since then, Maruti Suzuki has produced and sold around 75 lakh (7.5 million) cars to address the needs of customers across segments.

Speaking on the occasion, Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India said, "The Government of India had entrusted the company a responsibility of building low cost, fuel efficient cars for the people of India as also building firm foundation for the modernization and growth of Indian automobile industry. Thanks to the support of our stakeholders, we have successfully led the automobile revolution in India. It is a time for us to thank everyone who helped us in our journey so far. Now, we are positioning India as the global small car manufacturing hub, in line with the government's vision."

The Indian car industry, which was represented by two companies then, was at a volume of 40,000 cars annually. The Maruti-800, symbolizing Indian middle-class aspirations, completely revolutionized the Indian roads and ushered in an irrevocable change.

Maruti's current efforts mirror the government's vision to put India in the international map for producing compact small cars. All over the world, Suzuki is acknowledged for its know-how in producing small cars.

The government's renewed focus on promoting small cars, offers a major opportunity for Maruti Suzuki.

Maruti Suzuki believes that its recent investments in two manufacturing facilities will go a long way in establishing the company and India in the global league. These include Maruti Suzuki's fourth car assembly plant and a state of the art diesel engine plant at Manesar, and the fuel-efficient KB-series engine plant at Gurgaon.

The Manesar assembly plant is rated among the best Suzuki plants worldwide. The plant is future ready and is designed to produce
world-class vehicles. Maruti Suzuki also expects to scale-up exports and the new Manesar assembly plant will contribute to this effort.

In 1990's when the economy was liberalized and foreign investment allowed into India, the auto component companies, set up and nurtured by Maruti Suzuki, became the foundation for global car companies as well. These new players on the Indian automobile scene found an accomplished and experienced auto component industry, which encouraged further foreign direct investment into India.

Maruti Suzuki enjoys a base of around 225 vendors and many of them are listed on stock exchanges. The good relationship of Maruti Suzuki with its associates provides the company an edge over its competition, giving the company the flexibility to cater to changes in market demand in minimum time.

Today, Maruti has changed the profile of the Indian market. The Swift, SX4 and recent A-star are examples of how Maruti Suzuki has brought in contemporary technology and latest designing for the Indian buyers.

Starting with the iconic Maruti 800, today, Maruti Suzuki offers 12 models with over 100 variants. The company has manufactured around seven and a half million cars in India. Of this, the Maruti 800 alone has contributed 2.7 million units since inception in December 1983. Alto, another super-popular product from the company, recently touched the magic figure of a million units. The company leads the automobile industry in India with a market share of over 54 per cent amongst passenger
cars.

The company has over 600 sales outlets in 393 towns and cities, along with 2,628 workshops covering 1,220 cities. Today, Maruti Suzuki has more than 7,100 employees. (editor@thesynergyonline.com)

VE COMMERCIAL VEHICLES TO PASS ON EXCISE DUTY BENEFIT TO CUSTOMERS

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 12 :
IN line with the Central Government’s decision to reduce CENVAT by 4 per cent, VE Commercial Vehicles (VECV) as a part of new initiatives has decided to pass on the entire excise duty benefit to its customers.

The company has announced price reduction across all product ranges in Volvo trucks as well as Eicher trucks and buses. The price reduction for Volvo Trucks regular models will range between INR 1,25,000 and INR 2,00,000. The price reduction for Eicher trucks and buses will range between INR 16,000 and INR 37,000.

According to Somnath Bhattacharjee, VP, Sales & Mktg, VECV, “The company intends to act up to the decision of the Central Government to reduce CENVAT and petroleum prices so as to boost the demand for commercial vehicles. However, the most critical factor in the current business environment that needs to be addressed is the availability of credit with competitive rates of interest."

" Although the key rates e.g. SLR,CRR & Repo have been downwardly revised in the last 6 weeks, these measures have failed to influence the availability of credit or interest rates in the short term. VECV expects clear step from the Government for improving retail finance availability and lowering the interbank rates in order to improve the customer confidence and sales levels ," he added. (editor@thesynergyonline.com)

CONTINENTGAL AG ENTERS INDIAN MARKET

Thesynergyonline Corporate Bureau

NEW DELHI, CEC 12 :
CONTINENTAL AG, a global automotive supplier and tyre manufacturer , has entered into the Indian market with the launch of their premium tyres for passenger cars and utility vehicles (sport and multi utility) in New Delhi.

This is the company's direct tyre initiative in the Indian market as it recognizes the present and future potential of the market. As a global company, and with a current yearly production volume of more than 100 million tyres, Continental AG intends to develop a strong presence in the Indian aftermarket as well as seize possible opportunities with OE manufacturers.

Speaking on the occasion, Dr. Andreas Esser, Executive Vice President- Replacement Asia - Tyres, said, "The launch is a part of our overall growth strategy and commitment to the Asia Pacific region. We have two Passenger and Light Truck (PLT) tyre manufacturing locations in Asia (Malaysia) and worldwide presence in 22 sites in 14 countries. We have already been marketing our products in almost all the countries in the Asia Pacific region. Now Continental Tyres is starting in India. Continental has the number one position in the European tyre market and a leading market position in Malaysia and we strive to develop a significant share here in India as well."

Mr. Prashant Kumar, Director Marketing and Sales Tyres for India, said, "India's passenger car production has grown from 0.72 million in 2002-03 to 1.76 million in 2007-08 at a rate of 20% CAGR and accordingly, tyre requirements in OEM and replacement market have grown close to 17 million in the current year. Continuous economic development and global exposure have brought in significant demand for high quality tyres, resulting in a huge market in this segment. Continental is entering the aftermarket for this segment, with its world renowned premium tyres that offer superior performance along with state-of-the-art safety and comfort features." (editor@thesynergyonline.com)

ICSI NATIONAL AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE 2008

Thesynergyonline Corporate Bureau

NEW DELHI, DEC 11 :
THE Institute of Company Secretaries of India (ICSI) is organising the "ICSI National Award For Excellence in Corporate Governance" Award function for the year 2008 on December 20 at Vigyan Bhawan, New Delhi to celebrate the collective excellence, to be able to identify the best among the excellent, the first among equals.

In pursuit of excellence and to identify, foster and reward the culture of evolving globally acceptable standards of corporate governance among Indian companies, the ICSI instituted ICSI National Award for Excellence in Corporate Governance in the year 2001.

According to Mr N.K.Jain, Secretary & CEO, ICSI, "This indeed is the Eighth consecutive Award to be conferred on companies for promoting the cause of good Corporate Governance. Corporate Governance is not only the key to Corporate Excellence but is basic to social and national excellence. In the global corporate environment, it acts as a catalyst for law, ethics, management practices, wealth creation, management sharing."

Awards will be presented to two Best Governed Companies. The awards comprising of citation and trophy are based on the outcome of concerted and comprehensive process which enables the Jury to judge, on the basis of parameters, the practices of corporate governance as followed by Indian corporates and acknowledge the best practices worthy of being exemplified.

Mr M. Hamid Ansari, Vice President of India will be the chief guest at the award function. Mr Prem Chand Gupta, Union Minister for Corporate Affairs, will be the guest of honour.

Justice Mr Ramesh Chandra Lahoti, former Chief Justice of India, is the Chairman of Jury for adjudging the best among corporate citizens in India for the ICSI National Award for the Year 2008 and to adjudicate ICSI Life Time Achievement Award 2008 to corporate personality for translating excellence in Corporate Governance into reality.

Some of the eminent members of the Jury include Shri Naresh Chandra, Former Cabinet Secretary, Mr T.K. Arun, Editor - Economic Times, Dr. M.B. Athreya, Management Consultant, Delhi & Former Prof. IIM, Kolkata, Dr. K.C. Chakrabarty, CMD, Punjab National Bank, Mr Rajiv Chandrasekhar, president, FICCI, Mr Y.C. Deveshwar, Chairman, ITC , Dr. J.J. Irani, Chairman, Tata Sons , Sajjan Jindal, president, ASSOCHAM, Mr Ravi Narain, MD & CEO, NSE Ltd., Mr Rajnikant Patel, former MD & CEO, Bombay Stock Exchange and the industry captains.

The Jury comprising of a galaxy of eminent personalities from Government, Corporates, Academicians and Indian Corporate Leaders of fortune 500 Companies finalised AWARDS FOR TWO BEST GOVERNED COMPANIES. The Company Secretaries of the Awardee Companies will also be honoured for their contribution. The Jury also finalised Life Time Achievement Award to be conferred on an eminent corporate personality for Translating Excellence in Corporate Governance into Reality. (editor@thesynergyonline.com)

FUTURE GROUP UNVEILS 'THE GREAT INDIAN SHOPPING FESTIVAL' ; EXPECTS RS 700- CRORE REVENUE

Thesynergyonline Corporate Bureau

NEW DELHI, DEC 11 :
THE Future Group, has unveiled 'The Great Indian Shopping Festival', at retail stores in India . The company expects over two crore shoppers to visit its stores across the country during the shopping festival, from the December 13, 2008 to January 4, 2009 and generate revenue of Rs.700 crore during the period.

TATA MOTORS REDUCES PRICES ON PASSENGER CARS, LCVs

Thesynergyonline Automobile Bureau

MUMBAI, DEC 11 :
TATA Motors had confirmed earlier that the company would pass on the benefit of the reduction in CENVAT to customers, for both passenger vehicles and commercial vehicles from December 8 , 2008..

On passenger cars (Indica and Indigo family ) the company has reduced prices between Rs. 12,000 to Rs. 23,000 depending on the model. On Utility Vehicles (Safari and Sumo family) between Rs. 16000 to Rs. 36000 depending on the model.

The new prices along with the Schemes as applicable are available at all Tata Motors outlets, across the country. On light commercial vehicles prices have been reduced between Rs. 17,000 to Rs. 23,000 .On on medium and heavy commercial vehicles the cut has been effected between Rs. 30,000 to Rs. 60,000. (editor@thesynergyonline.com)

TOYOTA KIRLOSKAR PASS ON OF DUTY CUT BENEFIT TO CUSTOMERS

Thesynergyonline Automobile Bureau

NEW DELHI, DEC 09 :
TOYOTA Kirloskar Motor, said that it would pass on the entire benefits of the price reduction as a result of the Government duty reduction initiatives to its customers for all its Models with immediate effect from December 8 , 2008.

The company has effected modelwise price reduction as :

Innova à Rs. 23,980 to Rs. 32,780 (ex - showroom Delhi)

Corolla Altis à : Rs. 34,100 to Rs. 40,750 (ex-showroom Delhi)

Camry à Rs.70,430 to Rs.76,130 (ex -showroom Delhi)

Prado à Rs.1,21,330b(ex-showroom Delhi)

Sandeep Singh, Deputy Managing Director, Marketing, Toyota Kirloskar Motor, said "As a responsible corporate citizen, we feel this will stimulate the market by making our cars more affordable to the Indian customer. We are also positive about the recently reduced repo rates by the Govt. which should reduce interest costs for banks."

"Ownership costs also will be reduced due to the government's initiative to reduce fuel prices by Rs. 5 & Rs. 2 per litre (for Petrol & Diesel). We are hopeful that banks also will reduce interest
costs for automotive customers by 1.5 per cent to 2 per cent which will further be a positive benefit for customers," he added.

The company plans to invest Rs 32 billion (68 billion yen in in second TKM plant on the outskirts of Bangalore, Karnataka State.The production is schedued to start in 2010 . The production capacity will be 100, 000 unifts when the plant will become operational in 2010.

Tata Motors will hold 89 per cent and Kirloskar Group 11 per cent equity in the project . The annual pproduction capacity will be approx. 60,000 units after operation of teh secdond plant it will be approx 160,000 units. (editor @thesynergyonline.com)

GM, FORD SEEK $ 34 BILLION FOR BAILOUT PLAN

Thesynergyonline Corporate Bureau

WASHINGTON, DEC 04 :
THE three ailing US auto majors General Motors, Chrysler and Ford are seeking a financial package to the tune of $ 34 billionfor bailout plan.

Faced with worsening financial crunch and declining sales, the auto majors' business has taken a severe beating and for the past few weeks, who have asked for Federal government assistance.

According to the bailout proposals submitted to the US Congress on Tuesday which includes future strategies to make a turnaround, the auto makers have sought financial assistance to the tune of $34 billion .

General Motors has requested for a loan of $12 billion stating that it might need another six billion dollars. Ford has asked for nine billion dollars whereas one of the worst hit, Chrysler is looking for aid to the tune of seven billion dollars.

The companies have also come up with plans to cut costs, bring down debt levels and also make investments in green technologies.

Moreover, the chief executives of the auto giants are also willing to take a deep cut in their salaries. The head of General Motors and Ford are even ready to work for just one dollar per year.

"The chief executives of Ford and GM have even offered to work for one dollar a year if Congress approves the emergency aid," the BBC said in a report published online on Wednesday.

As part of its bailout plan, General Motors said it would term loans of up to $12 billion to provide adequate liquidity levels through December 31, 2009.

The company would immediately need four billion dollars this month.

"GM anticipates an initial draw of four billion dollars in December 2008. In addition to the bridge loans, the company is requesting a 6 billion dollars line of credit to provide liquidity should a severe market downturn persist. GM's intent is to begin to repay the loans as soon as 2011," the firm said. Ford has sought a life line of nine billion dollars from the US administration.

"... The government funding is made available to us, in the form of a 'stand-by' line of credit, in the amount of up to nine billion dollars. This line of credit would be a back-stop to be used only if conditions worsen further and only to the extent needed," the company said.

Chrysler has requested for a bailout to the tune of seven billion dollars and said it is in need of the assistance by December end.

"Chrysler is requesting a seven billion dollar secured working capital bridge loan by December 31, 2008," the firm pointed out.

The sales of the three auto giants plunged as much as 47 per cent in November. While Chrysler saw its sales tumble 47 per cent, General Motors witnessed a decline of 41 per cent.

Further, Ford recorded a 31 per cent drop in the sales of lighter vehicles as against the previous month.

A US automobile giant General Motors (GM) plans to invest $1 billion in Brazil to avoid in their Latin American unit the kind of problems it is facing at home, EFE reported on Wednesday.

According to Jaime Ardila, chief of GM Brazil-Mercosur, the funding will come from the bailout package from the US government and will be used to "complete the renovation of the line of products up to 2012".

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets," he said in a statement published by the business daily Gazeta Mercantil.

Ardila added that GM Brazil "is going to wait and see how the market behaves in order to know what decision to take" with regard to possible layoffs.

Ardila said the injection in Brazil's automobile sector of eight billion reais ($3.51 billion) recently announced by the Brazilian government and the provincial administration of Sao Paulo "has already begun to revive sales", which fell by 12 per cent in October.

He said the company will operate in a "conservative" scenario in 2009 with an estimated production of 2.6 million units.

This year sales will reach 2.85 million vehicles, which represents a growth of 15 per cent over last year.

Three US auto behemoths —- Ford, GM and Chrysler - have appealed to Congress for a $25 billion bail-out package to save their firms from imminent collapse, warning that it could be catastrophic for the economy as a whole.

GM said it could run out of cash in weeks and cannot wait until president-elect Barack Obama - who has promised to help the industry - is inaugurated in January. (editor @thesynergyonline.com)

The Mahindra China pavilion showcased a range of products including the 20-55 HP range. The newly developed 40-55 range of tractors was also unveiled at the fair with the tractors displayed on a specially designed, elevated and rotating platform. The display and the stall received great praise from both government officials and visitors.

"The CAMF is the perfect platform for MCTCL to showcase its technological prowess as it draws a large number of domestic as well as international visitors, highlighting China's emergence as an important global agri-equipment supplier," said

Mr. Anjanikumar Choudhari, President, Farm Equipment Sector, Mahindra & Mahindra .

A conference was also organised on the sidelines of the fair, setting the tone for China's agriculture related policies for the year 2009. Government support and promotion through subsidy is scheduled to be the key focal point of policies for the next year.

Mahindra China Tractor recently formed a second joint venture in China with Jiangsu Yueda Yancheng Tractor Manufacturing Co.. (Yancheng Tractor), a leading Chinese tractor manufacturer. Yancheng Tractor's Huanghai Jinma brand is the no. 3 tractor
brand in China in terms of tractor volumes in 2007 and the company is also one of the biggest exporters of tractors. This second JV will help Mahindra further consolidate its presence in the Chinese market. (editor @thesynergyonline.com)

AUDI UNVEILS MID-ENGINE SUPER SPORTS CAR 'AUDI R8'

Thesynergyonline Automobile Bureau

NEW DELHI, MUMBAI, NOV 10 :
AUDI , the German luxury car manufacturer, unveiled launched its Audi R8, the exclusive, mid-engine super sports car with drivability. The stylish and progressive Audi R8 is priced at 1,17,00,000 INR (ex-showroom Delhi without C.S.T., transportation, etc.).

"Besides the Audi R8 being a strong statement about the brand, it is also Audi's direction for the future - to be the premium brand by 2015. It embodies the philosophy of "Vorsprung durch Technik". It is also intended to revolutionise the Indian automobile space and will offer an experience of a lifetime to discerning customers," said Mr. Benoit Tiers, Managing Director Audi India.

The much-awaited Audi super sports car, the Audi R8 was officially unveiled at the lawns of the German Embassy in New Delhi along with two Audi racing legends: Auto Union Type D and the Audi R8 Le Mans Prototype, both chosen for their link to ground-breaking technologies of their time. These cars were introduced to the public in a rare display, after which in a stunning presentation eight Audi R8's moved in a convoy to the historic India Gate through streets of New Delhi.

"We decided to launch the Audi R8 in the Indian market based on the response received from select customers. India is a very crucial market for Audi and the company plans to expand presence in India through expansion of the dealership network and bringing in international range of models," added Mr. Tiers.

With its technical precision and performance, the Audi R8 carved out niche in the most demanding automotive sports car segment from the moment it was launched. The Audi R8 4.2 V8-FSI is equipped with an engine displacement of 4,163 cc, a power output of 309 kW (420 hp) at 7,800 rpm and a maximum torque 430 Nm between 4,500 and 6,000 rpm. The Audi R8 can attain a top speed of 301 km/h with 0-100 km/h in impressive 4.6 seconds.

The super sports car is endowed with a drivetrain combination of quattro permanent all-wheel drive with manual six-speed transmission or six-speed R tronic and an all-aluminum Audi Space Frame body. Its perfection in quality and finish, only to be expected of an Audi product, place the Audi R8 in a formidable position worldwide.

The Audi R8 has distinctive exterior and interior styling that offers the feel of a luxurious sports car with exclusive equipment coupled with a wide variety of customized interior options.

The Audi R8 has won several awards in Germany and Europe, along with the double victory at the famous 2008 World Car of the Year awards, winning both the 'World Performance Car" and "World Design Car of the Year' awards.

The Audi R8 is available along with the Audi model range in India consisting of the new Audi A4, Audi A6, Audi A8, Audi Q7 and Audi TT at twelve dealerships across the country: in Delhi, Gurgaon, Chandigarh, Mumbai, Pune, Bangalore, Hyderabad, Ahmedabad, Ludhiana, Chennai, Kochi and Kolkata. (editor @thesynergyonline.com)

M& M ENTERS INTO JV WITH TMI PACIFIC TO FORM MAHINDRA AUTOMOTIVE AUSTRALIA

Thesynergyonline Automobile Bureau

NEW DELHI, NOV 7 :
MAHINDRA & Mahindra Ltd. (M&M), a major auto brand, has entered into a joint venture agreement with its existing partner, TMI Pacific, a local Australian importer and distributor of vehicles. The agreement will lead to the formation of a new company called Mahindra Automotive Australia which will continue the marketing, promotion and retail of Mahindra vehicles in Australia. Mahindra will be the major shareholder with 80 per cent stake in the new Joint Venture, while TMI Pacific will retain the rest.

The Chairman of TMI Pacific and the Tynan Motor Group of companies, Michael Tynan says, "Over the past 18 months TMI Pacific has successfully laid the foundation and carved out a niche in the Australian landscape for the Mahindra range of utility vehicles."

"Working alongside Mahindra, we have built brand presence and believe that the stake that Mahindra is putting in Australian soil and the commitment they are showing to becoming even more strongly involved in our market is a testament to their belief in it. This affirmative action will provide even further confidence to the dealer network and to prospective customers. We welcome this positive move forward , " he adds.

Dr. Pawan Goenka, president, Automotive Sector, Mahindra & Mahindra . said, "We are delighted to extend our relationship with TMI Pacific, which has contributed in large measure to the success of the Mahindra brand in Australia. As we merge to form a new entity, our collective dedication will ensure that the Mahindra brand will become further ingrained in the Australian market. We have a strong vision for international growth and this move is an integral part of that plan."

Pravin Shah, Executive Vice President, Automotive Sector, International Operations, M&M , said, "TMI Pacific has worked tirelessly since the launch of the Mahindra Pik-Up last year and has helped make Mahindra a household name in Australia, demonstrating that it is indeed the right partner for Mahindra in Australia. The new JV company, Mahindra Automotive Australia, will undertake branding and promotion activities for the brand, further consolidating our presence on the continent."

Under the new structure, which will be in effect as of this week, Michael Tynan will become a Director and bring his rich experience of the Australian Auto Industry to the new venture. Chief Operations Officer, Claire Tynan, has been promoted to CEO, while the current team of head office staff and network of dealers around the country will remain unchanged. As before, their mandate will be to continue the growth and distribution of the Mahindra brand of vehicles throughout Australia.

Further plans for the new company along with future models for the market will be announced in an upcoming event for stakeholders, which will be hosted in Australia early next year.

Despite many automotive manufacturers feeling the economic crunch globally with job losses, factory closures, considerable cut back in production and work-weeks for some, the company is on growth trajectory . During the second quarter ended September 30, gross revenues of the company grew by 14.1 per cent and net profit after tax excluding exchange loss and other exceptional and special items grew by 9.3 per cent. (editor @thesynergyonline.com)

TATA MOTORS Q2 PAT DECLINES BY 34.1 % AT RS 346.99 CRORE

Thesynergyonline Automobile Bureau

MUMBAI, NOV 02 :
TATA Motors Profit after Tax (after notional loss on foreign exchange valuation) was Rs.346.99 crore, a decline of 34.1 per cent in the second quarter of 2008-09 as compared to Rs.526.84 crore in the corresponding quarter last fiscal .

The company has reported a 6.1 per cent increase in revenues (net of excise) to Rs.7078.85 crore for the second quarter ended September 30, 2008 as compared to Rs.6672.65 crore in the corresponding quarter last year.

Profit before Tax (before notional loss on foreign exchange valuation) was Rs.643.03 crores, an increase of 8.9 per cent as compared to Rs.590.34 crore in the corresponding quarter last year. After considering notional exchange valuation loss of Rs.285.02 crore (compared to a notional gain of Rs.30.85 crore in the corresponding quarter last year) reflecting the volatility in foreign exchange rates impacting the company's long-term funds raised through issue of Foreign Currency Convertible instruments, Profit before Tax was Rs. 358.01 crores, a decline of 42.4 per cent, as compared to Rs. 621.19 crore in the corresponding quarter last fiscal.

Company's sales volume for the quarter (including exports) at 135,037 vehicles declined by 1.1 per cent over 136,573 in the corresponding quarter last year. Company's new products are growing at a faster rate and have helped partially counter the difficult market environment. Among them are several models of M&HCV trucks and buses, LCV passenger carriers like Magic, Winger and buses, and passenger vehicles, like the Indigo CS, Sumo Grande and the recently launched new generation Indica Vista.

In commercial vehicles, Tata Motors has held market share at 61.5% year to date. While new products have helped the company to hold market share in the M&HCV category, LCV passenger carriers have registered strong gains. In passenger vehicles, the company's market share is 12.8 per cent year to date. The company has made gains in volumes and market share in the entry mid-size sedan segment, and while growing volumes in utility vehicles has virtually held market share. The Indica Vista has met with an encouraging response since its introduction in August 2008, and is expected to improve the company's overall industry market share and volumes as well as in its respective segment as production gets ramped up.

The automobile industry remains severely impacted with continued lack of financing and high interest rates. The quarter was also impacted by high input costs, and the company is aggressively pursuing its cost reduction initiatives. The company has taken possession of the site at Sanand (Gujarat) for its Nano plant. Preconstruction activities have begun.

The company's revenues (net of excise) was Rs.14007.29 crore in the first half, a growth of 10 per cent as compared to Rs.12729.47 crore in the first half last year. Profit before Tax (before notional loss on foreign exchange valuation) was Rs.1188.00 crore, an increase of 21.6 per cent as compared to Rs.976.58 crore in the corresponding quarter last year.

After considering notional exchange valuation loss of Rs.484.90 crore(as compared to a notional gain of Rs.236.74 crore in the corresponding period last year) reflecting the volatility in foreign exchange rates impacting the company's long-term funds raised through issue of Foreign Currency Convertible instruments, Profit before Tax was Rs.703.10 crore, a decline of 42.1 per cent over Rs.1213.32 crore in the first half last year, while Profit after Tax (after notional loss on foreign exchange valuation) was Rs.673.10 crore, a decline of 32.3 per cent over Rs.993.60 crore in the first half last year.
(editor @thesynergyonline.com)

M&M H1 F2009 GROSS REVENUES UP BY 18.6%

Thesynergyonline Automobile Bureau

MUMBAI, OCTOBER 31 :
GROSS revenues of Mahindra & Mahindra during the second quarter ended September 30 , 2008.grew by 14.1 per cent and net profit after tax excluding exchange loss and other exceptional and special items by 9.3 per cent.

On standalone basis the gross revenues and other income of the company for the quarter ended September 30 , 2008 is Rs.3695.2 crore as against Rs.3239.5 crore during the corresponding period last year,a growth of 14.1 per cent.

The company's net profit from ordinary activities after tax for the quarter is Rs.185.7 crore as against Rs.285.9 crore last year. The lower profits are mainly on account of an exchange loss of Rs.117.8 crore (Rs.77.8 crore net of tax) suffered by the company due to rupee depreciation.

The exchange loss includes a notional loss of Rs 96.7 crore on account of the revaluation of the company’s net foreign currency borrowings which loss is likely to reverse should rupee appreciate before the borrowings become due for repayment.

Also in Q2 current year the non-recurring Octroi refund was only Rs 27.0 crore (Rs 17.8 crores net of tax) as against a refund of Rs 92.9 crore (Rs 61.3 crore net of tax) in Q2 F2008. Both the automotive and farm equipment sectors of the company had a good sales performance during the quarter.

However the runaway increase in the material costs in a highly turbulent economic environment which saw a precipitous fall in the value of Indian Rupee and a steep climb in the interest rates exerted considerable pressure on our operating margins and profits.

Excluding the impact of the exchange loss and other special/ exceptional items, profit after tax during the quarter was Rs 237.8 crore as against Rs 217.4 crore in Q2 last year , a growth of 9.3 per cent.

During the quarter the company transferred its logistics business to a wholly- owned subsidiary with effect from 1st Apr 2008 and merged with itself one of its wholly owned subsidiaries with effect from 1st Feb 2008. The financial impact of these transactions has been reported as special adjustments after ascertaining profit after tax from ordinary activities for the quarter.

On standalone basis the gross revenues and other income of the company during the half-year ended September 30, 2008 is Rs 7367.5 crore as against Rs 6212.4 crore in the corresponding period last year,a growth of 18.6 per cent.

The net profit from ordinary activities after tax for the half-year is Rs. 355.2 crore as against Rs.477.1 crore last year. Excluding the impact of the exchange loss and other special/ exceptional items, the profit after tax during the current half-year is Rs 458.7 crore against Rs 412.7 crore in the first half last year , a growth of 11.2 per cent.

The results pertaining to an earlier period arising from the merger of the wholly- owned subsidiary recognised in the half-year period have again been reported as special adjustments after ascertaining profit after tax from ordinary activities for the half-year.

The Group consilidated gross revenues and other income for the quarter ended September 30 , 2008 grew by 19.1 per cent to Rs.7741.4 crore (US$ 1.7 billion) from Rs.6502.6 crore (US$ 1.4 billion) in Q2 last year.

The profit before exceptional items and tax for the quarter is Rs.623.0 crore (US$ 132.9 million) as compared to Rs.694.5 crore (US$ 148.2 million) in Q2 of F2008. During the period there was also an exceptional profit of Rs.33.1 crores that accrued to the group out of the private placement of shares by group subsidiaries, Mahindra Retail and Mahindra Residential Developers . The consolidated profit after tax for Q2 after deducting minority interests is Rs.373.3 crore (US$ 79.7 million) as against Rs.392.6 crore (US$ 83.8 million) earned in Q2 previous year.

The Group consolidated gross revenues and other income for the half year ended September 30 , 2008 grew by 23.8 per cent to Rs.15298.7 crores (US$ 3.3 billion) from Rs.12360.8 crore (US$ 2.6 billion) in the first half last year.

The profit before exceptional items and tax for the current year is Rs.1286.4 crore (US$ 274.5 million) as compared to Rs.1228.6 crore (US$ 262.1 million) in the first half of F2008. During the period there was also an exceptional profit of Rs.64.2 crore that accrued to the group out of the private placement of shares by group subsidiaries, Mahindra First Choice Wheels , Mahindra Retail and Mahindra Residential Developers . The Consolidated profit after tax for the first half after deducting minority interests is Rs.782.9 crore (US$ 167.0 million) as against Rs.692.2 crore (US$ 147.7 million) earned in the first half of the previous year ,a growth of 13.1 per cent.

The company’s domestic MUV sales volumes grew 8.9 per cent as against the industry sales growth of 5.1 per cent. A total of 38462 MUVs were sold by the company in Q2 F2009 as against the sale of 35309 MUVs in Q2 previous year. In the domestiv MUV segment the company increased its market share to 54.3 per cent in Q2 F09 over 52.4 per cent in Q2 last year. In September 2008 the company launched the Scorpio Automatic which offers a great combination of automatic transmission and peppy diesel engine further enhancing the joy of effortless driving.

In the pick- up segment, the company’s volumes registered a growth of 20.2 per cent in Q2 F2009 while the industry growth was only 11.8 per cent. The company’s market share stood at 86.4 per cent in Q2 FY2009 as against 80.4 per cent in Q2 last year.

In the three wheeler (large and small) market, during the current quarter, the company’s sales volumes, against the flat industry volumes, grew by 57.2 per cent to 14335 nos. The company’s market share grew to 14.5 per cent from 9.3 per cent in Q2 F2008.

The company continued its strong focus on exports. Various initiatives taken in the previous years resulted in the company exporting 2941vehicles in Q2 F2009, which is a 6.6 per cent growth over exports in Q2 last year.

In the farm equipment sector during the quarter, domestic tractor industry sales volumes grew by 7.5 per cent to 73208 nos. against 68111 nos. in Q2 last year. The company sold 21090 tractors in the quarter as against 20633 nos. in Q2 last year ,a growth of 2.7 per cent. The company achieved a market share of 28.9 per cent during the quarter. Exports during the quarter were 2102 tractors as compared to 1651 tractors exported in Q2 last year , a growth of 27.3 per cent .

Engine business continued to show healthy revenue growth. For Q2 F2009 the revenue grew by 101 per cent to Rs. 226.1 crore as against Rs. 112.5 crore for Q2 F2008.

The Group comprised of 95 subsidiaries, 4 Joint Ventures and 11 Associates as on 30th September 2008. In the current quarter the major group companies like Punjab Tractors, Tech Mahindra, and Mahindra Holidays, had a significantly improved performance over the previous year. The performance of Punjab Tractors with a 178% growth in profits and of Tech Mahindra with a 67% profit growth, deserve special mention.

Inflationary pressures in the Indian economy are moderating but with the ongoing financial crises all over the world, growth prospects are being impacted and uncertainties continue. The FIIs have reduced their exposure to India thereby adding to the already existing domestic liquidity problem and bringing pressure on the value of the rupee. While, RBI has taken some positive steps in the last fortnight by cutting CRR and reducing the Repo Rate, the vulnerability of the Rupee remains a concern. In spite of global uncertainties, the forecast growth of 7 to 7.5 per cent in India remains sustainable and there is a healthy demand for the company’s products. (editor @thesynergyonline.com)