Indian Auto Industry Update

25 Jan 2017

IndustryPassenger vehicle sales set to top 10% growth this fiscal despite demonetisation

Tata Motors aims to be No 3 carmaker in India by FY19

ARAI, Cognizant to jointly develop autonomous vehicles

Interviews & FeaturesOEM segment most hit on back of demonetisation: Anant Goenka, MD, CEAT

What does future hold for automotive segment?

We are planning Rs 350 crore investment in 2017-18: TVS Motor\'s S G Murali

Cars, SUVs, MUVsBridgestone\'s Ecopia EP150 tyres for Maruti Suzuki Ignis

Peugeot returns to India through CK Birla venture: Reports

Honda City facelift may launch next month in India

Post-Hexa launch, Tata Motors to unveil 2 SUVs in 36 months

Tata Motors working on reducing waiting period for Hexa

Revv launches its car sharing service in three new cities

Honda might introduce the City facelift in Feb 2017

Maruti Ignis: A surprisingly cool hatchback

Luxury CarsAudi etches symbols into car paint

Commercial VehiclesConstruction & Agri Machinery2/3 Wheelers

Yamaha FZ 25 launched in India at Rs 1.19 lakh (Ex-Delhi)

Yamaha looks at 1 million units of India sales this year

Yamaha launches all-new FZ 25, 10 things to know before buying

TVS Motor Company reports 10.4% growth in Q3 FY17 PAT

Indian two-wheeler riders\' sense on road signs very low: survey

Made-In-India Suzuki Gixxer 155 Exported To Japan

Kawasaki launches KLX 140G at Rs 3.91 lakh

E-BikesComponents

Kapurs likely to steer away from Sona Koyo

Indian auto component Inc expects Union Budget 2017 to uplift market sentiments

Allied IndustriesAIRIA calls for increasing raising import duty on finished rubber goods

Emissions / EnvironmentFinance & Insurance

Ashok Leyland finance arm raises Rs250 crore through rights issue

SBI General launches long-term insurance for two-wheelers

Oil, Lubricants & Alternative FuelsOil prices rebound on weaker dollar, production cuts

News Magazines

All-new Volvo XC40 to debut in April

2017 Geneva Motor show preview

Maruti Dzire Allure special edition launched

Yamaha aims to make India second-largest market by end-2017

GM’s Gujarat plant sale edges closer to fruition

Yamaha R15 V3.0 revealed

Peugeot plans India comeback

International NewsTesla to install thousands of electric car-charging stations in Australia

German auto supplier SHW plunges on loss of electric car order

Donald Trump meets U.S. automakers, urges them to make new plants

U.S. judge approves VW dealers $1.2 billion settlement

Paris rolls out colour-code stickers for cars to curb pollution

NAFTA could revive debate over what makes a car \'American\'

Peugeot returns to India through CK Birla venture - Les Echos

Donald Trump to meet with US auto CEOs amid jobs push

US auto parts sellers skid after report on Amazon\'s entry

Ford\'s new brand to sell auto parts and fix competitors\' vehicles

Audi to implement industrial 3D printing tech in its Ingolstadt plant

Skoda open to partner technical universities for digital projects

Takata shares lose nearly half their value in less than a week

Toyota to add 400 jobs, sink $600M into Indiana SUV factory

EconomyRupee logs 1st gain in 5 days, up 5 paise at 68.15

Sensex spurts 258 points; metal, auto stocks vroom

Closing

Industry

Passenger vehicle sales set to top 10% growth this fiscal despite demonetisation V Rishi KumarThe Hindu Business Line

Hyderabad: The country's passenger vehicle sales are set to witness a 10 per cent growth this year in spite of the temporarysetback due to demonetisation, according to a senior official of Tata Motors Limited.

Vivek Srivatsa, Senior General Manager-Marketing, Passenger Vehicles Business Unit, Tata Motors Limited, said, “In thefirst nine months ended December 31, 2016, the overall sales of passenger vehicles was up 8.6 per cent and we expect this growthmomentum to continue and the sales to end at about 10 per cent by March 31, 2017.”

“After about two years of subdued growth, the passenger vehicle sales witnessed strong growth. While the demonetisationcould have some temporary impact, we expect the market to close at about 3 million units this fiscal. As against this growth, TataMotors has seen a growth of about 17.3 per cent in first nine months ended December 2016 and we expect to do well this quartertoo riding on the success of the compact car Tiago and the launch of new utility vehicle Hexa,” he said.

“As a leading automotive company, our focus has been to consolidate the market and gain market share. Tiago to a largeextent, followed by SUV Safari, Bolt and Zest have done well. These have added to volumes,” he said.

The response to Hexa has been good thus far and there is a wait list of about 8-9 weeks. While Tata Motors will now focus ondomestic sales of Hexa initially, our long term plans are to export to other markets, he said.

Compact SUVTata Motors expects to roll out its compact sports utility vehicle later this year to enter a segment where it has no presence.

“The country's utility market has been growing at a strong pace of about 32.6 per cent and the launch of Hexa and latercompact SUV will help us consolidate the market,” he said.

The company expects Hexa to well in the South known for a strong diesel market.http://www.thehindubusinessline.com/companies/passenger-vehicle-sales-set-to-top-10-growth-this-fiscal-despite-demonetisation/article9499972.ece

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Tata Motors aims to be No 3 carmaker in India by FY19 PTISee this story in: The Economic Times

Hyderabad: Tata Motors, which today launched its lifestyle SUV Hexa here, said it expects to improve market share this year tobecome the third largest carmaker in the country after Maruti and Hyundai.

The Hexa is coming at an introductory price of Rs 12.20 lakh, ex-showroom Hyderabad for the manual transmission and Rs 15.11lakh for the automatic variant.

"With 5.1 per cent market share we are already the number 4 player. Our mission is to become number 3 in market by March 2019and we expect these new launches will help us achieve that number. In fact, in Andhra and Telangana we are already at No 3 butour ambition is to become No 3 nationally by the March 2019," Vivek Srivatsa, marketing head, passenger vehicles business unit atTata Motors said here.

He said the Hexa is a lifestyle utility vehicle and we are confident about its performance and effortless driving abilities.

He said the company will come out with a new compact SUV in 2017 calendar and added "not only the Tiago, our other productslike the Zest, Bolt, Safari are delivering very good numbers now."http://auto.economictimes.indiatimes.com/news/industry/tata-motors-aims-to-be-no-3-carmaker-in-india-by-fy19/56765026

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ARAI, Cognizant to jointly develop autonomous vehicles The Financial Express

Pune: The Automotive Research Association of India (ARAI) and Cognizant Technology Solutions have started work onautonomous vehicle technologies.

The first of their prototypes was showcased during the Symposium for International Automotive Technology at ARAI Pune.

The prototype demonstrated is capable of making decisions based on its surroundings such as lane-keeping, signal and signagereading, and obstacle detection, and will evolve as both organisations work towards the next milestones in the engagement.

ARAI and Cognizant demonstrated the initial R&D work to Anant Gete, minister of heavy industries and public enterprises andVishvajit Sahay, joint secretary, department of heavy industry, ministry of heavy industries and public enterprises.

The technology is powered by smart sensing using stereo cameras, radar, ultrasonic sensors; intelligent adaptive control for speed,distance and direction control; and efficient actuation for accelerator, brake and steering.

The building blocks of the programme include vehicle navigation, driver assist, decision making and vehicle control.They are using the Advanced Driver Assistance Systems model for the programme.http://www.financialexpress.com/industry/arai-cognizant-to-jointly-develop-autonomous-vehicles/521148/

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Interviews & Features

OEM segment most hit on back of demonetisation: Anant Goenka, MD, CEAT The Economic Times

In a chat with ET Now, Anant Goenka, MD, CEAT talks about cash crunch due to demonetisation in the tyre company andexpectations from the upcoming budget.

Anant Goenka: There has been some amount of impact of demonetisation so while say the first half of the year we were growingmore than double digit in volume term that suddenly came down all the way from latter half of November till even now maybe byabout 10-12% nearly impact on volume growth. This largely has happened because of the slowdown with OEMs so with autodemand clearly coming down particularly on the two-wheeler segment as well as commercial vehicle segment, so both thesesectors having got hit that has hit our sales quiet substantially. If you look at auto players, they have all cut production by nearlyabout 10 days or so for the month so that has had some impact. Exports of course has not got touched. On the replacement side, Iwould say it is somewhere in the middle so while that was growing by about 10-15% range that has come down but not as much asthe OEM segment. In my view going forward, I think, there are some positive signs but I would still about-- it will take a couple ofmonths time for things to pick up and go back to normal but too early to say yet.

ET Now: In terms of segments two-wheeler is your forte, we have the commercial vehicle side of the business, we have the

passenger vehicle side wherein the OEM demand, replacement demand is there so in terms of segmentations and pockets can weassume that two-wheelers have been the worst hit probably volume going down 20-30% and probably in the commercial vehiclespace and in the four-wheeler space the impact has not been much on the demonetisation side?

Anant Goenka: Yes, I would say that two-wheeler has got more hit than the other segments. On the commercial vehicle, a little bit ofpositive inclination has come in because Chinese tyres which was nearly about 20% of the market has got worst hit than the Indiantyre demand so to that extent that was a little bit of a cushioning effect on the commercial vehicle replacement side. And againbetween the other categories as I said the OEM segment has got more hit.

ET Now: So in terms of demonetisation we probably feel that the event is done and dusted, probably in the next one or two monthswe could see some revival there but in terms of your strategy for growth, your strategy for improving your market share, especiallyin the domestic arena what are the kind of steps and strategies that you are undertaking at Ceat?

Anant Goenka: So our strategy continues to remain the same in terms of focusing on the motorcycle and scooter segment as wellas the passenger segment. So these are areas where we feel that brand makes a big difference, distribution is the core strength ofours so we are playing on our strengths and looking at growing further in these segments. Our growth will be to become amongstthe top one or two players in both these categories of tyres. And on the truck segment, we will largely be looking at maintaining ourmarket share and increasing our share of business in the radial category, which has kind of been growing quite fast.

ET Now: You said that you know a lot of OEMs are taking production cuts so of course your volume growth has also come down asyou said so in terms of capacity utilisation where are we right now, of course, last two months had been adversely impacted but nowas we move forward, you think that the capacity utilisation would move up probably 80-85%?

Anant Goenka: Yes, our capacity utilisation generally has been at about 90% levels pre demonetisation. I would say post that in factsuddenly we found a little bit of a slowdown in the two-wheeler segment particularly, I would say maybe a 5% drop in capacityutilisation but going forward I am pretty positive that this will pick up. Now whether it happens in March-April or whether it happensMay-June it is tough to say but it is a matter of a few months here and there, that pain we have to go through.

ET Now: Talking about margins apart from demonetisation what has happened is that the raw material cost of the industries havemoved up, be it rubber prices, crude prices, energy prices, you know, most of them are moving up significantly so in this scenariowhat is Ceat really doing to protect their margin because in the marketplace you would not be able to take that kind of price hikesbecause of competition and lower utilisation of peers but in terms of margins versus the raw material cost which are moving how doyou position yourself in the marketplace?

Anant Goenka: So I think there are two or three things we are looking at. I would say first, of course, we are looking at continuouslyimproving our product mix. So the more of the more profitable categories we can sell or more we can sell to the more profit marketsthat is one thing we are working towards. Second is controlling costs because there has been a large increase in raw material pricesand that effect will come in from quarter four and quarter one of the next financial year. So there has been a huge increase. Thethird is we have to look at taking price increases, it is of course a competitive environment so it is a little bit of a competitive call thatwhere we can take or where we have to follow competition.

ET Now: What I got to understand from industry channels and analysts I speak to is that the Chinese tyre market has got adverselyimpacted because it is largely cash driven and demonetisation has partly taken away demand and the channel, talking about theindustry stance on Chinese tyre industry which have been dumping in the Indian markets I think the industry and you must haverepresented it to the government so what is the status there, you know, is the government willing for an antidumping duty, what kindof a competition do you see from the Chinese players or probably you think you are preparing yourself to be more competitive whenit comes to the dumping of the Chinese players?

Anant Goenka: Yes, so this is something which an application that we had put in about nearly a year and a half ago so it is stillunder consideration by the government. Difficult for me to predict whether they are going to impose the antidumping duty or not, Ihope that by around April or May we will get some response as to an antidumping duty coming in. In the meantime, some amount ofpositive impact has come in with demonetisation but of course if antidumping duty does not come in it would be an area of concernin the long term. As I said there is nearly 30% market share in the truck radial segment of Chinese tyres, that is quite unprecedentedand the prices that they get sold at is nearly 20% lower than our Indian tyre prices which is close to our raw material pricing. Soreally that is something where the costing cannot be justified at the prices at which Chinese tyres are selling in India.

ET Now: Talking about your expansion plans, you recently commissioned one of the plants with higher capacity and now you areramping up your Ambernath plant in Maharashtra so in terms of overall capex outlay how much are you spending annually and whatis the overall ramp up that you have seen as far as your green field projects are concerned?

Anant Goenka: So we just commissioned two expansions; one was expansion of our green field Nagpur facility for the two-wheelersegment and an expansion of our passenger car facility in Baroda. So with both these facilities coming in they are both ramping upand they will complete their ramp up sometime in the middle of this calendar year. We have further expansions going on becausethe utilisation levels are quite high of the new capacities and we have just made an announcement that over the next four to fiveyear we will be making an investment of nearly 2500-3000 crores so huge capacity plants coming in, it would be primarily in thesesegments of passenger car and two-wheeler and as is said on the truck radial side as the market realises we want to be there withour continued market share of about 10-12% and therefore we are looking at about some expansion on the truck radial side as well.http://auto.economictimes.indiatimes.com/news/tyres/oem-segment-most-hit-on-back-of-demonetisation-anant-goenka-md-ceat/56757658

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What does future hold for automotive segment? Ram RamaseshanThe Economic Times

The journey from present state of connected car to the future state of autonomous driving has been better defined in the last oneyear. Autonomous cars will change the way we live our lives. The role of the autonomous car will be that of a companion, aproductivity tool, predictive and a social media.

There has been an increased impetus on ADAS as it’s seen as a key element in enabling autonomous driving from its initialavatar of being an active safety application.

This increased focus has translated to more work in Fusion of Radar, Camera, and V2X Communication with use cases such asextension of operational area, adaptive cruise control, collision warning/mitigation on moving and still objects, pedestrianrecognition/protection, top view, traffic jam assist, construction area assistance, intersection/turning assist, and overtakingassistance, all of which are key enablers in the driverless car.

Some determining factors that have led to these developments are:1. Customer demanding omni-channel customer experience and personalized, digital extension2. Ecosystem that’s driving rapid innovation, value chain disintermediation, and smart city infrastructure/regulatory.3. Business model that’s complex and innovative, but promises significant monetization opportunities.

We will increasingly see new players, services, and regulations come into existence to support the journey towards autonomousdriving. Transportation and logistics including driverless trucks/buses, auto piloted personal pods, self-driven car-sharing, andautomated taxi. In trying to adapt to the demand of autonomous driving, the Retail industry will evolve to include drive-in retailpickup, driverless mobile kiosks, and automated home delivery.

Content and media broadcasting features such as direct-to-car transmission and gaming consoles will be part of the autonomouscar. Healthcare will also be an integral part of the autonomous car feature set and include health monitoring, increased time forfitness, and cars equipped to handle emergencies. For autonomous cars to successfully enter the market, important policies andgovernance issues need to be addressed such as driver (less) license and cars violating traffic!

Some of the scenarios that look viable in 2020 would be built around meshed business models such as:1. Lifestyle services that would be dependent on network of providers which span across industry verticals2. Data sharing across service delivery players will be must to ensure end-to-end personalized experience to the consumer3. Technology has to play a much bigger role to allow different players to exchange information and allow data from differentsources to come together4. Data Analytics will be the key to predict consumer needs5. Business models based on collaborative services will be needed to meet the consumer demands(The author is Senior VP and Head, Automotive and Industrials Business Units, Sasken Communication Technologies)http://auto.economictimes.indiatimes.com/news/industry/opinion-what-does-future-hold-for-automotive-segment/56759144

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We are planning Rs 350 crore investment in 2017-18: TVS Motor\'s S G Murali  T E NarasimhanBusiness Standard

Chennai: At a time when the automobile industry is facing pressure due to demonetisation and increasing commodity prices, TVSMotor has managed to post around 10.4 per cent growth in profit at Rs 132.67 crore during the third quarter that ended onDecember. The company had registered profits worth Rs 120.21 crore in the corresponding period in 2015. Total revenue increasedto Rs 3,239.55 in the December quarter crore as against Rs 3,151.12 crore in the preceding year.

TVS Motor's Chief Financial Officer (CFO) S G Murali speaks to T E Narasimhan about the factors that have helped TVS and itsfuture plans that include increasing the company's market share to 18 per cent and the proposed Rs 350 crore investment in theupcoming financial year.

What are the factors that have helped TVS in Q3, especially at a time when the impact of demonetisation was experienced acrosssectors including the automobile industry?

Demonetisation happened sometime in early November, but the net profit after tax (PAT) grew well; we had good sales during thefestive season and the pipeline was reasonable. Billing continued till November. We were careful when it came to spending inmarketing activities and all brands have done well.

In the first six months, we grew by 20 per cent and this was maintained even during the festive season, keeping us ahead of themarket. We were able to record a good growth up to November and therefore our Q3 performance was also good.

The impact of demonetisation was felt only in the second half, which was six weeks after the festive sales had begun. The first twoweeks of January w subdued. There were signs of growth after Pongal and Sankaranti festivals but these were still early days. Asthe cash supply gradually increases and rabi crop plantation also improves, sentiments will change for the better. By February orMarch growth will come back. The Budget may also help growth depending on the measures taken by the government.

Given its great performance, what target have you set for the company in FY17 as far as market share is concerned?

At the beginning of the year, we had said we will achieve 18 per cent market share in less than 3 years and set a target of around15 per cent for FY17. In the December quarter itself, the company has achieved a market share of 15.5 per cent.

In Q4 stability will come slowly. The industry is expected to stabilise itself by January or early February. The results will be reflectedby February-end or early March.

We have done well in some portfolios, especially Apache, Jupiter and Victor. We need to grow our brand of scooters now.

Are there any new products on the cards? What about the BMW venture?

We will be launching a host of new products in the scooter as well as motorcycle segments during 2017-18.

As far as the BMW venture is concerned, the project is progressing well and there will be no delay in launching vehicles. They areexpected to be out in 2017.

What will be your capital expenditure?

Around Rs 300-350 crore for 2017-18 (in 2016-17 it was around Rs 400 crore) towards enhancing capacity from the current fourmillion units across all three plants that will be utilised in the following year's requirements. Besides, capacity expansion, thecompany will also invest in several new products.http://www.business-standard.com/article/companies/q-a-with-tvs-motor-cfo-117012400907_1.html

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Cars, SUVs, MUVs

Bridgestone\'s Ecopia EP150 tyres for Maruti Suzuki Ignis ANISee this story in: The Economic Times

New Delhi: Bridgestone India on Tuesday officially announced its first original equipment(OE) fitment for Ecopia - its fuel efficientand eco-friendly tyre range, with EP150 to be fitted in Maruti Suzuki's first premium urban compact vehicle Ignis.

"We are proud to announce our first original equipment fitment for Ecopia tyres with the newly launched car Ignis from MarutiSuzuki. Ecopia tyres are available in 26 sizes ranging from 13" to 18" rim diameters and is designed to fit many popular vehicles,"Katsuyuki Yamamura, Director of Consumer Products, Bridgestone India said.

ECOPIA EP150 tyres utilize unique compounds and cutting-edge technology in tread design to strike a balance between fuelefficiency, safety and durability.

Engineered for the cost-conscious and eco-conscious driver, EP150 has low rolling resistance that reduces the production ofharmful carbon dioxide emissions that contribute to global warming.

ECOPIA EP150 is a tyre that truly reflects Bridgestone's advanced technology and commitment to innovation.

This low rolling resistance tyre is designed to deliver excellent fuel economy and low noise while maintaining Bridgestone'srenowned safety standards.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/bridgestones-ecopia-ep150-tyres-for-maruti-suzuki-ignis/56760537

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Peugeot returns to India through CK Birla venture: Reports The Economic Times

New Delhi: French auto major PSA Group, the maker of Peugeot and Citreon cars, is likely to announce its decision to re-enter theIndian market later this week through a manufacturing alliance with the CK Birla Group.

French publication Les Echos on Monday reported PSA Group has signed a joint venture agreement with the New Delhi-based CKBirla Group to make cars in India. CK Birla Group has a vehicle assembly unit in Tiruvallur, near Chennai. The unit currentlyproduces Pajero Sport in collaboration with Mitsubishi Motors of Japan.

According to the French daily a PSA spokesman declined to comment on the report.

Peugeot had initially entered the Indian market through a partnership with Premier Automobiles, which ended in the late 1990s. Theauto major had later in 2011attempted to foray into the country independently. PSA Group had plans to set up a manufacturing unitwith annual capacity of 170,000 units. Financial woes subsequently forced it to put the plan on the backburner.

The company, however, has chalked out an ambitious recovery plan under Chief Executive Officer Carlos Tavares. PSA haspledged to find an Indian partner and re-enter the Indian market over the next two years.

The Indian market has continued to attract Peugeot’s interest over the last few years. The French carmaker had formed anew ‘India-Pacific’ business zone comprising of India, SAARC countries, Japan, Korea, Australia and New Zealand inSeptember 2014. This is the fifth geographical business zone of the company and the only one without a single manufacturing unit.http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/peugeot-returns-to-india-through-ck-birla-venture-reports/articleshow/56740326.cms

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Honda City facelift may launch next month in India The Economic Times

New Delhi: The Indian arm of Japanese carmaker Honda Cars India Limited may launch the much-awaited facelift version of it CitySedan as reported by the various media reports. The carmaker has recently launched the facelift versions of Amaze and Brio owingto create some level excitement among car buyers to revive its lost sales.

In 2016, Tata Motors outsold Honda Cars by 8016 odd units to become the fourth largest carmaker in India. Tata Motors sold1,64,123 passenger vehicles compared 1,56,107 units of Honda cars.

Going by the reports, the carmaker has planned the launch of Honda Facelift ahead of its competition launch of Maruti Suzuki CiazFacelift. Ever since the launch of the hybrid version of Ciaz, Honda City has not been able to match the sales of Ciaz. In 2016,Maruti Suzuki Ciaz outsold Honda City by the margin of 5,000 units in the C-segment. Apart from Ciaz, Honda City competesagainst Hyundai's Verna.

The carmaker has recently launched the facelift version of City in Thailand. And earlier it was expected that the carmaker maylaunch the facelift version of City in January 2017. However, the fresh reports suggest that it would launch next month. Industryexperts believes that, the success of Honda City is the near future will only come from the right pricing and right features.

Honda City was first launched in Indian 1998. Since then the carmaker has revamped the sedan four times with total cumulativesales of 6.3 lakh units. It is anticipated the new version of Honda City will have features like Andriod Auto, Apple Car Play and vicecommand which are quite common in the present day cars.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/honda-city-facelift-may-launch-next-month-in-india/56751542

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Post-Hexa launch, Tata Motors to unveil 2 SUVs in 36 months

Subhro NiyogiThe Economic Times

Kolkata: The just-launched luxury SUV Hexa based on the MUV Aria platform is just the beginning of Tata Motors’ plans tograb a substantial chunk of the SUV pie that is currently dominated by rival Mahindra & Mahindra (M&M). In doing so, it also aims todislodge M&M from the no.3 spot in the Indian auto market and grab the coveted position.

While Hexa is the second SUV in its stable and joins the Tata Safari Storme, the company is set to launch two more vehicles in thesegment over the next 36 months. While one of them is the compact SUV Nexon that the company showcased at the India AutoExpo in February 2016, the other is a top-of-the-line luxury SUV that is currently taking shape at design studios in UK, Italy andIndia.

According to a company source, the premium SUV is based on the Land Rover Discovery Sport L550 platform and will follow asimilar architecture while integrating Tata’s Impact Design philosophy. The Land Rover team is playing a lead role in theaesthetics for the premium vehicle. The SUV will be positioned above the Safari and slot into a space below the SUVs sold byglobal auto manufacturers like Toyota, General Motors and Ford. “It will be the most premium vehicle yet to carry the Tatabadge,” a company official said.

At the other end of the spectrum, Tata Motors will launch entry-level SUV Nexon in 2018. While the premium SUV that is expectedto be priced upward of Rs 20 lakh will be powered by a 2 litre diesel engine, the sub-Rs 7 lakh Nexon will have a 1.2 litre petrol and1.5 litre diesel engines under the bonnet. The car will get different drive modes: City, Eco and Sport that is also offered in the Bolt,Zest and Tiago.

While Tiago is currently doing good volumes and has been key in the company’s turnaround, the Nexon along with theyet-to-be named compact sedan will be the volume drivers. “These will help catapult the company past M&M to the third spotin the roll out by 2019, said Tata Motors passenger vehicle business unit vice-president (sales) S N Burman. The trio will be crucialin Tata Motors adding a further 4.5% marketshare in the next three years to notch up 10% from 5.5% at present.

While the Indian auto industry grew 8.6% between April and December 2016, the company posted a robust 17.3% growth, riding thedemand for Tiago. With the launch of the compact sedan codenamed Kite5, Burman expects the demand to further acceleratebefore shifting gears to race mode when Nexon is launched a year later.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/uv/post-hexa-launch-tata-motors-to-unveil-2-suvs-in-36-months/56752052

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Tata Motors working on reducing waiting period for Hexa The Financial Express

Pune: Tata Motors is working on reducing the waiting period for their new lifestyle utility vehicle, Hexa. The new vehicle (Hexa) hasa waiting period of around two months. Pratap Bose, design head, Tata Motors, said the Hexa has received significant bookingsand the company was carrying out production to match the demand and was doing everything possible to start deliveries soon. He

did not disclose the exact number of bookings for the Hexa but said the response was good.

The automatic variants of the Hexa has generated a lot of interest among customers, Bose said. The culture of weekend getawaysis taken off in a big way and this combined with the need to travel within the city traffic during weekdays made the Hexa anattractive option, he said.Bose was speaking at the launch of the Hexa in the Pune and rest of Maharashtra markets.

Tata Motors is wooing potential customers by taking the Hexa to their doorstep and making customers experience the cars.“This customized, personalized and dedicated service started with the Tiago and is being continued with the Hexa” hesaid.

This was part of the strategy to bring the service industry mindset to their industry, Bose said. The company is also using the“influencers” from across strata of society from actors, cricketers, TV celebrities to fashion designers to share theirexperience about the vehicle. These vehicles were given to them for a few days and then their feedback sought, which is beingused to sell the vehicle.http://www.financialexpress.com/industry/tata-motors-working-on-reducing-waiting-period-for-hexa/521140/

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Revv launches its car sharing service in three new cities The Economic Times

New Delhi: Car sharing mobility platform Revv has launched its service in three new cities - Mumbai, Chennai and Jaipur, taking itsnational footprint to seven cities. Chennai and Jaipur are live already and Mumbai is slated to go live later this month.

All three cities get a brand new fleet, which includes hatchbacks, sedans and SUVs. The fleet has been curated to fit the needs ofthe customers, based on the demand pattern in these markets. Revv is already available in Delhi-NCR, Bengaluru, Hyderabad andChandigarh.

The co-founders of Revv said, “The adoption in our current markets has been great, and we expect a similar trajectory ofgrowth and adoption in the new markets that we are launching. This has also been validated by the early reception in new markets.Growing the national footprint is a natural part of building a national brand."

"Our experience suggests that a customer is more likely to stay with us if he knows that he can find Revv in every city that he or shemight visit. Having a wide network also creates more flexibility in managing supply. We are very excited about the prospects ofserving customers in these new cities. Mumbai and Chennai have a strong local base. All 3 cities have high volumes of inboundtraffic, for both work and leisure."

"In the 2 cities that have already gone live (Chennai and Jaipur), the early reception has been way beyond our expectations. InChennai, the entire fleet was sold out within a day of going live. This is the first time that we have launched 3 major cities in oneshot, and it boosts our confidence that we can continue on our plan to scale to 20-25 cities by the end of 2017. We continue to focusall our efforts on simplifying and enhancing the customer experience."

"Our unique operating model lets the customer literally “order” a car and also gives him the flexibility to start the trip atone place and end it at another. The core elements of the operating model have been carried over to these new markets, forexample the pure-play delivery proposition, and fitting the cars with sensors to track driving behaviour and car health," added theco-founders.http://auto.economictimes.indiatimes.com/news/aftermarket/revv-launches-its-car-sharing-service-in-three-new-cities/56755417

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Honda might introduce the City facelift in Feb 2017 Deccan Chronicle

One of the most popular Honda cars in India, the City is about to get updated. Although the changes include minor cosmetic tweaks,it will play a very important role in the sales of the Honda City. To have an upper hand, the City facelift is likely to be introducedearlier than the Ciaz facelift. In 2016, sales of the Ciaz surpassed the City by 5000 units.

The City facelift recently made way into the Thai market and rumours were rife that it would come to India as early as January 2017.Our sources, however, point to a Feb 2017 launch. Dealerships in Delhi are accepting bookings for the updated model as somebuyers are ready to wait out for the new City. Official bookings for the updated model are expected to commence in the last week ofJanuary 2017. Honda dealerships are therefore in the process of selling off their existing City stock by offering juicy deals on top ofcartel discount.

The City facelift for the Thai market gets a mildly reworked fascia with a new bumper and a new sleeker front grille. The mosttalked-about update is the inclusion of LED headlamps in the package that may make way into the Indian market as well. HondaCity's chief rival in India and the current segment leader, Maruti Suzuki Ciaz, already gets projector headlamps as standard. WithMaruti Suzuki's Ignis sporting LED projector headlamps, we expect Maruti Suzuki to offer the same in the upcoming Ciaz facelift aswell. The Ciaz may enter the company's premium retail chain, Nexa, as their fifth product, fourth being the Baleno RS which is duefor a Feb 2017 launch.

Other changes in the facelift City include a redesigned rear bumper. The interiors also get minor improvements with some new

features.

The C-segment didn't see much happening in the year 2016 with only the Skoda Rapid undergoing a major cosmetic overhaul. 2017will, however, see the C-segment battle heating up with the all-new Hyundai Verna set to arrive in the market. The Hyundai Vernawas once a tough nut to crack in the C-segment in India.

However, new product launches in the Honda City and the Maruti Suzuki Ciaz took Hyundai completely off-guard and outnumberedthe Verna on sales charts.

The new Verna is expected to make a strong comeback in India riding high on features. Importantly, Hyundai is expected to powerthe new Verna with a mild-hybrid diesel engine as seen on the Maruti Suzuki Ciaz SHVS.http://www.deccanchronicle.com/business/autos/240117/honda-might-introduce-the-city-facelift-in-feb-2017.html

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Maruti Ignis: A surprisingly cool hatchback Sergius Barrettomint

Maruti’s latest fledgling, the Ignis hatchback, is funky, fun, youthful and pricey. These are not adjectives you would use todescribe most other offerings from the carmaker. Besides its striking looks, the Ignis is also a light car. In fact, at 825kg (it has an825-860kg range), its base model is lighter than even the bantamweight Baleno hatchback. Maruti has future-proofed the Ignis, so italready meets the Indian crash safety norms which come into effect from October.

While the Ignis’ radical design won’t be to everyone’s taste, it is sure to appeal to young car buyers wantingsomething unique. One of the really cool touches is the inset headlamps (with LED projector lamps on the top-end variant) that arebracketed below by neat homogeneous LED daytime running lights.

Dominating the side are chunky C-pillars which wouldn’t look out of place on a military vehicle either. Its flared wheel arches,side cladding and the alloy wheels with their squarish spoke design further add to the Ignis’ stout stance.

The rear, however, is a bit oddly proportioned. It’s got a tall hatch, squarish tail lights, and there’s no missing themassive bumper cladding. You either love it or hate it but you can’t ignore it.

The striking styling continues into the interiors, with some of the bits finished in colours complementing the exterior paint. The frontdoor handles, neat cylindrical bars, are also body-coloured.

The dashboard is all about straight lines and houses rectangular central air vents and a “floating” central touch-screenunit.

Equipment-wise, you get the SmartPlay infotainment system with both Android Auto and Apple CarPlay, along with Bluetooth, USBand Aux-in connectivity. You can even control the system via a phone app. The screen also doubles up as the display for the rearcamera and the navigation system.

All the variants come with dual airbags, ABS (anti-lock braking system) with EBD (electronic brake-force distribution), and ISOFIXchild-seat mounts, a feature that’s uncommon in cars at this price.

It’s quite spacious for a hatchback its size too. While seating three abreast behind is tight, overall the space inside isexcellent, and there’s ample headroom and legroom. You sit quite upright at the back, with enough space to keep your feetunder the front seats. The front seats are comfortable and well-bolstered.

The Ignis comes with a 1.2-litre petrol or a 1.3-litre diesel engine. These can be had with a 5-speed manual or a 5-speed automatedmanual gearbox, making the Ignis the only car at this price to offer an automatic with both petrol and diesel engines.

Beginning with the petrol manual, this 1.2-litre unit is quite peppy and the gearshifts feel positive. The clutch, however, is not thesmoothest to operate and needs a bit of effort at the pedal. While the light steering is a boon when navigating city roads, itdoesn’t weigh up at higher speeds.

Despite its size, the Ignis drives like a bigger car and feels sure-footed. The diesel has a stiffer suspension, but offers a flat andcomfortable ride

The diesel manual version has a heavier clutch and a heftier steering, which is nice. Also, the engine is quite responsive and reallycomes into its stride above 2,000 rpm. However, it also becomes increasingly audible as the revs rise.

Switch to a diesel AMT (automated manual transmission) and drivability sees a dip. The car’s quite at home when you aredriving in slow-moving traffic, but for quick overtaking, that pause between shifts becomes apparent. You can use the manualselector, and that helps. Things improve on the petrol AMT, where the shifts are less perceptible.

The Ignis is priced between Rs4.59-7.80 lakh (ex-showroom, Delhi). The funky styling will divide opinion. However, there’slittle that you can fault. The car is quite impressive—it is feature-packed, spacious and quite rewarding to drive, especiallywith the peppy petrol engine.http://www.livemint.com/Leisure/dH8ND2LXrPM0T9H3pZZzwM/First-look--Maruti-Ignis-A-surprisingly-cool-hatchback.html  

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Luxury Cars

Audi etches symbols into car paint Ronak ShahThe Economic Times

New Delhi: Audi has developed a process for the partial matting of painted surfaces. A special powder roughens the clear lacqueron the surface to a depth of a few thousandths of a millimeter so that individual markings become visible.

With this process, the Audi exclusive program offers personalized design of the side blades for all R8 customers.

The process developed by Audi experts makes each Audi car unique. As the desired symbols are applied to components afterbeing painted, the process can easily be integrated into normal series production.

“The method of partial matting is an excellent example of the flexibility of our production. Being able to implementindividualization in normal series production is one of the aims of our smart factory,” stated Prof. Dr. Hubert Waltl, Member ofthe Board of Management for Production at AUDI AG.

Painting an automobile consists of – in addition to the cathodic dip coating to protect against corrosion – at least threefurther coats: filler, base coat and the transparent lacquer as the top protective coat. With the newly developed process, a templateof the desired pattern is first placed on the component.

A blasting system then sprays a special powder onto the surface, which roughens the clear lacquer to a depth of just a fewthousandths of a millimeter – less than a tenth of the thickness of a human hair. This creates the effect of a matt andhomogeneous pattern.

“With this process, we modify the brilliance of the paintwork and the intensity of its sheen. Light hitting the surface is thenreflected diffusely by the individualized surface areas. This makes it appear matt,” explained project manager Dr. ErhardBrandl. Production section head Mirko Endres added: “This form of individualization is weather resistant, unlike conventionallettering and stickers, and it has a much more high-quality appearance.”

The Audi paint shop can apply almost any pattern that a customer might desire and which does not affect any third-party rights. Atpresent, components with a size up to a meter by a meter can be processed in this way.

Audi R8 is the first model which gets this technology and is also offered to its customers in India confirmed Audi India, consideringall the R8’s coming to India are CBU. If desired, R8 customers can have their individual lettering and graphics applied to theside blades of the Coupe and the open Spyder version which is not yet launched in India. Audi plans to extend the offer to othermodels in the future.http://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/audi-etches-symbols-into-car-paint/56760103

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Commercial Vehicles

Construction & Agri Machinery

2/3 Wheelers

Yamaha FZ 25 launched in India at Rs 1.19 lakh (Ex-Delhi) Ronak ShahThe Economic Times

New Delhi: Yamaha Motor India has launched its FZ 25 at Rs 1.19 lakh (ex Delhi). This is the first entry-level performance bike bythe Japanese two-wheeler manufacturer in India and will fill the gap between the 150cc Yamaha YZF R15 and 320 cc Yamaha YZFR3.

Yamaha FZ 25 is powered by a 249cc oil-cooled 4-cylinder engine which sheds a power of 20.9 PS and 200 Nm of torque which ismated to a 6- speed gearbox. Yamaha claims a mileage of 43 kmpl on this 250 cc motorcycle. The bike gets a very aggressivestyling and looks very muscular, the taillamps and headlights both get LEDs which is a first from Yamaha.

The bike weights at 148 kgs thanks to a new gen chassis developed by Yamaha in-house. It also features a digital instrumentcluster with trip o meter, Fuel indicator and other features as well.

The handle bar is about 15 mm shorter than what we have seen on the Yamaha FZ V 2.0 and also the seat position has beenbrought forward by 35 mm. The first FZ from Yamaha was launched in 2008 and then the FZ 2.0 made its debut in India in 2014.

The entry level performance enters an crowed segment with the likes of KTM RC 200, TVS Apache RTR 2004V, Bajaj Pulsar 200series, DSK Benelli TNT 25 and Mahindra Mojo alrealy dominating in that segment.

Yamaha has not undercut the price when we compare it with most of its rivals. Yamaha has sold over 7.86 lakh units oftwo-wheelers in India in 2016 and is looking to cross 1 million mark in 2017.http://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/yamaha-f25-launched-in-india-at-rs-1-19-lakh-ex-delhi/56752781

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Yamaha looks at 1 million units of India sales this year Deccan Chronicle

New Delhi: Japanese two-wheeler major Yamaha is looking to sell 1 million units in India this year that is likely to make the countrythe company's second-biggest global market after Indonesia.

The company, which today launched its latest 250cc bike FZ 25 priced at Rs 1.2 lakh (ex-showroom Delhi), is banking on premiumbikes and scooters to achieve its target.

"In 2016, we sold 7.86 lakh units at a growth of 32 per cent from the previous year. This year, we are targeting a total sales of 1million units," Yamaha Motor India Sales Pvt Managing Director Masaki Asano told reporters here.

He further said that in terms of global markets of Yamaha, India was the third-biggest after Indonesia (1.45 million units) andVietnam (8 lakh units) last year.

"This year, when we reach one million units, India will be the second-biggest market for Yamaha," Asano said, adding that thecompany is hoping that it would achieve that in 2016 itself, but demonetisation had impacted sales towards the end of the year.

Bullish on the Indian market, he said: "In five years, India will be the number one market for Yamaha."

Spelling out the company's plans, Yamaha Motor India Sales Pvt Vice-President Roy Kurian said that out of the 1 million target for2017, 6 lakh will come from scooters and 4 lakh from motorcycles.

"We are targeting to sell around 8,000 to 9,000 units of the new FZ 25. Besides, our other model in premium segment R15 sellsaround 3,500 units a month," he added.

On exports, Asano said Yamaha is looking at over 2 lakh units this year, up from around 1.9 lakh units in 2016.

"Mostly, our exports are to neighboring countries like Nepal, Bangladesh and Sri Lanka ongoing with South America such asColombia and Argentina," he said, adding that the new FZ 25 will be for the Indian market primarily.

According to him, there has been a moderation in demand due to economic slowdown in some of the export markets.

"If there's demand for FZ 25 from other countries, we will export, but we have designed and developed this bike for India," Asanodisclosed. Asked about impact of demonetisation, he said sales were hit Initially, but these have recovered since.

"It is a temporary phenomenon. I am hoping that by the end of the month, everything will be normal. The buying power is still thereand customers are waiting," he added.http://www.deccanchronicle.com/business/autos/240117/yamaha-looks-at-1-million-units-of-india-sales-this-year.htmlYamaha eyes one million sales mark with newly-launched FZ225Daily News & Analysishttp://www.dnaindia.com/money/report-yamaha-eyes-one-million-sales-mark-with-newly-launched-fz225-2295718  

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Yamaha launches all-new FZ 25, 10 things to know before buying The Statesman

New Delhi: Japanese two-wheeler major Yamaha on Tuesday launched the all new FZ 25 bike here sporting a price tag of Rs.1.19lakh (ex showroom, New Delhi).

Eyeing a bigger share of the rapidly expanding 200-250cc segment market, deliveries for the all new Yamaha motorbike willcommence from the 1st week of February.

If you are in the market for a new bike, here are the top 10 reasons why you should consider the new FZ 25:1. The all new Yamaha comes with a new age 249cc, air-cooled, 4-stroke engine that produces 20.9 PS.2. Despite the powerful engine, the company claims that the bike returns a fuel efficiency of 43kmpl.3. The bike has a robust built along with a masculine appeal reflected on the chiselled fuel tank, muscular tank shrouds and alow-slung, sharp headlamp.

4. The new FZ 25 gets 282mm disc brake at the front and a 220mm brake at the rear.5. It has a wheelbase of 1360mm and is 2015mm in length, 770mm in width and 1075mm in length with a ground clearance of160mm.

6. The new bike receives beefy 43mm telescopic forks at the front and the monocross suspension at the rear.

7. It’s loaded with features like LED auto headlight and a LCD instrument cluster that only add bling to the bike but alsomake it safer.

8. The FZ 25 gets new split-spoke alloys with slightly wider tyres as compared to the smaller FZs.9. The new FZ 25 will be available in three colours- Ballistic Blue, Warrior White and Knight Black.10. The all-new bike is the most powerful Yamaha to be manufactured in India.http://www.thestatesman.com/business/yamaha-launches-all-new-fz-25-10-things-to-know-before-buying-1485258608.html  Yamaha launches 249cc sports bike FZ25The Times of Indiahttp://timesofindia.indiatimes.com/auto/launches/yamaha-launches-its-new-naked-sports-bike-fz25/articleshow/56755156.cms  

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TVS Motor Company reports 10.4% growth in Q3 FY17 PAT The Economic Times

Bangalore: Indian two wheeler manufacturer TVS Motor Company has registered 10.4 percent growth in its Profit After Tax (PAT)for the third quarter of financial year 2017 and stood at Rs 132.67 crore as against Rs 120.21 crore during same quarter last fiscal.

The company's total revenue grew to Rs 3239.55 crore in the quarter ended December 2016 as against Rs 3151.12 crore recordedin the quarter ended December 2015, thereby witnessing growth of 3 percent.

During the quarter ended December 2016, the overall two-wheeler sales of TVS Motor Company, including exports grew by 4percent to 7.03 lakh units as against 6.76 lakh units registered in the quarter ended December 2015.

Motorcycles sales registered 2.48 lakh units in the third quarter of 2016-17 as against 2.60 lakh units registered in the third quarterof 2015-16. Scooter sales during the quarter under review are 2.21 lakh units compared to 2.32 lakh units in the third quarter of2015-16.

The company exported 0.99 lakh units of two and three wheelers in the quarter under review as against 1.08 lakh units in the thirdquarter of 2015-16. Three wheelers registered sales of 16,081 units in the quarter under review as against 26,225 units in the thirdquarter of 2015-16.http://auto.economictimes.indiatimes.com/news/two-wheelers/scooters-mopeds/tvs-motor-company-reports-10-4-growth-in-q3-fy17-pat/56756683TVS Motor Q3 net rises 10% amid demonetisation impact on revenuesThe Hindu Business Linehttp://www.thehindubusinessline.com/todays-paper/tp-news/tvs-motor-q3-net-rises-10-amid-demonetisation-impact-on-revenues/article9500291.eceTVS Motor Q3 up 10.36% at Rs 132.67 croreDaily News & Analysishttp://www.dnaindia.com/money/report-tvs-motor-q3-up-1036-at-rs-13267-crore-2295740  TVS Motor net profit climbs 10.4%Financial Chroniclehttp://www.mydigitalfc.com/companies/tvs-motor-net-profit-climbs-104-627

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Indian two-wheeler riders\' sense on road signs very low: survey The Economic Times

New Delhi: Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) undertook a mammoth nationwide ‘Honda Road Sign IQSurvey’ with an objective to understand the level of awareness of road safety signs and behavior of two-wheeler riders inIndia.

Honda’s inaugural ‘Road Sign IQ Survey’ was conducted with participation from almost 1,500 two-wheelerriders across 10 key Indian cities during the National Road Safety Week.

Key facts: ‘Honda 2Wheelers Road Sign IQ survey’:

- As per Honda Road Sign IQ survey, 78% of Indian 2Wheeler riders cannot recognise even 50% of the road signs!

- Within the cities, Mumbai emerged as the most aware city with 79% two-wheeler riders able to correctly identify half of the roadsafety signs, followed by Pune (63%) and Bengaluru (41%).

- The survey calls for an urgent attention to basic riding sense as nearly 80% of Indian 2Wheeler riders are still un-aware about thedifference between cautionary and mandatory road signs.

- Nationally, 26% of women interviewed were recognised half the road signs, while the corresponding figure for men was 21%(despite men being majority riders even today).

Youth in the age between 20 to 24 year olds are most aware of the national road signs (31% aware of half the signs) confirms thesurvey while only 18% of the respondents in 25 to 44 age bracket could identify half the road signs. Interestingly, 30% those over 45

of years could also identify half the signs.

The survey also found that about 63% of the riders interviewed said that they wear helmet for their own safety. Enforcement bystate authorities (16% admitted they wear a helmet to avoid fines) and family insistence (due to family pressure another 16% wearhelmet) are the other two biggest motivators for Indian riders to wear helmets.

Elaborating on the survey findings and Honda’s efforts in the direction of road safety promotion, Mr. Yadvinder SinghGuleria, Senior Vice President - Sales and Marketing, HMSI said “Two-wheelers account of the highest fatalities (31.5%) dueto road accidents in the country. With a new two-wheeler coming on Indian roads every 2 seconds, ‘Safety forEveryone’ is Honda’s priority as a responsible corporate."

"Honda Road Sign IQ survey re-affirms that there is an urgent need to invest in behavioral change in Indian mindsets through roadsafety education. We have already educated over 10 lac people on road safety in India at Honda’s 11 adopted traffic parksacross India. A sizable 38% of these are kids as Honda aims to mould youth of today into responsible road users of tomorrow."http://auto.economictimes.indiatimes.com/news/industry/indian-two-wheeler-riders-sense-on-road-signs-very-low-survey/56759233

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Made-In-India Suzuki Gixxer 155 Exported To Japan Deccan Chronicle

Suzuki Motorcycles’ India-made motorcycle, the Gixxer 155, will be exported to the Japanese market. This is the firstIndia-made Suzuki motorcycle to be sold in Suzuki's home country. Suzuki has already shipped the first consignment of themade-in-India Gixxer motorcycles to Japan.

The Gixxer is powered by a 155cc, single-cylinder, air-cooled engine mated to a five-speed gearbox. The engine producesmaximum power of 14.8PS @8000rpm and peak torque of 14Nm @ 6000rpm. The motorcycle is available in two variants: nakedGixxer and faired Gixxer SF. Both the bikes also get fuel injection and rear disc brake as an option.

Commenting on the accomplishment Satoshi Uchida, Managing Director, SMIPL, said, “It is a very proud moment for all of usas we send off our Indian flagship motorcycle Gixxer to Japan. We are already exporting Gixxer to other countries like Latin Americaand some surrounding countries. The export of made in India vehicles to Japan denotes the high quality benchmarks established bySMIPL and its expanding global role. Exporting the Gixxer to Japan would also mean showcasing the advanced technology andsuperior quality standards within the competitive price range that have been developed by SMIPL in India. We are confident that theGixxer will be well accepted by Japanese consumer as well”.http://www.deccanchronicle.com/business/autos/240117/made-in-india-suzuki-gixxer-155-exported-to-japan.html

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Kawasaki launches KLX 140G at Rs 3.91 lakh Deccan Chronicle

After introducing a small off-roading motorcycle, the KLX 110, for kids, and two of its motocross bikes, the KX100, for beginners,and KX250F, for professional riders, Kawasaki has now introduced another off-roading motorcycle, the KLX 140G, which is targetedto teens. These motorcycles are not road-legal and can be only used on off-road tracks.

The KLX 140Gis powered by a 4-stroke, fuel-injected, 144cc engine. The high-revving SOHC motor gets a 58mm bore and 54.4mmstroke and comes mated to a five-speed transmission with manual clutch. The motorcycle gets push-button keyless ignitionelectricstart and 33mm telescopic forks at the front and a link-type Uni-Trak monoshock unit at the rear which is five-way preloadadjustable. The set-up provides a travel of around 180mm at both ends to soak up bumps without any trouble. It gets a box-style,high tensile steel frame. The handlebar is rubber-mounted to reduce vibrations and the motorcycle gets 2-stage engagement whichfacilitates half clutch use when riding at extremely low rpm or idling speeds.http://www.deccanchronicle.com/business/autos/240117/kawasaki-launches-klx-140g-at-rs-391-lakh.html

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E-Bikes

Components

Kapurs likely to steer away from Sona Koyo Arun KumarThe Economic Times

New Delhi: Japanese auto-component maker JTEKT Corporation is set to buy out Indian partner Sona Group’s 25% stake inSona Koyo Steering Systems for Rs 575-625 crore, ending their 32-year-old partnership, two people familiar with the development

told ET.

JTEKT is believed to have offered the Kapur family, which owns the Sona group, Rs 115-125 per share, valuing the joint venturecompany at Rs 2,300-2,500 crore, a more than 50% premium over its current capitalisation of Rs 1,450 crore.

Sunjay Kapur, the former husband of actress Karisma Kapoor, is the chairman of Sona Koyo and his father Surinder Kapur was thefounder chairman of the company.

The Sona Koyo Steering Systems spokesperson did not respond to emailed queries, phone calls and WhatsApp messages. JTEKTCorporation also did not respond to emailed queries. “The Japanese partner has offered a substantial premium as Indiaoffers much bigger opportunities in the auto- component sector. This proposed buyout is in line with the strategy of Japaneseauto-component makers who are trying to consolidate their presence in India by buying out their local partners.

These are mostly Maruti Suzuki vendors and similar deals will also take place in other auto-component joint ventures,” said aperson familiar with the development.

Both sides are hoping to enter into a binding agreement by next month, added this person. This will be the second split betweenlong-term Indian and Japanese partners in the automotive segment after Hero and Honda parted ways in 2010. Negotiations beganin 2015 when Surinder Kapur was still at the helm of affairs. His sudden death in July 2015 delayed the negotiation for more than ayear and discussions restarted in the second half of 2016.

The Indian promoter owns 25.28% of the joint venture company while the Japanese company owns 20.1%. Maruti Suzuki, which isa key customer of the company, owns 6.94% and the remaining stake is held by retail and institutional investors. After thecompletion of the deal, JTEKT will make an open offer for purchasing an additional 25% stake from existing investors under thetakeover code.

Sona Koyo Steering Systems, the flagship company of the Sona Group, is one of the largest manufacturer of steering systems forthe passenger car and utility vehicle market in India, catering to passenger cars, utility vehicles and light commercial vehicles. It wasoriginally set up to provide steering systems to Maruti Suzuki but has diversified its customer base over the years.

JTEKT Corporation (formally known as Koyo Seiko Co Ltd) is the market leader in Japan and in the recent past announced amerger with Toyota Machine Works. Post this merger, JTEKT will become the world's largest steering systems manufacturer. SonaKoyo’s customers include major vehicle manufactures in India such as Maruti Suzuki, Toyota, Hyundai, Tata Motors,Mahindra & Mahindra, General Motors and Mahindra-Renault. Independently, as well as through its network of overseas jointventure partners, it exports high-quality precision products to USA, Europe and Japan.http://economictimes.indiatimes.com/industry/auto/news/auto-components/kapurs-likely-to-steer-away-from-sona-koyo/articleshow/56768428.cms

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Indian auto component Inc expects Union Budget 2017 to uplift market sentiments The Economic Times

New Delhi: The Indian automotive components industry expects the forthcoming Union Budget 2017 to uplift the market sentimentswhich will allow for growth and development of the sector.

Rattan Kapur, President, Automotive Component Manufacturers Association (ACMA), said, “Achieving world-class qualityand new product development will only be possible in the auto component industry by enhancing spend on R&D and creatingrelevant infrastructure for innovation."

"That apart, while we are eagerly awaiting the announcement of Goods and Service Tax (GST) implementation, it critical that theGST rate on auto components is low and a reasonable transition period is extended to the industry to effectively adapt to thechanges in the taxation environment.”

ETAuto had earlier reported about ACMA's expectations from Union Budget 2017. Apart from increasing the rate of weighteddeduction on R&D spend to 200 percent, the industry body has also asked to keep auto components at 18 percent rate in the GSTrather than the 28 percent higher rate.

Added to this, it has also asked to provide adequate transition time for MSMEs to adopt GST. MSMEs may find immediateimplementation and necessary compliance to GST an impediment. Thus, a transition period of 1-2 years be given to the MSMEsector to understand the provisions of the law and meet necessary compliance norms, said ACMA in an official statement.

The Union Budget 2017 should also eliminate or reduce customs duty on Alloy Steel, Mild Steel, Aluminium Alloy, SecondaryAluminium Alloy, Copper Wire. Customs Duty on these raw materials is higher than that on finished auto components due to TradeAgreements and Antidumping/Safeguard duty.

ACMa further added, current depreciation rate of 15 percent does not assist auto companies in meeting the objective of timelyaccumulation of funds for replacement of assets. The rate should be increased to at least 25 percent, and to 40 percent fordomestically manufactured capital goods to encourage local manufacturing.http://auto.economictimes.indiatimes.com/news/auto-components/indian-auto-component-inc-expects-union-budget-2017-to-uplift-market-sentiments/56754358

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Allied Industries

AIRIA calls for increasing raising import duty on finished rubber goods The Economic Times

Kochi: Alleging substantial increase in import and dumping of finished rubber goods in India, rubber MSMEs have asked forincrease in import duty on finished rubber goods to 30 per cent. Currently the import duty on rubber manufactured products rangesbetween nil to 10 per cent.

According to All India Rubber Industries Association (AIRIA), overall import of rubber products in India has gone up 120 per centfrom Rs 4,180 crore to Rs 9,202 crore in four years to 2015-16.

"India levies amongst the highest duties on import of raw materials and one of the lowest duties on import of finished rubber goods.This inverted duty structure is leading to a surge in import of finished goods. Of the total import of finished goods, as much as 80-90per cent is avoidable as domestic rubber manufacturing units have capabilities to meet the demand but low import duties on rubberproducts especially under FTAs has led to indiscriminate imports in the country", said Kamal K Chowdhury, president AIRIA.

According to AIRIA, the finished products can be easily imported as the import duty on rubber products is between 0 and10 percent, while the duty on raw materials for rubber industry is between 5 per cent and 70 per cent. Not only import duty on rawmaterials is higher, the duty is levied even on those raw materials which are not produced in the country thereby increasing the costof production in India.

Finished products made from natural rubber are imported at nil rate of duty from Asian countries like China, Sri Lanka etc whereasNatural Rubber is imported at 25 per cent or Rs.30/kg whichever is lower. Balloons, Gloves & Dipped products made from LatexRubber are imported at 8 per cent duty from Asian countries like China, Sri Lanka etc whereas Latex Rubber is imported at 70 percent, AIRIA has stated.

Even when compared to other rubber consuming nations, import duty on finished rubber goods is lowest in India facilitating importof goods to India. For instance on tubes, pipes and hoses, the import duty in China is 10 per cent and above, in India, these can beimported at 6 per cent. Rubber rice de-husking rolls, widely used in rice mills across the country, can be imported duty free in Indiawhile China employs up to 80 per cent duty on the same.http://economictimes.indiatimes.com/industry/auto/news/tyres/airia-calls-for-increasing-raising-import-duty-on-finished-rubber-goods/articleshow/56758936.cms

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Emissions / Environment

Finance & Insurance

Ashok Leyland finance arm raises Rs250 crore through rights issue Swaraj Singh Dhanjalmint

Mumbai: Hinduja Leyland Finance Ltd (HLF), the commercial vehicle financing unit of Ashok Leyland Ltd, has raised Rs250 crore(about $37 million) from existing investors—Hinduja group entities and private equity investor EverstoneCapital—through a rights issue, two people aware of the development said.

HLF is owned by Ashok Leyland and other entities of the Hinduja Group.

“The rights issue saw participation from all existing shareholders including Ashok Leyland Ltd and Everstone Capital. AshokLeyland being the largest shareholder, invested around Rs145 crore through the rights issue,” said one of the two peoplecited above, requesting anonymity, as he is not authorized to speak to reporters.

Ashok Leyland held a 57.43% stake in HLF as of March 2016. All Hinduja group entities together owned around 84.63%, whileEverstone Capital held a 14% stake.

In July 2013, Mint reported that Everstone had invested Rs200 crore in Hinduja Leyland Finance Ltd. Everstone is an India- andSoutheast Asia-focused private equity and real estate investment firm with assets under management of $3.3 billion.

According to the first person cited above, the funds raised through the rights issue will help improve the lender’s capitaladequacy ratio. “At the start of the current financial year, the company’s capital adequacy ratio stood at a little over16%, as against the statutory requirement of 15%,” he added. At the end of the financial year 2014-15, the firm’scapital adequacy ratio stood at 19.67%.

The rights issue was necessitated because of a delay in the company’s initial public offering (IPO) in view of the impact ofthe government’s move to replace high denomination currency notes, said the second person cited above, also requestinganonymity.

“They received Sebi’s approval for the IPO almost seven months ago in June last year, and the company was initially

planning to wrap up the IPO by December. However, the plan was delayed due to demonetisation and its impact on the marketsand consumer sentiment,” he said. HLF’s Sebi approval is valid until June this year.

In March 2016, HLF filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi)accordingto the draft prospectus. Everstone Capital also planned to sell part of its stake through an offer for sale in the IPO . HLFplanned to raise primary capital to the tune of Rs500 crore through the IPO,

Including the primary offer and the offer for sale, the total size of the IPO is expected to be around Rs700 crore, Mint reported.Everstone declined to comment.

“We have raised funds through a rights issue to improve the capital adequacy ratio,” said S. Nagarajan, managingdirector at Hinduja Leyland Finance, adding that the company continues to work on its IPO.

The company was incorporated in 2008 as a non-banking financial company with the Reserve Bank of India. It provides customizedfinance for utility vehicles, tractors, cars and two wheelers among other vehicles, focusing on the semi-urban and rural sector.

For the year ended 31 March 2016, HLF’s revenue grew by 41% to Rs1,145.69 crore from a year earlier, documents filedwith the registrar of companies show. In the same period, profit grew 34.5% to Rs150 crore.

In 2015-16, HLF witnessed a 37% growth to Rs7,075 crore from the previous year’s disbursement of Rs5,125 crore. Assetsunder management (AUM) grew by a little over 50% to Rs10,001 crore, the documents show.http://www.livemint.com/Industry/Jdo3TTdKDK5qrncYjT1gHO/Ashok-Leyland-finance-arm-raises-Rs250-crore-through-rights.html  

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SBI General launches long-term insurance for two-wheelers The Financial Express

Mumbai: Riding on the success of long-term two-wheeler policy, SBI General has announced the launch of Long Term TwoWheeler Insurance policy. Earlier, insurance companies like ICICI Lombard, HDFC Ergo, Bajaj Allianz General Insurance and NewIndia Assurance had launched similar products where premiums are paid upfront for two or three years.

It has been more than one and a half years since such long-term two-wheeler policies were launched after the Insurance Regulatoryand Development Authority of India (Irdai) allowed insurers to bring out long-term two-wheeler policy (both liability alone andpackage) for a maximum of three years.

Commenting on the launch of the new policy, Puneet Sahni, head of product development at SBI General Insurance, said,“While the two-wheeler segment is set for growth and a large customer base with a break- in policy, it is extremely significantfor us to introduce a comprehensive two-wheeler policy. This will inspire riders to not only buy insurance but also renew their policyregularly as the process is hassle-free. We are confident that our ‘Long Term Two-Wheeler Insurance’ policy willcater to all the needs of a rider, thus, creating a secure position for us within the two-wheeler insurance category.”

Other features of the SBI General Two Wheeler Policy include coverage for any third party permanent injury/ death caused by theinsured vehicle and personal accident cover for the owner/ driver of the vehicle. Additionally, in case of third party liability anydamage caused to the property (excluding vehicle) of some other individual by the insured vehicles covered up to Rs 1 lakh in caseof Two-wheeler.

Senior officials in the industry claim that, this segment has seen premium in the range of Rs 300-500 crore. All motor vehiclesrunning on Indian roads are required to compulsory have third-party insurance covers to protect against liability to third parties dueto accident and damages. However, own damage insurance covers are optional.http://www.financialexpress.com/money/insurance/sbi-general-launches-long-term-insurance-for-two-wheelers/521080/  

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Oil, Lubricants & Alternative Fuels

Oil prices rebound on weaker dollar, production cuts ReutersSee this story in: The Hindu Business Line

Singapore: Oil climbed on Tuesday as a weaker US dollar and production cuts announced by OPEC and other producers buoyedthe market, but an increase in drilling activity in the United States is likely to keep a lid on prices.

Brent crude, the international benchmark for oil prices, was up 38 cents, or 0.7 per cent, at $55.61 a barrel by 0741 GMT. US WestTexas Intermediate (WTI) crude futures added 37 cents to $53.12 a barrel.

The dollar wallowed near seven-week lows, pressured by concerns about the impact of US President Donald Trump’sprotectionist trade stance.

A weaker dollar makes greenback-priced commodities cheaper for importers holding other currencies.

Ministers representing members of the Organization of the Petroleum Exporting Countries and non-OPEC producers had said at ameeting in Vienna on Sunday that of the almost 1.8 million barrels per day (bpd) they had agreed to remove from the marketstarting on January 1, 1.5 million bpd had already been cut.

Bernstein Energy said global oil inventories declined by 24million barrels to 5.7 billion barrels in the fourth quarter of last year fromthe previous quarter. Still, this amounts to about 60 days of world oil consumption.

“This is the biggest quarterly decline since the fourth quarter of 2013, confirming that inventory builds are now reversing asthe market shifts from oversupply to undersupply,’’ it said in a note.

Iraq’s oil minister had said on Monday that most oil majors working on its territory were participating in oil output reductionsagreed as part of the deal.

The reduction in supply by oil majors is being offset by an increase in US production.

US drillers added the most rigs in nearly four years, data from energy services company Baker Hughes showed on Friday,extending an eight-month drilling recovery.

The country’s oil production has risen by more than 6 per cent since mid-2016, though it remains 7 per cent below the 2015peak. It is back to levels seen in late 2014, when strong US crude output contributed to a crash in oil prices.

Fawad Razaqzada, an analyst for Forex.com, said it could take a while before the impact of higher US production is felt in themarket.

“Shale producers may allow the oil market to fully rebalance before increasing production once again,” he said.http://www.thehindubusinessline.com/markets/commodities/oil-prices-rebound-on-weaker-dollar-production-cuts/article9498690.ece

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News Magazines

All-new Volvo XC40 to debut in April Autocar India

The Geneva motor show has been a big affair, with automakers from across the globe using the event to launch their latestproducts and concepts on to the global stage. While many automakers are set to make big launches at the show this year, Volvoseems to be considering otherwise with the all-new XC40.

Volvo’s 40-series crossover is expected to make its global debut at the Shanghai auto show in April this year with the debutexpected to coincide with the launch of the production 01 SUV from its Chinese sister brand Lynk & Co. As per reports, both modelsare expected to be manufactured side-by-side in a new facility in China, with the all-new Volvo S40 expected to join at a later stage.

Volvo previewed the next-gen 40 series models with two concepts – the 40.1 and 40.2 concepts – at an event inSweden in May last year.

Owned by Geely, Volvo and Lynk & Co share the CMA platform, with the latter developing an SUV and a sedan on the sharedmodular platform.

For Geneva, though, Volvo is expected to debut the next-gen XC60 SUV. The all-new model will be underpinned by the SPAplatform from the 90-series models and is expected to be available with a choice of petrol, diesel and hybrid powertrains.http://www.autocarindia.com/auto-news/all-new-volvo-xc40-to-debut-in-april-404020.aspx

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2017 Geneva Motor show preview Autocar India

The Geneva motor show is one of the largest and most prestigious auto shows in the motoring calendar, and often plays host to thedebuts of the world’s finest supercars.

Take a look below to see what’s Geneva-bound this year.

Ferrari F12 MFerrari’s replacement for the F12, the F12 M, will be the first of the supercars to be revealed at Geneva in March. So far,it’s only been seen testing under heavy disguise, so the car’s first full visual will be seen at the show. Power isexpected to creep closer to the F12tdf’s 780hp.

Jaguar XF SportbrakeJaguar confirmed its XF Sportbrake estate at the Paris motor show with an image of the car in testing prototype guise. It’llshare engines with the standard XF for international markets, meaning a 2.0-litre diesel and 3.0-litre V6 petrol and diesel engines

will make up the engine range. It’s unlikely to get an XF R Sportbrake variant to rival the Mercedes-AMG E 63 S estate,though.

Kia PicantoKia already unveiled the Picanto ahead of the Detroit motor show. The smallest Kia gets a fresh new look, more upmarket interiorand updated technology and safety features. A sporty GT-Line trim also features, but a full-fat GT isn’t coming off the back ofit.

Range Rover CoupéLand Rover’s first new niche since the extended-wheelbase Range Rover, the coupé – as the name suggests– will take away some of the practicality of its standard SUV sibling in exchange for some visual drama. True to form, LandRover officials are keeping the model under close wraps until Geneva.

Lamborghini Huracán PerformanteLamborghini’s lightweight Huracán variant will be at Geneva, and it’s believed to be making its appearance in bothcoupé and Spyder variants. The significant weight reduction should push the car’s top speed up, and its 0-100kph timedown.

McLaren P14McLaren will show the replacement for the 650S – codenamed P14 – at Geneva. It’ll get an evolutionary newlook and will likely get a great deal more power. McLaren did reveal the car’s carbonfibre monocoque ahead of the show, butit’s unlikely we’ll see any more of the car officially until then.

Pagani Huayra RoadsterPagani confirmed the Huayra Roadster's place at the Geneva motor show this year with two preview images showing fragments ofthe car. The hardtop Huayra is powered by Pagani’s bespoke 6.0-litre twin-turbo V12, producing 740hp and 1,000Nm, andit’s very likely that the Huayra Roadster will share this engine in unaltered form.

Porsche 911 GT3 faceliftIt’s been spotted testing numerous times, but Geneva will be the show at which the 911 GT3 will be officially unveiled infacelifted form. The car will gain the option of a manual gearbox, but will retain the 3.8-litre engine of the current GT3, without theaid of turbocharging.

Seat AronaThe Seat Arona will also be unveiled at the Geneva motor show before going on sale internationally in December. Seat says thesmall SUV is one of the most important models it’ll build. The Ibiza, on which the Arona is based, is slated for aninternational launch earlier, though.

2017 Suzuki SwiftNumerous leaks lead up to the Swift’s Japanese reveal at the end of 2016, but its motor show debut comes at Geneva,where the European-spec supermini will be revealed. A hybrid powertrain is amongst the options expected to make it to Europe.

However, in India it’s expected to continue to use the same 1.2-litre petrol and 1.3-litre diesel engine as the current car,though the diesel engine might be tuned to produce more power. The next-gen Swift will likely reach our shores in mid-2017.

Techrules GT96Chinese EV company Techrules first previewed its innovative turbine-recharging EV at last year’s Geneva show, but theproduction-ready version will officially be revealed in March. The power output for the concept was mooted at 1,044hp, with0-100kph coming in 2.5sec and a 349kph top speed. An electric-only range of 150km was also claimed, as was the moreimpressive 1,931km of total range.

Toyota Yaris hot hatchThe Yaris hot hatch hasn’t been named yet, but it’s rumoured to be named after Toyota’s Gazoo motorsportoutfit. It’s been revealed already, but it’ll get the full Geneva motor show reveal treatment in March, before going onsale in international markets later this year. It’s already confirmed to have more than 213hp.

Volvo XC60Volvo has withdrawn from all but three motor shows in the calendar, so the Geneva motor show is the most likely recipient of thenew XC60 small SUV. Spy shots indicate that it is likely to draw quite heavily from its XC90 sibling, but Geneva will be the first timeit will be seen in full – if Volvo doesn’t choose to reveal it beforehand.

Volkswagen ArteonVolkswagen’s replacement for the CC moves another step away from its Passat variant roots with a new name but the samecoupe-like styling. There are whisperings of a shooting brake variant too.

Volkswagen T-RocVolkswagen’s small SUV will be revealed In Geneva, and is most likely to draw inspiration from the T-Roc concept first seenat the Geneva show back in 2014. A lot has changed since then, so the car may be quite different to its concept precursor.

AlpineRenault will bring its Alpine sports car, which will be made under a brand of the same name, to the Geneva motor show. It'll be thefirst time the production version of the car will be seen in the metal.

Citroën C3 Picasso replacementCitroën's C3 Picasso replacement is expected for Geneva this year, alongside its sister car, the Vauxhall Crossland X. Both shareplatforms and engines. From spy shots it's clear to see it adopts Citroën's new family face.

Dendrobium electric hypercarSingapore's first hypercar gets help from Williams F1 tech, although little else is known. It'll challenge the AM-RB 001 andMercedes-AMG Project One hypercars when released, and is likely to be built in very limited numbers.

Mitsubishi's Qashqai rivalMitsubishi is late to the 'Qashqai rival club', but it's a car which could turn the ailing carmaker's fortunes around under newRenault-Nissan management. It's expected to have a look derived from the brand's XR-PHEV concept car, first seen in 2013.

Nissan Qashqai faceliftNissan announced at last year's Geneva show that the Qashqai is slated for an international launch this year, and it's alreadyconfirmed to arrive with Nissan's single-lane autonomous tech, named ProPilot. A premium-baiting Tekna+ trim will join the range,and will challenge the Audi Q3 when it's revealed this year.

Vauxhall Crossland XA string of teasers have already revealed some of the new Vauxhall Crossland X’s design. The new SUV is due to get apre-show reveal - likely in Opel form – at Geneva this March.http://www.autocarindia.com/auto-news/2017-geneva-motor-show-preview-403982.aspx/0

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Maruti Dzire Allure special edition launched Autocar India

Maruti has added a new limited-run special edition model to its Dzire line-up called the Dzire Allure. The special edition model isavailable in a choice of six exterior colours and across all variants of Maruti’s popular compact sedan.

Cosmetic changes to the car’s exterior include added chrome detailing, new side skirts, body graphics and achrome-finished Allure badge on the boot lid.

Inside, the Allure edition features dual-tone seats and steering cover, door sill guards, ambient footwell lighting, new floor mats anda front centre armrest. The cabin also comes finished with faux wood inserts on the dashboard and doors. Also offered is anoptional Hertz audio system, including speakers, woofer and an amplifier.

Being available in all variants, the Dzire Allure can be had either with the 84hp 1.2-litre petrol engine paired with either a five-speedmanual or a conventional four-speed automatic gearbox or with the 1.3-litre DDiS diesel engine developing 75hp. The diesel motoris offered with a five-speed manual gearbox as standard, with the option of a five-speed AMT unit on the top variant.

As per dealers, the special edition kit can be had for an additional cost of between Rs 27,000 to 38,000, with the latter cost for thecar equipped with the optional audio system.

Maruti is also on track to launch an all-new Dzire sometime later this year with the third-gen model currently undergoing testing.http://www.autocarindia.com/auto-news/maruti-dzire-allure-special-edition-launched-404038.aspx

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Yamaha aims to make India second-largest market by end-2017 Autocar India

”Yamaha has set its sight on making India the second-largest market for it’s two-wheelers by end-2017, and has set asales target of one million units this year. Indonesia is currently Yamaha’s No 1 market with sales of 1.45 million units inCY2016.

If everything goes as per plan, Yamaha’s subsidiary company India Yamaha Motor’s management team believesIndia will ride past Vietnam, the current No. 2 for Yamaha with sales of 8,00,000 units in CY2016. In 2016, India Yamaha Motor solda total of 7,80,000 two-wheelers, with 53 percent of them being scooters. This year, the company is gunning for a million sales, witharound 6,00,000 of them being scooters.

According to Masaki Asano, MD, Yamaha Motor India sales, India Yamaha Motor should become the No. 1 in about five years. Thecompany is likely to reach peak manufacturing capacity of 1.8 million units per annum at its three plants in the country. While theSurajpur and Faridabad plant in Haryana have similar capacities of 7,00,000 units each, the Chennai plant has a manufacturingcapacity of 4,50,000 units per annum.

Speaking at the launch of the new FZ25 today in New Delhi, Asano said that India is the first and only market to produce thismotorcycle. The company will, if needed, export this made-in-India product. Nevertheless, Yamaha is targeting export sales of over2,00,000 units this year.http://www.autocarindia.com/auto-news/yamaha-aims-to-make-india-second-largest-market-by-end-2017-404036.aspx

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GM’s Gujarat plant sale edges closer to fruition Autocar India

The acquisition of General Motor’s Halol plant by a subsidiary of SAIC Motor Corp, China’s largest automaker, hasinched closer to completion, with the Competition Commission of India (CCI) clearing the proposed acquisition, according to reports.

In line with its decision to stop production at its plant in Halol, Gujarat, which was set up in June 1996, GM was scouting around fora buyer for it. Around end-2016, it is learnt that a subsidiary of SAIC Motor Corp applied to the Competition Commission of India(CCI) to acquire these assets of GM India.

“Discussions with SAIC on the sale of Halol are progressing well. We continue to work with our employees on theimplications of a sale and with the Government to secure necessary approvals,” a GM India spokesperson told Autocar India.

General Motors, which has two plants in India, one at Halol in Gujarat and other at Talegaon near Pune, said last year that its Halolfactory would function only until March 2017. The Halol plant has an annual manufacturing capacity of over 1,30,000 units whileTalegaon is reported to manufacture over 1,60,000 units. Both plants have a very low capacity utilisation and by selling off the Halolplant, the carmaker will aim to strengthen its operations at Talegaon and turn around its volumes in India. Sales duringApril-December 2016 declined to 20,888 units, from 24,479 units a year ago with market share contracting to 0.93 percent from 1.18percent for the same period.

Moreover, it has put on hold its planned investments on new models for India as the company undertakes a full review of its futureproduct portfolio for the country, according to the spokesperson.

“As we stated publicly in July 2016, given the shift in customer preferences in India, we are conducting a full review of ourfuture product portfolio and have put on hold future investment in our all-new vehicle family for the market until we firm up ourproduct portfolio plan,” the company spokesperson said.

As a part of GM's effort to strengthen presence in the emerging market, Mary Barra, CEO of GM, had announced an investment of$1 billion in India, with plans to introduce 10 new models in the next five years. This investment was a part of the company's globalplan to invest $5 billion to strengthen business in emerging markets through the development of an all-new vehicle family.

The investment was going to be made at the carmaker's Talegaon plant, where it announced plans to ramp up production to2,20,000 units by 2025.

“Moving forward, our priority remains to establish the right business conditions for sustainable profitability. We areconsolidating our manufacturing operations in Talegaon for both domestic market and exports. Exports continue to be an importantaspect of our operations in India indeed. In 2016, GM India more than tripled exports compared to 2015 with 69,390 ChevroletBeats shipped to Central and South America," the spokesperson further added.

GM's original plan, as announced in July 2015, was to launch 10 new models in India across the next five years, beginning with theTrailblazer SUV in October 2015 and the Spin MPV in early 2017. The Trailblazer SUV was first of the new models to be launched,when it was rolled out in October. But plans to launch the Spin MPV, which was expected to be carried out in early 2017, wereshelved last year. Plans are also underway to introduce the new Cruze, the Beat hatchback, as well as the Beat notchback.http://www.autocarindia.com/auto-news/gm8217s-gujarat-plant-sale-edges-closer-to-fruition-404023.aspx

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Yamaha R15 V3.0 revealed Autocar India

Yamaha has revealed the new R15 V3.0 at an event in Indonesia. The new bike gets a noticeable change to styling along with theinclusion of some first-in-segment features. It has also grown in size as compared to the R15 V2.0 that's currently on sale in thecountry, but with a shorter wheelbase. The bike also features an all-new engine that makes it one of the most powerful bikes in the150cc segment.

The styling of the R15 in line with the previous-generation YZF-R6, and we can't help but feel that there's a slight tinge of a HondaSupersport design in there. The front fascia is entirely new and features angular LED headlamp units separated by a central vent.The fairings have also been tweaked, while the fuel tank is at 11 litres as against the V2.0’s 12 litres. And, unlike itspredecessor, that had an analogue tachometer, the V3.0's instrument cluster is now fully digital.

In terms of size, the new R15 V3.0 measures 1,990mm in length, 725mm in width and 1,135mm in height, making it 30mm longer,55mm wider and 65mm taller than before. The wheelbase, however, has shrunk from 1,345mm to 1,325mm which should make thebike feel more agile. The seat height has also gone up from 800mm to 815mm, which should provide a more aggressive ridingposition, reiterating the fact that this R15 V3.0 takes its racing pedigree very seriously. The new bike weighs 137kg, 1kg more thanthe R15 V2.0.

Powering the new R15 V3.0 is a new 155cc, single-cylinder, liquid-cooled, fuel injected engine capable of developing 19.3hp and14.7Nm of torque. The engine is also equipped with Yamaha’s VVA (Variable Valve Actuation) technology to help improveperformance at higher revs, allowing Yamaha engineers to infuse the bike with a more tractable powerband. It also features ahigher compression ratio as compared to the current bike’s 149cc engine.

The bike also sits on meatier 100/80-17 and 140/70-17 tyres at the front and rear, respectively. Handling the suspension duty on thenew R15 V3.0 is a new upside-down fork at the front, while the rear caries on using a mono shock. The new suspension setupshould make for an even better handling package. Yamaha has also included a slipper clutch for faster gearshifts.

Yamaha is expected to bring the new R15 V3.0 to India sometime later this year, and while we haven't received information on the

changes that will be carried forward from the international bike, it is likely to be priced competitively.http://www.autocarindia.com/auto-news/yamaha-r15-v30-revealed-404034.aspx

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Peugeot plans India comeback Autocar India

The PSA Group is said to be seriously considering manufacturing cars in India, this time under a joint venture with the CK BirlaGroup.

According to a report in the French financial daily, Les Echos, the PSA Group has inked an alliance with the CK Birla Group to makea re-entry into the Indian market. Specific details of the tie-up are likely to be given on Wednesday morning by Carlos Tavares,chairman, Groupe PSA.

As per the plan, the two new partners will set up a joint venture which will integrate the Hindustan Motors plant in Chennai. Oursister publication Autocar Professional had reported on June 10, 2015 about Peugeot's plan to enter India by 2018-19 through theassembly or contract manufacturing route. There was also a newspaper report in October 2015 that the French company was intalks with Tata Motors to re-enter India. In its first innings in India, which ended in late 1997, Peugeot had partnered PremierAutomobiles. The second attempt was made independently in 2011, with a plan to set up a plant with an initial annual productioncapacity of 1,70,000 units. Financial woes forced the company to put it on the backburner. But the Indian market continued to attractPeugeot's interest.

In September '14, the French carmaker formed a new 'India-Pacific' business zone comprising of India, SAARC countries, Japan,Korea, Australia and New Zealand. This is the fifth geographical business zone of the company and the only one without a singlemanufacturing unit. It is likely that Peugeot may now tap the India base for both domestic and export markets.

India in 'Push to Pass' growth plan

The PSA Group had in April 2016 revealed its aggressive ‘Push to Pass’ growth plan for the 2016-2021 period. Indiais part of this plan as per which, the carmaker is targeting a partnership deal by 2018 and a product launch before the end of 2021.India, expected to become the world's third largest car market by 2020, could well play a crucial role in Groupe PSA's vision to be“a great global carmaker with cutting-edge efficiency and the preferred mobility provider worldwide for lifetime customerrelationship". It is likely the French carmaker has advanced its India entry plan with this tie-up with the CK Birla Group. Stay tunedfor more details.http://www.autocarindia.com/auto-news/peugeot-plans-india-comeback-404031.aspx

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International News

Tesla to install thousands of electric car-charging stations in Australia IANSSee this story in: The Economic Times

Sydney: US-based driverless car company Tesla along with facilities management firm Spotless Group is set to install thousands ofelectric car-charging stations across Australia.

The move comes as Spotless tries to re-brand itself as a technology solutions firm for corporate clients, Xinhua news agencyreported on Tuesday.

Tesla and other battery storage and electric car firms are hoping to install the required infrastructure to allow for a roll-out of theirvehicles into the Australian market.

Early estimates suggest over 5 million vehicles will be electric powered in Australia by 2030.http://auto.economictimes.indiatimes.com/news/industry/tesla-to-install-thousands-of-electric-car-charging-stations-in-australia/56759853

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German auto supplier SHW plunges on loss of electric car order ReutersSee this story in: The Economic Times

Berlin: German automotive supplier SHW Automotive GmbH said a maker of electric cars had cancelled a 100 million euro ($107million) order, sending its shares down as much as 9.5 percent to a four-month low on Tuesday.

SHW, which assembles pumps and engine components as well as brake discs, said the customer - which it didn't name - hadcancelled an order awarded last September, and asked SHW to stop preparations for production, originally due to start in the first

half of this year.

SHW said the customer felt technical specifications for axle-drive pumps failed to meet its requirements.

However, SHW said it did not accept this reason and reserved the right to seek damages.

Shares in Aalen, Germany-based SHW were down 7.5 percent to 30.12 euros at 1321 GMT, having traded as low as 29.49 euros.

Spokespeople in Germany for Renault-Nissan and Toyota - both major manufacturers of electric vehicles - didn't return callsseeking comment, while a spokeswoman for U.S. luxury electric automaker Tesla had no immediate comment.($1 = 0.9309 euros)http://auto.economictimes.indiatimes.com/news/auto-components/german-auto-supplier-shw-plunges-on-loss-of-electric-car-order/56764630

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Donald Trump meets U.S. automakers, urges them to make new plants ReutersSee this story in: The Economic Times

Washington: U.S. President Donald Trump pushed the chief executives of General Motors Co, Ford Motor Co and Fiat ChryslerAutomobiles NV on Tuesday to increase production in the United States and boost American employment.

Trump opened a meeting with GM CEO Mary Barra, Ford CEO Mark Fields and Fiat Chrysler CEO Sergio Marchionne at the WhiteHouse, saying he wants to see new auto plants built in the United States.

"We have a very big push on to have auto plants and other plants," he told reporters.

The new Republican president, who took office last Friday, vowed to cut regulations and taxes to make it more attractive forbusinesses to operate in the United States.

"I want new plants to be built here for cars sold here!" Trump said in a tweet ahead of the meeting with automakers, saying hewould discuss U.S. jobs with the chief executives.

U.S. automakers have been reluctant to open new U.S. auto plants in recent years, but they have expanded some operations atexisting plants.

Trump has criticized automakers for building cars in Mexico and elsewhere and has threatened to impose 35 percent tariffs onimported vehicles.

The meeting is the latest sign of Trump's uncommon degree of intervention for a U.S. president into corporate affairs as he hasrepeatedly pressured automakers and other manufacturers to "buy American and hire American."

Tuesday's gathering was the first time the CEOs of the big three automakers have met jointly with a U.S. president since a July2011 session with former Democratic President Barack Obama to tout a deal to nearly double fuel efficiency standards to 54.5 milesper gallon by 2025. Fiat Chrysler is the Italian-American parent of the former Michigan-based Chrysler.

White House spokesman Sean Spicer said on Monday that Trump was looking forward at the meeting "to hearing their ideas abouthow we can work together to bring more jobs back to this industry."

U.S. and foreign automakers have been touting plans to boost American jobs and investments in the face of Trump's comments.Trump, a New York real estate developer, often singled out Ford's Mexico investments for criticism during his election campaign.http://auto.economictimes.indiatimes.com/news/industry/donald-trump-meets-u-s-automakers-urges-them-to-make-new-plants/56764752

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U.S. judge approves VW dealers $1.2 billion settlement ReutersSee this story in: The Economic Times

Washington: U.S. District Judge Charles Breyer on Monday granted final approval to Volkswagen AG's settlement worth up to $1.21billion with 652 U.S. dealers over its diesel emissions scandal.

VW's dealers will receive an average of $1.85 million each over 18 months under the settlement. VW also agreed to keep makingvolume-based incentive payments to dealers, and will allow them to defer capital improvements for two years.

In total, VW has now agreed to spend up to $22 billion in the United States to address claims from owners, environmentalregulators, U.S. states and dealers stemming from the excess vehicle emissions.http://auto.economictimes.indiatimes.com/news/industry/u-s-judge-approves-vw-dealers-1-2b-settlement/56746742

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Paris rolls out colour-code stickers for cars to curb pollution ReutersSee this story in: The Economic Times

Paris: The French capital on Monday launched a new colour-coded sticker scheme to restrict car use in its latest attempt to curb airpollution many Parisians blame for coughing fits, eye irritation and runny noses.

The "Crit'Air" system bans all diesel-fuelled cars registered between January 1997 and December 2000 - identifiable by a greysticker on the windscreen - from the capital. About 6 percent of France's 32 million cars fall into this category.

Paris Mayor Anne Hidalgo said she hoped to get the ban extended from Tuesday to vehicles registered between 2001 and 2005 -colour-coded brown and comprising 14 percent of France's car fleet - to better fight the smog problem. It was not clear whether afinal decision had been taken by late on Monday.

Pollution from vehicles in the City of Light often builds up into a greyish haze over the city and is becoming an increasing concern tolocal health authorities.

An offer of free public transport when smog levels are high has had only limited success. Authorities have also tried to restrictvehicles entering the capital during air pollution spikes on the basis of licence plates.

A spokeswoman for the Paris municipal authorities said police would find the colour-coded scheme easy to operate. She was notable to estimate how many cars would be affected in the city.

Hidalgo has also increased the cost of parking, banned free parking on Saturdays and the August holiday period, and is turning ahighway on both banks of the Seine into a riverside park.

On Monday, several areas of France were shrouded by high levels of ultrafine and health-harming particles emitted by cars,particularly those with diesel engines.

"I can really feel the pollution. I have young children and I can see it on their skin and hair. It's such a shame that in Paris, which wecall the City of Light, we're not able to fix this problem," one Parisian, Marie, told Reuters Television.

"I never cough but today I've had coughing fits, I have a runny nose, it's really not nice," said Henriette Robine, another Parisian.http://auto.economictimes.indiatimes.com/news/industry/paris-rolls-out-colour-code-stickers-for-cars-to-curb-pollution/56746858

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NAFTA could revive debate over what makes a car \'American\' ReutersSee this story in: The Economic Times

Detroit: Some of the most popular and profitable vehicles sold in the United States by Detroit's automakers are imported fromMexico, a reality that highlights the risks for the auto industry as the Trump administration pushes to overhaul trade policy.

President Donald Trump has scheduled a breakfast on Tuesday with the chief executives of Detroit automakers General Motors Co,Ford Motor Co and Fiat Chrysler Automobiles NV to talk about bringing more manufacturing jobs to the United States, the WhiteHouse said on Monday.

Trump campaigned on a pledge to renegotiate the North American Free Trade Agreement and said on Monday he would meetleaders of NAFTA partners Mexico and Canada at an "appropriate time" to get the process started.

Auto industry officials expect Trump to urge Canada and Mexico to agree to new tougher "rules of origin" that would require a higherpercentage of North American content to be considered tariff free. Under NAFTA, at least 62.5 percent of a passenger car or lighttruck's net cost must originate in North America - defined as the United States, Canada or Mexico - to avoid tariffs.

Separately, the U.S. government since 1994 tracked the percentage of a vehicle's content that is made in the United States andCanada, and required automakers to disclose those percentages on labels put on vehicles sold in the United States. The ChevroletTraverse and the Honda Accord made in Ohio had 80 percent U.S. and Canadian content in 2016, for example. The Ram pickuphad 59 percent U.S. and Canadian content, according to government data compiled in the 2016 American Automobile Labeling Actreport.

Trump has not made specific proposals for reworking NAFTA, but he has called for manufacturers to buy and build more products inthe United States.

Automakers have a lot at stake in preserving the status quo.

GM, the biggest U.S. automaker, imported about 315,000 of its full-size Chevrolet Silverado and GMC Sierra pickup trucks fromMexico last year. That represents about 40 percent of the 2016 U.S. sales of the highly profitable models. Overall, GM builds 14percent of the vehicles it sells in the United States in Mexico, according to data from LMC Automotive, a consulting firm.

Fiat Chrysler makes nearly half of its Ram full-size pickups, its most popular model, in Mexico, according to data from IHS Marketobtained by Reuters.

Ford earlier this month won praise from Trump for cancelling plans to build a $1.6 billion factory in Mexico. But Ford still plans to

build one of its top-selling cars, the Fusion sedan, in Mexico, as well as the future generation of its Focus small car.

Overall, nearly 2 million vehicles were shipped to the United States from Mexico in 2016 by all automakers, and that volume isexpected to rise by 14.5 percent this year, according to an IHS Markit forecast.

IHS Markit would not comment on the data Reuters obtained from a third party.

Trump has threatened to slap a 35 percent tariff on vehicles imported from Mexico. But the Center for Automotive Research, anauto industry think tank in Ann Arbor, Michigan, said in a study released this month the tariff could cut U.S. auto sales by 450,000vehicles per year and cost 6,700 vehicle assembly jobs across North America.

A separate study by LMC Automotive also concluded that U.S. car and light truck sales could suffer if the administration takes a"highly protectionist and isolationist stance." However, if the administration cuts taxes and enacts an infrastructure spending plan,auto sales could rise by 300,000 to 500,000 vehicles a year, LMC forecast.http://auto.economictimes.indiatimes.com/news/industry/nafta-could-revive-debate-over-what-makes-a-car-american/56746859

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Peugeot returns to India through CK Birla venture - Les Echos ReutersSee this story in: The Economic Times

Paris: French carmaker PSA Group will announce a return to India this week through a manufacturing venture with NewDelhi-based CK Birla Group, Les Echos reported on Monday.

The maker of Peugeot and Citroen cars, absent from the fast-growing Indian market since the late 1990s, has signed a joint venturedeal with the family-owned conglomerate to include a Chennai assembly plant with current annual production capacity of 12,000vehicles, the French daily newspaper said on its website.

A PSA spokesman declined to comment on the report.

Under Chief Executive Carlos Tavares, PSA is pursuing an ambitious recovery plan after a 2014 brush with bankruptcy and haspledged to find an Indian partner by 2018 to resume production in a market that registers about 3 million new vehicles a year.http://auto.economictimes.indiatimes.com/news/industry/peugeot-returns-to-india-through-ck-birla-venture-les-echos/56747115

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Donald Trump to meet with US auto CEOs amid jobs push ReutersSee this story in: The Economic Times

Washington: US President Donald Trump will have breakfast on Tuesday with the chief executives of General Motors Co, FordMotor Co and Fiat Chrysler Automobiles NV as he pressures automakers to boost American employment.

White House spokesman Sean Spicer said Trump "looks forward to hearing their ideas about how we can work together to bringmore jobs back to this industry." Trump has criticized automakers for building cars in Mexico and elsewhere and has threatened toimpose 35 percent tariffs on imported vehicles.

The meeting is the latest sign of Trump's uncommon degree of intervention for a US president into corporate affairs as he hasrepeatedly jawboned automakers and other manufacturers to "buy American and hire American."

It will be the first time the CEOs of the big three automakers meet jointly with a US president since a July 2011 session withPresident Barack Obama to tout a deal to nearly double fuel efficiency standards to 54.5 miles per gallon by 2025. Fiat Chrysler isthe Italian-American parent of the former Michigan-based Chrysler.

US and foreign automakers have been touting plans to boost American jobs and investments in the face of Trump's comments. TheRepublican president made attacks on Ford's Mexico investments a cornerstone of his campaign.

Automakers have praised Trump's policies, but emphasized that the recent employment moves were the result of business, notpolitical decisions, that had mostly been in the works for a long period.

Early this month, Ford scrapped plans to build a $1.6 billion plant in Mexico and said it would invest $700 million in a factory inMichigan. Ford will still move production of Focus small cars to Mexico but will cut total production of the cars by consolidating theirassembly in an existing Mexican plant.

Ford CEO Mark Fields, who was among business leaders meeting with Trump on Monday, said earlier this month that Ford wouldhave made the same investment decision even if Trump had not been elected.

Last week, GM confirmed it would invest an additional $1 billion in its US factories this year and would move some parts productionfrom Mexico to the United States that was previously handled by a supplier. The investments are in addition to $2.9 billion theautomaker announced last year, GM said.

GM said the $1 billion investment would create or retain 1,500 jobs. GM CEO Mary Barra joined a Trump economic issue advisory

panel last month.

Earlier this month, Fiat Chrysler said it would invest $1 billion to modernize two plants in the US Midwest and create 2,000 jobs, andpossibly move production of a Ram heavy-duty pickup truck to Michigan from Mexico.

Fuel EfficiencyThe auto executives are likely to raise concerns about higher fuel efficiency standards and the potential impact on borderadjustment taxes.

Fiat Chrysler faces investigations by the EPA and Justice Department after it was accused this month by the EPA of illegally usinghidden software to allow excess diesel emissions to go undetected in about 104,000 US cars and trucks, the result of a probe thatstemmed from regulators' investigation of rival Volkswagen AG.

The company vowed to work with the Trump "administration to present its case and resolve this matter fairly and equitably."http://auto.economictimes.indiatimes.com/news/industry/donald-trump-to-meet-with-us-auto-ceos-amid-jobs-push/56747158

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US auto parts sellers skid after report on Amazon\'s entry ReutersSee this story in: The Economic Times

Shares of US auto part retailers fell sharply on Monday following a report that Amazon.com Inc had set its sights on the $50 billiondo-it-yourself after-market auto parts business.

Shares of Autozone Inc, which has a comparatively bigger exposure to the retail auto parts market, slumped as much as 5.1percent to $730.99, posting their biggest intraday percentage loss in nearly one year.

Advance Auto Parts Inc's shares fell 4.2 percent to $164.27, O'Reilly Automotive Inc declined 4 percent to $263.13 and GenuineParts Co lost 3.7 percent to $96.

Amazon has struck supply contracts with some of the largest parts makers including Federal-Mogul Holdings Corp, DormanProducts Inc, Robert Bosch GmbH and Cardone Industries Inc, NY Post reported on Sunday, citing sources.

The NY Post report implies that Amazon is both paying vendors more and offering customers lower prices than brick-and-mortarcompetitors on like-for-like products, according to RBC Capital Markets analyst Scot Ciccarelli.

Northcoast Research analyst Nick Mitchell estimated that about 75 percent of Autozone's sales come from the retail auto parts orthe do-it-yourself market targeted by Amazon.

The market accounts for low-50 percent of the sales mix for O'Reilly, low-40 percent for Advance Auto Parts and about 15 percentfor Genuine Parts, Mitchell said.

Amazon, the world's largest online merchant, is known for disrupting traditional brick-and-mortar businesses.

The company is expected to surpass Macy's Inc to become the No.1 US apparel retailer in 2017, according to a report published byCowen & Co in October.

However, analysts played down any immediate impact to auto part retailers from Amazon's entry.

"If Amazon is committed ... they are definitely going to pick up some share. In terms of the disruption they will cause, I don't think itwill happen as quickly," Mitchell told Reuters.

Ciccarelli said Amazon's reach will be relatively limited in scope as most retail customers likely don't have the information and skillsets needed to comfortably order parts on their own.

For Amazon, the push into auto parts is seen as the next step to growing its auto business, Amazon Vehicles, an online platform forusers to research on cars, auto parts and accessories, which it launched in 2016.

"Longer-term, this push into autos ... also sets the table for Amazon to potentially grow into the materially larger new and used carbuying market too," Morgan Stanley analyst Brian Nowak wrote in a note.http://auto.economictimes.indiatimes.com/news/auto-components/us-auto-parts-sellers-skid-after-report-on-amazons-entry/56747206

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Ford\'s new brand to sell auto parts and fix competitors\' vehicles ReutersSee this story in: The Economic Times

Detroit: Ford Motor Company, in a bid for a piece of the rapidly growing global auto parts market, is launching a new brand calledOmnicraft to sell parts to Ford dealers and independent repair shops to fix competitors' vehicles.

Omnicraft joins Ford's established Motorcraft which makes parts for Ford vehicles.

Frederiek Toney, president of Ford's customer service division, said the global business for automotive parts, which is nowestimated at more than $500 billion, and service will expand by 70 percent in the next six years or so.

Toney would not say how much of the global market Ford wants to capture, but said that in 10 years the company would be pleasedif 10 percent to 15 percent of its parts sales were from Omnicraft.

Suppliers will make the parts, and Ford will sell them at a profit, but says they will be competitively priced, in part to attractindependent repair shops as well as its own dealers.

Having the parts for non-Ford vehicles will allow dealers to increase repair and service business, as well as offer an opportunity toconvince owners to look over new Ford cars and trucks while they are at the dealership.

At first, Omnicraft parts will be sold at Ford and Lincoln dealerships, of which there are 3,200 in the United States and 10,500globally. Omnicraft will be active in Ford's major markets around the world, Toney said.

As the average age of vehicles increases, especially in mature markets like the United States and Europe, there is more of a needfor auto parts, said Toney, "which is no secret. It behooves us to try to compete for the life cycle of ownership" and not to focus asFord has on the early years of that cycle.In the U.S. market, the average age of a vehicle on the road is more than 11 years.http://auto.economictimes.indiatimes.com/news/industry/fords-new-brand-to-sell-auto-parts-and-fix-competitors-vehicles/56750744

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Audi to implement industrial 3D printing tech in its Ingolstadt plant The Economic Times

Krailling: German luxury carmaker Audi has started a development partnership with EOS, the global technology solutions providerfor high-end Additive Manufacturing (AM).

The EOS consulting division “Additive Minds” is supporting Audi in the holistic implementation of this industrial 3Dprinting technology and the development of a corresponding 3D printing center in Ingolstadt.

Güngör Kara, Director of Global Application and Consulting comments “The aim is to not only supply Audi with the rightadditive systems and processes but to also support them during applications development, when building up internal AM knowledgeand training their engineers to become in-house AM experts.”

Industrial 3D printing is first being applied to equipment and prototype building at Audi, as well as motor sports, where thetechnology is already in use today. Based on industrial 3D printing, Audi can revolutionise the process of tool manufacturing,informed the automaker in an official statement.

Stefan Bindl, Team Manager Innovation Center, Additive Minds, commented “Audi was looking for a reliable developmentpartner and has found that in EOS. The close cooperation concerning application and process development as well as internalknowledge building makes a significant contribution, which is why Audi can quickly achieve substantial effects for their ownbusiness by applying our technology.”

In application of additive manufacturing, Audi is also focusing on the production of inserts for die casting molds and hot workingsegments.http://auto.economictimes.indiatimes.com/news/auto-technology/audi-to-implement-industrial-3d-printing-tech-in-its-ingolstadt-plant/56752648

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Skoda open to partner technical universities for digital projects The Economic Times

Mlada Boleslav/Prague: Czech automaker Skoda is open to intensify partnerships with technical universities, in the Czech Republicand Slovenia, for specific digital projects in the future in order to gain digitalisation talent for the company.

This announcement was made on Tuesday when the Prime Ministers of the Czech Republic and Slovenia, Bohuslav Sobotka andMiro Cerar, visited the Skoda DigiLab in Prague.

In conversation with Skoda CEO Bernhard Maier, the heads of government discussed the future of the automotive industry in thedigital age with a primary focus on innovative mobility services. Amongst other things, the possibility of collaborations betweenCzech and Slovenian companies was addressed.

“The development of digital technologies, particularly in respect of mobility services, is of central importance for the futuredirection of our company. In this context, the DigiLab is an integral part of our 2025 strategy, with which we are preparing Skoda forthe digital age. We are delighted that politicians are showing an interest in the challenges posed by digitalisation in the automotiveindustry and that they actively support development,” said Skoda CEO Bernhard Maier.

The automaker further said that with the foundation of the DigiLab, Skoda has strengthened its expertise in both innovation anddigital development. Creative teams will research and develop new business models here.

In particular, this will include greater integration of digital technologies into Skoda’s existing core business and thedevelopment of innovative connectivity and mobility services. With modern services for individual mobility, Skoda intends to developnew business segments.

The visit saw both heads of government highlight the exceptional importance of digitalisation for the economic development of theircountries and explain which political frameworks they considered to be useful for the promotion of digital innovations. They alsoaddressed the prospects of fully interconnected production in the Czech Republic and Slovenia in accordance with the Industry 4.0concept.

Skoda only recently defined digitalisation as a central course of action within its 2025 strategy. As a cross-departmental function, itwill involve all of the company’s departments – from the training and development of staff and the development ofvehicles using modern virtual reality and 3D technology through to Industry 4.0 solutions.http://auto.economictimes.indiatimes.com/news/industry/skoda-open-to-partner-technical-universities-for-digital-projects/56754773

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Takata shares lose nearly half their value in less than a week ReutersSee this story in: The Economic Times

Tokyo: Takata Corp's shares have lost nearly half their value in less than a week, hit by a report that bidders are seeking acourt-mediated turnaround for the embattled Japanese air bag maker.

The stock has been hit by a glut of sell orders since the Nikkei business daily said on Thursday that Swedish air bag maker Autolivand a group led by US auto parts supplier Key Safety Systems, two bidding groups for Takata, would present proposals for acourt-led restructuring.

A Reuters source later confirmed the plan.The stock lost 5 percent in Tuesday morning trade and is down 48 percent since Wednesday's close.When a stock is untraded due to a glut of orders, it is given a closing price by the Tokyo stock exchange that reflects the balance ofbuy and sell orders. When the glut is big, it will often be the daily limit allowed for the stock.http://auto.economictimes.indiatimes.com/news/auto-components/takata-shares-lose-nearly-half-their-value-in-less-than-a-week/56757144

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Toyota to add 400 jobs, sink $600M into Indiana SUV factory APSee this story in: The Financial Express

Princeton: Toyota announced Tuesday that it will boost SUV production at an Indiana factory with a $600 million investment thecompany says will add 400 jobs. The company said it will retool and buy new equipment for the Princeton assembly plant insouthwestern Indiana, which will allow the factory to produce 40,000 more Highlanders a year when the project is finished in the fallof 2019.

The announcement came just after President Donald Trump met with CEOs of the Detroit automakers to demand that new factoriesbe built in the US. Toyota says the investment was planned before the election and is not related to Trump.

The Princeton project is part of Toyota’s plan to invest $10 billion in the U.S. over the next five years.Toyota’s move to increase Highlander production follows a jump of more than 20 percent in U.S. sales of the SUV last yearto just more than 191,000.

Toyota opened the Princeton factory in 1998. The plant now has about 5,000 workers and also builds Sequoia SUVs and Siennaminivans. The plant built about 400,000 vehicles last year, up from about 375,000 during 2015, according to the company.

Toyota Indiana President Millie Marshall said the project was a sign of the company’s commitment.”Over the next three years, we will updating our plant, bringing in advanced technologies to set us up for a very brightfuture,” she said.

Toyota has expanded the plant about 25 miles north of Evansville several times, most recently with a $100 million projectannounced in 2014 to boost Highlander production.http://www.financialexpress.com/industry/toyota-to-add-400-jobs-sink-600m-into-indiana-suv-factory/521075/

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Economy

Rupee logs 1st gain in 5 days, up 5 paise at 68.15 PTISee this story in: The Hindu

Breaking a four—day retreat, the rupee staged a modest recovery to end higher by 5 paise at 68.15 against the Americancurrency in yet another day of extremely thin and lethargic trade.

The dollar weakness was a major contributor to the rupee recovery as the skittish investors continued to lighten their long positions.

A spectacular performance on domestic equities further supported the positive sentiment.

The domestic currency had depreciated by a whopping 25 paise in the previous four sessions.

Though, scattered dollar demand from importers in early trade was absorbed by the adequate local supplies, a forex dealer said.

The home unit opened on a firm footing at 68.08 as compared to Monday’s close of 68.20 at the Interbank ForeignExchange (Forex) market and advanced further to 68.07 on fresh bouts of dollar selling.

But, it relinquished strong early gains and remained largely locked within a narrow range throughout the day before ending at 68.15,showing a gain of 5 paise, or 0.07 per cent.

It briefly pulled back to hit an intra—day low of 68.23.

The US dollar index was trading higher at 100.29 in late afternoon session.

In worldwide trade, the US dollar steadied against major world currencies during Asian trading.

Meanwhile, British pound traded almost flat after hitting a high for 2017 ahead of UK Supreme Court decision on Brexit ruling, inwhich the question of parliamentary approval on triggering Article 50 will finally be decided.

The common European currency, Euro too remained bearish.

The RBI fixed the reference rate for the dollar at 68.1570 and for the euro at 73.2347.

In cross—currency trade, the British pound also gained some ground after overnight steep fall to settle at 84.81 from 84.91per pound.

However, it softened against the euro to end at 73.17 as compared to 73.16 and also dropped further against the Japanese Yen toconclude at 60.13 per 100 yens from 59.99 earlier.

Meanwhile, domestic stocks surged to multi—month highs on the back of heavy buying in capital goods, banks, metal andenergy shares along with short—covering ahead of F&O expiry tomorrow amid stellar Q3 earnings outcome.

The benchmark Sensex shot up 258.24 points to close at 27,375.58, while broader Nifty jumped 84.30 points to 8,475.80.

In the forward market, premium for dollar showed a steady to firm trend in the absence of any market moving factors.

The benchmark six—month premium for June was quoted at 137—139 paise from 138.25—139 paise, while thefar—forward December 2017 contract edged up to 280—282 paise from 279.50—280 paise yesterday.

Crude prices rose on Tuesday on expectations that the global market was tightening on lower production by OPEC.http://www.thehindu.com/business/markets/Rupee-logs-1st-gain-in-5-days-up-5-paise-at-68.15/article17088857.ece

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Sensex spurts 258 points; metal, auto stocks vroom AgenciesSee this story in: The Hindu Business Line

Mumbai: The benchmark Sensex surged over 250 points due to short-covering by speculators ahead of January monthly derivativescontract expiry.

Domestic sentiment got a boost on optimism ahead of the annual budget to be unveiled next week.

The Supreme Court had on Monday rejected a petition to delay the Union Budget, which Finance Minister Arun Jaitley is scheduledto deliver on February 1, dismissing concerns about potential giveaways ahead of critical state polls.

Analysts are hoping for a Budget that delivers some incentives to support an economy that has been hit by India's shock move toban higher-value banknotes.

“Financials have underperformed for sometime because of concerns on growth and outlook after demonetisation,”said Neeraj Dewan, director at Quantum Securities.

“There can be also be some pre-budget buying happening in the market,” Dewan added.

The 30-share BSE index Sensex ended higher by 258.24 points or 0.95 per cent at 27,375.58 and the 50-share NSE index Niftyclosed up 84.3 points or 1.00 per cent at 8,475.80.

Among BSE sectoral indices, metal index gained the most by 1.69 per cent, followed by auto 1.67 per cent, power 1.43 per cent andoil & gas 1.31 per cent. On the other hand, IT index was down 0.18 per cent and TECk 0.09 per cent.

Top five Sensex gainers were Bajaj Auto (+3.42%), M&M (+2.68%), Adani Ports (+2.41%), Coal India (+1.96%) and L&T (+1.88%),while the major losers were Bharti Airtel (-1.00%), Infosys (-0.7%), HUL (-0.27%), and ICICI Bank (-0.14%).

IT stocks were down amid worries US President Donald Trump's protectionist stance would adversely impact global exporters.

Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal on Monday, distancing America from itsAsian allies, as China's influence in the region rises.

The dollar struggled in Asia on Tuesday as US President Donald Trump's focus on protectionism ahead of fiscal stimulus fuelledsuspicions his administration might be content to gain a competitive advantage through a weaker currency.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.4 percent, while Shangahi was flat and the Nikkei slipped0.4 per cent.http://www.thehindubusinessline.com/markets/stock-markets/markets-live/article9498732.ece

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