Automotive and Transport Sector in India Monthly Update May 2012
Top Story Tamil Nadu to receive INR 96.5 bn funding from automotive majors Ashok Leyland‐Nissan, Daimler and India Yamaha have plans of investing of INR 96.5 bn in Tamil Nadu. The industry department has signed an agreement with the companies in the presence of the Chief Minister, Ms J. Jayalalithaa. Ashok Leyland‐Nissan Motor Company has committed to an investment of INR 41.5 bn for the plants in Hosur, Pillaipakkam, Ennore, Velli Vaayalsavadi and Oragadam. Daimler India Commercial Vehicle Pvt. Ltd. will increase the investment in its plant in Oragadam to INR 40 bn. Also, India Yamaha Motor Ltd. will offer INR 15 bn for the development of Vallam Vadakal Sipcot Industrial, which is primarily aimed at targeting the overseas markets. The new Yamaha factory will have an annual production capacity of 0.4 mn units, providing employment to 1800 people. By 2018, it is expected to offer 6500 jobs with an annual production capacity of 1.8 mn units. News Update
General Mercedes Benz to launch ML350 CDI in India The new Mercedes Benz ML350 CDI will be officially launched on 15th May 2012 in New Delhi. The new model has already been showcased at New Delhi's Pragati Maidan during the 2012 Auto Expo. Pune has been home to the initial testing rounds for its diesel model. ML 350 CDI comprises of Mercedes' Blue TEC V6 engine, producing 240PS of max power. It has top speed of 224 kmph and takes only 7.4 seconds to reach 0 to 100 kmph. Previously, ML350 was scheduled to be launched in April, which was delayed due to the Union Budget’s (2012‐13) decision to raise customs duty. At the beginning, the ML350 CDI will be entering India via the CBU route. However, by the end of 2012, assembling operations for the M‐Class will be performed at Mercedes Benz’s local facility in Chakan, together with the C‐Class, E‐Class and the S‐Class. CarDekho.com launches online car accessories store in India CarDekho.com has launched an online shopping platform ‘Shop.CarDekho.com’ for trading car accessories in India. This portal is aimed at benefiting the car owners in terms of saving their time and effort, as it consolidates all the car accessories dealers under a single web portal. It also enables the customers to save on their car care purchases by offering lucrative deals.
Automotive and Transport – Monthly Update
The online car accessories store has a user‐friendly and highly customized interface, allowing users to personalize and filter their searches based on their specific needs. It features a wide range of products, such as car perfumes, sun films, stickers, floor mats, polish, shampoo, navigators, mobile chargers, scratch removers, seat covers and others. There are also certain rare interior and exterior car accessories including a huge selection of car cleaning products. The current product portfolio comprises of accessories that do not require installation. However, it will soon expand into the products that require fitment, such as tyres, alloy wheels, car stereos, etc. India gets its first online tyre store Changemytyre.com is India’s recently launched first online tyre store. It will sell tyres online and deliver across all key cities. The site has a user‐friendly layout and design, consolidating the factors influencing the tyre purchasing decision, such as choice, transparency and convenience. Initially, ChangeMyTyre.com will provide Passenger Car Radials and later sell tyres of different vehicle types and also certain accessories like alloy wheels etc. Currently it has 8 fitment centres in National Capital Region (NCR), where customers can get their tyres installed professionally. Its rapid expansion plans include setting up 40 fitment centres in 7 cities in the next 3 months. Maruti Suzuki is adopting 40 ITIs to get a customized workforce Maruti Suzuki India Ltd has decided to adopt 40 state‐run technical schools which will provide customized labour power that it requires for its INR 180 bn expansion in Gujarat. Currently, Maruti Suzuki works with 10 Industrial Training Institutes (ITIs), recruiting over hundred people from them. A company which adopts a technical institute improves the physical infrastructure in the campus, supplies tools and machinery for training, revises the course content to bring it in line with the industry requirements and updates the knowledge base of the existing faculty. There will be a steady supply of trained personnel from the 50 ITIs, mostly located in Northern India. Also, company’s dealers and vendors such as Sona Koyo, Amtek Auto Ltd. and Rico Auto Industries Ltd. will be benefiting from this. ITIs and automotive industry have an enhanced understanding of each other’s needs as the students are provided with in‐company training, contemporary curricula and the faculty members are also trained accordingly. New Mercedes Benz ML class launched in India Mercedes Benz has rolled out its 3rd generation of ML class in India. It belongs to the sports utility vehicle (SUV) category and is 15% cheaper than its earlier edition. It is priced at INR 5.69 mn ex‐showroom Delhi. It is better than its previous edition not only in Automotive and Transport – Monthly Update
terms of price, but also in terms of space and fuel efficiency. Two different versions of the new ML class will be offered for sale. The company has already sold out 100 units of the limited AMG edition, priced at INR 6.6 mn ex‐showroom Delhi while the assembled version is priced at INR 5.69 mn. In 2012, company is expected to sell 500 ML cars (100 units of CBU & 400 units in CKD form), and 800 to 1,000 ML class in the following year. Since its launch in 2008, company has sold over 1,500 units of ML Class in the country. It incorporates Active Parking Assist, Airmatic Air Suspension, 20 inches AMG Body styling & Alloy wheels, Designo Leather Interiors and Mini Spare wheel and imbibes technology and gadgets, such as Attention Assist, Eco start stop, Reversing Camera etc. ML Class is aimed at securing a consistent growth in India, providing competition to BMW X5 and Audi Q5. In 2011, BMW was the market leader was with sales of over 9,400 cars in India, pursued by Mercedes Benz at 7,430 and Audi at 5,511. In the first quarter of 2012, Audi has been outdoing Mercedes Benz, leading to an aggressive competitive scenario. Mercedes is planning to pump up investments into assembly lines for both ML and B Class cars in India, with an expected growth rate of 20% during 2013‐15. Dhoni endorses Ashok Leyland’s products Ashok Leyland has signed M S Dhoni, captain of the Indian Cricket Team and the Chennai Super Kings (IPL Team) as its new brand ambassador. Dhoni is being featured in the company’s new television commercial. The association with Dhoni comes at a crucial time. Company’s U‐Truck range has been introduced in the market with the new 8x2 in the pipeline. Other products, such as the Jan Bus and the 10x2 are also ready to hit the market. FilterOn in agreement with Vokes Air Pune based industrial filtration experts Filter‐On has entered into an agreement with Vokes Air to provide installation and aftermarket services for Vokes Air’s ScandMist range of oil mist eliminators. This is to fulfill the increasing demand for ScandMist from the existing Vokes Air customers hoping to incorporate ScandMist in their Indian automotive manufacturing sites. Filter‐On will aid in the expansion of Vokes Air into the Indian market owing to its strong knowledge in the design and provision of air handling systems. Toyota Financial Services launches in India Toyota Motor Corporation has announced the launch of its wholly owned subsidiary Toyota Financial Services in India. It is a non‐banking financial organization with license from RBI to offer loans to those who want to purchase Toyota vehicles. Toyota Financial Services has established its presence in 33 countries across the globe. It has been set up in India with an investment of INR 2.6 bn to expand Toyota sales in the country by Automotive and Transport – Monthly Update
providing easy and accessible auto finance to the car buyers. Also, look towards developing new products and services for Toyota customers. Dealerships in Bangalore and New Delhi will incorporate the newly launched auto finance services with a dedicated finance executive to guarantee that the customers are offered with the best finance deals. Besides, company will also provide various exclusive products such as TFS smart, extended tenor and 100% finance. Jaguar puts Brazil plant on hold Jaguar Land Rover, the luxury car unit of India's Tata Motors, has suspended its plans to construct a vehicle assembly plant in Brazil owing to the economic downturn in the South American nation and worldwide. Building an assembly facility in Brazil was part of the company’s plan to make up for the offsetting demand in the U.S. and Europe. Brazil’s economy has been hit by weak foreign demand coupled with the declining local currency. This has made the premium automakers apprehensive regarding investing in the Brazilian market. Tightened lending policy has added to the reduction in car demand. However, Brazil’s government has recently issued tax incentives for encouraging the auto manufacturers. It will also loosen up taxes on cars that have less local parts. Around 20% of the country’s industrial activity comes from the automotive industry. Company has an existing plant for developing Land Rover’s Freelander sport‐utility vehicle in Pune, India. It also has plans of sharing technologies with its parent Tata Motors in India and look at building an engine plant in the country. It has recently partnered with Chery Automobile Co. to build a similar plant in China. Jaguar Land Rover eyes the premium car market in India Jaguar Land Rover (JLR), the luxury car unit of India's Tata Motors, considers the potential automotive market in China and India to be the chief support for its future growth. JLR has recently entered into a JV with Cherry Automobiles with an investment of INR 29.8 bn in China. In 2011, company has sold 42,000 units in China and 1,500 to 2,000 units in India. India is viewed as an export hub by JLR. In 2011, India’s domestic premium and luxury car market stood at just 23,000 to 24,000 units. The base is expected to stay small during the next five years. However, country will move gradually into spotlight after 2015. Till then JLR will be operating from its existing facility at Chikhale and add more products for assembly. Since assembled cars in India attract lower import duty of 10‐30% compared to over 100% duty on imported cars, JLR is looking towards assembling more models in the country. In Oct 2011, JLR had plans of assembling Jaguar XF and Range Rover Evoque in 2012‐13 in India. It has sold 2,289 cars during FY12 representing a growth of 157%. Company has Automotive and Transport – Monthly Update
a target of procuring 20% market share in the next three to five years in India. By 2015‐ 16, it is aiming to have 100 dealers. Hike in fuel prices boosts the sale of two wheelers Following the rise in petrol prices, there will be a decline in auto sales with a simultaneous increase in demand for two wheelers. Recently, there has been an 11% hike of over INR 7.50 per litre in petrol prices which is expected to hamper growth of auto industry. Currently, the industry is under the pressure of decreased demand after the Union Budget tax increase, rising fuel prices and increased interest rates. All this has benefited the two wheeler companies, witnessing a consistent rise in demand. Whenever there is a rise in fuel prices, customers opt for more economical modes of transport depending on their budget, resulting in an increased demand for the two wheelers. Two‐wheeler segment has grown at a rate of 11% in Apr 2011, while car sales were at their lowest at 3.4% during the same period. However, highly fuel efficient small cars and also the ones with diesel engine will appeal to the high value and budget conscious Indian consumer base. Tata Motors in distribution agreement with AGI in Myanmar Tata Motors has announced that it has entered into a distribution agreement with Apex Greatest Industrial Co Ltd (AGI), Myanmar. This will help in selling Tata Motors’ commercial vehicles and passenger cars in Myanmar. According to the agreement, the trucks assembled at the Magwe facility will be distributed by AGI along with the dispersion of commercial vehicles and passenger cars which will be directly imported from India. R T Wasan, Head of International Business (Commercial Vehicles) and Johnny Oommen, Head of International Business (Passenger Vehicles) have signed the distribution agreement on behalf of Tata Motors with the Chairman of AGI Myanmar U Kyi Thein. Honda advances the launch of diesel Brio by Diwali Honda has considered to pre pone the launch of the diesel variant of Honda Brio by Diwali. Initially, company had plans of rolling out the diesel model by 2013. But, rising demand for diesel‐run vehicles owing to the hike in petrol prices has made the company speed up its R&D work to launch the diesel car as soon as possible. Currently, there are no diesel versions of the Honda cars in the market. Honda Brio will be the first car to run on diesel engine, followed by City and Jazz. Similarly, Renault has also advanced the launch of its diesel model. Volkswagen is focusing on models that run on alternative fuels, such as CNG. Other auto makers are offering lucrative discounts to attract customers. Automotive and Transport – Monthly Update
News Update Regulatory
IMMA appoints S Sandilya as President International Motorcycle Manufacturers Association, Geneva (IMMA) has appointed S Sandilya as their President via unanimous voting. He will serve as the President during 2012 to 2014. Also, he is the President of the Society of Indian Automobile Manufacturers (SIAM). On 23rd May 2012, Sandilya was elected during IMMA’s recent General Assembly at Madrid. This is the first time in the history of Indian automotive industry that an Indian has been chosen to hold the highest designation in an International Manufacturers Association. As India is the world’s second largest producer of powered two‐wheelers after China, it is suitable for the Indian Two‐Wheeler industry to attain the pinnacle post. IMMA is considered as a family of Two‐Wheeler manufactures worldwide including Australia, Canada, Japan, India, China, USA, Europe (including Spain, Italy, UK) and South East Asia (including Indonesia, Malaysia, Philippines, Thailand, Taiwan). Annual production amounts to nearly 50 mn powered motorcycles. Maharashtra promotes electric vehicles via tax exemptions The government of Maharashtra has implemented two different policy changes in the states vehicle registrations after evaluating the feedbacks from the state transport department. According to the first policy, vehicle tax on imported cars has reduced by 2% on petrol cars and up to 6% on diesel cars. The second policy has completely exempted tax on electric vehicles from Motor Vehicle Tax in the state of Maharashtra. Also, the electric vehicles from other states that are being re‐registered in Maharashtra will be applicable for the full tax exemption. This policy will favour the electric car makers as it will lead to a considerable reduction in the cost of vehicles, resulting in a higher customer base. Also, for the purchasers, it will be quite economical to own and maintain an electric vehicle. Hence, the state government is looking towards a rise in sales of electric vehicles after the issuance of the tax rebate policy. Ministry seeks higher excise duty on diesel cars The finance ministry is considering a hike in excise duty on diesel cars. Earlier, this has also been suggested by the oil industry to reduce the intake of subsidized diesel by the diesel vehicle owners. According to oil ministry estimates, personal cars and SUVs account for 15% of the total diesel consumption in the country. However, the heavy industries ministry is against the proposition of levying excise duty on diesel cars. The oil ministry has reasoned this move by stating the utilization of the additional amount to counter the loss incurred by the fuel retailers from the sale of diesel at government‐ Automotive and Transport – Monthly Update
controlled rates. Further, the one‐time additional excise duty of INR 80,000 on diesel cars has been proposed by the Kirit Parikh Committee on Energy to offset the higher excise duty on petrol. There is a wide difference in the retail prices of petrol and diesel. Recently, there has been a hike of more than INR 7.50 per litre in petrol prices. In Delhi, per litre diesel price is around INR 40 while petrol is available at INR 74 per litre. In India, diesel is traded at a lower price than its actual import cost. Government subsidy of INR 15.35 per litre to oil marketing companies enables them to sell diesel at lower than market rates. The transport sector (both trucks and passenger buses) along with the in irrigation pumps and other agriculture equipment prefers the consumption of diesel to petrol. Besides, luxury cars and SUVs and power generators at malls and telecom towers run on diesel.
News Update Expansion Plans
DENSO to set up a new plant in Haryana North America based auto‐components manufacturer DENSO is planning to set up a new production facility, DENSO Haryana in Jhajjar, Haryana, with an investment of nearly INR 2.7 bn. In May 2012, Denso will start the construction of the plant which is scheduled to be operational by July 2013. The Jhajjar plant will be covering an area of 73,000 sq mt and is expected to offer 450 jobs. The new plant will engage in the production and sales of small motors for products such as windshield wipers, power windows and engine cooling modules. This will be primarily supplied to customers that have production bases in Northern India, including Maruti Suzuki, Tata Motors and other automakers. According to The Society of Indian Automobile Manufacturers, vehicle production in India is expected to increase to 6.5 mn units in fiscal 2015, from 3.7 mn units in 2010. The new plant will strengthen DENSO’s footprint in India, capitalizing on the growing automobile market in the country. Volkswagen is developing two new SUVs Volkswagen (VW) has plans of heavy expansion in the Indian market with a target of selling 1 mn units via its group of companies by 2018. Lately, increasing competition has resulted in declining sales of VW cars. However, company is adopting several strategies, such as, introducing CNG (compressed natural gas) variants of its cars and providing freebies worth INR 50,000 with its petrol powered vehicles for achieving higher sales. For the long run sustenance, company is planning to offer SUVs which are more suitable for the Indian market. It is developing two compact SUVs based on Polo platform and Up! platform by 2015. Automotive and Transport – Monthly Update
Volvo Eicher to build its new medium duty engine in Madhya Pradesh Volvo Eicher Commercial Vehicles (VECV) has announced its plans of investing INR 2.88 bn at its Pithampur plant in Madhya Pradesh. VECV is a joint venture between Volvo Group and Eicher Motors. Volvo group will be benefiting from this investment in terms of having a manufacturing and assembling centre in India for its new medium duty engine which will be soon incorporated in the group's trucks and buses in the global portfolio. The engine production capacity is expected to increase from the existing 60,000 units to 0.16 mn units by 2016‐17. In 2011, VECV recorded sales of 49,000 vehicles up by 25% and valued at INR 49.16 bn. It held a market share of 9.7% for Eicher branded buses against 6.7% in 2010. Kolkata gets its first HarleyDavidson showroom Harley‐Davidson has set up its eighth dealership named ‘Bengal Harley‐Davidson’, marking its entry into eastern India. It is located near Kolkata’s Netaji Subhash Chandra Bose International Airport. A veteran dealership operator as well as an enthusiast motorist, Adarsh Tulshan is the owner of the dealership. The launch of Bengal Harley‐Davidson was celebrated by a group of riders accompanied the top management of the company taking a ride through the city. All 15 types of motorcycles that the company sells in India, along with parts and accessories will be offered in this showroom. Also, Harley‐Davidson riding gear, apparel and merchandise will be on display. Harley‐Davidson has seven other outlets in the country, which includes Seven Islands Harley‐Davidson in Mumbai, Capital Harley‐Davidson in New Delhi, Himalayan Harley‐ Davidson in Chandigarh, Banjara Harley‐Davidson in Hyderabad, Tusker Harley‐Davidson in Bangalore, Nine Bridges Harley‐Davidson in Ahmedabad and Coromandel Harley‐ Davidson in Chennai. Andhra Pradesh gets 9 new outlets of Carz India’s leading Multi Brand Car service provider, Carz has rolled out 9 new service outlets across Andhra Pradesh funded by the Indo‐US venture of worth INR 282.47 mn. The outlets are located in different cities of Andhra Pradesh, including Guntur, Khammam, Rajahmundry, Kakinada, Nellore, Anantapur, Tirupati, Visakhapatnam and Vijayawada. The 9 additional outlets has pushed up the outlet count in Andhra Pradesh to 12, including existing three outlets in Hyderabad at Madhapur, Gachibowli and Prasads IMAX. Also, there are 2 more outlets in Bangalore which sums up to a total of 14 outlets of Carz in the country. Provision for minor servicing and maintenance work during the night will be incorporated to ensure that customer’s daily activities are not hampered due to the car unavailability. Complete auto care services, such as preventive maintenance, electrical & Automotive and Transport – Monthly Update
mechanical repair, accident repair, denting and painting, tyres and services, battery, variety of styling and performance accessories, interior and exterior modifications will be performed according to customer needs. Company has also entered into agreements with various public and private insurance companies for providing cashless insurance claims and insurance renewals. Further, it offers express and mobile services to customers. Audi to launch its showroom in Bhopal German based luxury car maker, Audi has announced the launch of its new showroom in Bhopal. It is spread across a total area of 2,804 sq. ft. featuring a honeycomb aluminum façade on the exterior and a display area that can showcase three Audi cars. This is company’s second showroom in Maharashtra as it already has an existing showroom in Indore. The Audi Bhopal showroom will also have an Audi Shop and Audi Exclusive elements, such as customized products and various Audi branded merchandise. The complete range of Audi in India will be available for sale in Bhopal. The new showroom is a recently established boutique outlet concept simultaneously serving as a satellite showroom of Audi Indore. By the end of 2012, Audi has plans of setting up 25 dealerships across India from its existing 19 centers. It has recently rolled out its showrooms in Coimbatore, Delhi West and Nagpur. Hankook to expand in India Korean passenger car tyre manufacturer Hankook is aiming to vend 1 lakh tyres in India generating ~INR 551.35 mn in revenue during the current fiscal. In 2011, company had earned INR 330.81 mn from the sales of 50,000 tyres. Tyre market in India (including replacement as well as OEM) is estimated at 23 mn units. Sale of premium cars in India has not been affected by the presence of recessionary trends across the globe. Also, increasing production of SUV vehicles in the country will provide potential growth prospects for high‐end tyres. Hence, company has plans of selling 3 lakh units of premium tyres by 2015. As a part of company’s business strategy, it is following the course of expansion along with increasing brand awareness in each region. Also, company expects to double its network of dealers from the existing 250 in the current fiscal. Depending on the consumer preferences, the product line up will be further strengthened. Hankook has recently launched its ultra high performance tyres in Kerala, as it has got the highest number of premium cars in comparison to other states in India. Company is expecting to sell 16,000 tyres in the beginning year. Automotive and Transport – Monthly Update
Apollo Tyres to restructure its R&D divisions Apollo Tyres has announced its plans of building a new research and development centre for passenger vehicle segment in the Netherlands. Company is bringing together its complete R&D activities under two divisions, namely, passenger vehicle and commercial vehicle. Peter Snel will head the new passenger vehicle tyre R&D unit being set up in Enschede, Netherlands and P K Mohamed will look after the Chennai facility. Around 250 individuals from Africa, Europe and India will be merged under the two new units while having smaller teams to customize products for local conditions across key markets. Company has decided to focus on core research and increase its investment on R&D activities in the coming years. However, company has not yet shared any information regarding the investment on the new R&D unit or by when the new facility will be operational. Toyota eyes small car segment in India Toyota is expecting to provide competition to the market leader, Maruti Suzuki India Ltd., by introducing multiple products in the small car segment in India. As a part of its global strategy, Toyota is developing six subcompact cars to increase its presence in the emerging markets during the next four years. It has plans of expanding its portfolio of entry‐level cars in the Indian market. Company is evaluating the feasibility of introducing the six subcompacts under development in the country. Toyota Kirloskar Motor (TKM) has announced that there will be up to 2% hike in vehicle prices to counter the fall in value of rupee against dollar. However, petrol models could be exempted from the rise in prices as its demand has already sunk owing to the increased prices of fuel. Maruti Suzuki comprises of nearly 46% of the small car market in India, including around a half dozen models, ranging from the best‐selling Alto to the Wagon R, Swift and Estilo. The Liva is the only contender from Toyota with a market share of 2% in this category. Company is looking towards expanding in emerging markets, such as Brazil, Russia, India and China. Currently, emerging markets account for 40% of Toyota’s global sales. By 2013, company aims to achieve an annual production capacity of 3.1 mn vehicles in emerging markets, from 2.38 mn in 2010. In India, it wishes to sell at least 350,000 units by 2015. In Mar and Jul 2011, TKM had announced an investment of INR 3 bn and INR 8.98 bn respectively to increase capacity to 310,000 units in the country by 2013. Maruti to set up diesel engine plant in Gujarat Maruti Suzuki India Ltd. is planning to set up its third diesel engine plant in Gujarat as demand for diesel‐run vehicles is increasing rapidly owing to the rise in petrol prices. According to the Society of Indian Automobile Manufacturers, 60% of the cars sold in the year ended 31st Mar 2012 were diesel‐run. Maruti will have to expand its capacity for Automotive and Transport – Monthly Update
diesel engines to meet the soaring demand for diesel cars, thus ensuring that it manages to sell 2 mn cars by 2015‐16. Gujarat is expected to be Maruti’s next car manufacturing hub where the company has cumulative investment plans of INR 180 bn. The company expects to start the process of building of its hub in Gujarat from 2nd Jun 2012. By the next fiscal year, company’s existing factories in Gurgaon and Manesar, both in Haryana will achieve their highest production level of 1.7 mn vehicles. There are five models of Maruti Suzuki, such as Ritz, Swift, DZire, Ertiga and SX4, which come in both diesel and petrol variants. Sale of the diesel versions comprised 90% of the Maruti’s total sales of these models during the last fiscal. Maruti is increasing its production capacity of diesel variants to cash on the rising demand of diesel‐run vehicles owing to the hike in petrol prices. Industry Expert Speak DENSO exploring opportunities in India – Michio Adachi, Executive Director, DENSO “As India is one of our most important markets with a high growth potential, the new manufacturing facility will enhance our current production capacity and help better serve our customers in India. The new facility will supply products mainly to customers that have production bases in Northern India, including Maruti Suzuki, Tata Motors and other automakers.” HarleyDavidson dealership in Kolkata – Adarsh Tulshan, Owner, Bengal Harley Davidson and Anoop Prakash, MD, HarleyDavidson India “I am delighted to bring the Harley‐Davidson brand and culture to Kolkata. The launch of Bengal Harley‐Davidson marks an important milestone in the brand’s journey in the country.” “At Harley‐Davidson, we are proud to lead the way in developing a strong leisure riding culture in the country. The passion, enthusiasm and respect the brand has received from customers and enthusiasts in India have been truly amazing. With the launch of our first dealership in Kolkata and the eighth across India, we will now open doors to a new market.” Toyota Financial Services in India – Kazuki Ogura, MD and CEO, Toyota Financial Services India Ltd. “The Indian automobile industry is destined to be one of largest in the world. This calls for special attention to our customers to whom we will offer unique finance services through highly trained and qualified Finance Executives at each Toyota dealership. Our objective is to provide Toyota customers with the best auto finance in the market.”
Automotive and Transport – Monthly Update
Transactions (March May 2012)
Date 29th May 2012 18th May 2012 27th Apr 2012 27th Apr 2012 20th Apr 2012
Buyer International Finance Corporation Trivone Digital Services Pvt Ltd Nagpur Automotive Industries Pvt Ltd Forum Synergies (India) Kanoria Chemicals & Industries
Target
Size % stake (INR mn)
Deal Status
Type of Transactio n
Ramkrishna Forgings Ltd
1109
NA
Pending
PE Funding
WheelsUnplugge d
NA
100%
Completed
M&A
Neepaz V Forge
2300
100%
Completed
M&A
Captronic Systems Pvt Ltd
1500
NA
Completed
PE Funding
APAG Holdings AG
372.09
90%
Completed
M&A
13th Mar 2012
Varroc Group
Visteon Corporation
4911.42
NA
Pending
M&A
7th Mar 2012
NA
Craftsman Automation Pvt Ltd
850‐100
15%
Pending
PE Funding
Annual Financial Results – Revenue (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Apollo Tyres Ltd.
49,945.4
81,316.1
88,743.5
121,532.9
Balkrishna Industries Ltd.
13,998.6
15,637.3
21,920.9
N.A.
Ceat Ltd.
23,870.1
28,517.8
36,037.5
N.A.
Electrotherm India Ltd.
16,827.8
20,073.5
24,015.6
N.A.
Falcon Tyres Ltd.*
6,048.6
8,222.6
9,797.5
N.A.
Indag Rubber Ltd.
762.789
1,117.105
1,499.396
2,161.262
Automotive and Transport – Monthly Update
JK Tyres Ltd.
39,862.8
45,846.8
59,786.0
69,127.2
26.048
32.05
N.A.
N.A.
Kesoram Industries Ltd.
39,305.6
47,615.3
54,223.6
59,033.8
Mahindra & Mahindra Limited
269,197.6
316,879.2
370,254.4
582,414.0
862.47
4,036.718
660.889
N.A.
MRF Ltd.
56,924.9
74,750.8
97,645.5
N.A.
Tata Motors Ltd.
708,809.5
925,192.5
1,231,333.0
1,648,545.2
TVS Srichakra Ltd.
5,773.5
7,024.7
10,921.6
N.A.
Vamshi Rubber Ltd.
9.926
19.507
22.505
N.A.
Kabirdass Motor Company Ltd.
Modi Rubber Ltd.*
* Change in Financial Year Ending
Annual Financial Results – Income (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Apollo Tyres Ltd.
1,391.5
6,533.5
4,401.6
4,099.0
Balkrishna Industries Ltd.
744.0
2,190.4
1,946.3
N.A.
Ceat Ltd.
‐161.1
1,624.8
264.7
N.A.
Electrotherm India Ltd.
527.9
533.2
89.7
N.A.
Falcon Tyres Ltd.*
299.7
453.3
154.6
N.A.
Indag Rubber Ltd.
76.211
115.736
107.525
208.713
JK Tyres Ltd.
‐1,492.6
2,235.2
659.1
‐319.9
0.974
‐6.811
N.A.
N.A.
Kabirdass Motor Company Ltd.
Automotive and Transport – Monthly Update
Kesoram Industries Ltd.
3,787.3
2,373.4
‐2,102.1
‐3,797.4
Mahindra & Mahindra Limited
14,054.1
24,785.6
30,797.3
31,266.6
Modi Rubber Ltd.*
554.057
‐212.616
364.59
N.A.
MRF Ltd.
2,507.8
3,575.0
6,187.7
N.A.
‐25,052.5
25,710.6
92,736.2
135,165.0
TVS Srichakra Ltd.
89.7
298.2
391.4
N.A.
Vamshi Rubber Ltd.
492.242
548.011
660.329
N.A.
Tata Motors Ltd.
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) Companies
AprJun 2011
JulSep 2011
OctDec 2011
JanMar 2012
Apollo Tyres Ltd.
28,224.1
28,712.4
32,282.4
32,314.0
Balkrishna Industries Ltd.
5,844.4
N.A.
7,587.7
N.A,
Ceat Ltd.
10,725.9
N.A.
10,654.4
N.A.
Electrotherm India Ltd.
4,723.5
N.A.
3,189.1
N.A.
Falcon Tyres Ltd.
N.A.
N.A.
N.A.
N.A.
Indag Rubber Ltd.
480.565
540.67
574.548
563.225
JK Tyres Ltd.
14,016.7
N.A.
14,229.4
N.A.
N.A.
N.A.
N.A.
N.A.
Kesoram Industries Ltd.
15,325.6
12,683.9
15,529.8
15,483.4
Mahindra & Mahindra Limited
67,335.4
N.A.
83,868.1
N.A.
Kabirdass Motor Company Ltd.
Automotive and Transport – Monthly Update
Modi Rubber Ltd.
N.A.
N.A.
N.A.
N.A.
MRF Ltd.
N.A.
N.A.
28,754.9
N.A.
333,917.8
359,384.7
451,992.9
506,086.4
TVS Srichakra Ltd.
N.A.
N.A.
3,494.5
N.A.
Vamshi Rubber Ltd.
209.224
N.A.
N.A.
N.A.
Tata Motors Ltd.
Quarterly Financial Results – Income (INR mn) AprJun 2011
JulSep 2011
OctDec 2011
JanMar 2012
Apollo Tyres Ltd.
771.3
777.7
980.4
1,569.6
Balkrishna Industries Ltd.
561.1
N.A.
728.8
N.A.
Ceat Ltd.
‐419.0
N.A.
23.9
N.A.
‐1,358.8
N.A.
‐1,323.9
N.A.
Falcon Tyres Ltd.
N.A.
N.A.
N.A.
N.A.
Indag Rubber Ltd.
38.215
52.351
53.107
65.04
JK Tyres Ltd.
9.6
N.A.
‐213.1
N.A.
Kabirdass Motor Company Ltd.
N.A.
N.A.
N.A.
N.A.
Kesoram Industries Ltd.
‐665.1
‐2,664.2
‐2,756.4
2,288.3
Mahindra & Mahindra Limited
6,048.8
N.A.
6,621.5
N.A.
Modi Rubber Ltd.
N.A.
N.A.
N.A.
N.A.
MRF Ltd.
N.A.
N.A.
1,128.9
N.A.
19,996.2
18,773.3
34,055.5
62,340.0
Companies
Electrotherm India Ltd.
Tata Motors Ltd.
Automotive and Transport – Monthly Update
TVS Srichakra Ltd.
N.A.
N.A.
66.4
N.A.
Vamshi Rubber Ltd.
13.902
N.A.
N.A.
N.A.
Events Calendar ACMEE International Machine Tools and Auto Components Exhibition Date: 14th – 18th Jun 2012 Venue: Chennai Trade Centre, Mount Poonamallee Road, Nandambakkam , Chennai ‐ 600 089, India Organizers: AIEMA Technology Centre Phone number: 91‐44‐26258619, 26258731
Automotive and Transport – Monthly Update
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Automotive and Transport – Monthly Update