Monthly Archives January 2009

Maruti Suzuki profits down 32% in April-December 2008

Maruti Suzuki India Ltd. (MSI) has announced its financial results for the period April-December 2008, during which the company registered a total income from operations (net of excise) of Rs 144,196.2 million, a growth of 7.35% over the year-ago period. Net profit after tax stood at Rs 9,755.4 million, down 31.93% over April-December 2007.

Between October-December 2008, Maruti registered a total income from operations (net of excise) of Rs 46,258.1 million, a decline of of 2.81% compared to the year-ago period. Net profit during the quarter stood at Rs 2,135.7 million, down 54.27% October-December 2007.

The reduction in net profit was mainly due to lower volumes, a rise in material costs and adverse impact of currency changes in the fiscal...

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Tata Motors bags Rs 2,200 crore order from DTC

Tata Motors has received an order from the Delhi Transport Corporation (DTC) to supply 1,625 ultra-low-floor buses. The company has also got a 12-year maintenance contract for these buses. The order is worth Rs 2,200 crore, comprising about Rs 900 crore for the 1,625 buses and Rs 1,300 crore for the 12-year maintenance contract.

This is the second such order that Tata Motors has got from DTC. The first one was given out in 2007, for 650 buses, which Tata Motors supplied on schedule last year.

Tata Motors’ ultra-low-floor buses make entry and exit more convenient, with passengers almost walking into the bus, rather than climbing into it...

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Toyota launches facelifted Innova, may start assembling Camry in India

The new, facelifted Toyota Innova. Prices start at Rs 7.66 lakh
Within a few days of M&M having launched its all-new MPV, the Xylo, Toyota has responded with a facelifted version of its own MPV, the Innova. The ‘new’ Innova is priced between Rs 7.66 lakh (base version) and Rs 11.06 lakh (top end model), ex-showroom Delhi. The vehicle remains unchanged mechanically, and only features minor cosmetic upgrades externally, and slightly updated interiors.

Apart from the revamped Innova, Toyota is also said to be considering the possibility of assembling the Camry sedan in India. The car is currently imported into the country as a CBU, which makes it considerably more expensive than its main rival, the Honda Accord...

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Fitch Ratings: 2009 Indian automotive sector outlook – a special report

Overview

The Indian auto sector (passenger cars and commercial vehicles (CVs)) underwent one of the longest and strongest positive cycles to end-September 2008 (Q3CY08), while year-on-year (yoy) sales growth has since decelerated rapidly. In Fitch Ratings’ 2008 Outlook for the sector, the agency acknowledged the inherent cyclicality of the demand pattern, wherein a three-to four-year growth spurt was followed by a two-year downturn.

However, Fitch’s expectation for a sector recovery from H2CY08 has been delayed due to various macroeconomic factors, including tight liquidity and credit availability, slower GDP and industrial production (measured by the index of industrial production (IIP)) growth rates, and depressed investment/consumer sentiment...

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Maruti prices hiked by up to Rs 9,000

Maruti Suzuki India Ltd. (MSI) has announced a price hike for some of its cars. Prices have been increased by Rs 10,000 for the A-Star, Rs 5,000-6,000 for the petrol Swift (depending on the variant), Rs 6,000 for the diesel Swift, Rs 7,000 for the Swift DZire and Rs 9,000 for the SX4. Prices of Maruti 800, Omni, Alto, Wagon R, Zen Estilo, Gypsy, Versa and Grand Vitara remain unchanged.

According to Maruti, the price increase, which is effective with immediate effect, has been necessitated due to the increase in input costs and changes in foreign currency exchange rates. Other carmakers like Hyundai, Ford and Honda are also expected to announce price hikes shortly.

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