Monthly car sales in India zoomed to an all-time high in August, the Society of Indian Automobile Manufacturers (SIAM) reported Thursday. Sales in the past month climbed 33 percent to 160,794 cars from 120,681 a year earlier.
The August sales outshined July's record of 158,674 cars.
Earlier Maruti Suzuki, Hyundai, TATA and Ford had reported robust growth figures for the month of August, with Maruti touching an all time high sales rate of 23.6 percent at 104,791 vehicles as against the same period last year.
Lower borrowing rate new car launches and an expanding economy are said to be the reasons for the robust growth.
SIAM also reported a 32.38 percent cumulative growth in the Indian automobile industry which stood at 7,063,063 vehicles for April-August 2010 over the same period last year.
"Passenger cars grew by 34.32 percent, Utility Vehicles grew by 22.56 percent and Multi Purpose Vehicles (MPVs) grew by 50.68 percent in April-August 2010 over same period last year," said SIAM in a statement.
It said the commercial vehicles segment registered a growth of 44.75 percent in the period of April-August as compared to the same period last year.
"Medium & Heavy Commercial Vehicles (M&HCVs) registered growth at 65.91 percent and Light Commercial Vehicles grew at 29.68 percent," the statement said.
SIAM also reported a 20.15 percent of cumulative growth in the Three Wheelers segment. While in the passenger three- wheelers grew by 23.84 percent and goods carriers grew at 5.46 percent in the same period.
The Two wheelers segment also registered a 27.22 percent growth rate in the period, which included Scooters, Mopeds and Motorcycles at 44.45 percent, 24.18 percent and 24.41 percent respectively.
SIAM said the industry's exports in April-August grew at 48.42 percent.
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India drops to 51st position in global competitiveness ranking
Geneva: India has slipped by two places to 51st in the World Economic Forum's global competitiveness rankings, while rival China has managed to improve its standing to 29th.
As per the WEF's Global Competitiveness Report 2010-11, released Thursday, Switzerland is No. 1 in the world in terms of its ability to provide the most competitive environment on several fronts.
Sweden, another technology powerhouse in Europe, ranks second, followed by Singapore and the United States, which both fell by two positions from their ranking last year. The African nation of Chad figures at the bottom of the list of 139 countries.
The global competitiveness rankings are viewed as a barometer of the business climate in 139 countries and mirror the assessments of leading businessmen on a range of political, social, and economic parameters.
Though Switzerland has "[state-supported] monopolies in key sectors, it maintains overall economic stability and largely open trade and investment policies," said Margareta Dryeniek Hanouz, senior economist and director of the WEF, who is also the co-author of the report.
India has been pushed down to 51st position from 49th due to its poor performance in a range of social sector areas such as education, health and infrastructure.
Though India has performed well in complex financial sector areas, attaining the 17th rank globally in terms of its financial markets, 44th in business sophistication and 39th in innovation, it has failed to improve the basic drivers of competitiveness, the report said.
"There are two Indias," said Thierry Geiger, an associate director at WEF, who also authored the report.
"While there is widespread poverty, poor health and education facilities and poor infrastructure in rural India, the other India is experiencing rapid growth," he said.
He praised China, which climbed up to 27th position from 29th last year, for making a dent in poverty and for improving overall access to education and health, suggesting that India is far from making a noticeable impact in these two areas.
Consequently, life expectancy is 10 years shorter in India as compared to China and Brazil.
Despite high economic growth, India continues to be plagued by budget deficits, high public debt and high inflation. In contrast, China has over USD 2 trillion in forex reserves and a sound macro-economic environment.
The WEF, which is a non-governmental organisation, is largely known for its annual Davos show of captains of industry and business and political leaders.
In the face of a growing economic crisis in the western world, the WEF has increasingly promoted "compassionate capitalism" as an economic model, analysts said.
Nissan India to export Micra from September
Nissan Motor India would commence shipping of its popular hatchback car 'Micra' to overseas markets this month, a top company official said on Wednesday.
"We will start shipping Micra models to overseas markets European, Middle East and African markets from our plant in Chennai from this month," Nissan Motor India Chairman and Managing Director Kiminobu Tokuyama said.
The company, which introduced the Micra in the Indian market in July, has received 3,600 bookings so far, he said, adding that their Chennai plant is serving as a global hub.
Nissan Motor India registered total sales of 1,249 units in August 2010. In the same month last year, it sold 22 units.
The company had earlier said it started nationwide sales of Micra on July 15 and has sold 928 units that month.
Nissan Motor India besides Micra currently retails luxury sedan Teana, premium SUV X-trail and sports car 370Z as completely built units in the country.
Tokuyama was here to take part in the two-day conference 'CONNECT 2010', organised by Confederation of Indian Industry (CII)
Akai enters mobile market with 10 new models
Akai India on Tuesday forayed into the Indian mobile market with the launch of ten new handsets with a price tag between Rs. 1,800 and Rs. 8,000.
The range will appeal to consumers across all segments, with a special focus on the youth, and are currently available across 8,000 retail outlets in the country. The company plans to ramp up the number of retail outlets to 20,000 by end-September, 2010, the company said in New Delhi.
The company will import the handsets from Akai's factory and from Europe.
"We have introduced a range of phones that will cater to the requirements of all segments of consumers across categories. We hope to become a prominent player in the Rs. 700 billion mobile handset market in the coming years," Akai India Managing Director Pranay Dhabhai said.
Asked about Akai's plans to enter other business verticals, Dhabhai said, "We are looking into other verticals like inverters, netbooks, accessories for mobile phones (and) fixed line wireless phones."
In the basic models, the company has offered features like a Dual Sim, long-lasting battery and large high resolution QVGA screen, while the high-end models include a full touch 3-D user interface, wi-fi, wireless FM with recording, compatibility with social networking sites and e-book compatibility.
The company will launch 3G models by the end of this year, Dhabhai said, adding that its handsets are undergoing trials.
On sales of the company's headsets, Dhabhai said, "Sales from next month, that is, October, are expected to be a lakh per month and by the end of first year of our operations, we expect to have 3 per cent of the total mobile market share."
Akai will make a significant initial investment for setting up the back-end infrastructure for its mobile models and will set up a Level 4 service centre in Gurgaon for repairing mobiles.
"In Gurgaon, we are looking for a centre to repair mobile chip with an investment of about Rs. 5 crore to Rs. 10 crore. It is in the planning stage. By early next year." Dhabhai added.
The company sees after-service as an area that is not focused on by local brands and has invested heavily in setting up a complete service network across India.
The company has 465 service centres across the length and breadth of the country, of which 218 service centres are dedicated for mobile phone back-up services, right from basic servicing to component level repairs.
The range will appeal to consumers across all segments, with a special focus on the youth, and are currently available across 8,000 retail outlets in the country. The company plans to ramp up the number of retail outlets to 20,000 by end-September, 2010, the company said in New Delhi.
The company will import the handsets from Akai's factory and from Europe.
"We have introduced a range of phones that will cater to the requirements of all segments of consumers across categories. We hope to become a prominent player in the Rs. 700 billion mobile handset market in the coming years," Akai India Managing Director Pranay Dhabhai said.
Asked about Akai's plans to enter other business verticals, Dhabhai said, "We are looking into other verticals like inverters, netbooks, accessories for mobile phones (and) fixed line wireless phones."
In the basic models, the company has offered features like a Dual Sim, long-lasting battery and large high resolution QVGA screen, while the high-end models include a full touch 3-D user interface, wi-fi, wireless FM with recording, compatibility with social networking sites and e-book compatibility.
The company will launch 3G models by the end of this year, Dhabhai said, adding that its handsets are undergoing trials.
On sales of the company's headsets, Dhabhai said, "Sales from next month, that is, October, are expected to be a lakh per month and by the end of first year of our operations, we expect to have 3 per cent of the total mobile market share."
Akai will make a significant initial investment for setting up the back-end infrastructure for its mobile models and will set up a Level 4 service centre in Gurgaon for repairing mobiles.
"In Gurgaon, we are looking for a centre to repair mobile chip with an investment of about Rs. 5 crore to Rs. 10 crore. It is in the planning stage. By early next year." Dhabhai added.
The company sees after-service as an area that is not focused on by local brands and has invested heavily in setting up a complete service network across India.
The company has 465 service centres across the length and breadth of the country, of which 218 service centres are dedicated for mobile phone back-up services, right from basic servicing to component level repairs.
Employers upbeat over hiring in 2010: naukri.com
The majority of employers in the country anticipate the creation of new jobs in the coming months of this year, according to two surveys released on Tuesday.
Painting a robust hiring scenario in the country, two separate surveys by global staffing firm Manpower and job portal naukri.com showed that employers are planning to hire at a robust pace this year.
Manpower's Employment Outlook Survey stated that globally, India is the most optimistic in terms of recruitment intentions for the fourth quarter, after China and Taiwan.
Naukri.com, in its latest Hiring Outlook Survey, revealed a positive outlook for the second half this year, with 73 per cent of the more than 700 employers interviewed predicting the addition of new jobs.
About 55 per cent of the respondents expected replacement hiring, three per cent expected a freeze and 2 per cent even anticipate layoffs, the naukri survey stated.
"The job market remains robust in India as a result of strong domestic growth and recovery in key global markets. But employers in other countries are reporting strong hiring forecasts as well," Manpower India Managing Director Sanjay Pandit said.
India's net employment outlook -- an indicator of employers' hiring intentions -- stood at 38 per cent on a seasonally-adjusted basis for the next three months. For the third quarter, the outlook stood a little higher at 41 per cent, the Manpower survey stated.
The naukri.com survey revealed that across sectors, most recruiters pegged attrition levels at under 20 per cent, with the exception of IT-enabled services.
"Employers began recruiting at a steady pace in the first half of 2010 and confidence levels were high. The findings indicate sustainable new job opportunities in remainder of the year and job seekers can look forward to a favourable hiring environment," Info Edge Senior Vice-President - Marketing and Corporate Communications Sumeet Singh said.
In terms of sectors in India, the Manpower survey stated that public administration and education has the highest net employment outlook of 45 per cent, followed by services (40 per cent) and finance, insurance and real estate (34 per cent).
Transportation and utilities and the wholesale and retail trade sectors each have an outlook of 22 per cent, it added.
"Once you combine strong domestic hiring along with improved international opportunities, we see one of the best scenarios that Indian job seekers could have imagined," Pandit said.
Of the 36 countries surveyed by Manpower, 28 showed positive hiring trends for the next three months. As many as 5,395 employers in India participated in the survey.
For the fourth quarter, China has the highest outlook of 47 per cent, followed by Taiwan (40 per cent).
Interestingly, for the third quarter of 2010, India was the most optimistic when it came to hiring intentions.
Painting a robust hiring scenario in the country, two separate surveys by global staffing firm Manpower and job portal naukri.com showed that employers are planning to hire at a robust pace this year.
Manpower's Employment Outlook Survey stated that globally, India is the most optimistic in terms of recruitment intentions for the fourth quarter, after China and Taiwan.
Naukri.com, in its latest Hiring Outlook Survey, revealed a positive outlook for the second half this year, with 73 per cent of the more than 700 employers interviewed predicting the addition of new jobs.
About 55 per cent of the respondents expected replacement hiring, three per cent expected a freeze and 2 per cent even anticipate layoffs, the naukri survey stated.
"The job market remains robust in India as a result of strong domestic growth and recovery in key global markets. But employers in other countries are reporting strong hiring forecasts as well," Manpower India Managing Director Sanjay Pandit said.
India's net employment outlook -- an indicator of employers' hiring intentions -- stood at 38 per cent on a seasonally-adjusted basis for the next three months. For the third quarter, the outlook stood a little higher at 41 per cent, the Manpower survey stated.
The naukri.com survey revealed that across sectors, most recruiters pegged attrition levels at under 20 per cent, with the exception of IT-enabled services.
"Employers began recruiting at a steady pace in the first half of 2010 and confidence levels were high. The findings indicate sustainable new job opportunities in remainder of the year and job seekers can look forward to a favourable hiring environment," Info Edge Senior Vice-President - Marketing and Corporate Communications Sumeet Singh said.
In terms of sectors in India, the Manpower survey stated that public administration and education has the highest net employment outlook of 45 per cent, followed by services (40 per cent) and finance, insurance and real estate (34 per cent).
Transportation and utilities and the wholesale and retail trade sectors each have an outlook of 22 per cent, it added.
"Once you combine strong domestic hiring along with improved international opportunities, we see one of the best scenarios that Indian job seekers could have imagined," Pandit said.
Of the 36 countries surveyed by Manpower, 28 showed positive hiring trends for the next three months. As many as 5,395 employers in India participated in the survey.
For the fourth quarter, China has the highest outlook of 47 per cent, followed by Taiwan (40 per cent).
Interestingly, for the third quarter of 2010, India was the most optimistic when it came to hiring intentions.
Govt Plans IOC, ONGC Stake Sale In March Qtr
India is considering selling 10 per cent in Indian Oil Corp and 5 per cent in Oil and Natural Gas Corp in the March quarter, a deal that could fetch the government about $5.6 billion at current prices.
"The oil ministry has taken an in-principle decision, we have to go to the cabinet now," Oil Secretary S. Sundareshan told reporters on Monday.
The sales will be part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor.
The government expects to raise about $8.6 billion in the current fiscal year that ends next March through such sales.
Sundareshan said the oil ministry had also allowed refiner Indian Oil Corp to sell an additional 10 percent of the expanded share capital.
Asked if the share sale of the two firms would happen by the end of this fiscal, he said, "hopefully". The government owns 78.92 percent of Indian Oil Corp and 74.14 percent in ONGC.
At 0925 GMT, IOC's shares were trading at Rs 425.35 ($9.15) a piece and ONGC was at Rs 1350.5 a share.
Sundareshan also said the Asian Development Bank had written a letter seeking to exit from gas firm Petronet LNG.
Petronet was founded by state-run firms IOC, ONGC, Bharat Petroleum Corp and GAIL (India) that together own 50 percent stake.
"They (ADB) have made an offer in the past. They have said again. Their policy is to exit after a company is functioning," Sundareshan, who is also chairman of Petronet, said.
He said the state-run companies may not exercise their right of first refusal for the ADB holding.
"It is a private company. If they (state-run firms) raise the stake it will cease to be a private company," he said.
France's GDF Suez holds 10 percent and the Asian Development Bank (ADB) holds 5.2 per cent stake in Petronet while the balance 34.8 percent is held by the public.
"The oil ministry has taken an in-principle decision, we have to go to the cabinet now," Oil Secretary S. Sundareshan told reporters on Monday.
The sales will be part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor.
The government expects to raise about $8.6 billion in the current fiscal year that ends next March through such sales.
Sundareshan said the oil ministry had also allowed refiner Indian Oil Corp to sell an additional 10 percent of the expanded share capital.
Asked if the share sale of the two firms would happen by the end of this fiscal, he said, "hopefully". The government owns 78.92 percent of Indian Oil Corp and 74.14 percent in ONGC.
At 0925 GMT, IOC's shares were trading at Rs 425.35 ($9.15) a piece and ONGC was at Rs 1350.5 a share.
Sundareshan also said the Asian Development Bank had written a letter seeking to exit from gas firm Petronet LNG.
Petronet was founded by state-run firms IOC, ONGC, Bharat Petroleum Corp and GAIL (India) that together own 50 percent stake.
"They (ADB) have made an offer in the past. They have said again. Their policy is to exit after a company is functioning," Sundareshan, who is also chairman of Petronet, said.
He said the state-run companies may not exercise their right of first refusal for the ADB holding.
"It is a private company. If they (state-run firms) raise the stake it will cease to be a private company," he said.
France's GDF Suez holds 10 percent and the Asian Development Bank (ADB) holds 5.2 per cent stake in Petronet while the balance 34.8 percent is held by the public.
ArcelorMittal, Indiabulls in JV talks for steel projects
ArcelorMittal, the world's largest steel-maker, is in discussions with Indiabulls Group to form a joint venture company for scouting and mining iron ore in Rajasthan and setting up a steel plant.
"The discussions are on (between ArcelorMittal and Indiabulls to form a JV company). ArcelorMittal is pitching for a majority stake in the JV company," a person in-the-know
of the development said.
"There are indications of iron ore in Rajasthan. It is a mineral-rich state. The JV company would seek to locate and develop it. Then, a steel plant would be developed in the state," the source said.
According to the source, the JV would be between an ArcelorMittal subsidiary or an investment arm of the Mittal family and an Indiabulls Group firm.
ArcelorMittal Chief Financial Officer Aditya Mittal is said to be the brains behind the proposed venture, which aims at tapping the market for steel in North India, where there is no integrated steel plant.
"Promoters of ArcelorMittal and Indiabulls share a good relationship and the new venture would further their partnership," the source added.
Through LNM India Internet Ventures, it is said that L N Mittal already holds an 8.79 per cent stake in Indiabulls Power, which is developing various power projects across the country.
State-owned SAIL has already discovered iron ore deposits in the desert state.
The proposed investment in the JV could not be immediately ascertained. An ArcelorMittal spokesperson did not revert to a query on the cost of the proposed venture.
ArcelorMittal had in July said it expects to start work on one of its proposed Rs. 1.3 lakh crore India projects in early 2011.
The world's largest steel-maker, accounting for 8 per cent of global production, announced plans to set up projects in Jharkhand in 2005 and in Orissa a year later. In June this year, it signed an MoU with the Karnataka government for a Rs. 30,000 crore steel project.
"We believe that in 2011, in one of the projects, we will break the ground, we don't know which one... It is our hope that it should be in the first quarter or the second quarter," ArcelorMittal Chairman and CEO L N Mittal had said.
The company is in the process of acquiring land for construction of a 12-MTPA steel plant in Jharkhand. The company has proposed a plant of similar size in Orissa.
The company has already been allocated iron ore mines in West Singhbhum district of Jharkhand, where it is awaiting clearances to mine more such deposits. However, it is facing regulatory hurdles and protests over land acquisition in the state. Most recently, it had to move out of the Khunti-Gumla area to a new site near Bokaro on account of such problems.
Last year, ArcelorMittal had entered into a co-promoter agreement with Uttam Galva to produce steel.
"The discussions are on (between ArcelorMittal and Indiabulls to form a JV company). ArcelorMittal is pitching for a majority stake in the JV company," a person in-the-know
of the development said.
"There are indications of iron ore in Rajasthan. It is a mineral-rich state. The JV company would seek to locate and develop it. Then, a steel plant would be developed in the state," the source said.
According to the source, the JV would be between an ArcelorMittal subsidiary or an investment arm of the Mittal family and an Indiabulls Group firm.
ArcelorMittal Chief Financial Officer Aditya Mittal is said to be the brains behind the proposed venture, which aims at tapping the market for steel in North India, where there is no integrated steel plant.
"Promoters of ArcelorMittal and Indiabulls share a good relationship and the new venture would further their partnership," the source added.
Through LNM India Internet Ventures, it is said that L N Mittal already holds an 8.79 per cent stake in Indiabulls Power, which is developing various power projects across the country.
State-owned SAIL has already discovered iron ore deposits in the desert state.
The proposed investment in the JV could not be immediately ascertained. An ArcelorMittal spokesperson did not revert to a query on the cost of the proposed venture.
ArcelorMittal had in July said it expects to start work on one of its proposed Rs. 1.3 lakh crore India projects in early 2011.
The world's largest steel-maker, accounting for 8 per cent of global production, announced plans to set up projects in Jharkhand in 2005 and in Orissa a year later. In June this year, it signed an MoU with the Karnataka government for a Rs. 30,000 crore steel project.
"We believe that in 2011, in one of the projects, we will break the ground, we don't know which one... It is our hope that it should be in the first quarter or the second quarter," ArcelorMittal Chairman and CEO L N Mittal had said.
The company is in the process of acquiring land for construction of a 12-MTPA steel plant in Jharkhand. The company has proposed a plant of similar size in Orissa.
The company has already been allocated iron ore mines in West Singhbhum district of Jharkhand, where it is awaiting clearances to mine more such deposits. However, it is facing regulatory hurdles and protests over land acquisition in the state. Most recently, it had to move out of the Khunti-Gumla area to a new site near Bokaro on account of such problems.
Last year, ArcelorMittal had entered into a co-promoter agreement with Uttam Galva to produce steel.
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