Yamaha Motor shows 55% sales increase in May

Two-wheeler maker India Yamaha Motor yesterday reported a 55 per cent increase in total sales to 38,812 units in May, compared to the corresponding month a year ago.

The company sold 25,033 units in the same month last year, India Yamaha Motor said in a statement.

In the domestic market, the company’s May sales stood at 27,959 units, as against 17,614 units in the same month last year, up 58.7 per cent.

Commenting on the sales performance, India Yamaha Motor Pvt Ltd CEO and Managing Director, Mr Hiroyuki Suzuki said: “We are seeing good sales growth this year and expect the momentum to continue for the rest of the year.”

Exports of India Yamaha rose by 46.28 per cent to 10,853 units in May, 2011, from 7,419 units in the year—ago period, the company said.

Nifty arrives at 3-month closing high

Bargain hunting after a four-day decline helped Indian stocks log smart gains in what was a global rally. A slide in crude oil prices from 2-1/2-year peak helped ease macroeconomic worries, aiding strong gains in Indian shares. The Sensex was up 434.32 points or 2.25% to 19,696.86, up 595.23 points from the day's low and off 34.51 points from the day's high. The barometer index BSE Sensex settled at one-week high while the 50-unit S&P CNX Nifty settled at 3-month high. The market breadth, indicating the overall health of the market, was strong.

Bank shares rose across the board on expectation of good Q4 results. Capital goods and auto stocks rose on renewed buying. IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. Cigarette maker ITC scaled a record high on expectations of good Q4 results.

The market recovered after hitting 2-week low at the onset of the trading session, tracking recovery in Asian stocks. The market moved into the positive zone to hit fresh intraday high in morning trade. The market extended initial gains to hit fresh intraday high in mid-morning trade. The market trimmed gains in early afternoon trade. The market struck a fresh intraday high in afternoon trade. The Sensex extended gains in mid-afternoon trade. The barometer index surged to hit one-week high in late trade.

The BSE 30-share Sensex was up 434.32 points or 2.25% to 19,696.86, its highest closing level since 4 April 2011. The Sensex rose 468.83 points at the day's high of 19,731.37 in late trade. The Sensex shed 168.91 points at the day's low of 19,101.63 in early trade, its lowest level since 29 March 2011.

The S&P CNX Nifty was up 125.80 points or 2.17% to 5,911.15, its highest closing since 6 January 2011. The Nifty hit high of 5,923.60 in late trade. The Nifty hit low of 5,735.55 in early trade, its lowest level since 29 March 2011.

The market breadth, indicating the health of the market, was strong. On BSE, 1,941 shares advanced while 977 shares declined. A total of 93 shares remained unchanged. The breadth was negative at the onset of the trading session.

The BSE Mid-Cap index rose 1.40% and the BSE Small-Cap index advanced 1.30%. Both these indices underperformed the Sensex.

All the 13-sectoral indices on the BSE logged gains. The BSE Capital Goods (up 2.73%), the BSE Auto (up 2.54%), and the Bankex (up 2.32%), outperformed the Sensex. The BSE Healthcare (up 0.76%), the BSE Metal (up 0.80%), and the BSE Consumer Durables (up 1.11%), underperformed the Sensex.

Among the 30-member Sensex pack, 28 advanced while only two of them declined.

BSE clocked turnover of Rs. 3373 crore, higher than Rs. 2588.21 crore on Monday, 11 April 2011.

Index heavyweight Reliance Industries (RIL) rose 1.36% to Rs. 1020.80, off the day's low of Rs. 998 as refining margins are seen rising on the back of high crude oil prices. After market hours today, RIL said it has started work on large polyester projects in India to consolidate its position as the world's largest integrated polyester producer.

RIL said it has planned its capacity expansion in phases over the next few years including a 2.30 million metric tonne at Dahej, Gujarat, with an ability to increase the capacity by another 1.15 million tonne at a later stage. The expansion also includes a 3.95 lakh tonne of polyester filament yarn and 1.4 lakh tonne polyester texturized yarn at Silvassa.

ONGC gained 1.78% after chairman A. K. Hazarika was quoted by the media as saying that the company will sign an agreement during the week-end to purchase a 25% stake in the Satpayev exploration block in Kazakhstan. The government has approved a total investment plan of $400 million. This includes a signature bonus of $13 million and $80 million as a fee for taking the stake in the block. The rest will be spent on exploration activities.

IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. India's second largest software services exporter Infosys Technologies rose 2.29%, with the stock gaining for the second straight day. The market has been abuzz with talks Infosys will give encouraging guidance for the year ending March 2012 (FY 2012) given underlying strong demand for offshore outsourcing. Infosys will give annual guidance for FY 2012 at the time of announcing Q4 March 2011 results on Friday.

A total of 6 brokerages expects a between 3.3% to 6.7% growth in Infosys' consolidated net profit as per International Financial Reporting Standards at between Rs. 1839.40 crore to Rs. 1899.20 crore in Q4 March 2011 over Q3 December 2010. The revenue is seen rising 4.2% to 6% at between Rs. 7407.80 crore to Rs. 7531 crore in Q4 March 2011 over Q3 December 2010.

India's largest software services exporter TCS advanced 2.23%. The company will announce Q4 result on 21 April 2011. India's third largest software services exporter Wipro gained 3.19%. The company will announce Q4 result on 27 April 2011.

Mahindra Satyam was down 0.91%. After market hours today the company said it won a large enterprise resource planning contract from Qatar University. As per the order, Mahindra Satyam will implement its strategic business solutions for Qatar's premier academic institution.

Cigarette maker ITC rose 2.81% to Rs. 190.15 on expectations of good Q4 results. The stock hit record high of Rs. 190.50 today.

India's largest dam builder by sales Jaiprakash Associates surged 7.58% after executive chairman Manoj Gaur was quoted as saying the company aims to maintain a growth rate of 40% and aims to scale down debt significantly in the year ending March 2012 (FY 2012). It was the top gainer from the Sensex pack.

Bank shares rose across the board on expectation of good Q4 results. India's second largest private sector bank by net profit HDFC Bank rose 3.65%. The bank will announce Q4 result on 18 April 2011. India's largest private sector bank by net profit ICICI Bank gained 2.68%. The bank will announce Q4 result on 28 April 2011.

India's largest state run bank by net profit and branch network State Bank of India (SBI) edged up 1.46%. Pratip Chaudhuri has taken over as the new chairman of State Bank of India the state-run bank said on 7 April 2011. Chaudhuri, 57, has been working with State Bank for 37 years and takes over from O.P. Bhatt. Before taking up the top role, Chaudhuri was deputy managing director in the international banking division of thebank.

Development Credit Bank jumped 15.40% after the bank reported a net profit of Rs. 11.34 crore in Q4 March 2011 compared with a net loss of Rs. 8.15 crore in Q4 March 2010. The private sector bank announced the results during trading hours today, 13 April 2011.

Capital goods stocks rose on renewed buying. Punj Lloyd, ABB, Larsen & Toubro, BEML and Bhel rose by between 0.85% to 5.38%.

Power utility major Reliance Infrastructure rose 1.98%. After market hours today, the company said it today bought-back 1 lakh equity shares under its buyback scheme.

Container Corporation of India flared up 7.05%. The company announces Q4 March 2011 results on 19 April 2011.

Auto stocks rose on strong domestic demand. India's top small car maker by sales Maruti Suzuki rose 3.41%, with the stock snapping last four days' losses. The company announced last week that it would recall 13,157 diesel engine cars. The company said it would inspect the 'connecting rod bolt' for units of its Swift and Ritz model diesel cars with engines manufactured between 13 November 2010 and 4 December 2010.

Maruti Suzuki increased the prices of its products by 0.2% to 2.4% from 4 April 2011, depending on the models to offset rising costs of key inputs viz. steel, aluminum, copper and natural rubber.

India's largest truck maker by sales Tata Motors gained 2.61%, with the stock snapping last three days' slide. The company had hiked prices of some car models by Rs. 7,000 to Rs. 36,000 from 1 April 2011.

India's top tractor and utility vehicles maker by sales Mahindra & Mahindra rose 2.73% with the stock snapping last two days' fall. The company has reportedly raised prices on most of its models by 1.5% to 2% recently to offset higher commodity prices.

India's largest bike maker by sales Hero Honda Motors gained 6.34% with the stock snapping last two days' losses after company today declared an interim dividend of Rs. 70 per equity share for the year ended March 2011. Hero Honda's total sales rose 24.4% to 5.15 lakh units in March 2011 over March 2010. The monthly sales in March 2011 were record monthly sales.

India's second largest bike maker by sales Bajaj Auto rose 1.6% with the stock snapping last three days' losses. The company's total vehicle sales increased 12% to 3.07 lakh units in March 2011 over March 2010. The company announced its March 2011 sales figures on 4 April 2011.

Cals Refineries clocked highest volume of 6.92 crore shares on BSE. Bampsl Securities (1.54 crore shares), Development Credit Bank (1.05 crore shares), Resurgere Mines (72.19 lakh shares) and Teledata Technology Solutions (67.98 lakh shares) were the other volume toppers in that order.

Gruh Finance clocked highest turnover of Rs. 178.20 crore on BSE. Mahindra & Mahindra Financial Services (Rs 134.26 crore), DLF (Rs 92.51 crore), State Bank of India (Rs 92.37 crore) and LIC Housing Finance (Rs 78.06 crore) were the other turnover toppers in that order.

The stock market remains closed tomorrow, 14 April 2011, on account of Dr. Ambedkar Jayanti. The near term major trigger for the market is Q4 March 2011 results which will start trickling in starting this week when IT bellwether Infosys unveils earnings on Friday, 15 April 2011. Investors will scrutinize post-result management commentary to gauge outlook on earnings at a time when rising salaries, raw materials prices and interest rates are pressurizing profit margins of India Inc.

European stocks rose Wednesday, boosted by strength in the auto sector and tracking gains in Asia, as investors looked to the next round of US earnings reports. The key benchmark indices in UK, Germany and France were up by between 1.13% to 1.29%.

Japanese stocks led recovery in Asian markets on Wednesday on reports Japan's Renesas Electronics Corp. would restart a key factory that was hit by last month's quake in June 2011, a month earlier than expected. The key benchmark indices in Japan, China, South Korea, Indonesia, Singapore, Hong Kong and Indonesia rose by between 0.55% to 1.56%.

Meanwhile, Japan's government on Wednesday downgraded its assessment of the economy for the first time in six months, saying it is showing weakness after a devastating earthquake and tsunami last month battered the northeast coast.

US stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed. US trade deficit shrank in February as a slowdown in demand both at home and abroad hit imports and exports. The trade gap totaled $45.8 billion, down 2.6% from January despite another monthly rise in oil prices to their highest since October 2008, the Commerce Department said on Tuesday.

Trading in US index futures indicated that the Dow could gain 73 points at the opening bell on Wednesday, 13 April 2011.

Back home, high global commodity prices will add to pressure on profit margins of Indian firms caused by rising salaries and higher interest rates. Investors can take some solace in a recent slide in crude oil prices from 2-1-/2-year highs.

A surge in crude oil prices over the past few months has sparked inflation and interest rate worries. The Reserve Bank of India (RBI) is seen raising key short term policy rates by 25 basis points at its annual 2011-2012 monetary policy review on 3 May 2011.

India imports majority of its crude oil requirements and high oil prices have raised concerns about widening current account deficit. High oil prices have also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position. US crude futures were up 48 cents or 0.45% at 106.73 a barrel.

Industrial production rose 3.6% in February 2011, lower than market expectations of a 4.8% growth, data released by the government on Monday showed. Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 3.5% in February 2011. January's industrial output annual growth rate was revised upwards to 3.9% from 3.7%.

The data of Wholesale Price Index for the month of March 2011 is due on Friday, 15 April 2011. A Capital Market poll pegs a median rate of rise in inflation at 8.4% in March 2011, higher than an annual rise of 8.3% in February 2011.

The International Monetary Fund has marginally cut its 2011 economic growth forecast for India to 8.2% from 8.4% as persistent inflation pressure forced aggressive monetary tightening.

Suzuki Motorcycle shows 26% increment in its sale in March

Two-wheeler maker Suzuki Motorcycle India reported a 25.94 per cent growth in March sales to 27,361 units from 21,725 units in the same month last year.

"We have received a very good response from the market to all our products including the newly-launched, Suzuki SlingShot series. We are committed to continue this growth momentum in future," Suzuki Motorcycle India Vice President (Sales and Marketing) Atul Gupta said in a statement.

The company also attributed its growth to the good response to its GS150R motorcycle and Access125 scooter, besides the recently launched SlingShot bike, the statement said.

Garware in a plan to make 250-cc Hyosung bikes in India with new JV

Pune-based Garware group is set to form a joint venture with the South Korean S&T to manufacture and sell motorcycles in India. The company already assemble and sell S&T’s Hyosung heavy bikes in India. “S&T is keen to enter India. We plan a manufacturing JV by mid-2012,” Diya Garware, managing director, Garware Motors told HT. “If and when the JV is formed we will enter the 250-cc segment.”

Garware Motors has set April 20 as the launch date for its first two S&T heavy bikes — the 650-cc GT650R and the 700-cc ST7. “The homologation process is over. We expect to get the ARAI certificate next week,’’ she said.

The company has reduced the noise level and added Indian parts to meet the specifications set by the Automotive Research Association of India (ARAI).

The GT650 and ST7 superbikes will be priced below Rs 5 lakh and Rs 6 lakh respectively.

The company plans showrooms in Delhi, Mumbai, Goa, Bangalore, Chennai, Hyderabad, Chandigarh, Kochi and Kolkata, apart from Pune.  It has set up a Rs 20-crore assembly plant in Wai near Pune, and is targeting annual sales of 2,000 bikes. It is forming a pan-India bikers’ club, Hyfliers, to promote its bikes.

The heavy bike segment is attracting global leaders — Harley-Davidson, Ducati, Suzuki, Yamaha and Honda are all present. Most of these bikes are in the 800-cc plus, Rs 9 lakh-plus range. Garware is trying to carve a 600-800 cc niche.

Auto CKD imports going to be taxed at 30%

The auto industry may be a high revenue generator for the government, but some of the recent policy decisions do not consider this sector’s importance to the exchequer.

Consider this: after a lot of deliberations, the government has introduced a new slab in the budget, which will tax certain completely knocked down (CKD) kit imports at 30%. In this year’s budget the government had proposed 60% tax.

Any kit, which includes pre-assembled engines or gearboxes for either cars or two-wheelers, will have to pay this hefty levy - this virtually includes all CKD imports since engines and gearboxes are typically the last products to be localised.

Of course, the new duty would adversely impact assembly operations of luxury car makers such as BMW and Audi besides bike makers such as Harley Davidson. Spokespersons for both BMW and Audi in India declined to comment on the CKD duty issue. Earlier, senior Audi officials were quoted as saying they will review business in India if the CKD levy were to continue.

Not just luxury car makers, other vehicle makers would also be hit in their respective CKD operations. Industry veterans point out that Suzuki Kizashi, Hyundai Santa Fe, products from the Jaguar Land Rover range, which Tata Motors was planning to import in CKD condition for assembly and sale in India - all these products and their possible assembly here would now be impacted.

After the Ssangyong buyout, Mahindra & Mahindra had also spoken of bringing some of the Korean company’s flagship products to India as CKD - these plans are also likely to get impacted adversely owing to the new import duty levy.

But it is not just the CKD levy that is making vehicle makers see red.

Even the issue of easing excise duty on utility vehicles (UVs) has not been addressed for many years now. The industry has been seeking lower excise - at present UVs are taxed at 20% alongside other big cars - for these vehicles saying they are primarily for use in rural areas and hence should be differentiated from sports utility vehicles (SUVs). Even the Ministry of Heavy Industries (which is the administrative ministry for automobiles) is in favour of such a move, having repeatedly asked the finance ministry to lower excise on UVs by 4-5 %.

In the 220th report of the Committee on Industry, Heavy Industries ministry has said it has recommended, at various stages in the past that the finance ministry bring down excise duty on multi-utility vehicles 4-5% from the existing 20%.

It has also recommended withdrawal of additional excise duty of Rs15,000 imposed on all cars, other than small cars, and has also asked for increasing depreciation rates on vehicles from 15% to 20%.

Suzuki’s 200cc and 500cc bikes in India

When Government Of India opened the gate for superbikes in 2007, everyone expect the Hayabusa and R1 to hit India market. Recently, Yamaha launched superbikes – R1 and MT-01 in India. Now its Suzuki’s turn but unlike Yamaha, Suzuki plans a CKD (Completely Knocked Down) route that means more affordable superbikes.Assembling the bikes in India will cut the cost of a superbike significantly, compared to importing it as a CBU(Completely Built Unit). Also,Suzuki is planning to assemble 400-600cc bikes in India that could see prices of power bikes come down to Rs 4-5 lakh.  Suzuki Motorcycle India V-P Atul Gupta told that the company would shortly be sending some of the bikes to Indian vehicle certification agency Automotive Research Association of India (ARAI), Pune, for homologation. “The homologation process is likely to take between three to six months and we can expect some of these bikes possibly by Diwali,” he said. “Indian Government move to relax certification process for 800-cc plus vehicles (by accepting certification from EU against existing policy of only from the country of origin) would also help in launch of these bikes in India”, he added. Suzuki may bring superbikes like GS500, GSR600 and RMZ-450 to indian market.

125cc,150cc and 200cc..

Suzuki launched  two new models in 2008. While one will be in the 150-cc segment, the other could be a premium offering in the 125-cc segment. Suzuki is also looking at launching a 200 cc bike, though Gupta said a final decision would be taken closer to the launch.

After Honda, Suzuki speeds up 100cc motorcycle plans!

The 100cc segment is suddenly showing some real signs of action with Suzuki Motorcycle India, all set to hasten it’s own foray into the bread and butter, commuter segment of the Indian motorcycle market. This motorcycle segment, which consistently has enjoyed massive volumes and along with delivered huge profits to the two biggest players, Hero Honda and Bajaj Auto respectively. Close on the heels of the Hero-Honda Joint Venture split and Honda deciding to up the ante with it’s own 100cc commuter offering, compatriot Suzuki too is speeding up it’s original plans to usher in a 100cc commuter motorcycle with the sole goal of big volumes.

Suzuki, in fact was one of the first manufacturers to bring a 100cc motorcycle to India in the form of the 98.8cc Ind-Suzuki AX100 Two Stroke commuter motorcycle way back in the eighties, when it had collaborated with TVS Motors. In a way, life has come a complete circle for Suzuki in India even as it has a myriad range of products ranging from the humble Access 125 Scooter to the high end Suzuki Hayabusa sportsbike. With the 100cc commuter motorcycle, Suzuki hopes to make a bigger dent in the ever growing Indian motorcycle market. Here’s what Atul Sobti, the of Suzuki Motorcycle India had to say about his firm’s 100cc foray.