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from India Insight:

Organised players, growing acceptance boost India’s used car market

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One would expect the former head of India’s No. 1 car maker to drive a glitzy new SUV or an imported luxury car, but Jagdish Khattar thinks differently. The industry veteran who spent 14 years at Maruti Suzuki now buys only second-hand cars and drives a used Volkswagen Passat.

"Rich people buy new cars, intelligent people buy second-hand cars," said Khattar, the founder of Carnation Auto, a service and used-cars company he started in 2008 after leaving Maruti. The used car market, he said, is the future of automobiles.

The rising presence of well known car brands in the used cars business, coupled with growing acceptance of second-hand vehicles, is spurring demand. That is putting in shape the largely unorganised used-car business at a time when new car sales have slumped for the first time in more than a decade.

Customer-to-customer sales and small dealers still dominate used car sales in India, while workshops and mechanics also double up as agents to help people sell or buy cars.

from India Insight:

Markets this week: Sensex falls 2.6 percent, Jindal Steel slumps 9 percent

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After rising for four consecutive weeks, the BSE Sensex fell 2.6 percent in the last five trading sessions, as a surprise repo rate hike by the Reserve Bank of India (RBI) on Sept. 20 dampened investor confidence and battered banking shares.

Rate-sensitive sectors were hurt -- the banking index and the realty index lost over 7 percent in the week. YES Bank fell 14.5 percent, SBI lost 6 percent while shares of DLF slumped 13 percent.

from Expert Zone:

Hyundai makes a grand move with the Grand i10

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

In 1947, when India won freedom from British rule, an enterprising young man in South Korea was realizing a dream that was to become a global phenomenon. Chung Ju-yung, founder of the Hyundai group, set up a construction company at 32 and two decades later, the Hyundai Motor Company was born.

from India Insight:

Tracking Sensex: top gainers, losers in June quarter

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By Aditya Kalra and Ankush Arora

Indian shares ended the June quarter on a positive note as the Sensex and Nifty registered gains of around 3 percent during the period, data showed.

The markets managed to post gains in the quarter despite falling around 2 percent in June after the U.S. Fed said it plans to begin winding down its stimulus later this year if economic conditions are favourable.

from Money on the markets:

BSE Auto index falls 2 pct

Auto stocks struggled in trade on Friday, as stocks like Exide Industries, M&M and Maruti Suzuki fell, pushing the sectoral index down 2 percent.

Exide Industries ended down 4.6 percent as the top loser in the auto index, followed by M&M which dropped 3.3 percent.

from Money on the markets:

Auto stocks post decent gains

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The BSE Auto Index gained 1.27 percent on Friday, as a top industry body official said he expected Indian vehicles sales to reach a record high for the second year in a row in 2010/11.

Shares in Tata Motors rose 4.5 percent to 808 rupees and ended as the top gainer among the Sensex and auto index components.

from India Insight:

Maruti 800 – an obituary?

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maruti 800After the iconic Bajaj scooter,  another symbol of the eighties and the then acme of middle-class ambition -- the Maruti 800 -- is driving into history.

With new emission norms kicking in, it won't be sold in 13 major cities.

Nearly three decades ago, this delicate looking car in various hues begged for space on Indian roads next to ageing off-white rivals whose stolidity was misinterpreted as dependability and ruggedness.

from Money on the markets:

Hero Honda jumps over 4 percent

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Hero Honda jumps over 4 percent Shares in Hero Honda gained more than 4 percent on Thursday as markets ended firm with the Sensex rising by 107 points. BSE Auto index rose 0.46 percent. Amtek Auto climbed 1.4 percent whereas Ashok Leyland gained nearly 1 percent. Among losers, Tata Motors’ stock had a weak trading session and ended down 1.87 percent. Maruti Suzuki slipped 1.47 percent. Do you have a favourite auto stock for investment at this stage?

Shares in Hero Honda gained more than 4 percent on Thursday as markets ended firm with the Sensex rising by 107 points.

BSE Auto index rose 0.46 percent.

Amtek Auto climbed 1.4 percent whereas Ashok Leyland gained nearly 1 percent.

Among losers, Tata Motors’ stock had a weak trading session and ended down 1.87 percent. Maruti Suzuki slipped 1.47 percent.

from India Insight:

Recall virus dims Maruti A-Star lustre

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No. 1 Indian carmaker Maruti Suzuki's recall of its best-selling A-Star vehicles may not cost the company much financially, but sure raises questions about the procedures followed by the company for disclosing such information to investors.

Maruti A-StarThe company says the recall of 100,000 cars began in November, but did not disclose the move until late February.

from Money on the markets:

Auto stocks end weak

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The BSE auto index slipped 1.8 percent on Tuesday, with shares in Maruti Suzuki slipping 3.2 percent.

Maruti Suzuki India is recalling 100,000 A-Star hatchbacks to fix a fuel leakage problem, a spokesman for the company told Reuters on Tuesday.

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