Henry's Feed
May 26, 2013

Tata’s Mistry man: tightening belts as more frugal era begins

MUMBAI, May 27 (Reuters) – As Ratan Tata strode the halls of
the Geneva Motor Show in March, joking with journalists and
chatting with auto industry leaders, his successor at the helm
of India’s biggest business group stood silently on the
sidelines.

Shunning the spotlight since taking charge of the $100
billion Tata group in December, 44-year-old Cyrus Mistry has
focused on belt-tightening at a conglomerate left bloated by
explosive growth under his predecessor.

Apr 26, 2013

Maruti’s yen windfall to further lift margins after fourth-quarter surprise

MUMBAI/NEW DELHI (Reuters) – Maruti Suzuki’s (MRTI.NS: Quote, Profile, Research, Stock Buzz) profit margins are set to show even stronger gains in the current quarter as India’s biggest car maker reaps an even greater windfall from cheaper yen-denominated imports of components.

The yen’s dramatic decline since Japan’s Prime Minister Shinzo Abe embarked on his campaign for bold monetary easing has proven to be a huge filip for Japanese and Japan-related firms, and could give Maruti a further leg up over rivals like Tata Motors Ltd (TAMO.NS: Quote, Profile, Research, Stock Buzz).

Apr 26, 2013

Maruti’s yen windfall to further lift margins after Q4 surprise

MUMBAI/NEW DELHI, April 26 (Reuters) – Maruti Suzuki’s
profit margins are set to show even stronger gains in
the current quarter as India’s biggest car maker reaps an even
greater windfall from cheaper yen-denominated imports of
components.

The yen’s dramatic decline since Japan’s Prime Minister
Shinzo Abe embarked on his campaign for bold monetary easing has
proven to be a huge filip for Japanese and Japan-related firms,
and could give Maruti a further leg up over rivals like Tata
Motors Ltd.

Apr 23, 2013

Luxury carmakers chase the young, female and frugal

MUMBAI (Reuters) – Luxury carmakers in India are moving downmarket and shifting production of smaller and cheaper cars to local plants to cut costs, broadening their target market to include young, female and middle-class drivers to boost lacklustre performance.

In an effort to raise stuttering sales that far lag emerging Asian rival China, the German big three of Mercedes-Benz, Audi AG(NSUG.DE: Quote, Profile, Research) and BMW AG(BMWG.DE: Quote, Profile, Research) want to win buyers outside the ultra-rich with locally-made hatchbacks and smaller cars.

Apr 22, 2013

Luxury carmakers chase India’s young, female and frugal

MUMBAI, April 23 (Reuters) – Luxury carmakers in India are
moving downmarket and shifting production of smaller and cheaper
cars to local plants to cut costs, broadening their target
market to include India’s young, female and middle-class drivers
to boost lacklustre performance.

In an effort to raise stuttering sales that far lag emerging
Asian rival China, the German big three of Mercedes-Benz, Audi
AG and BMW AG want to win buyers outside the
ultra-rich with locally-made hatchbacks and smaller cars.

Apr 20, 2013

VW takes aim at China to fix budget car Achilles heel

April 20 (Reuters) – If Volkswagen is to achieve
its goal of becoming the world’s biggest automaker, it needs to
conquer the only market where the German group trails major
competitors: low-cost cars.

Europe’s biggest carmaker plans to launch a budget brand in
China with one of its local partners by about 2015, aiming to
draw on more than 2,000 dealers and a market share of over 20
percent to take on similar no-frills ventures established by
General Motors, Nissan and Honda.

Apr 17, 2013

Keep calm and carry on in India’s slumping car market

MUMBAI (Reuters) – Don’t tell Hironori Kanayama that investing almost $500 million in a market enduring its worst slump for 12 years is a questionable business decision. Honda Motor Co’s (7267.T: Quote, Profile, Research) India head sees only one way forward: Keep calm and carry on.

Global carmakers such as General Motors Co (GM.N: Quote, Profile, Research) and Volkswagen AG that have between them poured billions of dollars into factories, product development and marketing in India’s once-booming car market are now struggling as slow economic growth, high interest rates and rising fuel prices keep their target customers from parting with their cash.

Apr 17, 2013

Analysis: Keep calm and carry on in India’s slumping car market

MUMBAI (Reuters) – Don’t tell Hironori Kanayama that investing almost $500 million in a market enduring its worst slump for 12 years is a questionable business decision. Honda Motor Co’s (7267.T: Quote, Profile, Research, Stock Buzz) India head sees only one way forward: Keep calm and carry on.

Global carmakers such as General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) and Volkswagen AG (VOWG_p.DE: Quote, Profile, Research, Stock Buzz) that have between them poured billions of dollars into factories, product development and marketing in India’s once-booming car market are now struggling as slow economic growth, high interest rates and rising fuel prices keep their target customers from parting with their cash.

Apr 9, 2013

Boom market crashes; tough road ahead for carmakers

MUMBAI (Reuters) – India’s annual car sales fell for the first time in a decade in the just-ended financial year, official data will show on Wednesday, calling into question bullish growth expectations that fuelled billion-dollar bets from global manufacturers.

Carmakers in India, two years ago the world’s hottest growth market after China, have seen high interest rates, rising fuel prices and prolonged economic gloom turn an industry recently growing at 30 percent a year into one plagued by huge discounts, showrooms full of unsold cars, and chronic overcapacity.

Apr 9, 2013

Tough road ahead for India carmakers as boom market crashes

MUMBAI, April 10 (Reuters) – India’s annual car sales fell
for the first time in a decade in the just-ended financial year,
official data will show on Wednesday, calling into question
bullish growth expectations that fuelled billion-dollar bets
from global manufacturers.

Carmakers in India, two years ago the world’s hottest growth
market after China, have seen high interest rates, rising fuel
prices and prolonged economic gloom turn an industry recently
growing at 30 percent a year into one plagued by huge discounts,
showrooms full of unsold cars, and chronic overcapacity.