A month in the India Transport Sector (No 27)

August, 2013

CARMAKERS
TOYOTA: TO INTRODUCE ETIOS HYBRID TO INDIA India is among its target markets as Mr Hiroshi Nakagawa, managing director of Toyota Kirloskar Motor says, volume-wise, India is not big, but in terms of the speed of growth, it is a big contributor. More information on ITP NISSAN: LAUNCH OF NEW MODELS IN INDIA Yet another car manufacturer is looking to expand in the budget sector of the Indian automobile industry. Nissans two latest offerings, the Datsun (also known as the K2) and the price-conscious Nissan Micra, known as the Micra Classic are soon to hit the market. More information on ITP SKODA: LATEST INDIA NEWS Skoda ventured into Indian markets in 2002 with the Octavia which was available in a diesel version and was introduced at a low initial price. Skoda recorded good sales figures compared to its competitors as buyers were won over by the reasonable cost and ease of handling. More information on ITP BMW LAUNCHES THE 7-SERIES SALOON FROM ITS CHENNAI FACILITYL The BMW brand, synonymous with luxury and style, has starting to roll out its 7-series flagship car from its production facility in Chennai in April this year. More information on ITP GENERAL MOTORS REPORTS BETTER VEHICLE SALES IN CITIES WITHOUT METROS General Motors India Vice President P. Balendran said cities without metros have witnessed a faster rate of growth in the country in terms of sales of multi-purpose vehicles (MPVs) and other new generation cars. More information on ITP

EDITORIAL The India Transport Portal team is pleased to present you its brand new research report named Rolling Resistance Regulation and Sustainable for Transportation Indian An opportunity Transportation. This report aims to tackle the growing concerns about carbon emission and fuel consumption linked to tyre use in the transportation industry. So we looked at the rolling resistance effect that affects the fuel efficiency of vehicles. We provide a comprehensive overview of the European experience that has enabled a labeling system for tyres that are sold across Europe. We also try to benchmark several initiatives all over the world that follow such initiatives. As we found that there already are issues on enforcement and consistency coming to light with the european labelling system, we try to understand the outcomes regarding the Indian situation. The fact is that in such fast developing countries, regulation enforcement is just becoming robust. So the conclusion is that mandatory thresholds are standardized, much easier to monitor and to set up. Mandatory thresholds helps to ensure conformity, prevents consumer confusion and helps to avoid potential fraud. These outcomes have to be discussed if certain pending Indian government decisions are made. All the India Transport Poral wish to thank all the corporates, researchers, academics, politics etc. that helped us to built this research document. Find here the whole report. Sustainable

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A month in the India Transport Sector (No 27)

August, 2013 MACRO FACTORS

A SHIFT TO EXPORT PARITY PRICING FOR FUEL IN THE OFFING The Ministry of Finance has decided to shift from a trade parity pricing policing (TPP) to one based on export parity (EPP) for fuel with the intention of reducing the fiscal deficit. The oil companies managed by the public sector are already struggling and this move could negatively affect their profitability. More information in ITP INDIAS BIGGEST TRADING PARTNER, CHINA, FACES DELAYS The Chairman of Chinas National Development Reforms Commission, Zhang Ping, was in India late in 2012, with a group of delegates, to hold strategic talks about committing to improving the economy in one others countries. According to the official Chinese news agency, Xinhua, Mr.Ping had said that they intend to push forward cooperation in infrastructure including railway. More information on ITP CHINAS GROWTH: A THREAT TO INDIAN TYRE MAKERS Indian tyremakers are facing the threat of being adversely affected by the recent changes in government policy and the rise of Chinese tyre manufacturers which are steadily making inroads into the Indian tyre market. More information on ITP

CAR AND VEHICLES MARKET

DOMESTIC AUTO SECTOR: FTA TALKS WITH THE EUROPEAN UNION CAUSING APPREHENSION The Indian automobile industry, which is experiencing the first slump in over a decade is poised to receive another setback. The ongoing EU-India Free Trade agreement (FTA) talks which have been in progress in Brussels since 2007 are moving towards breaking down trade barriers in the Indian markets. More information on ITP LUXURY CAR PRICES TO SEE A SPECTACULAR DIP IN PRICES The reason behind the drastic price drop is credited to the Indian Governments plan to cut prices of customs duty on cars shipped from countries in the European Union, along with South Korea and Japan, countries with which it has FTA or Free Trade Agreement. More information on ITP BUYERS CHOOSING SEDANS AND CROSSOVERS OVER MICRO MODELS The Renault Duster has emerged as the best-selling SUV on Indian markets, highlighting a radical change in the preferences of the Indian population. Indian buyers are increasingly choosing sedans and crossover models although the market has traditionally favoured smaller more economical micro cars. More information on ITP CONTINUED INVESTMENT DESPITE INDIAS SLUMPING CAR MARKET In spite of the drop in car purchases in India, the investment in the automobile sector continues undeterred. This positive outlook of car manufacturers is understandable in the light of the fact that the sales of luxury cars continues to grow unabated. More information on ITP MOTORCYCLES AND SCOOTERS: STEADY PRICE INCREASES Top two-wheeler manufacturers in India such as Bajaj Auto, TVS Motor Company and Honda Motorcycle and Scooters India (HMSI) have decided to finally increase prices on all their twowheeler vehicles from April 1st, 2013. More information on ITP

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A month in the India Transport Sector (No 27)

August, 2013 RAILWAY CONSTRUCTION

WITH DFC, RAILWAYS SHARE IN FREIGHT TRANSPORTATION SHALL AGAIN RISE PUNIT AGRAWAL HEAD STRATEGIC MANAGEMENT OF DFCCIL Punit Agrawal is currently Head Strategic Management of DFCCIL, New Delhi. He has more than 15 years of experience in Indian Railways and Dedicated Freight Corridor Corporation of India Limited (DFCCIL); More information on ITP ANDHRA PRADESH PROJECTS: MINISTER 40,000 CRORES RAILWAY SEEKS RS.

ROAD CONSTRUCTION
FRENCH VINCI: AN INTEREST IN INDIAN ROADS The French construction giant, Vinci, has shown an interest in Indias road-building sector. At a time when other construction majors such as GMR Infrastructure Ltd. and GVK Power and Infrastructure Ltd. have backed out of their contracts with the National Highways Authority of India (NHAI), Vinci believes it can overcome obstacles that have plagued the road sector. More information on ITP PUBLIC PRIVATE PARTNERSHIP PROJECTS: FUNDING FROM BANKS According to the Department of Economic Affairs of the Ministry of Finance, 53 % of all the PPP projects in the country are road projects, and their value accounts for 46.1% of the total. More information on ITP NATIONAL HIGHWAY AUTHORITY: TO DROP PUBLIC PRIVATE PARTNERSHIP MODEL The NHAI has decided to stop using the PPP model for road development. The agency is currently going through difficult conditions and cannot employ the PPP model for its larger projects. Of the 22 projects that are open for bidding, only 9 have received bids in 2012-2013. Perhaps the main reason is the lack of stable and satisfactory financing solutions. More information on ITP SUPREME COURT: ENVIRONMENTAL CLEARANCE TO BE SEPARATED FROM FOREST CLEARANCE In March 2013, the Supreme Court of India approved the separation of environmental clearances (EC) from forest clearances (FC) for construction projects. Matters had come to a head between the National Highways Authority of India (NHAI) and the Ministry of Environment and Forests (MoEF) when the NHAIasked the SupremeCourt on January 5, 2013 to intervene so that their stalled projects could go ahead. More information on ITP

Kotla Jaya Surya Prakash Reddy, Andhra Pradeshs Minister of State for Railways said that the state needs a hefty sum of Rs. 40,000 Crores (approx. 700 million USD) to complete all pending state railway projects. He said that there are about thirty railway projects that are yet to be completed and plans to advance progress through phased completion stages. More information on ITP

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A month in the India Transport Sector (No 27)

August, 2013 ADVERTISE WITH US

TRUCKS, BUSES AND TRACTORS

OVERSUPPLY OF TRUCKS: CRASHING SALES FIGURES There seems to be no light on the horizon for the sustained weak phase in the Indian truck market as it registered negative growth once again for January 2013. With supply of new trucks flooding an already saturated market, there is little sign of demand picking up. More information on ITP VE COMMERCIAL VEHICLES: TO EXPAND AGGRESSIVELY IN INDIAS NORTH-EAST In a bid to further strengthen its foothold in the Indian commercial vehicle business, VECV has opened a modern, state-of-the-art dealership for Eicher trucks &buses in Guwahati. The Gargya Group, who have been a part of the auto business for almost 14 years, will be responsible for the management of the dealership. More information on ITP SCANIA: A VISION FOR INDIAN BUS MARKET Swedish automotive company, Scania, has set its eyes specifically on luxury intercity bus services with three specific models which include the 45-seater double-axle and the 49 and 53-seater multi-axle versions. Its inter-city bus coaches have been named Scania MetroLink HD. More information on ITP LAMBORGHINI: TRACTORS TO HIT INDIAN ROADS Lamborghini, a name associated with luxury sports cars, will soon be seen cruising through the Indian agricultural fields. Italian Farm equipment giant Same Deutz-Fahr (SDF) Group recently announced its plans to launch its range of tractors in India sometime in the near future. More information on ITP

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India Transport Portal is edited by Digital Bizzline Ltd. a UK based press agency recently launched by a group of freelance journalists. Digital Bizzline Ltd. is registered at the Companies House UK: 07301455 contact@indiatransportportal.com

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