Category — Automobile

India: Most Attractive Investment Destination

India has overtaken China as the most attractive investment destination, according to Ernst & Young (EY), with the sharp depreciation in the rupee and opening up of new sectors to foreign players boosting the South Asian nation’s allure. This according to report published on CNBC. Companies are most likely to invest in India, followed by Brazil (2), China (3), Canada (4) and the United States (5), EY’s ninth bi-annual Capital Confidence Barometer – a survey of 1,600 senior executives across more than 70 countries – showed. Other nations in the top 10 are South Africa (6), Vietnam (7), Myanmar (8), Mexico (9) and Indonesia (10).

Sectors with the highest level of possible deals in India include Automotive, Technology, Life Sciences and Consumer Products.

The survey reported that 38 percent of the respondents feel that Merger and Acquisition  volumes in India are expected to improve over the next 12 months, while 30 percent believe that these will remain stable. “The investor outlook for India remains positive, despite the challenges the country’s economy has faced in the recent past. At the same time, the improved condition of the world economy has helped increase confidence amongst deal makers, prompting them to take a bolder stance toward executing transactions,” said Amit Khandelwal, National Leader & Partner — Transaction Advisory Services, EY. “After two years, European countries (Britain and Germany) have made a comeback on the potential investment destinations list for Indian companies,” the report said. In August, the Indian government announced relaxation in foreing investor  norms in many sectors, including multi-brand retail and telecom.

 

Share:
  • del.icio.us
  • Facebook
  • LinkedIn
  • Twitter

December 11, 2013   No Comments

India becoming a source for cars

India’s Mahindra & Mahindra sells its XUV sports utility vehicle in Europe since late 2012 and is expanding shipments to Latin America. And Korean automaker Hyundai has been shipping Chennai-built cars to Africa for more than five years.

But now France’s Renault is shipping India-built Dusters to Europe. Fiat and Ford  are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia.

Joginder Singh, president and managing director, Ford India, said, “The European equation works well with the EcoSport. We already export the Figo to 38 countries from India. We would look at a similar scale for the SUV.”  Industry sources indicated it was planned about 40 per cent of the scheduled annual production of 150,000 units would be sold in foreign markets.

What this means

India may soon become a significant global hub for the manufacturing and assembly of complete automobiles for Korean, European and American carmakers

Share:
  • del.icio.us
  • Facebook
  • LinkedIn
  • Twitter

November 3, 2013   No Comments

UK’s JCB launches new excavator in India

Construction equipment company JCB India Ltd, a subsidiary of JC Bamford Excavators Ltd  has unveiled  its 20 ton JS205LC Tracked Excavator, developed and manufactured in India for the domestic market.  Designed for earthwork, quarrying and road construction in Indian conditions,  the company’s advanced load sensing hydraulic system has been designed for lower energy needs which could save $2,500 annually in fuel costs.

What this means

As China construction cools off, India is becoming the focus for many Western and Japanese construction equipment companies.

Share:
  • del.icio.us
  • Facebook
  • LinkedIn
  • Twitter

July 21, 2013   No Comments

Indian motorcycle company buy into Erik Buell Racing

India’s Hero MotoCorp Ltd (formerly known as Hero Honda)  has bought a 49.2 per cent stake in  sport motorcycle maker  Erik Buell Racing, headquartered in Troy, Wisconsin.

Pawan Munjal, the Director and CEO of Hero MotoCorp said the $25 million deal means the company is ready for international markets. “This is the first time that Hero MotoCorp (HMC) is buying a stake in a company outside India. This is the first step in globalisation of the HMC brand,” said Munjal. “As we go on spreading our footprint in new international markets, we will look at having extended centers of our own R&D at multiple locations around the world, developing two-wheelers for our global customers. Our evolving relationship with EBR is an initiative in that direction,” Munjal told reporters in New Delhi.

Hero and EBR had already begun a collaboration last year, in which Hero  gives EBR support (and sponsors EBR’s AMA Superbike effort) in exchange  for technical expertise. After a break-up with Honda
a couple of years ago, Hero MotoCorp has become India’s biggest  seller of motorcycles and scooters—5.9 million sold last year.  Virtually all of Hero’s products are tiny by American standards, with engines of 110 to 200 cc.  On the other hand, EBR produced just 65 high-end  1190RS bikes at $40,000 each. It was rated the best bike of the year by CycleWorld.

What this means

For EBR this is a great infusion of cash. Hero says it intends to ramp up production to 20,000 units by 2017. The India Expert views that claim with some skepticism. For Hero, it seems like a vanity purchase that may add sizzle to any high end products it plans to introduce in India in the future. Harley Davidson entered India a couple of years ago and this may be Hero’s response by shopping in Harley’s turf. Even if EBR could ramp to 20,000 units a year and find that many customers to buy super-high-end products, EBR sales would account for less than 20% of Hero’s current  revenue.

Share:
  • del.icio.us
  • Facebook
  • LinkedIn
  • Twitter

July 21, 2013   No Comments

Apollo Tyres Buys OH-based Cooper for $2.5 Billion

According to CNBC, India’s Apollo Tyres, based in Chennai, India agreed to acquire U.S. based Cooper Tires for $2.5 billion in an all-cash transaction. Founded in 1976, Apollo has annual revenues of $2.5 billion with 59% of its revenues coming from India.

This deal will make the Indian  firm the seventh largest tire maker in the world. With a seven percent decrease in sales in India and sales at a 20 year low in Europe, Apollo is looking to tap into the U.S. market which has shown growth at the end of the year. The acquisition of Cooper Tires, the 11th largest tire company with annual sales of $4.2 billion, allow Apollo to have a presence in the lucrative American  market. In 1988 Japan’s Bridgestone bought American tiremaker Firestone. Korean companies Hankook and Kumho have expanded their American presence.

Share:
  • del.icio.us
  • Facebook
  • LinkedIn
  • Twitter

June 28, 2013   No Comments