- China's auto sales growth returned to normal levels in September as tax breaks and subsidies faded, with total sales up 17% and passenger car sales up 19.3% compared to a year earlier.
- European car sales fell in September, with a 9.2% decline in total registrations. The UK, France, Germany, and Spain all saw falls, with Spain seeing the biggest drop at 27.3%.
- The compulsory automobile liability insurance premium rate in Taiwan will be cut on average by 9.5% starting in March 2011, with owners of vehicles seeing an 11.2% cut and owners of motorcycles seeing a 7% cut.
1. WEEKLY NEWS
http://www.lansingstatejournal.com/article/20101017/NEWS03/10170511/1004/NEWS03/
China auto sales growth returns to normal
ASSOCIATED PRESS • OCTOBER 17, 2010 • FROM LANSING STATE JOURNAL
China's auto sales slowed further in September as a boom fueled by tax breaks and subsidies faded. Official
figures for the month showed total sales rising 17 percent from a year earlier to 1.56 million vehicles, down
from 18 percent in August, the China Association of Automobile Manufacturers said last week. Passenger car
sales rose 19.3 percent to 1.2 million vehicles, the group said on its website. "Growth in China's auto market
seems to be back to normal after the boom," said Wei Chenggang, an analyst at Shanghai Securities, in
Shanghai, forecasting further slowing in months to come. "This might be bad for automakers in the short term,
but is definitely better for the sustainable development of the industry." China became the world's largest auto
market in 2009 when sales surged 45 percent to 13.6 million vehicles.
General Motors Co. said its sales in China rose 15 percent to 208,353 vehicles in September, slowing from 19
percent in August and 22 percent in July. GM's total sales in China climbed 37.4 percent in January to
September from a year earlier, to a record 1.78 million vehicles, the Detroit carmaker said.
http://www.financemarkets.co.uk/2010/10/17/european-car-sales-fall-in-september/
October 17, 2010
European car sales fall in September
The European Automobile Manufacturers Association (ACEA) has revealed registrations of new
cars in Europe fell in September on year. According to the ACEA, 1.26 million cars were
registered, a fall of 9.2% on last year’s levels. September represents the sixth consecutive
monthly fall as incentive schemes to boost the ailing car industry have expired.
In the UK, new car sales fell by 8.9%, while France and Germany saw falls of 8.2% and 17.8%
respectively. However, the biggest drop was noted in Spain, which saw a 27.3% fall. “In
September, all major markets contracted,” the European Automobile Manufacturers Association
said in a statement.
2. http://www.chinapost.com.tw/taiwan/national/national-news/2010/10/17/276455/Automobile-
liability.htm
Automobile liability premium to be cut starting next March
The compulsory automobile liability insurance premium rate will experience an average cut of
9.5 percent, starting March 1, 2011, according to the Cabinet-level Financial Supervisory
Commission (FSC).
The FSC said that the compulsory liability insurance premium rate applicable to owners of
vehicles will be reduced by 11.2 percent and that for owners of motorcycles will be slashed by 7
percent.
Based on the reduction rate, male owners of personal-use cars aged between 30 and 60, will
see their compulsory automobile liability insurance premium payment cut by NT$99 per year,
compared to the corresponding figure of NT$91 for female owners in the same age group.
For owners of light motorbikes, their two-year compulsory liability insurance payment will be cut
by 9.1 percent or NT$75, compared to a reduction of 5.4 percent or NT$25 for one-year
insurance payment of the same kind.
As for owners of larger displacement motorcycles, their two-year compulsory automobile liability
insurance payment will be slashed by 1.5 percent or NT$19, compared to a cut of only 0.3
percent or NT$2 for one-year insurance payment of the kind.
FSC officials said that since the Compulsory Automobile Liability Insurance (CALI) Act was
implemented on Jan. 1, 1998, the government has adjusted downward the insurance premium
rate annually, with the rate already cut by 43.1 percent over the past decade.
Compulsory Automobile Liability Insurance is one of the most important systems established to
compensate for basic losses for victims in traffic accidents. The insurance system ensures that
victims can receive basic coverage for injuries sustained in traffic accidents and maintains traffic
safety.
3. http://www.ameinfo.com/245334.html
International Automobile Show visitors up 60% over 2008
United Arab Emirates: Saturday, October 16 - 2010 at 12:44
PRESS RELEASE
Families flocked to the International Automobile Show (IAS) this weekend at Expo Centre
Sharjah as manufacturers and dealers took the covers off new models for the first time in the
Middle East
The first two days of the show, on Thursday (14 October 2010) and yesterday (Friday),
saw visitors numbers up 60% over 2008 as the Audi A8 L and Mercedes McLaren SLR
were unveiled for the first time in the region.
Visitors were also drawn by the outdoor events at the Middle East Motor Tuning Show
(MEMTS), which is this year running in conjunction with the IAS. Demonstrations
include daily drifting shows performed by professional drivers from the Emirates Motor
Sports Federation.
"So far visitor numbers are excellent this year - much higher than our last show in
2008, which bodes well for the industry as a whole, thanks to the quality of vehicles on
display. The extra events that we've organised in the outdoor arena, has kept the whole
family entertained," said Saif Al Midfa, Director General of Expo Centre Sharjah.
The IAS is held under the patronage of His Highness Sheikh Sultan Bin Mohammed Bin
Sultan Al Qassimi, Crown Prince and Deputy Ruler of Sharjah. The show attracts car
lovers and auto enthusiasts alike, not only from the UAE but from across the Middle
East and with events for all ages.
The IAS and MEMTS collectively span 58,000 square metres of indoor and outdoor
space with the event supported by the Sharjah Chamber of Commerce and Industry
and the Emirates Motor Sports Federation.
4. http://www.livemint.com/2010/10/14180708/India-sets-sights-on-US-Japan.html?h=B
India sets sights on US, Japan for
boosting coffee exports
Coffee production in India during the year is likely to go up to 3.08 lakh tonnes from
2.89 lakh tonnes last year
New Delhi: A spurt in output has encouraged Indian coffee exporters to look beyond traditional
markets to the US, the world’s largest consumer of the beverage, as well as Japan, according to
Coffee Board chairman Jawaaid Akhtar. “Italy, Germany and Russia are our large export
markets. However, we are working on to boost exports to markets with huge potential like US
and Japan. We can supply more to these countries,” Akhtar told PTI.
He was quick to add that laying more emphasis on the US and Japanese market s does not
anyway mean the board will neglect traditional markets. According to Coffee Board estimates,
production in India during the year is likely to go up to 3.08 lakh tonnes from 2.89 lakh tonnes
last year. Since India exports 70% of its coffee output, higher production will enable a spurt in
overseas shipments.
India, the largest coffee exporter in Asia, exported 1.96 lakh tonnes of coffee in the 2008-09
fiscal, of which exports to the US and Japan accounted for just 0.99% and 0.85%, respectively,
of the total shipments. Shipments to Italy, Germany and Russia constituted 41% of India’s total
exports during the year.
India exported 2.04 lakh tonnes coffee in 2009-10. However, destination-wise export figures
were not available. Akhtar said that as part of promotional activities in the US and Japan market,
India had participated in two trade fairs in each of the countries in the current year to forge
better relationships with local importers and traders.
Asked about the quantum of exports India can expect to make to these two countries during the
current year, the Coffee Board chairman said, “It’s not about quantity. The US is the world’s
largest coffee consuming nation. They consume more than our entire output in a year. Japan has
also a good market. So our motive will be exporting as much as possible.”
5. http://economictimes.indiatimes.com/news/economy/foreign-trade/High-demand-of-Pak-
Chinese-onions-hit-Indias-export-by-33/articleshow/6748554.cms
14 OCT, 2010,05.11PM IST,PTI
High demand of Pak, Chinese onions hit India's
export by 33%
NEW DELHI: India's onion exports fell by 33 per cent to 94,800 tonnes in September on the back of
higher demand and lower prices of Pakistani and Chinese onions in the overseas markets.
"India's onion export last month fell to 94,800 tonnes against 1,41,298 tonnes a year earlier, mainly
due to exports by Pakistan and China ," said a senior official with Nafed, which oversees onion
export. The demand of Pakistani and Chinese onions in the overseas markets was higher, as their
prices were lower by USD 50 a tonne compared with Indian onion, which was selling above USD
350 a tonne last month, he said. Pakistan is now exporting onions having imported heavily from
India last fiscal. However, this year, it is exporting large volumes as it has harvested a good cr op.
The government made India's onion exports expensive by raising the minimum export price (MEP)
by USD 125 to USD 350 a tonne for last month. The onion MEP was only USD 225 a tonne in
September2009. The official said that onion MEP was hiked to augment domestic supplies and curb
the price rise. Presently, onion prices in most retail markets are ruling firm at Rs 25-30 a kg as
demand is being met by the stock stored in the cold storages. The new crop will start arriving from
next month, he added. According to Nafed data, the country's onion exports declined sharply in
value terms in September as well. The exports fell to Rs 158.44 crore in September 2010 from Rs
176.72 crore in the year-ago period.
Overall, onion shipments during the April-September period of the 2010-11 fiscal stood at 8.64 lakh
tonnes, down from 11.21 lakh tonnes in the same period last year. Onion from the major growing
region of Nasik, Maharashtra is usually exported Gulf countries while that from the southern part of
India is shipped to Sri Lanka, Malaysia and Singapore
6. http://sify.com/finance/sensex-up-320-pts-as-blue-chips-hold-gains-nifty-nears-6200-mark-news-
sensex-kknnxrebghj.html
Sensex up 320 pts as blue chips hold gains; Nifty nears 6200 mark
2010-10-13 13:23:17
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Thanks to sustained buying across the board, the market remains high up in positive territory this
afternoon with several front line stocks extending their morning gains. Information technology stocks are
on song. FMCG, realty, oil and automobile stocks are also trading mostly higher.
The Sensex is now up 319.65 points or 1.58% at 20,522.99, slightly off the day's high of 20,534.22. The
Nifty, which rose to 6190.50, is up 97.90 points or 1.61% at 6188.80.
Top gainers | Worst losers | More tips
IT stocks are in demand following a better-than-expected show by U.S chip maker Intel. Tata Consultancy
Services, which remains the top gainer in the Sensex, is up nearly 4.5% now. Wipro has gained around
2.75% and Infosys Technologies is up with a gain of 2%.
HDFC has moved up by over 3.5%. Jaiprakash Associates, ITC, Mahindra & Mahindra and Maruti
Suzuki are up 2% - 2.5%. Hindustan Unilever, DLF, ONGC, Sterlite Industries, Tata Power, Hindalco,
Tata Motors, Reliance Industries, Reliance Infrastructure, HDFC Bank, ACC, Jindal Steel andLarsen &
Toubro are also up with strong gains.
Nifty stocks IDFC, HCL Technologies, Siemens, Axis Bank, Kotak Bank, BPCL, Ranbaxy Laboratories,
GAIL India, Punjab National Bank, Reliance Power, Reliance Capital, Bajaj Auto, Dr Reddy's
Laboratories, Ambuja Cements, SAIL, Sesa Goa and Sun Pharmaceuticals are up with impressive gains.
Junior Nifty stocks Syndicate Bank and Oracle Financial Services are up 4% and 3.6%
respectively. IDBI Bank, Indiabulls Real Estate, Power Finance Corporation, Ultratech Cement, Cummins
India, Patni Computer Systems, Tech Mahindra, Canara Bank, Indian Overseas Bank, Union Bank of
India, Federal Bank, Mphasis, JSW Steel and LIC Housing Finance have also risen sharply. Castrol India
has reported a 22% jump in net profit to Rs 117 crore for the third quarter ended September 2010, as
compared with Rs 96 crore in same period of previous year. Net Sales were up 13.4% to Rs 641 crore
7. compared to the same period during previous year. For the nine months ended 30th Sept 2010, net sales
were up by 19% to Rs 2,039 crore while profit after tax increased by 28% to Rs 384 crore. The stock is up
0.6% at Rs 504 now. Earlier in the day, the stock had spurted to Rs 525 on some strong buying in
opening trades. New entrant VA Tech Wabag continues to trade firm. The stock, at Rs 1797, is up as
much as 37% over the IPO price now. Over 6 million shares have been traded so far at the VA Tech
counter on the National Stock Exchange today.
Top gainers | Worst losers | More tips
Tata Consultancy Services, Larsen & Toubro, HDFC, Reliance Industries, Infosys Technologies and Tata
Motors have all moved up sharply on impressive volumes today. Dr Reddy's Laboratories, Federal Bank,
Lupin, Tata Motors, Syndicate Bank, United Breweries and United Bank of India hit new all-time highs
today.
http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/Steep-rise-
in-input-costs-weighs-heavy-on-Exide/articleshow/6738607.cms
13 OCT, 2010,01.19AM IST, SHIKHA SHARMA,ET BUREAU
Steep rise in input costs weighs heavy on Exide
The scrip of the country’s largest automobile and industrial battery maker, Exide Industries , dropped
4% on Tuesday despite the firm posting a robust 42% increase in net profit to Rs 212.9 crore in the
September 2010 quarter over the year-ago period. Investors seem to have discounted the one-time
gain that boosted profit, even as operating margins contracted due to higher raw material cost.
Excluding the exceptional item of sale of a piece of land and dividend earned from its investments,
the company’s net profit declined 1% year-on-year. This is a significant deterioration in bottomline
compared with over 30% growth in earnings in the previous quarter. The dip is largely due to
shrinking margins.
Raw material costs rose 28% in line with the price of lead, a key input for making batteries. The firm
has, over the last one year, increased its captive consumption capacity for lead, but that has not
been enough to insulate it from the impact of rising input price. Its raw material to net sales ratio
increased to 61%, resulting in 400 basis points (bps) contraction in operating margins for the three
months to September 30.
Another cause for concern is the decelerating growth in demand. So far, the demand has been riding
high on the back of relatively low base of last year. While demand from automobile companies
8. allowed Exide to clock double-digit growth in revenues, the firm is already showing signs of slower
growth now. This became evident from the slowing topline growth. The company’s sales grew by
19% year-on-year to Rs 1,126 crore in the September quarter compared with a robust 30% rise in
the previous quarter. This was despite Exide being the market leader in automotive batteries.
This is going to be a concern even in the coming quarters as the overall growth in the automotive
industry is expected to average out in the next six months. Industry projections for the year ending
March 2011 peg sales growth of cars at 20% to 21%. Sales in the first half of the fiscal had
increased by over 30%. Moreover, if lead prices move up from hereon it will further shrink margins.
On the other hand, what could come handy for the company is the fact that it has a strong market
presence in its segment. Also, the absence of large-scale competition in a sector that is growing
consistently for the past few years has brought steady returns for Exide shareholders. This is due to
growth in both new vehicle sales as well as replacement demand from an expanding universe of
automobiles. Going ahead, however, it needs to be seen how well Exide can take advantage of its
market leadership amidst tapering demand.
http://online.wsj.com/article/BT-CO-20101011-710915.html
OCTOBER 11, 2010, 10:50 P.M. ET
Honda September China Sales Up 3.0% On
Year At 60,913 Units
BEIJING (Dow Jones)--Honda Motor Co. (HMC) said Tuesday its China vehicle sales in September
rose 3.0% from a year earlier to 60,913 units from last year.