MICROFINANCE TO GET A REGULATOR IN
MACRO CHANGES COMING
New law to treat microfinance as separate business and also consider
bringing NBFCs in the sector under the legislation
Finance firms may have to create a microfinance business distinct from
their other businesses and will have to follow the new regulations
Nabard to be responsible for regulation of all non-profit MFIs structured as
trust, cooperative or mutual benefit societies
MFIs may get access to retail deposits that will allow them to raise cheaper
funds and lend at lower interest rates
Bill provides for registration of MFIs collecting thrift from individual
members of self-help groups or through a group mechanism
It provides for creation of a reserve fund that would be 15% of an MFI’s net
profit or surplus Finmin concerned about extreme regulation
TATA MOTORS PIPS RIL TO EMERGE AS INDIA’S
The Tata Motors-Jaguar-Land Rover combine, with a valuation of $8.45 billion,
has over taken Reliance to top the list of the 50 most valuable corporate brands
BrandFinance, a London-based global brand valuation firm, did the
study in exclusive partnership with The Economic Times.
CHINA, INDIA TO DRIVE GLOBAL AUTO INDUSTRY
BACK ON TRACK
The Chinese market is expected to grow by 24% to 17 million cars, truck
and bus market in 2010 while India, coming second in the global league,
may produce over 3 million vehicles in this calendar year, a growth over
22% over 2009.
According to global automotive body, International Organisation of Motor
Vehicle Manufacturers’ (OICA), which tracks passenger and commercial
vehicles, China is expected to surpass its production forecast of 15
million units while India would also cross the estimated 3 million mark
The trend is already visible with the global auto industry clocking 42%
growth for the first six months of 2010 driven by rising demand from
India and China and flat growth in other bigger markets like Brazil and
China is also looking at touching the 20 million mark in 2011. “Our
forecast is to clock a 15% growth next year.
Auto industry’s dismal sales in many markets like Ukraine (-84%),
Russia (-60%), Austria (-52%), Sweden (-49%) and Uzbekistan (-43%)
had shrank the market 13% to 61.71 million units in 2009.
REVA PLANS CHINA ENTRY TO CASH IN ON
GREEN CAR DRIVE
THE world’s largest electric car-maker, Reva Motors, owned by utility
vehicle major Mahindra & Mahindra (M&M), plans to enter China in
the hope of cashing in on rising demand for eco-friendly cars as
governments push for stricter emission norms globally.
China is one of the largest auto markets and given the huge demand for
eco-friendly vehicles it could generate in future, we would like to take
our new cars into that market
China, which sold 13 million vehicles last year, plans to sell 5 million
electric cars by 2020
Reva currently ships cars to electric vehicle markets such as the UK and
Reva has sold only 3,500 cars in 24 countries as the lack of battery
charging networks is hindering its prospects.
BUGATTI DRIVES IN WORLD’S MOST EXPENSIVE
The world’s most expensive car is in India. Bugatti Veyron
16.4 Grand Sport was launched here on Thursday with
price starting at 16 crore (ex-showroom Delhi).
The price of the car will be subject to foreign exchange
fluctuation as well as the levels of customisation that a
Bugatti Veyron, which is also the fastest car on planet,
has raised the benchmark for super luxury and sports car
Other premium cars such as Rolls Royce Phantom and
the Mercedes-Benz Maybach cost up to 5 crore.
GOVT CONSIDERS 100% FDI PROPOSAL FROM
IKEA, world’s biggest furniture retailer, is
planning to invest $1 billion in India
It has around 300 stores in 30 countries and has
been making attempts to enter India
At present, only 51% FDI is allowed in single-
The issue gathered momentum after the
government put out a paper on FDI in multi-
brand retail for public debate
NISSAN TO RECALL 2 M CARS TO FIX IGNITION
NISSAN Motor Co said it would recall 2.14 million March/Micra,
Cube and about a dozen other models in its third-biggest recall,
to fix a faulty ignition relay that could cause engine problems.
No accident was reported from the defect
Nissan said problems in the ignition relay could cause the engine
to stall or fail to restart.
The recalls are mostly in Japan, with 8,35,000 units, and the
United States and Canada with a combined 7,62,000 units.
The faulty vehicles were built in Japan, the United States, Britain,
Spain, China and Taiwan between August 2003 and July 2006.
Nissan does not disclose cost estimates on vehicle recalls or any
impact on its earnings.
But the fix is likely to be relatively cheap, with Nissan estimating
less than 25 minutes for the repair, which involves replacing the
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