Tag: Manufacturing Industry

Tata Motors global wholesales for March at 118,750 nos.

Tata Motors global wholesales for March at 118,750 nos.

12/04/2016 08:28

The Tata Motors Group, largest automobile manufacturer in India, has reported its global wholesales in the month of March, 2016. It said that, including Jaguar Land Rover, global wholesales were at 118,750 numbers, up by 11 per cent when compared to the month of March last year i.e. in 2015.

The Tata Motors Group’s cumulative wholesales for this 2016-17 were at 10, 66,254 numbers, up by 8 per cent over the last fiscal.

Meanwhile, the global wholesales of all Tata Motors’ commercial vehicles and its Tata Daewoo range in March 2016 were 45,235 numbers, increased by 18 per cent, compared to what it had reported in March last year i.e. 2015. Tata Motors’ cumulative commercial vehicles wholesales for this fiscal were higher by 4 per cent, over the last fiscal i.e. 2015-16, at 391,629 numbers.

Tata Motors’ worldwide wholesales of all passenger automobiles in March 2016 were at 73,515 numbers, higher by 8 per cent, compared to what it had reported in the month of March last year. The company’s cumulative passenger vehicles wholesale for this fiscal is at 674,625 numbers. It was higher by 11 per cent, over the last fiscal.

Tata Motors’ global wholesales for the Jaguar Land Rover were 64,579 vehicles. It includes CJLR, a JV between JLR and Chery Automobiles, wholesales of 6,388 units. Wholesales for Jaguar in the month of March were 13,370 automobiles and collective wholesales were 1,02,106 automobiles, while Land Rover wholesales for the month were 51,209 automobiles and cumulative wholesales were 4,41,979 automobiles. Tata Motors said that its cumulative wholesales for Jaguar Land Rover for the fiscal were 544,085 automobiles.

Tata Motors had consolidated revenues of Rs 2,62,796 crores in 2014-15. Through subsidiaries and secondary companies, Tata Motors has setups in the UK, South Korea, Thailand, South Africa and Indonesia.

Meanwhile, Tata Motors’ share price was at Rs 382.65, up 3.02 per cent on the National Stock Exchange at 14:10 hours.

Auto industry down 18 pct in FY16; misses target

Auto industry down 18 pct in FY16; misses target

11/04/2016 00:09

Auto industry missed the target of producing 4.1 million passenger vehicles last fiscal under the Automotive Mission Plan 2006-16, although it exceeded the cumulative production target of 27.75 million units for the 10-year period by 1 per cent.

The turnover in 2015-16, as per Society of Indian Automobile Manufacturers (SIAM) estimates, stood at Rs 6.01 lakh crore, which is within the target range of Rs 5.61 lakh crore and Rs 7.31 lakh crore under the Automotive Mission Plan (AMP) 2006-16.

According to SIAM, in 2015-16 actual production of passenger vehicles was at 3.4 million units, by 18 per cent from the target of 4.1 million.

Likewise, in the two-wheelers there was a shortfall of 42 per cent with actual production in FY16 at 18.8 million units as against a target of 32.6 million units.

Commercial vehicles also missed the target of achieving 8.9 lakh units in 2015-16 with actual production standing at 7.8 lakh units, a shortfall of 12 per cent.

Similarly, three-wheelers also missed the target by 4 per cent with actual production in 2015-16 at 9.3 lakh units against the target of 9.7 lakh units.

On the other hand, the auto industry managed to exceed the cumulated production targets of various categories except the two-wheelers for the ten-year period.

As per SIAM figures, cumulative production of passenger vehicles in FY06-FY16 period was at 27.91 million, more than 1 per cent from the target of 27.75 million. This was possible due to a surplus of 26 per cent witnessed around 2009-10 to 2012-13.

India in 6th place among top 10 global manufacturers

India in 6th place among top 10 global manufacturers

04/04/2016 00:54

According to a report by United Nations Industrial Development Organization (UNIDO), India has occupied sixth place in a ranking of the world’s top ten manufacturing economics which is topped by Asian powerhouse China.

Previously, India was ranked as the ninth largest manufacturer in the world.

Data from UNIDO’s Yearbook shows that the Manufacturing Value Added (MVA) in India climbed by 7.6 per cent in 2015, compared to the previous year.

“India is now the sixth largest manufacturer in the world”, the UNIDO report said.

The quarterly index of industrial production (IIP) for Asia’s third biggest economy showed that manufacturing output climbed by 1 per cent in the fourth quarter of 2015 compared to the same period a year ago.

Meanwhile, global manufacturing growth slowed to 2.8 per cent in 2015 reflective of a weakening world economy.

“This slowdown could be due to reduced manufacturing growth rates recorded by major developing and emerging economies”, the report added.

After China, which is the world’s biggest manufacturer, the US, Japan, Germany and Korea are ranked second, third, fourth and fifth on the list of the largest global manufacturing countries, with Indonesia in tenth place.

In a bid to bolster India’s manufacturing prowess, the NDA government in 2014 unveiled its flagship ‘Make in India’ program to help make India a global manufacturing and investment hub by easing rules of doing business in the country including accelerating key structural reforms.

FDI in India up 29 pct after ‘Make in India’ launch: Min

FDI in India up 29 pct after ‘Make in India’ launch: Min

17/03/2016 10:15

The Indian Government has said that Foreign Direct Investment in the country has increased by 29 per cent for the 15-month period ended December last year after the launch of ‘Make in India’ initiative.

As per reports, the initiative aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation.

Commenting on the issue, Commerce and Industry Minister Nirmala Sitharaman told the media, “FDI inflow has increased 29 per cent during October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of this initiative.”

“During April-January 2016, the government has received 424 FDI proposals. Out these, 285 proposals have been disposed of,” he added.

The Minister further added that foreign investment in business to customer (B2C) e-commerce activities had been “opened in a calibrated manner” and entity was permitted to undertake retail trading through e-commerce under certain circumstances.

Feb WPI dips to -0.91 pct, remains in negative zone for 16th straight month

14/03/2016 12:43

Continuing its deflationary trend for sixteenth consecutive months, India’s Wholesale Price Index (WPI) shrank to -0.91 per cent for the month of February as compared to -0.90 per cent for the previous month, lower than India Ratings and Research’s (Ind-Ra) expectation of negative 0.80 per cent.

“Inflation in food and non-food articles came in at 3.2 per cent and 2.9 per cent, respectively, in February 2016,” according to data published by the ministry of commerce & industry on Monday.

The index for ‘food articles’ group declined by 3.2 per cent to 259.1 from 267.6 for the previous month due to lower price of fruits & vegetables, egg, arhar and gram, the data showed. On the other side, the index for ‘non-food articles’ group declined by 2.9 per cent to 217.9 from 224.5 for the previous month due to lower price of flowers, gingelly seed, castor seed and niger seed.

In February, the index for fuel and power group declined by 1.2 per cent to 169.6 from 171.6 for the previous month due to lower price of aviation turbine fuel (14%), bitumen (7%), furnace oil (3%) and LPG, petrol and high speed diesel (1% each).

Meanwhile, the manufacturing index rose by 0.3 per cent to 153.1 from 152.7 for the previous month.

For the month of December, 2015, the final Wholesale Price Index stood at -1.06 per cent as compared to -0.73 per cent, respectively.

Dec IIP indicates industrial recovery is still fragile: Ind-Ra

16/02/2016 12:04

The Index of Industrial Production (IIP) grew negative 1.3 per cent in December 2015, as against India Ratings and Research’s (Ind-Ra) forecast of 0.8 per cent. A second consecutive month of negative growth in factory output once again demonstrates that the industrial recovery is still uneven and fragile, said the rating agency.

“A part of the negative growth in December 2015 is an outcome of floods inundating Chennai, a major manufacturing hub for electronics and automotive,” Ind-Ra said in a report.

Of the USD 38 billion annual production of auto components in India, almost 25 per cent (USD9.5bn) comes from Chennai and its surrounding automotive belt. However, cumulatively during April-December 2015, at 3.1 per cent factory output growth is still higher than the 2.6 per cent growth recorded during the same period in 2014. Ind-Ra expects industrial gross value added to grow at 7.3 per cent in FY16.

Manufacturing growth came in at negative 2.4 per cent in December 2015, lowest since October 2014. After a relatively robust performance till October this fiscal, the manufacturing sector growth has dwindled. Although the government is trying to accelerate the manufacturing sector growth with emphasis on ‘Make in India’ and stepped up spending on infrastructure, it is still besieged with a number of challenges. A number of manufacturing sectors are still saddled with excess capacity due to lack of demand while few others are facing the brunt of cheap Chinese imports. A depreciating yuan and growth slowdown have resulted in an uptick of imports from China.

10 of the 22 industry groups in the manufacturing sector showed a contraction in December 2015. The capital goods sector contracted by 19.7 per cent in December 2015. This is the second consecutive month of negative growth in capital goods. However, cumulatively for April-December 2015, capital good is still showing growth of 1.7 per cent albeit lower than the 5.1 per cent recorded during the same period in 2014.

The Reserve Bank of India had earlier noted that the buoyancy witnessed in the capital goods sector till October 2015 is primarily from the demand generated from the projects stalled earlier, but have been revived lately. Clearly so long as greenfield investments do not pick up, sustaining capital goods growth will remain a challenge. Yet, Ind-Ra believes with government focus on increased capex in the sectors vital for growth – roads, railways, ports, rural roads etc, we may have to wait for more data to discern a trend.