Recent Added Posts
Automobile sales rise 31 per cent in June – Society of Indian Automobile Manufacturers
Automobile sales in India grew by 31.42 per cent during June, benefiting from favourable macro economic conditions and new models launches across categories, including cars, two-wheelers and commercial vehicles.
According to the Society of Indian Automobile Manufacturers (SIAM), total sales for all categories stood at 12,05,990 units against 9,17,645 units in the year-ago month, up 31.42 per cent. Continue reading…
Domestic brands top foreign automakers in the US
Domestic auto brands are more popular than foreign brands in the United States for the first time in 13 years, according to a survey released July 15.
The most appealing brands in the US
Data from J.D. Power and Associates – 2010 Automotive Performance, Execution and Layout (APEAL) Study
1. Porsche
2. Jaguar
3. BMW
4. Mercedes-Benz
5. Land Rover
6. Audi
7. Lexus
8. Acura
9. Lincoln
10. Cadillac
Compare over 65 car insurers and get £25 Cash back through Independent Compare
BMW raises 2010 outlook as auto markets recover
BMW raised its 2010 pretax profit and sales outlook, citing improving conditions on international automotive markets. Continue reading…
Bajaj Auto mulls issuing 1:1 bonus share
Nearly 13 years after it last issued bonus shares, India’s second largest two-wheeler maker Bajaj Auto says it will be mulling a bonus issue when its board meets on July 22, reports CNBC-TV18′s Swati Khandelwal Jain quoting sources.
The announcement is expected to be made on July 22 when the board meets to announce its first quarter results. Sources said the Bajaj board is expected to approve a 1:1 ratio bonus keeping in line the past history of the company. Continue reading…
Electric Car Maker ZAP To Acquire China’s Jonway
Electric car maker and distributor ZAP said today it agreed to acquire Zhejiang Jonway Automobile Co. Ltd., a Chinese maker of electric vehicles. Zap said the move will expand its distribution network and give it access to the Chinese market where demand for electric vehicles, particularly among consumers, is growing rapidly.
Peugeot and Changan Sign $1.2 Billion Joint Venture
France’s PSA Peugeot Citroen and China Changan Automobile Group plan to invest $1.2 billion to set up a joint venture to make small, low-emission cars in China, The Associated Press reported.
PINC Result Preview – Profitability to moderate – Automobile Sector
After a strong improvement in profitability during FY10, Indian automobile sector is expected to see a moderation in profitability during Q1FY11. This will be more prominent in passenger cars and commercial vehicles segments while 2-wheeler segment is likely to witness stability in profit margins. Demand for the automobiles remained robust during the quarter and this will lead to healthy growth in topline for the sector. Raw material and emission norm changes are expected to exert pressure on profitability leading to margin contraction on a sequential basis. However on a YoY basis, we expect margins to improve for the sector. Our preferred picks in the sector are Bajaj Auto, Maruti Suzuki and Mahindra & Mahindra.
- Ashok Leyland (AL): A volume growth of 178% to drive revenues to Rs25bn. Multifold jump in profit seen due to operating leverage.
- Bajaj Auto (BJAUT): Demand surge in both domestic and export segments has helped the company double volumes. Higher input cost to contract BJAUT margins sequentially.
- Hero Honda (HH): Compared to peers HH has delivered a modest volume growth of 10.3%. Other expenditure would remain high due to sponsorship related expenditure. We expect the company to maintain profits QoQ.
- Maruti Suzuki (MSIL): Volumes are maintained at the Q4FY10 levels. Although, margins are expected to contract sequentially, a higher other income will lead to higher profits.
- Mahindra & Mahindra (M&M): New launches have resulted in a volume growth of 30% for the auto division. Overall volumes are up 24%. Margins to be under pressure due to input cost.
- TVS Motor (TVSL): New models in both motorcycle and scooter segment aided a 42.9% growth in volumes. Better capacity utilisation to help improve margins.
Source: Equity Bulls
