The sluggish demand has not only impacted passenger car makers, especially petrol cars but it is also hitting the commercial vehicle manufacturers
New Delhi: Hit by a demand slump, Toyota Kirloskar Motor has stopped production of its all petrol cars, while others like Fiat are considering shutting down plants for a few days next month, reports PTI.
While Tata Motors will stop production of commercial vehicles at Pune for three days this week, Maruti Suzuki India will be having its week-long annual maintenance shut down from next week.
"We are having some amount of inventory for our petrol cars and it has gone up to over 30 days. To control the stock from piling up further, we have stopped production of our entire range of petrol cars from June 16," Toyota Kirloskar Motor (TKM) deputy managing director (Commercial) Shekar Viswanathan told PTI.
He, however, did not share the company's plans on how long the petrol car production will continue to be withheld.
TKM rolls out petrol variants of its small car Liva, sedans Etios and Corolla Altis. It also produces a petrol variant of Innova on-demand.
Viswanathan said the company's sales of diesel vehicles are steady, but the waiting periods are coming down.
According to Society of Indian Automobile Manufacturers (SIAM) data, TKM had rolled out over two-fold more passenger cars in May that stood at 8,511 units.
Expressing similar sentiments, Fiat India Automobiles Ltd (FIAL) said its petrol models are not selling well and it is monitoring the inventory situation at present.
"Depending upon the demand and inventory situation, we may shut down our plant for 2-3 days next month. Currently we are monitoring the inventories at both raw material and vehicles production sides," FIAL President and CEO Rajeev Kapoor said.
The company, which has a joint venture manufacturing facility with Tata Motors at Ranjangaon in Maharashtra, will decide about the closure of the plant in consultation with the partner, he added.
FIAL's car production in last month went down by 57.13% to 1,041 units, SIAM had said.
The sluggish demand has not only impacted passenger car makers, but also hitting the commercial vehicle manufacturers.
"Given the market scenario, we need to align our production. We will have a block closure from 22nd June to 24th June at our commercial vehicle plant in Pune," a Tata Motors spokesperson said.
The company will be stopping production of its light and medium commercial vehicles like 407 and 709, he added.
"Going forward, given the high interest rates, slowdown in mining and construction industries, the market has given resistance. Our inventory is under control and we want to keep it under control," the spokesperson said.
In May, Tata Motors' commercial production declined by 15.9% to 33,271 units, SIAM said.
A spokesperson from Maruti Suzuki said the company will have its week-long annual maintenance shut down from 25th June. Last month, it had stopped production of petrol models, like the Alto, M800, A-Star, Estilo and Omni for three days to prevent inventories piling up.
According to SIAM data, the company's car production in last month fell by 8.4% to 87,220 units.
Car sales in India grew at the slowest pace in seven months during May with just 2.8% rise as high interest rates and petrol prices hit the market.
According to SIAM, domestic car sales in last month stood at 1,63,229 units as against 1,58,809 units in the same month in 2011.
The new scheme has an investment strategy of investing in top 20-25 ideas among the blue chips listed on the New York Stock Exchange and Nasdaq
Mumbai: ICICI Prudential AMC on Tuesday launched its first equity fund scheme that will directly invest in blue-chip companies in the US named 'ICICI Prudential US Bluechip Equity Fund', reports PTI.
The new fund has an investment strategy of investing in top 20-25 ideas among the blue chips listed on the New York Stock Exchange and Nasdaq.
"This new fund will invest in those companies with minimum $4 billion of market capitalisation with distinct competitive advantage," ICICI Prudential AMC vice-president and product and communication head Himanshu Pandya told reporters.
He also said companies in healthcare and medicine along with technology is on the radar of the fund house.
The new fund offer will stay open for subscription till 2 July 2012 in which retail investors can invest through systemic investment plan (SIP) with a minimum application amount of Rs5,000.
As per the fund house, the current US market reflects political stability, strong corporate governance, sound financial accounting and fewer challenges in comparison to other markets which will help in diversifying the portfolio of investors through this investment.
On the currency-based risks involved in this product, Pandya said this will be evened out in the long-term.
The company has also entered into a three-year exclusive arrangement with research house Morning Star which will provide it with research inputs regarding the US market, he added.
ICICI Prudential, which is a joint venture between ICICI Bank and the England-based Prudential, is one of the largest fund houses with an investor base of around 2 million.
According to the findings of a study, Mumbai is the most expensive city in India at Rs13,017 per night for an individual tourist which includes an accommodation, pre-meal drink, dinner and taxi ride
Chennai: Mumbai continues to be the most expensive city in India closely followed by Delhi and Chennai in terms of night charges in hotels, according to a study conducted by TripIndex of leading online travel portal, TripAdvisor, reports PTI.
According to the findings, Mumbai is the most expensive city in India at Rs13,017 per night for an individual tourist which includes an accommodation, pre-meal drink, dinner and taxi ride, said TripAdvisor (India) country manager Nikhil Ganju.
According to him, the same fare at Delhi costs Rs12,978 while in Chennai it stood at Rs12,530.
With a difference of less than Rs160, cost of a night in Delhi compares to a night in Cape Town, while a night in Chennai and Kolkata works out as much as in Macau (China) and Warsaw (Poland), respectively, he told reporters.
The TripIndex helps travellers to decide on their preferred destination with a quick and useful reference, he said.
Observing that investments of $40 million is spent on online portals, he said only 16% of it was spent on travel websites.
“There is enough headroom for us (to make additional revenues). Through these initiatives, people will find it easier to decide on their destination...,” he said.
The findings also revealed that taxis fare in Chennai is the most expensive at Rs201 for a journey, while the same is Rs100 in Pune.
Besides, he said that South India leads as the most expensive region on average cost of Rs8,537.5 (per day) closely followed by West at Rs8,186.16, East Rs6,344.75 and Rs5,335.22 in the northern region, the study said.
Hotel room prices are also higher in South India at Rs6,567.63 followed by West at Rs6,109.67, East Rs4,774.2 and North at Rs4,169, the study said.