Tata Motors exported 498 Nano last month compared to a single unit in the corresponding month last year
Tata Motors has started sending its small car Nano to overseas markets, with shipment of 498 units in April this year and a formal announcement of starting exports of the ‘people’s car’ is expected soon.
According to figures released by Society of Indian Automobile Manufacturers (SIAM) today, Tata Motors exported 498 units last month compared to just a single unit in the corresponding month last year.
When contacted, the company, however, declined to share details such as which are the countries where Nanos have been despatched in last month.
“We will make an announcement regarding exports of Nano very shortly,” a Tata Motors spokesperson told PTI.
Without identifying a timeline to share the details, the official further said: “For various reasons, we need to send out the cars. If we want to market and sell a car tomorrow, then it cannot be started immediately tomorrow.”
Last month, the Tata group had said Tata Motors was “at a very high stage” in finalising a production site for its small car Nano at an overseas location, which could be either in Latin America, South East Asia or Africa.
“The work is at a very high stage,” Tata Industries managing director Kishor Chaukar had said when asked about a time-line to produce Nano in any of the overseas locations.
He had said that the automobile major was exploring various options at different places and looking at uninterrupted supply chain for the components.
Tata Motors is looking at various regions such as Latin America, South East Asia and Africa. “They are looking at any of these possibilities,” Chaukar had said.
Apart from considering land building facilities availability, Tata Motors is looking at supply chain availability and at the accessibilities of markets.
Besides, the company was exploring possibilities in different neighbouring nations such as Nepal.
In June, 2010, Tata Motors’ distributor in Nepal, Sipradi Trading chief executive officer Shambhu Prasad Dahal had said his company would import five Nano cars as a test drive in the first lot by July last year.
He, however, had said the price of Nano could touch NPR 700,000 (about Rs4.5 lakh) because of the 300% customs duty in the Himalayan Kingdom.
Nano, touted as the world’s cheapest car, is now produced at Sanand in Gujarat for the Indian market after initially producing at Pantnagar in Uttarakhand.
On Monday, Tata Motors ended 1.90% down at Rs1,178.15 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.05% to 18,528.96 points.
The joint venture company will serve the Indian heavy engineering industry, supplying both new build gearboxes and aftermarket services
Manufacturer of automotive components, Bharat Forge (BFL) through its wholly owned subsidiary, BF Infrastructure Ventures (BFIVL) has signed a shareholders agreement with David Brown System India (Holdings), part of David Brown Group, manufacturer of gearing products to form a joint venture company in India.
The JV company will be named ‘David Brown Bharat Forge Gear Systems India’ and will serve the Indian heavy engineering industry, supplying both new build gearboxes and aftermarket services to high demand sectors including power, mining, defence, wind, rail and steel.
Initially, David Brown Bharat Forge Gear Systems India is intended to be operational from Bharat Forge’s current facilities. However, by the middle of 2012, it is intended to have a site for gear box assembly and testing. Further, the JV company intends to set-up two service centres in Bangalore and Kolkata by the end of 2011. Additional locations for service centres in Delhi and Hyderabad are being planned by the end of 2013. These service centres will be designed to world class standards, providing rapid aftermarket service and support to key industries.
On Monday, Bharat Forge ended 1.72% up at Rs343.50 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.05% to 18,528.96 points.
The Marginal Standing Facility, which is aimed at containing volatility in the interbank market, will allow banks to borrow from the RBI at 100 basis points above the repo rate
In line with the annual credit policy announcement last week, the Reserve Bank of India (RBI) on today published guidelines for the Marginal Standing Facility (MSF) to help banks tide over short-term liquidity problems.
As per the guidelines, a bank can borrow up to 1% of their total deposits from the RBI under the MSF facility at a rate that is 100 basis points higher than the short-term lending (repo) rate. The facility is effective from today, the RBI stated.
The repo rate, which was increased last week by 50 basis points, stands at 7.25%. As such, the rate charged under the MSF would be 8.25%, PTI reports.
The facility is expected to contain volatility in the overnight inter-bank market. The call money rate was at about 6.75% during the afternoon trading session today.
“Under the facility, eligible entities can avail overnight up to 1% of their respective net demand and time liabilities (NDTL) outstanding at the end of the second preceding fortnight,” the RBI said. Requests will be accepted received for a minimum amount of Rs1 crore and in multiples of Rs1 crore thereafter.
In the event that the banks’ SLR (statutory liquidity ratio) holdings fall below the statutory requirement on account of the use of this facility, banks will not have the obligation to seek a specific waiver for any default in SLR compliance, subject to a ceiling of 1% of their NDTL.
SLR is the percentage of total deposits kept in government securities and other specified instruments. The current SLR requirement is 24%.