Dashboard the Monthly Auto Update

August 2010

Dashboard The Monthly Auto Update

Speedometer Data Track: August volume update of auto majors August 2010 relative performance  Sector overview and outlook ...... 2  Hero Honda ...... 3 M OSL Auto Index Sensex 110  Bajaj Auto ...... 4  Maruti Suzuki ...... 6 10 6  Mahindra & Mahindra ...... 8  Tata Motors ...... 10  TVS Motor ...... 12 10 2

Special Report: Maruti Suzuki: Annual report update ...... 13 98 2-Aug-10 9-Aug-10 16-Aug-10 23-Aug-10 30-Aug-10

Sector Gauge: July update 12-month relative performance  Two-wheelers ...... 15

 Three-wheelers ...... 16 M OSL Auto Index Sensex

 Cars and UVs ...... 18 18 0  Commercial vehicles ...... 20 14 0 News and Events ...... 23  Yamaha’s three launches: the SZ, SZ-X and YBR 125 10 0  Maruti launches five CNG vehicles with new technology 60  Hyundai to increase car prices in September Aug-09 Nov-09 Feb-10 May-10 Aug-10  Ford to export Figo to new markets

Aggregate Volumesv For August* Segment Aug-10 Aug-09 YoY (%) Jul-10 MoM (%) YTDFY11 YTDFY10 Chg (%) 2-Wheelers 880,902 725,030 21.5 870,573 1.2 4,251,105 3,332,111 27.6 Motorcycle 780,367 648,705 20.3 768,518 1.5 3,811,025 2,981,166 27.8 Scooters & Mopeds 100,535 76,325 31.7 102,055 -1.5 440,080 350,945 25.4 3-Wheelers 45,262 33,673 34.4 46,458 -2.6 211,714 137,158 54.4 Cars 129,033 100,231 28.7 126,736 1.8 603,049 464,108 29.9 UVs 24,914 20,278 22.9 21,722 14.7 116,493 80,951 43.9 Commercial Vehicles 40,611 32,520 24.9 40,423 0.5 190,949 143,410 33.1 LCV 23,895 20,254 18.0 23,974 -0.3 112,486 90,484 24.3 M&HCV 16,716 12,266 36.3 16,449 1.6 78,463 52,926 48.3 Tractors 13,435 10,594 26.8 14,592 -7.9 78,177 48,025 62.8 Total Volumes 1,134,157 922,326 23.0 1,120,504 1.2 5,451,487 4,205,763 29.6 * Aggregate of Bajaj Auto, Hero Honda, TVS Motor, Maruti, M&M, and Tata Motors Source: Company/MOSL

Comparative Valuation CMP * Rating EPS (Rs) P/E (x) EV/EBITDA (x) RoE (%) (Rs) FY10 FY11E FY12E FY10 FY11E FY12E FY10 FY11E FY12E FY10 FY11E FY12E Bajaj Auto 2,749 Buy 125.6 180.7 197.4 21.9 15.2 13.9 14.3 10.0 8.8 78.8 67.5 48.6 Hero Honda 1,759 Buy 112.2 114.1 134.6 15.7 15.4 13.1 11.0 10.3 8.0 61.7 54.0 39.2 Mahindra & Mahindra 628 Buy 42.6 57.9 68.3 14.8 10.8 9.2 10.2 8.9 7.2 26.1 23.1 22.0 Maruti Suzuki 1,273 Buy 86.7 80.4 97.6 14.7 15.8 13.0 7.7 7.8 6.3 21.1 16.4 17.2 Tata Motors 1,009 Buy 24.1 120.5 140.6 41.8 8.4 7.2 9.5 5.1 4.5 18.3 51.7 39.9 * Price as on 1 September 2010 Source: Company/MOSL

Jinesh Gandhi ([email protected]); Tel: +91 22 3982 5416 Sandeep Patil ([email protected]); Tel: +91 22 3982 5418 Dashboard

Sector overview and outlook Data Track Positive outlook for the sector, though short-term headwinds exist

Strong volume growth: Volume growth is expected to continue, driven by a strong economic recovery, increase in availability of finance and new product launches by existing and global players entering the market. Besides, strong exports will support strong volumes. The volume guidance provided by automakers indicates a favorable environment for FY11.

EBITDA margins to moderate, stay above historical average: Continued volume growth will give the industry pricing power and support high operating leverage. Besides, leading companies have undertaken cost cuts and productivity improvement programs, which will dilute the impact of raw material cost inflation, supporting higher margins. Ramping up operations in tax-free zones like Uttaranchal will help to counter cost pressure through a lower tax burden.

Multiple headwinds in the short term: The auto industry will face headwinds in the short-run due to (a) an increase in cost of ownership because of 2% higher excise duty and partial pass-through of cost inflation in RM costs and emission-norm changes, (b) an increase in cost of operations as fuel prices rose 15-22% in the past year, (c) hardening monetary policy resulting in higher interest rates for automobiles, (d) the impact of forex volatility as exposures are to multiple currencies, and (e) increasing competitive pressure.

Valuation and view: Strong momentum in volumes is expected to continue across segments. EBITDA margins are expected to be above the historical average, despite moderating for higher levels in FY10. Most auto stocks have outperformed benchmarks over the past 12 months, driven by strong volumes and margins. We prefer players that are less vulnerable to competitive dynamics, enabling dilution of short-term headwinds. Our top picks are M&M and Bajaj Auto.

2 September 2010 2 Dashboard

Hero Honda Data Track Below estimates; volumes up 2.3% YoY (down 0.7% MoM) at 424,617 units

Snapshot of volumes for August YoY MoM Chg YoY Residual Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 FY11E (%) (%) (%) (%) Gr. (%)

Total volume 424,617 415,137 2.3 427,686 -0.7 2,086,342 1,900,932 9.8 5,290,150 15.0 18.7 Source: Company/MOSL Highlights  Hero Honda posted August 2010 volumes of 424,617 units (against our estimate of 445,000 units), growth of 2.3% YoY (down 0.7% MoM). Volumes were impacted by restricted movement of inventory from its Haridwar plant due to the ‘Kawad’ pilgrimage, impacting volumes by 22,000-25,000 units. This growth is despite last year’s high base (~36% growth in August 2009) and ongoing constraint in supply of components. Supply constraints are expected to ease from August 2010.  It’s scooter business is scaling up rapidly with volumes of over 27,000 units in Aug-10.  Although the outlook seems buoyant, short-term headwinds continue to impact the two- wheeler industry. Anil Dua, Sr VP (Mktg) said: “The domestic two-wheeler industry remains buoyant and we expect growth to maintain this trajectory in coming months. For us at Hero Honda, record four lakh (0.4m) plus sales for fourth consecutive month has set the tone for festive season. We are looking to ride this buoyancy, having lined up a number of new launches to meet our customers’ expectations and bring a lot of excitement in the festive season. However, certain concerns such as high inflation and short supply of components continue to bother two-wheeler industry in the near term.”  We model volume growth of 15% for FY11 (to 5.3m units), implying a residual monthly run rate of 457,687units (v/s 417,268 units in FY11 YTD), higher contribution from the Haridwar plant (~34% of volume), and a 220bp decline in margins to 14.7%.  The stock trades at 15.4x FY11E EPS of Rs114.2 and 13.1x FY12 EPS of Rs134.6. Buy. Hero Honda: 2-wheelers

FY 09 FY10 FY 11 475,000

410,000

Restricted movement of 345,000 inventory impacted volumes 280,000

215,000

150,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Source: Company/MOSL Hero Honda: Financialf & Valuation Summary Bloomberg HH IN Year Net Sales PAT EPS EPS P/E P/CE P/BV EV/ RoE RoCE Equity Shares (m) 199.7 End (Rs m) (Rs m) (Rs) Gr. (%) (X) (X) (X) EBITDA (%) (%) CMP (Rs) 1,759 3/09A 123,191 13,008 65.1 34.4 27.0 23.7 9.2 18.8 38.3 48.1 52-Week Range 2,075/1,396 3/10A 157,582 22,402 112.2 72.2 15.7 14.4 10.1 11.0 61.7 72.8 1,6,12 Rel. Perf. (%) -5/-8/2 3/11E 184,016 22,795 114.1 1.8 15.4 14.1 7.0 10.3 54.0 63.0 M.Cap. (US$ b) 7.5 3/12E 208,531 26,887 134.6 17.9 13.1 12.1 5.1 8.0 39.2 46.8

2 September 2010 3 Dashboard

Bajaj Auto Data Track Above estimates, highest ever volumes at 329,634 units (+54.6% YoY); Buy

Snapshot of volumes for August YoY MoM Chg YoY Residual Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 FY11E (%) (%) (%) (%) Gr. (%) Total volume 329,364 213,072 54.6 318,415 3.4 1,576,465 953,569 65.3 3,941,071 38.2 24.5 Motorcycles 289,176 182,441 58.5 279,781 3.4 1,396,700 833,331 67.6 3,496,828 39.5 25.5 Total Two-Wheeler 289,176 183,051 58.0 279,781 3.4 1,397,725 836,202 67.2 3,497,853 39.3 25.3 Three-Wheelers 40,188 30,021 33.9 38,634 4.0 178,740 117,367 52.3 443,218 30.0 18.3 Source: Company/MOSL

Highlights Production constraints are  Bajaj Auto’s total volumes grew by 54.6% YoY (~3.4% MoM) to 329,364 units (v/s est of likely to ease from 316,650 units). September 2010, taking  Motorcycle volumes grew by 58.5% YoY (~3.4% MoM) to 289,176 units (v/s est 285,000), Bajaj Auto's monthly run- driven by highest ever sales for Pulsar and Discover brand. rate to 335,000 units  Supply side constraints, which impacted supplies of Pulsar and Discover 150, are expected to ease from Sep-10 onwards translating into monthly capacity of 300,000 motorcycles. Our FY11 estimates factor in 39.5% YoY growth in motorcycle volumes to 3.5m, implying an average monthly residual run rate of 300,018 units (~25.3% residual growth).  3-wheeler volumes grew by 33.9% YoY (~4% MoM) to 40,188 units (v/s est 31,500). The company has debottlenecked capacity easing constraints. The order book is very strong for next three months (expected at 40,000+ units). Our FY11 estimates factor in 30% YoY growth to 0.44m, implying an average monthly residual run rate of 37,783 units.  Exports grew by 31.2% YoY (7.7% MoM decline) to 98,578 units (v/s est 100,000). Export volumes were lower due to the decision to cater to domestic demand (e.g. de- regulation of permits in Tamil Nadu led to fresh demand of ~35,000 vehicles).  Bajaj’s volumes are expected to further improve driven by easing-up of supply side constraint in two-wheelers and strong order book for three-wheelers. Given the momentum in demand, we are upgrading our volume estimates by 5% to 3.94m (v/s 3.75m earlier), translating into residual monthly run-rate of 337,801 units (~24.5% residual growth).  Our EPS has been upgraded by 7.6% to Rs180.7 for FY11 and 7.3% to Rs197.4 for FY12. The stock trades at 15.2x FY11E EPS of Rs180.7 and 13.9x FY12E EPS of Rs197.4. Maintain Buy with target price of Rs2,960 (~15x FY12E EPS).

Bajaj Auto: Financial & Valuation Summary Bloomberg BJAUT IN Year Net Sales PAT EPS EPS P/E P/CE P/BV EV/ RoE RoCE Equity Shares (m) 144.7 End (Rs M) (Rs M) (Rs) Gr. (%) (X) (X) (X) EBITDA (%) (%) CMP (Rs) 2,749 3/09A 88,104 7,963 55.0 -3.4 50.0 43.0 23.6 33.1 48.6 31.5 52-Week Range (Rs) 2,863/1,162 3/10A 119,210 18,175 125.6 128.3 21.9 20.4 13.6 14.3 78.8 49.7 1,6,12 Rel.Perf.(%) 0/40/107 3/11E 167,859 26,146 180.7 43.9 15.2 14.4 8.2 10.0 67.5 51.1 M.Cap. (US$ b) 8.5 3/12E 186,981 28,555 197.4 9.2 13.9 13.2 5.8 8.8 48.6 42.5

2 September 2010 4 Dashboard

Two-wheeler volumes (units)

FY 09 FY 10 FY11 310,000

Volumes driven by 245,000 encouraging response to Pulsar and Discover 180,000

115,000

50,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Three-wheeler volumes (units)

FY 09 FY10 FY 11 46,000

Three wheeler volumes 40,000 remain strong 34,000

28,000

22,000

16,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Export volumes (units)

FY09 FY 10 FY 11 120,000

100,000 Export momentum continues in August 2010 80,000

60,000

40,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Market mix

Domestic Ex por ts 100%

Pent-up demand of three 75% wheelers coupled with 50% robust two wheelers numbers driving the 25% domestic share 0% Jun-08 Oct-08 Jun-09 Oct-09 Jun-10 Apr-08 Feb-09 Apr-09 Feb-10 Apr-10 Dec-08 Dec-09 Aug-08 Aug-09 Aug-10

Source: Company/MOSL

2 September 2010 5 Dashboard

Maruti Suzuki Data Track Above estimates; volumes of 104,791 (up 23.6% YoY, up 3.9% MoM)

Snapshot of volumes for August YoY MoM Chg YoY Residual Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 FY11E (%) (%) (%) (%) Gr. (%)

Total volume 104,791 84,808 23.6 100,857 3.9 488,972 389,611 25.5 1,193,852 17.2 12.1 Domestic 92,674 69,961 32.5 90,114 2.8 425,675 334,904 27.1 1,053,656 21.0 17.2 A1 1,919 2,734 -29.8 1,680 14.2 10,505 12,649 -16.9 C 14,157 6,601 114.5 13,617 4.0 61,295 36,136 69.6 A2 65,953 52,473 25.7 64,079 2.9 300,545 247,321 21.5 A3 10,479 7,821 34.0 10,352 1.2 49,789 36,869 35.0 MUV 166 332 -50.0 386 -57.0 3,541 1,929 83.6 Export 12,117 14,847 -18.4 10,743 12.8 63,297 54,707 15.7 140,196 -5.0 -17 Source: Company/MOSL Highlights  Maruti’s August 2010 volumes were above estimates, growing 23.6% YoY (3.9% MoM) to 104,791 units (against our estimate of 99,000 units). This was driven by a 32.5% YoY growth in domestic volume, despite an 18.4% YoY decline in exports.  Domestic volumes grew by 32.5% YoY (2.8% MoM) to 92,674 units (against our estimate of 88,000 units). Volume growth in domestic market was driven by newly launched Eeco & the recently launched Alto K-10 (inventory built up as it was launched on 4 Aug-10).  While C segment volumes grew by 114.5% YoY (4% MoM), the A2 and A3 segments grew 25.7% YoY (2.9% MoM) and 34% YoY (1.2% MoM) respectively.  Export volumes were above estimates at 12,117 units (against our estimate of 11,000), a de-growth of 18.4% YoY but a 12.8% MoM growth, led by the recent launch of A-Star in non-European markets. Non-EU markets accounted for ~50% of exports in Aug-10.  Volume growth is expected to be robust due to strong retail demand and the launch of the Alto-K10 and re-launch of Wagon-R CNG and other CNG fitted vehicles (Alto 800, Eeco, Estilo and SX4) in the second week of August.  Inventory returned to normal levels of 20-21 days (from 14-15 days a couple of months earlier). Credit sales increased and contribute 68% to volumes (v/s ~66% in 1QFY11).  Hyundai’s volumes grew 2.2% YoY (flat MoM), Ford’s volumes grew by 207% YoY (~9% QoQ decline).  The management is confident of meeting demand growth from its current capacity of 1.2m, which is expected to scale-up to 1.3m by October 2010 (and it can scale up beyond that if it uses a third shift). It is focusing on commissioning of its brownfield expansion of 0.25m cars in Manesar by the end of CY11 instead of in April 2012.  We model FY11 volume growth of 17.2% to 1.19m units, 130bp increase in RM costs, 160bp increase in royalty, translating into a 210bp decline in EBITDA margins to 11.2%.  The stock trades at 15.8x FY11E EPS and 13x FY12E EPS, and cash PE of 11x and 9x respectively. Maintain Buy. Marut i Suzuki: Financial & Valuation Summary Bloomberg MSIL IN Year Total Inc. PAT Adj. EPS EPS P/E P/CE P/BV EV/ RoE RoCE Equity Shares (m) 289.0 End (Rs m) (Rs m) (Rs) Gr. (%) (x) (x) (X) EBITDA (%) (%) CMP (Rs) 1,273 3/09A 209,074 13,334 46.1 -22.0 27.6 18.0 3.9 15.8 13.0 18.7 52-Week Range 1,740/1,171 3/10A 296,231 25,062 86.7 87.9 14.7 11.0 3.1 7.7 21.1 28.4 1,6,12 Rel.Perf.(%) 4/-24/-35 3/11E 345,937 23,228 80.4 -7.3 15.8 11.0 2.6 7.8 16.4 22.6 M.Cap. (US$ b) 7.9 3/12E 408,765 28,204 97.6 21.4 13.0 9.0 2.2 6.3 17.2 23.2

2 September 2010 6 Dashboard

Monthly volumes (units)

FY09 FY10 FY11 115,000

Strong growth driven by A2, 100,000 A3 and MPV segment 85,000

70,000

55,000

40,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Export volumes (units)

FY09 FY10 FY11 20,000

16,000 Exports driven by recovery in non-European markets, as 12,000 well as entry in newer 8,000 markets 4,000

0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Segment mix (domestic)

A1 A2 A3 MPVs + UVs 100%

75% A2 & A3 segments dominate the segment mix 50%

25%

0% Apr-08 Jun-08 Oct-08 Apr-09 Jun-09 Oct-09 Apr-10 Jun-10 Dec-08 Feb-09 Dec-09 Feb-10 Aug-08 Aug-09 Aug-10

Market mix

Domestic Sales Ex por ts 100%

75% Export contribution to 50% volumes expected to fall to 12% in FY11 from 15% in 25% FY10 0% Jun-10 Jun-09 Oct-09 Jun-08 Oct-08 Feb-10 Apr-10 Feb-09 Apr-09 Apr-08 Dec-09 Dec-08 Aug-10 Aug-09 Aug-08

Source: Company/MOSL

2 September 2010 7 Dashboard

Mahindra & Mahindra Data Track In-line with estimates at 42,338 units (up 29.6% YoY, down 0.7% MoM)

Snapshot of volumes for August YoY MoM Chg YoY Residual Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 FY11E (%) (%) (%) (%) Gr. (%)

Total volume 42,338 32,657 29.6 42,641 -0.7 217,222 145,697 49.1 578,157 22.1 10.1 UV's 21,755 17,284 25.9 18,016 20.8 96,844 65,504 47.8 264,308 17.5 5.0 LCV 873 658 32.7 1,007 -13.3 4,858 4,912 -1.1 13,759 40.0 81.1 PV - Logan 1,201 469 156.1 1,202 -0.1 4,369 7,465 -41.5 8,419 57.9 -289.9 Three-Wheelers 5,074 3,652 38.9 7,824 -35.1 32,974 19,791 66.6 85,816 47.5 37.6 Tractors 13,435 10,594 26.8 14,592 -7.9 78,177 48,025 62.8 205,855 17.5 0.4 Source: Company/MOSL Highlights Supply side constraints, due  M&M’s volumes grew by 29.6% YoY (down 0.7% MoM) to 42,338 units (against our to shortage of radial tyres, estimate of 41,800 units), driven by strong growth in UVs, tractors and three-wheelers. fuel injection equipment and  UV volumes rose 25.9% YoY (up 20.8% MoM) to 21,755 units (against our estimate of castings have impacted 20,500 units). Our FY11 estimates factor in 17.5% YoY growth in UV volumes, implying production a residual monthly run rate of 23,923 units (residual growth of 5%).  Tractor volumes grew by 26.8% YoY (down 7.9% MoM) to 13,435 units (against our estimate of 13,000 units). Our FY11 estimates factor in 17.5% YoY volume growth for tractors, implying a residual monthly run rate of 18,240 units (flat residual growth).  Three-wheeler/small truck volumes grew 38.9% YoY (down 35.1% MoM) to 5,074 units (against our estimate of 6,700 units), driven by newly launched small truck Gio and Maximmo. Our FY11 estimates factor in 47.5% volume growth for three-wheelers/ small trucks, implying a residual monthly run rate of 7,549 units (~37.6% residual growth).  Supply side constraints due to a shortage of radial tyres, fuel injection equipment and castings will shave off 8% growth in FY11. Among its peers, M&M is the worst hit as its portfolio is based on diesel powertrain and a shortage of diesel fuel injection systems is hurting it the most. The company plans to import components to overcome these constraints. Supply is expected to improve from 3QFY11.  With the Logan completely managed by M&M, its sales are being revived with growth of 156% YoY (flat MoM) to 1,201 units in August 2010.  It manufactures Maximmo (80-100 units/day) and M&HCV (5-6 units/day) at its recently commissioned Chakan plant (March 2010) with installed capacity of 0.3m units. It plans to manufacture new variants of the Xylo (to be launched in FY11) and new SUV (production from 4QFY11, launch in 1QFY12).  Our estimates factor in 22.1% volume growth in FY11, implying a residual monthly run rate of 51,562 units and a 100bp decline in EBITDA margins to 14.9%. On a consolidated basis, the stock trades at 10.8x FY11E of consolidated EPS of Rs57.9 and 9.2x and FY12E of consolidated EPS of Rs68.3. Maintain Buy.

Mahindra and Mahindra: Financial & Valuation Summary Bloomberg MM IN Year Net Sales S/A PAT Con. PAT Adj.EPS Cons. P/E Cons. RoE RoCE EV/ EV/ Equity Shares (m) 565.9 End (Rs m) (Rs m) (Rs) (RS) EPS (Rs) (x) P/E (x) (%) (%) Sales (x) EBITDA (x) CMP (Rs) 628 3/09A 130,937 9,297 15,047 16.2 26.2 38.8 23.9 17.7 12.9 2.4 28.3 52-Week Range 670/404 3/10A 186,021 20,451 24,402 35.7 42.6 17.6 14.8 26.1 25.8 1.7 10.2 1,6,12 Rel.Perf.(%) -7/14/31 3/11E 225,577 24,287 33,212 42.3 57.9 14.8 10.8 23.1 23.7 1.3 8.9 M.Cap. (US$ b) 7.7 3/12E 262,678 27,978 24,402 48.8 68.3 12.9 9.2 22.0 23.9 1.1 7.2

2 September 2010 8 Dashboard

Utility vehicle volumes (units)

FY 09 FY 10 FY11 24,000

19,000 UV volumes continue to remain strong 14,000

9,000

4,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Tractor volume (units)

FY 09 FY10 FY 11 20,000

16,000

Supply constraint continue to impact tractor volumes 12,000

8,000

4,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Source: Company/MOSL

Product mix

UVs Tractors LCVs, 3-w heelers 100%

75% Tractors and UVs dominate the segment mix, but we 50% expect the share of three wheelers and LCVs to 25% increase 0% Jun-08 Oct-08 Jun-09 Oct-09 Jun-10 Apr-08 Feb-09 Apr-09 Feb-10 Apr-10 Dec-08 Dec-09 Aug-08 Aug-09 Aug-10

Source: Company/MOSL

2 September 2010 9 Dashboard

Tata Motors Data Track Below estimates; volumes up 32.4% YoY ( down 2.7% MoM) to 65,938 units by ramp-up of Nano, exports

Snapshot of volumes for August YoY MoM Chg YoY Residual Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 FY11E (%) (%) (%) (%) Gr. (%)

Total volume 65,938 49,810 32.4 67,799 -2.7 315,448 220,977 42.8 920,365 37.9 35.5 HCV's 16,716 12,266 36.3 16,449 1.6 78,463 52,926 48.3 225,966 34.6 28.4 LCV's 23,022 19,596 17.5 22,967 0.2 107,628 85,572 25.8 289,541 23.8 22.6 Cars 23,207 15,286 51.8 25,063 -7.4 113,249 68,961 64.2 358,824 54.9 50.9 UV's 2,993 2,662 12.4 3,320 -9.8 16,108 13,518 19.2 46,035 35.0 45.4 of which exports 5,157 2,684 92.1 4,241 21.6 21,641 10,359 108.9 41,876 0.2 -15.4 Source: Company/MOSL Highlights  Volumes grew 32.4% YoY (down 2.7% MoM) to 65,938 units (against our estimate of 74,350 units).  The CV portfolio grew by 24.7% YoY (up 0.8% MoM) to 39,738units (against our estimate of 42,000 units). M&HCV’s volumes grew by 36.3% YoY (up 1.6% MoM) to 16,716 units (against our estimate of 18,000 units), and LCV volumes grew by 17.5% YoY (~0.2% MoM) to 23,022 units (against our estimate of 24,000 units). Our FY11 estimates factor in volume growth of 28.3% for CVs, implying a residual monthly run-rate of 47,059 units.  Car volumes grew by 51.8% YoY (down 7.4% MoM), to 23,207 units (against our estimate of 28,500 units), driven by Nano (8,103 units in August 2010) and strong demand for the Indigo range. Indica range sales de-grew by 22% YoY to 7,531 units and Indigo range sales grew by 151% YoY to 6,678 units due to an encouraging response to the recently launched Manza and Indigo e-CS. Our FY11 estimates factor in volume growth of 54.9%, for passenger cars, implying a residual monthly run rate of 35,082 units, driven by a ramp-up at Nano’s Sanand plant.  UV volumes improved with growth of 12.4% YoY (down 9.8% MoM) to 2,993 units (against our estimate of 3,850 units). Our FY11 estimates factor in volume growth of 35% in UVs, implying a residual monthly run rate of 4,275 units.  Our estimates factor in volume growth of 37.9% in FY11 implying a residual monthly run rate of 86,417 units (residual growth of 35.5%), a 270bp increase in RM cost and improvement in JLR performance (EBITDA margins of 14.3% in FY11 and 13.9% in FY12). The stock trades at 8.4x FY11E consolidated EPS of Rs120.5 and 7.2x FY12E consolidated EPS of Rs140.6, and normalized PE (adjusted for capitalization) of 16.4x FY11E and 12.2x FY12E. Maintain Buy.

Tata Motors: Financial & Valuation Summary Bloomberg TTMT IN Year Sales Adj. PAT Adj. EPS Norm. P/E Norm. RoE RoCE EV/ EV/ Actual Eq. Shares (m) 570.6 End * (Rs m) (Rs m) (Rs) EPS (Rs) ^ Ratio P/E (x) (%) (%) Sales (x) EBITDA (x) CMP (Rs) 1,009 3/09A 708,810 -21,125 -33.8 -113.4 -29.8 -8.9 -36 1.2 1.1 37.1 52-Week Range 1,055/430 3/10A 925,193 15,051 24.1 -22.8 41.8 -44.3 18.3 10.7 0.9 9.5 1,6,12 Rel. Perf. (%) 17/31/78 3/11E 1,188,126 75,214 120.5 63.4 8.4 15.9 51.7 23.0 0.7 5.1 M.Cap. (US$ b) 13.4 3/12E 1,379,129 87,727 140.6 85.0 7.2 11.9 39.9 23.2 0.6 4.5 * Consolidated; ^ Normalized for capitalized expenses

2 September 2010 10 Dashboard

M&HCV volumes (units)

FY 09 FY10 FY 11 24,000

M&HCV volumes continue 20,000 to remain strong 16,000

12,000

8,000

4,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

LCV volumes (units)

FY 09 FY 10 FY11 28,000

24,000

LCV volumes continue 20,000 to be robust 16,000

12,000

8,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Car volumes (units)

FY 09 FY10 FY 11 28,000

24,000 Newly launched Manza and 20,000 Nano drive growth in cars 16,000

12,000

8,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Product mix in the CV segment

M&HCV s LCVs 100%

75%

Segment share 50% stabilizing after recovery of M&HCV segment 25%

0% Jun-10 Jun-09 Oct-09 Jun-08 Oct-08 Feb-10 Apr-10 Feb-09 Apr-09 Apr-08 Dec-09 Dec-08 Aug-10 Aug-09 Aug-08

Source: Company/MOSL

2 September 2010 11 Dashboard

TVS Motor Data Track Volume growth of 31.7% YoY driven by growth in motorcycles & scooters

Snapshot of volumes for August YoY MoM Chg Aug-10 Aug-09 Jul-10 YTDFY11 YTDFY10 (%) (%) (%) Total volume 167,109 126,842 31.7 163,106 2.5 767,038 594,977 28.9 Motorcycles 66,574 51,127 30.2 61,051 9.0 327,983 246,903 32.8 Scooters 40,913 28,582 43.1 40,357 1.4 176,486 123,505 42.9 Mopeds 59,622 47,133 26.5 61,698 -3.4 262,569 224,569 16.9 Source: Company/MOSL Motorcyle volumes (units)

FY09 FY10 FY11 80,000

65,000

Motorcycle volumes 50,000 continue to improve

35,000

20,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Scooters and mopeds (units)

FY09 FY10 FY11 112,000

100,000

88,000

Scooters and mopeds 76,000 volumes continue 64,000

to be robust 52,000

40,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Sales mix

Motorcycles Scooters & Mopeds 100%

75% Motorcycles have been a key volume driver 50%

25%

0% Jun-10 Jun-09 Oct-09 Jun-08 Oct-08 Feb-10 Apr-10 Feb-09 Apr-09 Apr-08 Dec-09 Dec-08 Aug-10 Aug-09 Aug-08

Source: Company/MOSL

2 September 2010 12 Dashboard

Maruti Suzuki: Annual report update Special Report Key takeaways from Maruti's annual report

Marut i Suzuki: Financial & Valuation Summary Bloomberg MSIL IN Year Total Inc. PAT Adj. EPS EPS P/E P/CE P/BV EV/ RoE RoCE Equity Shares (m) 289.0 End (Rs m) (Rs m) (Rs) Gr. (%) (x) (x) (X) EBITDA (%) (%) CMP (Rs) 1,273 3/09A 209,074 13,334 46.1 -22.0 27.6 18.0 3.9 15.8 13.0 18.7 52-Week Range 1,740/1,171 3/10A 296,231 25,062 86.7 87.9 14.7 11.0 3.1 7.7 21.1 28.4 1,6,12 Rel.Perf.(%) 4/-24/-35 3/11E 345,937 23,228 80.4 -7.3 15.8 11.0 2.6 7.8 16.4 22.6 M.Cap. (US$ b) 7.9 3/12E 408,765 28,204 97.6 21.4 13.0 9.0 2.2 6.3 17.2 23.2

Maruti Suzuki: FY10 Annual report Analysis MARUTI: ANNUAL REPORT 2010 Maruti’s FY10 annual report highlights management’s cautious optimism about future driven by focus on building upon its existing strength and developing new capabilities. We present our key takeaways from Maruti’s FY10 annual report:

Outlook cautiously positive The management is optimistic about demand in the medium term. Conservatively it expects the Indian passenger car market to double in the next 5-6 years (CAGR of 13-15%). It doesn’t rule out possibility of a China-like boom in the Indian car market. However, it is cognizant of rising competition and, in turn, is building on its existing strengths and developing new competence to maintain its market leadership.

Capacity augmentation to support positive outlook In line with its positive outlook, it is investing Rs17b in fresh capacity creation of 250,000 units at its Manesar plant. At the same time, it is also scaling up its engine capacity – it has enhanced K-series engine plant capacity to over 500,000 units, which would be further raised to over 700,000 by 4QFY11. Further, to meet domestic demand, it is restricting export volumes to ~15% of total. However, it believes scaling up vendors would be critical for it to meet growth.

Continuous focus on network augmentation to sustain advantage Maruti’s sales and service network has been one of its key strengths. The management is concentrating on building this competitive advantage, as it understands that penetrating rural markets is critical. During FY10, it added 121 outlets taking the total to 802, covering 555 cities (from 454 cities) and added 127 dealer service workshops covering 1,335 cities (from 1,314 cities). It plans to have a service facility every 25 km on important stretches of major highways.

R&D – area of strategic focus to support product refreshes and designing Building R&D capability has been identified as a key strategic imperative. While parent Suzuki will continue to offer support for new models, it is cognizant of the need to supplement it with its own R&D capability. Its R&D has already achieved capability for carrying out minor changes and also co-design activity with Suzuki for new models. The next key milestone is to develop full body change capability. One significant step in this direction has been the increase in engineers for R&D from 729 in FY09 to 968 in FY10, with plans to increase the number to over 1,100 in FY11.

2 September 2010 13 Dashboard

Continuous focus on cost control The production teams worked on several cost reduction projects and achieved substantial savings through machining tool cost reduction and automation of material handling systems. Special emphasis was laid on localization of parts imported by vendors, as apart from cost reduction it also provides immunity from forex fluctuations. In FY10, inhouse die development for body parts of models like the Ritz, Eeco and Estilo enabled cost savings over imported dies.

‘Pre-owned’ car business scaling up rapidly, will help customer retention True Value Solutions, its pre-owned car business subsidiary, is scaling up rapidly with 33% growth in FY10 to 163,240 cars. It not only enables customer retention by facilitating exchange of old cars for new, but also enhances dealers’ profitability through sale of certified pre- owned cars under the brand ‘Maruti True Value’.

Subsidiaries and JVs recover to contribute ~5% to consolidated EPS FY10 witnessed significant recovery in performance of subsidiaries (insurance business), associates (Suzuki Powertrain and others) and JVs. In FY10, revenues of this group increased by 86.5% to Rs4.9b (~2% of consolidated revenues), whereas PAT was at Rs1.27b (v/s Rs87m in FY09; ~5% of consolidated PAT). In FY10, the insurance business generated a total income of Rs1.35b and PAT of Rs434m. It sold 0.81m new policies and 1.76m renewals (~10m cumulative policies since inception in FY02). However, recent IRDA order to cancel Maruti’s agency license could jeopardize this revenue stream.

Valuation & view Maruti has underperformed since the beginning of CY2010 given concerns of rising competition in small cars. While new models from competition are doing well, we believe it will take at least 4-5 years for new players to seriously impact Maruti’s market share due to lack of distribution network. Further, strong market growth rates would also absorb supply from new players. The stock trades at 16x FY12E EPS and 13x FY12 standalone EPS. We maintain Buy with target price of Rs1,417 (10x FY12E Cash EPS; which is the median Cash P/E since listing).

Maruti Suzuki's: Key Charts

Source: Company

2 September 2010 14 Dashboard

Two-wheelers Sector Gauge Robust volume growth continues

Two-wheelers: Volume snapshot Jul-10 Jul-09 YoY (%) Jun-10 MoM (%) YTD FY11 Chg (%) FY10 Chg (%) Total Domestic 2W 938,514 719,656 30.4 933,101 0.6 3,663,840 28.3 9,371,278 26.0 % of Total 2W 87 89 87 87 89 Total Motorcycle 710,621 546,233 30.1 715,985 -0.7 2,808,036 25.6 7,341,120 25.9 % of Domestic 2W 76 76 77 77 78 <125cc 518,928 384,571 34.9 529,024 -1.9 2,081,825 31.0 5,431,475 32.0 % of Motorcycle 73 70 74 74 74 >125cc 191,693 161,662 18.6 186,961 2.5 726,211 12.4 1,909,645 11.2 % of Motorcycle 27 30 26 26 26 Scooters & Mopeds 227,893 173,423 31.4 217,116 5.0 855,804 38.1 2,030,158 26.4 % of Domestic 2W 24 24 23 23 22 Exports 135,973 92,868 46.4 139,145 -2.3 528,794 61.5 1,140,047 13.5 % of Total 2W 13 11 13 13 11 Total 2W 1,074,487 812,524 32.2 1,072,246 0.2 4,192,634 31.7 10,511,325 24.5 Source: SIAM/MOSL

Two-wheelers: Domestic volume trend (units)

FY09 FY10 FY11 1,000,000

Domestic two-wheeler 850,000 volumes grew by 30.4% in August 2010 700,000

550,000

400,000 Jul Oct Jan Apr Jun Sep Dec Feb Mar Aug Nov May

Motorcycle: Domestic market share in <125cc segment (Domestic)

Bajaj Auto Hero Honda TVS Motor Yamaha 100%

Hero Honda dominates 75% <125CC segment with 70.7% market share 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

2 September 2010 15 Dashboard

Motorcycles: domestic market share in the >125cc segment

Bajaj Auto Hero Honda TVS Motor Yamaha HMSI Suzuki 100%

75% Encouraging response to the Pulzar135cc and 50% Discover150cc helped Bajaj 25% Auto to improve market share in the >125cc 0% category to 49.2% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Motorcycles: segment mix

< 125CC > 125CC 100%

75% <125cc forms 75% of the motorcycles segment 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Two-wheelers: domestic market share

Hero Honda Bajaj Auto HMSI TVS Motor Yamaha Suzuki

100%

75%

Market share stabilizes 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Two-wheelers: export volumes (units)

FY11 FY09 FY10 160,000

140,000 Exports volumes to remain strong 120,000

100,000

80,000

60,000 Jul Apr Jun Oct Jan Sep Dec Feb Mar Aug Nov May

2 September 2010 16 Dashboard

Three-wheelers Sector Gauge New permits in the passenger segment drive volume growth

Three-wheelers: Volume snapshot Mar-10 Jul-10 Jul-09 YoY (%) Jun-10 MoM (%) YTD FY11 Chg (%) FY10 Chg (%) Total Domestic 3W 45,373 36,168 25.5 38,868 16.7 150,526 18.1 440,367 25.9 % of Total 3W 67 78 66 63 72 Passenger 38,262 29,054 31.7 32,022 19.5 122,560 20.9 349,673 30.2 % of Domestic eW 84 80 82 81 79 Total Goods 7,111 7,114 0.0 6,846 3.9 27,966 7.2 90,694 11.6 % of Domestic 3W 16 20 18 19 21 <1T 5,661 5,431 4.2 5,612 0.9 22,707 11.5 72,896 21.6 % of Goods Vehicle 80 76 82 81 80 >1T 1,450 1,683 -13.8 1,234 17.5 5,259 -8.0 17,798 -16.6 % of Goods Vehicle 20 24 18 19 20 Exports 21,989 10,020 119.5 20,426 7.7 89,637 141.5 173,282 17.0 % of Total 3W 33 22 34 37 28 Total 3W 67,362 46,188 45.8 59,294 13.6 240,163 45.9 613,649 23.3 Source: SIAM/MOSL

Three-wheelers: volume trend (including exports)

FY09 FY10 FY11 74,000

68,000

62,000 Strong growth driven 56,000 by exports 50,000

44,000

38,000

32,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Three-wheelers: domestic segment mix

Passenger Goods 100%

75% Passenger segment dominates 3-wheelers with 50% 84% contribution 25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

2 September 2010 17 Dashboard

Three wheelers: passenger segment market share

Bajaj Auto Piaggio M&M TVS Others 100%

Bajaj Auto's improved its 75% market share to 50.2% in August 2010 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Three wheelers: goods segment market share

Bajaj Auto Piaggio M&M Others 100%

75% Piaggio continues to lead in

the goods segment 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

2 September 2010 18 Dashboard

Cars and UVs Sector Gauge Strong momentum in demand continues

Passenger vehicles: Volume snapshot Jul-10 Jul-09 YoY (%) Jun-10 MoM (%) YTD FY11 Chg (%) FY10 Chg (%) Total Domestic PVs 202,093 147,663 36.9 181,810 11.2 756,659 33.8 1,950,228 25.6 % of Total PVs8581838481 Total Cars 158,764 115,084 38.0 141,184 12.5 592,405 34.6 1,527,307 25.1 % of Domestic PVs7978787878 A1 & A2 123,915 89,066 39.1 111,351 11.3 464,728 33.5 1,191,652 27.4 % of Cars 78 77 79 78 78 A3 28,333 21,882 29.5 24,615 15.1 105,204 38.6 276,102 14.2 % of Cars 18 19 17 18 18 A4 & above 6,516 4,136 57.5 5,218 24.9 22,473 40.4 59,553 36.1 % of Cars 4 4 4 4 4 UVs 24,901 20,831 19.5 26,113 -4.6 101,333 23.9 272,665 20.8 % of Domestic PVs1214141314 MPVs 18,428 11,748 56.9 14,513 27.0 62,921 43.9 150,256 40.9 % of Domestic PVs98888 Exports 34,699 33,789 2.7 37,432 -7.3 143,136 9.0 446,146 32.9 % of Total PVs1519171619 Total PVs 236,792 181,452 30.5 219,242 8.0 899,795 29.1 2,396,374 26.9 Source: SIAM/MOSL

Cars: domestic volume (units)

FY09 FY10 FY11 180,000

Recovery continues with 160,000 strong growth on a low 140,000 base, driven by new product launches 120,000

100,000

80,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

UVs & MPVs: domestic volume (units)

FY09 FY10 FY11 46,000

40,000 Volume growth driven by new product launches 34,000

28,000

22,000

16,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2 September 2010 19 Dashboard

Passenger vehicles: export volume (units)

FY09 FY10 FY11 50,000

42,000 Exports slowing down, due 34,000 to exhaustion of scrappage incentives in Europe 26,000

18,000

10,000 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Cars: domestic market share

Maruti TataMotor Hyundai GM Honda 100%

75% Maruti continues to dominate domestic 50% car market 25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

UVs: domestic market share

M&M TataMotor Toyota Maruti GM 100%

M&M is the market leader in 75% the UV segment with 50% 48.4% share 25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Passenger vehicles: segment mix

A1 A2 A3 A4 & above MPV UV 100%

A2 dominates the passenger 75% vehicles segment with 56% market share 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

2 September 2010 20 Dashboard

Commercial vehicles Sector Gauge Recovery continues, driven by economic growth

Commercial vehicles: Volume snapshot Mar-10 Jul-10 Jul-09 YoY (%) Jun-10 MoM (%) YTD FY11 Chg (%) FY10 Chg (%) Total Domestic CVs 51,481 37,624 36.8 52,211 -1.4 201,358 49.7 531,434 38.2 % of Total CVs 90 92 91 91 92 Total M&HCV 24,569 16,138 52.2 25,997 -5.5 95,785 74.1 244,646 33.1 % of Domestic CVs 48 43 50 48 46 Goods 20,842 13,398 55.6 21,409 -2.6 80,484 79.6 201,565 35.3 % of M&HCVs 85 83 82 84 82 Passenger 3,727 2,740 36.0 4,588 -18.8 15,301 49.7 43,081 23.5 % of M&HCVs 15 17 18 16 18 Total LCVs 26,912 21,486 25.3 26,214 2.7 105,573 32.9 286,788 42.9 % of Domestic CVs 52 57 50 0 0 Goods 23,267 18,047 28.9 22,312 4.3 90,362 36.1 252,364 45.2 % of LCVs 45 48 43 45 47 Passenger 3,645 3,439 6.0 3,902 -6.6 15,211 16.6 34,424 27.7 % of LCVs 7 9 7 8 6 Exports 5,707 3,209 77.8 5,419 5.3 19,896 95.3 45,003 5.9 % of Total CVs 10 8 9 9 8 Total CVs 57,188 40,833 40.1 57,630 -0.8 221,254 52.9 576,437 35.0 Source: SIAM/MOSL

M&HCVs: Domestic volume, goods vehicles (units)

FY09 FY10 FY11

32,000

Recovery in volumes 24,000 continues, driven by strong economic recovery 16,000

8,000

0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

M&HCVs: domestic volume, buses (units)

FY09 FY10 FY11 6,000

Bus volumes continue 4,500 to remain strong 3,000

1,500

0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2 September 2010 21 Dashboard

M&HCVs: domestic market share, goods (%)

TataMotor AshokLeyland Eicher 100%

75%

Ashok Leyland recovered 50% lost market share in the 25% goods and the passenger

segments 0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

M&HCVs: domestic market share, buses (%)

TataMotor AshokLeyland Eicher Swaraj 100%

75%

50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

LCVs: domestic volumes (units)

FY09 FY10 FY11 40,000

30,000 LCVs continue with robust growth 20,000

10,000

0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

2 September 2010 22 Dashboard

LCVs: domestic market share (%)

TataMotor Piaggio M&M Others 100% Market share stable across 75% all LCV players 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

Goods: segment-wise break-up (%)

LCVs <12T <16T <35T

100% Recovery in M&HCVs drives 75% increase in contribution to CVs 50%

25%

0% Jul-08 Jul-09 Jul-10 Apr-08 Oct-08 Jan-09 Apr-09 Oct-09 Jan-10 Apr-10

2 September 2010 23 Dashboard

Major developments in the auto sector News and Events August 2010

Yamaha’s three launches: the SZ, SZ-X and YBR 125

Yamaha SZ Yamaha SZ-X Yamaha YBR 125

Yamaha has launched three motorcycles, the SZ, SZ-X and YBR 125. The SZ and SZ-X will be powered by a new four-stroke air-cooled, SOHC single-cylinder, 153cc engine. The YBR 125 has a 123cc engine and a four-speed gear box. It will be available at an ex-showroom price (Delhi) of Rs47,000, the SZ for Rs49,000 and the SZ-X for Rs52,000.

Volkswagen Vento Volkswagen launches Vento at Rs699,000 Volkswagen India launched its entry level premium sedan the Vento. It will be available at a starting price of Rs699,000, for the 1.6 liter petrol variant and Rs799,000 for the diesel variant, ex-showroom (New Delhi). The model will go on sale from 6 September 2010 across India and will be made at Volkswagen’s Chakan plant, which has an annual capacity of 110,000 cars.

Maruti launches five CNG vehicles with new technology Maruti launched five CNG variants of its cars, the SX4, Eeco, WagonR, Estilo and Alto. They are being launched in the NCR, Mumbai and Gujarat. The new line up is called intelligent- Gas Port Injection or i-GPI, and introduces the company’s flagship eco technology. With this, Maruti will have a CNG footprint across entry level cars, compact cars, sedans and MPV segments. Adapting the CNG technology is another step to keep low the cost of ownership. This is the first instance in which a car maker has developed and launched factory-fitted technologically superior CNG engines in India. The i-GPI offers an intelligent ride as it ensures more power vis-à-vis retro-fitted CNG vehicles. A release by the company said the technology offered a peppier ride experience at par with that of a petrol-fuelled engine, along with high fuel efficiency. The range will enjoy the full warranty benefits including extended warranty from Maruti-certified dealers. The ex-showroom Delhi price of Maruti Suzuki CNG vehicles is: Alto Lxi - Rs323,000, Eeco five-seater AC: Rs364,000, the SX4 Vxi: Rs747,000, the WagonR Lxi: Rs411,000 and the Estilo Lxi: Rs405,000.

2 September 2010 24 Dashboard

Hyundai to increase car prices in September Hyundai will increase its car prices in India by 1.2% due to a rise in input costs, according to a senior company official. While the price of its popular small cars, the Santro and the i10, will go up by Rs3,500 for entry-level variants, the Sonata will become dearer by Rs10,000. Car makers were grappling with rising commodity prices like steel and rubber, which were firming up in the domestic market. Japanese carmaker Toyota Kirloskar Motors also announced a price revision of its products across categories from October 2010.

Ford to export Figo to new markets Ford said it would increase its presence in the fast-growing Asian and African markets, which prefer small vehicles. The company said Asia and Africa would account for 70% of its global growth over the coming decade with most of the sales coming from India and China. “China and India are the two most important markets for Ford vehicles globally and we are set to increase our commitment and stake in India,” Joe Hinrichs, Ford’s Asia Pacific and Africa chief said. From 2011, Ford will export the Figo from India to 50 new markets including Mexico, North Africa and the United Arab Emirates, according to Hinrichs.

Volvo Buses expects higher sales from coaches Volvo Buses expects a 25-30% increase in revenue this calendar year mainly from the private coach segment. “Growth is coming from the coach sector,” Volvo Buses managing director Akash Passey said on the sidelines of the SIAM summit. Most of Volvo Buses’ last year’s sales of 535 units were city buses, used for public transport. The company said that this year it expected growth to come from the coaches segment. “This year, we are looking to do 550-600 units and 80% of our business will come from coaches,” Passey said. The company recently sold coaches in Rajasthan, Kerala and Bangalore. “We had sales in Rajasthan and Kerala, and Mumbai also picked up considerably,” Passey said.

TVS Motor to bring back the Flame TVS-Flame 125cc TVS Motor Company plans to bring back the Flame, a 125cc motorcycle, caught in a patent litigation between TVS and Bajaj Auto two years ago. Following a Supreme Court verdict in September last year, TVS Motor announced it would relaunch its twin spark-plug Flame and production is expected to start soon. The company said it was clearing stocks of the single spark-plug version of the motorcycle and production of the twin spark-plug Flame would start “this month”. The Flame will occupy a key position in TVS Motor’s product portfolio.

Maruti’s launches A-Star Automatic (AT) Maruti recently launched the A-Star Automatic, which signifies Maruti’s first significant move from the manual transmission. The automatic variant of the A-Star will have a fuel economy of 17kmpl, as per ARAI. The AT is priced at Rs434,535 (Rs49,908 more than the A-Star manual VXi).

2 September 2010 25 Dashboard

John Deere launches two tractors India’s leading tractor manufacturer, John Deere India, has said it would introduce two tractor models, a 35-HP and a 41-HP model. They are powered by a fuel-efficient, three- cylinder John Deere diesel engine and equipped with power steering, oil-immersed disc brakes, side shift gears, mobile charging points, neutral start switch-on drive gear and other user-friendly features. “The introduction of these two new models, marks the entry of John Deere into the lower horsepower (HP) market segment in the Indian tractor industry, which constitutes about 40% of the tractor market,” John Deere India director-sales and marketing Ravi Menon said.

2 September 2010 26 Dashboard

NOTES

2 September 2010 27 For more copies or other information, contact Institutional: Navin Agarwal. Retail: Manish Shah Phone: (91-22) 39825500 Fax: (91-22) 22885038. E-mail: [email protected] Motilal Oswal Securities Ltd, 3rd Floor, Hoechst House, Nariman Point, Mumbai 400 021

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