New Delhi: Maruti Suzuki India is targeting annual production of 3 million units by 2025, and sees its cost coming down due to a new royalty formula signed with parent Suzuki Motor Corp, MSI Chairman R C Bhargava has said.
In a message to shareholders, he said in the company’s Annual Report for 2017-18 that the contract manufacturing arrangement with Suzuki Motors Gujarat is working very satisfactorily. The first line at the Gujarat plant is in full production and the second one will be commissioned early in 2019, Bhargava said.
“Work has started on the third line and the expected commissioning is early 2020. We hope that the 2 million mark will be reached in the next financial year and the next goal is 3 million cars a year by 2025,” he added. MSI already has a production capacity of 15 lakh units per annum at its two plants in Gurgaon and Manesar.
On the other hand, the first assembly line of Suzuki-owned Hansalpur (Gujarat) has a capacity of 2.5 lakh units per annum. The second line will also have the same capacity, as also the third one. On the royalty paid to parent Suzuki Motor Corp, Bhargava said a new formula was signed by the two companies recently.
“The percentage of royalty will now reflect the rising volumes of sales in India and lead to lower costs of production. The growing capability of our engineering department to design vehicles will also lead to the same result,” he added.
The company had said last year that by 2025 it would pay royalty on all models to parent SMC in rupee terms. Compact SUV Vitara Brezza is the only model currently for which it pays royalty in rupees instead of yen, as is the case for other models. The royalty payment in rupees is aimed at reducing average royalty rate to 5 per cent of net sales as compared to 5.6 to 6 per cent for existing models, which were paid in yen.
On the the cooperation between Suzuki Japan and Toyota Motor Corporation, Bhargava said it is another step taken to bring the best of technologies for the benefit of customers, and also to promote national objectives.
“I am sure that this arrangement will create a win-win situation for all of us,” he added. MSI Managing Director & CEO Kenichi Ayukawa said in view of rapidly changing customer preferences and regulations, the company has been intensifying its R&D efforts and speed becomes critical for success.
“Suzuki Motor Corporation is stepping up R&D efforts specially to provide better technologies and products to the company (MSI). The company’s R&D centre at Rohtak is also building its capability and we would like to proceed to the next stage, ‘Design in India’,” he added.
Ayukawa said after the introduction of GST in 2017-18 tax on hybrid vehicles increased, resulting in the decline in demand for MSI’s hybrid models. “However, by focussing on other models, the company was able to make up for the decline in their sales,” he said.
Sensex sheds 298.82 to close at 38,811; Nifty shrinks to 11,650
Mumbai: The benchmark BSE Sensex erased early gains to end 299 points lower Thursday as investors booked profits after stocks soared to record highs after BJP’s strong showing in the Lok Sabha polls.
Sensex and NSE Nifty went on to record highs even as Lok Sabha election results showed that PM Modi-led NDA leading on over 300 seats. However after the euphoria during the morning session, Sensex shed 298.82 to close at 38,811 and Nifty shrank to 11,650 on the closing bell.
During the day, the Sensex hit the 40,000 mark while the Nifty crossed the 12,000-level for the first time ever. However, the indices succumbed to profit booking towards the fag-end of the session.
The 30-share Sensex tumbled 298.82 points, or 0.76 per cent, to close at 38,811.39. Similarly, the broader NSE Nifty settled 80.85 points, or 0.69 per cent, lower at 11,657.05.
IndusInd Bank was the biggest gainer in the Sensex pack, rallying 5.23 per cent, followed by Hero MotoCorp, Coal India, Yes Bank, PowerGrid, ICICI Bank, HCL Tech, L&T, Kotak Bank and Bharti Airtel, rising up to 1.56 per cent. On the other hand, Vedanta, ITC, Tata Motors, HDFC twins, Bajaj Finance, Sun Pharma, Tata Steel, TCS, ONGC and Infosys fell up to 5.53 per cent.
Riding on a massive Modi wave sweeping through most parts of India, the BJP was set to return to power Thursday as it led in 298 seats while the Congress trailed far behind with 52, according to trends released by the Election Commission for all 542 seats that went to polls.
“Markets were initially enthused to see the election results falling in line with the exit polls. However, the run up to the D-day was so sharp that it turned out to be a sell on news phenomenon,” said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management.
Participants would now be keen to know the future course of action for bringing the economy back on track, solution to the liquidity situation, the union budget, onset and progress of monsoon in June and most importantly the earnings trajectory, he added.
According to traders, weak cues from other global markets and a depreciating rupee also weighed on investor sentiment. The rupee depreciated 37 paise to 70.04 against the US dollar in afternoon trade. Globally, bourses in Asia ended in the red.
Indices in Europe were also trading on a negative note in early deals. Brent crude, the global oil benchmark, was trading 1.79 per cent lower at USD 69.72 per barrel.
Silver up on increased offtake; gold steady
New Delhi: Silver prices rallied by Rs 200 to Rs 37,400 per kg in the national capital on Thursday, while gold held steady, according to the All India Sarafa Association.
Traders said silver prices rose on pick-up in offtake by industrial units and coin makers at the local spot market. Globally, spot gold was trading marginally higher at USD 1,276 an ounce, while silver was slightly up at USD 14.53 an ounce in New York.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity dropped by Rs 10 each to Rs 32,670 per ten 10 gram and Rs 32,500 per 10 gram. Sovereign gold, however, held steady at Rs 26,500 per eight gram.
Silver ready surged Rs 200 to Rs 37,400 per kg, while weekly-based delivery fell by Rs 66 to Rs 36,234 per kg. Silver coins held flat at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.
India PC mkt declines 8.3 per cent to 2.15 mn units in Jan-Mar qarter
New Delhi: Personal Computer (PC) shipment in India fell by 8.3 per cent in the January-March quarter of 2019 to 2.15 million units, registering a year-on-year decline for the third consecutive quarter, according to research firm International Data Corporation (IDC).
Besides, big commercial deals, market remained weak due to weak consumer demand, high inventory from previous quarters, and supply issues for Intel chips.
Shipments in the consumer segment saw a 26.5 per cent dip in the said quarter compared to the year-ago period. The commercial PC market saw a total shipment of 1.35 million units in the said quarter, a growth of 7.3 per cent over last year.
“The announcement of central elections on March 10, 2019 resulted in the model code of conduct coming into immediate effect further resulting in a delay in execution of government projects and impacting the commercial segment,” IDC said in a statement.
However, IDC expects the overall PC market in India to witness a growth in the second quarter. The commercial market is expected to pick up post new government formation in May, while the consumer market is expected to pick up largely driven by back to school campaign by vendors and online sales.
HP maintained its leadership position with an overall market share of 28.1 per cent in the first quarter of 2019, followed by Dell (25.9 per cent), Lenovo (25.2 per cent) and Acer (11.7 per cent).
The notebook PC (laptop) category accounted for 61.4 per cent of the shipment and witnessed a 9.8 per cent year-on-year decline.