Bajaj Mulling Over its Ultra Cheap Car Project
Bajaj had announced that it will introduce its ultra cheap car in the Indian market, soon after the Nano was launched. The car is coded as ULC and a feasibility study is underway to study the economic and technical feasibility of such a project in India.
''The techno-economic feasibility for the passenger 4-wheeler will be evaluated by Bajaj-Renault-Nissan for a final decision, leading to firming up of the co-operation parameters among partners and a suitable JV agreement,'' according to the company.
Bajaj will build this car in association with Nissan and Renault in India. The USP for selling this car will be its fuel economy as Bajaj promised that this car will deliver the best mileage, exceeding any other small car in the country and will be the most fuel efficient car in India. It stated the emphasis will be on the fuel economy and not the car's price. The car will be built at Bajaj's Chakan plant near Pune with an initial capacity of producing 250,000 units annually.
Bajaj is also revamping the car's design which was originally designed by Renault. The new design will take into consideration aerodynamic aspect and other features that will enable car to deliver better mileage.
[Via: cartradeindia]
Hero Honda on growth path, posts Rs 402 crore profit
India's largest two-wheeler manufacturer, Hero Honda posted a profit of Rs 402.2 crore during the quarter ended 31st March 2009. This figure represents a 35% increase over the Rs 298.7 crore in profits, which the company earned in the year-ago period.
Hero Honda's sales for the quarter stood at Rs 3,411.8 crore, a 22.34% increase over sales of Rs 2,788.65 crore which the company netted in Q4, FY 2007-08.
According to Hero Honda, a high percentage of its sales come from rural and semi-urban areas, where customers tend to buy vehicles on full cash down basis rather than opt for bank loans or finance schemes. Hence, sales haven't been severely affected by the ongoing credit crunch.
Hero Honda has also implemented significant cost-cutting measures, hence boosting profitability, and the company also benefited from tax savings due to the location of its newest factory near Haridwar, in Uttarakhand. Finally, the fact that steel and aluminium prices have come down also helped the company in lowering overall cost of production, increasing the company's profit margins in the process.
Hero Honda earned Rs 12,319.12 crore during 2008-09, a 19.2% growth over the year-ago figure. The company's net profit for FY 2008-09 stood at Rs 1,281.8 crore, a 32.4% increase over its profits in the previous financial year.
Between the 1st of April 2008 and the 31st of March this year, Hero Honda sold 3.7 million units (including domestic sales and exports), a 12% growth over sales in the year-ago period. The 12% growth is especially significant in light of the fact that the entire two-wheeler industry in India grew by only 3% in the same period.
[Via: indiaautomotive]
Hero Honda extends lead over rivals
In a period where most two-wheeler manufacturers in India are having to deal with flat or declining sales, Hero Honda continues to improve its performance relentlessly.
From April 2008 to February 2009, the company sold 33 lakh units - a 12% growth over the corresponding period in the previous fiscal.
In the October-December 2008 quarter, Hero Honda's profits stood at Rs 300.42 crore - an increase of 9.24% over the year-ago period, while total turnover stood at Rs 2,881.27 crore, an increase of about 5%.
[Via: indiaautomotive]
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