A month in the India Transport Sector (No 25)

June, 2013

FOCUS: TRANSPORTATION COSTS

HONDA AND HYUNDAI ANNOUNCE CAR PRICE HIKE Automobile giants Honda and Hyundai recently announced a price hike across several models of their cars in India. Starting April, those choosing to buy car models including the Brio, Elantra, Honda City and the CR-V will have to dig into their pockets a little deeper. More information on ITP FUEL PRICES IN INDIA FAR FROM STABLE In January, the price of diesel in India was increased by Rs.0.45/litre excluding taxes. To minimise its fuel sale losses, the Indian Government asked stateowned oil firms to increase the price of subsidised diesel each month. The diesel price is now one and a half rupees more expensive than it was in January. More information on ITP INCREASED TOLLS ON THE MUMBAI-PUNE EXPRESSWAY As of April, motorists will have to pay more to travel on the Mumbai-Pune Expressway. The toll for fourwheelers has been increased from 140 INR to 165 (approx. 3 USD) for a one way trip on the expressway. While busses will be expected to pay 485 INR (approx. 9 UDS) per trip, trucks will have to pay 354 INR (approx. 6.5 USD). For multi-axle vehicles, the toll rate has been increased to 1100 INR (approx. 20 USD). More information on ITP MUMBAIS BUS FARES TO BE INCREASED As of April, Mumbai commuters will have to shell out a little extra for tickets on their regular bus routes on municipal busses. According to the announcement by Brihanmumbai Electric Supply & Transport (BEST), boarding state-run busses will typically cost 20% more per person. In November 2012, BEST decided to raise ticket prices for ordinary busses by 1 INR and by 5 INR for air-conditioned busses from April. More information on ITP

EDITORIAL Inflation, inflation everywhere. Regarding the automotive industry, car sales have been dropping steadily. But on an other hand, car makers such as Honda and Hyundai recently announced another round of car price hike in April. Maruti Suzuki India also said it currently studying the implications of the OBD compliance changes. And fuel prices in India are far from stable. Despite the diesel increase, the oil firms still lose money on diesel, LPG and gas. In December 2013, the projected growth in diesel price should reach Rs53.15. But as said, every part is affected such as the Mumbai bus fares or MumbaiPune toll expressway. On a macro perspective, the Reserve Bank of India did not change the repurchase rate because a weakening exchange rate would spur price increases. The rupee has lost 7 percent this quarter and is the worst Asias 11 most trades currencies performer. Indias consumer-price index rose 9 percent in May (only 2% in China). But, as says Mark Mobius, Executive Chairman, Templeton Emerging Market Group When it comes to emerging

markets, you must remember that the average growth for emerging markets is five times that of the US. Many of the developed markets and emerging markets are growing at an average of 5%. Never
forget that a 5% is not bad growth for a 1.2 billion population economy. Inflation is not the only key indicator.

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A month in the India Transport Sector (No 25)

June, 2013 PLAYERS MOVES

ALSTOM REVEALS STRATEGY FOR INDIA Alstom is the unrivalled leader in power transmission and is equipped to meet future demands of the nation. With a lot of firsts in the electricity generation sector, the company is eager to do more in the railway transportation business in the near future. More information in ITP HONDA TO EXPORT DIESEL ENGINE COMPONENTS FROM INDIA Honda has decided to ramp up its operations in India by creating a production base in the country for diesel engine components. As the company plans to double its exports of engine parts and components to the European and Asian markets, its Indian manufacturing facility at Tapukara in Rajasthan seemed the obvious candidate to take on the new production. More information in ITP DAIMLER INDIA INTRODUCES THREE LIGHT-DUTY TRUCKS Daimler AG, the worlds largest truck manufacturer with presence in around 150 countries, has launched three of its light-duty trucks. The 914 and 1214 are to cater to the haulage segment whereas the 1217 is targeted at the growing construction market in India. It wants to introduce one model variant per month for the following 17 months. More information in ITP

METRO / RAILWAYS ISSUES

INDIAN RAILWAYS ENTERS BILLION PLUS CLUB Indian Railways created history as it joined the Billion Tonne Plus club of some of the most advanced railway networks of the world for the year 2012-2013. This is no mean feat for one of the largest rail networks of the world considering the slow economic growth affecting most markets across the globe. Railway networks in the United States, Russia and China are currently the only other members of this club. More information on ITP RAILWAY BUDGET 2013-14 UNVEILED Connecting such an immense and diverse country and carrying more than 25 million passengers daily, Indian Railways, one of the largest rail networks in the world, is an integral part of Indian life. It is therefore no surprise that Indians have been waiting eagerly for the Railway budget, as any major change will necessarily impact the lives of millions. More information on ITP SPECIAL TRAINS FOR THE SUMMER SEASON With summer approaching, Indian Railways is gearing up to start special trains to handle the increased number of travellers. With schools announcing fairly long holidays across the country, the summer is the perfect time for long holidays away from home. More information on ITP BRITAIN TO HELP BUILD MUMBAI METRO RAIL The Mumbai Metro rail project is set to benefit from the rich and vast experience of one of the world's foremost underground systems the London Tube. Recently, Transport for London (TFL), the British organisation managing transport services across the city of London has signed a Memorandum of Understanding (MoU) to help develop and operate the Metro Rail system in the Indian city of Mumbai. More information on ITP

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A month in the India Transport Sector (No 25)

June, 2013 TRAFFIC & ROAD SAFETY

DUMMY TRAFFIC POLICE CONTROLLING BANGALORE STREETS With India topping the list in the World Health Organizations first ever Global Status Report on Road Safety in 2007, the need for road safety has come to the forefront of national issues. Apart from the economic costs of road accidents, the cost in human life is also very high. More information on ITP TRI-CITY TO ENJOY INCREASED CONNECTIVITY WITH NEW BUS FLEET The Tri-city (Panchkula, Mohali, and Chandigarh) is turning out to be an attractive place to live with excellent and efficient educational, health care, cultural facilities as well as good employment opportunities. Seamless connectivity between the three cities is imperative for its continued prosperity and all city officials are working towards this goal. More information on ITP THE MASS ROAD CRASH CASUALTIES ARE HAPPENING DUE TO THE TRUCKS & TRUCK DRIVERS DR KAMALJEET SOI VICE CHAIRMAN AT PUNJAB STATE ROAD SAFETY COUNCIL Dr Kamaljeet Soi is doctorate in the Transportation Management & in Transit Losses with special studies in Road Safety & Accident Prevention & has been working in the field of Road Safety & Accident prevention from last 15 years. More information on ITP

ROADS ISSUES
NATIONAL HIGHWAYS TO USE ELECTRONIC TOLLS BY 2014 Toll collection on all national highways could be made cashless by the year 2014, making travel on smoother and better for all. At present, all tolls across the various national highways in India are collected manually in cash. Once the system of electronic toll collection is implemented, queuing to pay cash may become a thing of the past. More information on ITP TAMIL NADU ROAD PROJECTS UPDATE The southern state of Tamil Nadu in India has received the World Banks much awaited approval for the continuation of the second phase of its Tamil Nadu Road Sector Project (TNRSP). Under this scheme the Tamil Nadu Government will be able to upgrade approximately 1700 kilometres of roads at a cost of about 8600 crore INR (approx 1.72 billion USD). More information on ITP 18 HIGHWAY PROJECTS OF 2011-12 STILL WAITING FOR FINALISATION India's ambitions to upgrade its motorway network across the country have once again run into trouble with financial constraints creating major problems for several projects. With little investment from private agencies, the country is struggling to reach its goal of building 20 kilometres of motorway per day. The recent report from the Road Transport and Highways Ministry on the status of the motorway projects given the go-ahead last year is not an encouraging one. More information on ITP PARTIAL OPENING OF SRINAGAR LEH HIGHWAY After the routine winter closure, the Srinagar Leh highway opened for light motor vehicles from the first week of April. The Srinagar Leh highway, which covers 434 kilometres, is the only road connection between Ladakh and Kashmir in northern India. More information on ITP

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A month in the India Transport Sector (No 25)

June, 2013 ADVERTISE WITH US

CARS
SUV LAUNCHES FOR 2013 Given the growing fondness of SUVs (Sport Utility Vehicles) or MPVs (Multi-Purpose Vehicles) with Indian buyers, almost all major automobile manufacturers are planning to launch their SUV models in the Indian automobile market in 2013. Perfect for family holidays and trips, SUVs provide plenty of space and comfort for easy travel. More information on ITP MARUTI SUZUKIS ALTO 800 SEES RECORD-BREAKING SALES FIGURES The Alto and the 800 have long been Maruti Suzukis best selling models. However, more stringent emission norms have meant the 800 has been removed from sale in major cities. The Alto, on the other hand, has gone on to become Indias best selling car, despite being a little behind the times when it comes to design. Both the 800 and the Alto have been great sellers for the company for years, but they were due for a revamp. More information on ITP GROWTH REPORTED FOR MERCEDES-BENZ INDIA The year seems to have started on a good note for Mercedes-Benz India as the luxury car brand recorded growth of 5.3% in the first quarter of 2013. Considering the slowdown in the economy and the negative growth registered in the passenger car market, the figures for Mercedes-Benz India are impressive. While the company managed to sell 1908 units in January to March last year, this year the number of units sold in the same period climbed to 2009. More information on ITP BMWS MINI COUNTRYMAN ZOOMS ONTO INDIAN SOIL European automobile giant BMW has added another model to its production line, in the Indian market, with the introduction of the Mini Countryman series. More information on ITP

More information on ITP

ABOUT US
Indian Transport Portal is an online news center covering the most critical industrial issues related to transport markets in India. India Transport Portal is edited by Digital Bizzline Ltd. a UK based press agency recently launched by a group of freelance journalists. Digital Bizzline Ltd. is registered at the Companies House UK: 07301455 contact@indiatransportportal.com

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