1.

Swedish commercial vehicle manufacturer Scania plans to step up its game in

India with a new CKD assembly plant in Bangalore which it plans to expand into a complete manufacturing facility over a period of time (1 Feb 2012) Scania stepped into India in 2007 through a joint venture with Larsen & Tourbo to introduce their heavy duty mining tippers in the Indian mining industry. In 2011, they established their Indian wing, Scania Commercial Vehicles India. In 2011 Scania had announced its expansion plans in India and the growing importance of India for Scania. The Rs. 1.50 billion investment in India is in line with this commitment towards the market. The Swedish company is now planning to set up a Complete Knock Down (CKD) assembly unit in Narasapur Industrial Area, Bangalore. Scania intends to boost its sales, service, variety of models sold and shorter availability time. Scanias strategy for India includes innovative ways to add value to their products and services by lowering the total cost of ownership of their vehicles.

2. Eicher to set-up bus body plant at Dhar, Madhya Pradesh

(7 Feb 2012)

VE Commercial vehicles limited (Volvo Group and Eicher Motors JV) did the ground breaking ceremony of the upcoming Eicher bus manufacturing plant near Indore at Dhar, Madhya Pradesh. The plant is being set up with an investment of Rs.125 Crores in the first phase and would commence production by 2nd quarter of 2013. The plant will have a capacity to produce 10,000 buses when fully operational. Eicher is the second largest player in the Bus segment after Tata Motors. Siddhartha Lal, MD, VE Commercial Vehicles Limited said, The Indian Bus market is likely to cross 100,000 units by 2015 and demand for more contemporary, comfortable buses is on the rise. With this plant, VECV is planning new range of buses which would be contemporary on technology, aesthetics and finish serving the customer needs both in the expanding domestic and exports markets The multi model bus manufacturing plant would produce Light, Medium and Heavy duty buses including the rear engine semi low floor buses catering to the requirements of the school, staff, city & Intercity segments. The plant would have robotic processes for bus painting and will be highly mechanized to ensure high quality consistency & productivity. A robust quality system is being institutionalised to sustain the quality supported with an in-house training centre for the Blue collar workmen. Eicher has been a pioneer in driving innovation in the Indian bus segment and was instrumental in producing the The First Safe School Bus in India. The bus was developed in association with IRTE (Institute of Road Traffic Education) in the year 1996, thereby pioneering the concept of School Bus in the country.

3. Volvo to launch Hybrid bus in Bangalore (23 Jan 2012)

Volvo hybrid bus is soon going to ply on the roads of Indias IT capital, Bangalore. The Volvo Hybrid Bus unveiled at the Delhi Auto Expo earlier this month, would be launched on Bangalore roads soon, Karnataka Transport Minister R Ashoka said. The 105-seater single bus would have a two-month trial run in the city, expected to be from this month itself. As per a preliminary report, it cuts diesel fuel costs by 30 per cent, while emissions are significantly less. According to officials, the Volvo 7700 hybrid has a diesel engine and an electric motor, which can be used either independently or jointly. The battery that drives the motor is charged through re-generative braking. The engine shuts off when the vehicle is stationary and does not start again till the bus reaches 15-20 kmph, further saving fuel, they said. The Volvo Hybrid solution is already commercialized and operating across 20 cities of the world with a proven track record of saving up to 37% fuel consumption & over

50% in hazardous emissions in actual customer operations. Akash Passey, Managing Director & CEO, Volvo Buses in South Asia unveiling the launch of the New Volvo Bus Range including the models on display Volvo 9400PX coach, Volvo 7400XL multiaxle city bus and Volvo 9100 coach. Akash Passey, Managing Director & CEO, Volvo Buses in South Asia, said, At Volvo we have what is considered today as the worlds most efficient hybrid solution. Importantly its a part of our regular production system, developed by Volvo in-house, and proven in real operations for a long time now. Across various cities, across various routes it has given up to 37% of fuel savings, more uptime than typical diesel vehicle & of course saved over 50% in hazardous emissions. The Volvo Hybrid is very much the solution cities & environmentalists have asked for. We are ready. All we await is the demand & the direction from the authorities, so that we can apply this solution specifically to Indian needs. The Volvo 7700 Hybrid has been unveiled to showcase our intent and readiness for India. The Volvo Hybrid solution is a complete Volvo in-house design which has meant no compromise. Moreover there is high commonality of components with the existing range of Volvo buses. The Volvo 7700 Hybrid is equipped with a smaller diesel engine and an electric motor, which can be used independently or jointly. The electric motor is driven by energy from a battery that is charged when the bus brakes. At bus stops, the diesel engine switches off completely, which creates a silent and exhaust-free environment at bus stops. The bus then restarts only with the help of the electric engine. The diesel engine does not start until the bus reaches 15-20 km/hour. Another advantage is that the bus generates significant fuel savings regardless of where it operates. Many of the older hybrid solutions are only efficient in highly congested city traffic, but Volvos technology functions equally well when there is a greater distance between bus stops.

4. TATAs new LCV

(15 Jan 2012)

Tatas new LCV which will replace the old, tried and tested series was caught testing in Goa. The new series wil be strapped with DICOR engines (common rail technology) and will be BS4 complaint which will help Tata Motors to introduce them in cities where BS4 norms are strictly followed.

5. John Deere & Company breaks ground on new tractor factory in India
2012)

(14 Jan

Deere & Company officials broke ground on 14th jan 2012 on the companys second tractor factory in India, announcing the facility will be constructed in Dewas, which is located northeast of Indore, the largest city in the state of Madhya Pradesh. The new factory will build small agricultural tractors sold in India and for export to other nearby markets.In early 2011, Deere originally announced plans to expand its manufacturing capacity in India with the construction of the new tractor facility but had not announced the location until todays ceremony. John Deere products have been well accepted by customers in India and our investment in this new factory is a direct result of that success, said Samuel R. Allen, chairman and chief executive officer of Deere & Company. John Deere is committed to helping customers in India and around the world to increase their productivity and to prosper. Deere is investing $80 million to build the factory in Dewas and could add as many as 1,000 jobs. In addition to increasing employment, officials said the new factory enhances opportunities for ancillary industries to develop as suppliers. The state of Madhya Pradesh is not only a strategic location, but also a friendly place to do business, said David C. Everitt, president of Deeres Worldwide Agriculture & Turf Division. This is an ideal location for our second tractor manufacturing facility in India because of its proximity to our farm equipment customers as well as the cooperation of the government leadership. Farm mechanization is very important for India, Everitt said, The placement of our new factory in Madhya Pradesh allows farmers in this key region to access technological expertise that will help them improve crop yields.

Besides the groundbreaking ceremony for its new tractor factory, John Deere also inaugurated its new India factory for harvesting equipment in Sirhind, Punjab earlier in the week and had visits planned with several ministers, secretaries, senior scientists and industry experts for discussions on agriculture, economics and industry trends. Ranjit Nair, managing director of John Deere India, said, Deeres success around the world is built on customer focus and meeting the needs of specific markets. We are committed in India to help enterprising farmers to move from subsistence levels to business entrepreneurs. Deere has a long history with the Indian agricultural market, including sales of equipment in India approximately 60 years ago. Later, John Deere created a joint venture in 1997 in India and fully acquired the joint venture in 2005. In addition, Deere opened a technology and engineering center in Pune in 2005 and is involved in a joint venture with Ashok-Leyland to build construction machinery. Deere also inaugurated a John Deere Water facility in Baroda, India in early 2010.

6. HyAlfa Hydrogen-powered three-wheeler

Mahindra & Mahindra showcased the HyAlfa Hydrogen-powered three-wheeler at the 2012 Auto Expo. The HyAlfa is worlds first hydrogen-powered three-wheeler. The HyAlfa has been developed under a joint project by the United Nations Industrial Development Organisation (UNIDO) International Centre for Hydrogen Energy Technologies (ICHET), Mahindra & Mahindra and IIT-Delhi, with support from the Ministry of New and Renewable Energy. As part of its mobility initiatives, Mahindra has aimed at providing alternative fuel technology solutions and the HyAlfa is another step towards it, said Pawan Goenka.

7. DAF Trucks to enter the Indian market

(2 Jan 2012)

Doornes Aanhangwagen Fabriek (DAF), a wholly owned subsidiary of the NorthAmerican corporation PACCAR Inc. PACCAR is a global technology leader in the design, manufacture and customer support of high-quality trucks will start selling its products in India. It has presented its class-leading DAF CF-series at the AutoExpo exhibition in Delhi in January 2012. With this launch, With this launch, DAF will enter the Indian Auto Industry. DAF Trucks N.V. is a wholly owned subsidiary of the North-American corporation PACCAR Inc. DAF Trucks core activities are focused on the development, production, marketing and sale of medium and heavy-duty commercial vehicles. Another core activity focuses on the marketing and sale of light trucks manufactured by Leyland Trucks Ltd. in the UK, which is likewise a wholly owned subsidiary of PACCAR Inc. All DAF and Leyland products are backed up by a full range of services. DAF Trucks also produces components for third parties, ranging from axle assemblies to complete engines for buses and coaches and special vehicles. PACCAR launched its new PACCAR Technical Center in Pune with its partner KPIT, a leading technology solutions company. The center will eventually have approximately 200 employees and will focus on engineering, information technology, and component sourcing for worldwide production and aftermarket operations. DAF works according to the Build to Order principle. This means that all vehicles are built to satisfy each customers individual wishes, but production only starts after the order is received from the customer. This is very important, because DAF builds tens of thousands of different vehicle versions which are all built to meet each customers individual specifications and transport requirements. Low costs per kilometre, high quality, driver comfort, low fuel consumption, minimal impact on the environment and high transport efficiency characterise all DAF products. DAF Trucks has production facilities in Eindhoven, the Netherlands and in Westerlo in Belgium. Thanks to its high efficiency and the world class manufacturing and

products, the company has established a strong competitive position on the European market. .

8. Ashok Leyland Jan Bus - The hi-tech, low cost approach

(08 Feb 2012)

Ashok Leyland launches the Jan Bus is, the worlds first front engine, single step entry fully flat low floor bus and that is something that somehow has never entered the mind set of the big MNC CV specialists. The Jan Bus', according to Mr Vinod Dasari, Managing Director, Ashok Leyland, is unique in that the engine is in front, while for a single-step bus, the engine normally will be at the rear. Ashok Leyland is likely to make this bus at its Alwar plant and will start marketing it in the next couple of months. It will cost about Rs 45 lakh, according to him. The company had got 16 patents for the bus 11 on the chassis and five on the drive train.

9. Daimler Truck's subsidiary Daimler India Commercial Vehicles (DICV) has

launched its new BharatBenz brand heavy duty truck. (4 Jan 2012) DICV's first locally made truck will take it into the medium heavy duty and heavy duty commercial vehicle segments. India is now the worlds third largest truck market with 2011 volume over 300,000 units, according to the automaker. Daimler truck/bus head Andreas Renschler said: Our strategy for the new growth markets is to operate as globally as possible, on the one hand, and as locally as necessary on the other. The trucks are based on existing Daimler commercial vehicle platforms. Indian specialists developed the trucks for the local market, where they are also built, he said. This is the most effective way for us to participate in the growth of Indias volume segment. On 2 March 2012 BharatBenz will show its entire truck line in the six to 49-ton range. The heavy-duty models will be built on the Mercedes-Benz Axor platform and future light and medium-duty models will be based on the Fuso Canter and Fighter series. They will all meet Indias BS III emissions standard [comparable to Euro III]. The new models have been tested over 4km on DCIV's test track in Oragadam (near Chennai in Southern India) and will be made at the adjacent new plant. Construction on an area of 160 hectares is almost complete and production trial runs for engines and transmissions have already begun. About EUR700m has been spent on initial production capacity of 36,000 units a year that can be boosted to 70,000. DICV has set up a network of around 450 Indian suppliers plus dealerships in the last few months. BharatBenz trucks will have a localisation rate of 85%. By the end of the year, the dealership network will have about 70 locations throughout India will expand from there. The company said "some of Indias leading car and commercial vehicle dealerships [are] on board". Last July, Daimler launched a financial services subsidiary in India which will offer financing and insurance products for dealers and customers.

10. Hyundai to introduce commercial vehicles

(2 Dec 2011)

It already makes and sells compact cars in the country and now is planning high-end and premium trucks. Commercial vehicle marketing executive JD Lee told Press Trust of India (PTI): "There are lots of possibilities to launch commercial vehicles in India...we are currently studying the Indian market... So, we are planning."

Lee added: "We are trying to launch high-end and premium trucks... As far as the models that we have, I think it is not a problem. We have many models all over the world." Lee said it took time for Hyundai to enter the Indian CV market as low-cost vehicles used to be most attractive there but that is changing. "Premium model truck is attractive [now] for the Indian market but we think bus is also profitable." Hyundai had not yet decided which models to introduce.

11. Beiqi Foton to buy more Cummins engines

(3 Oct 2011)

Chinese commercial vehicle maker, Beiqi Foton Motor, will source engines from Cummins' Pune factory for its Indian manufacturing facility, to be set up in Pune by 2013. The plant will have an installed capacity of 100,000 units annually. Cummins India is already providing engines to Beiqi Foton's Chinese factories and the automaker reportedly prefers to source engines for India from Pune-based Cummins as well. Maharashtra Industrial Development Corporation (MIDC) confirmed Beiqi Foton was looking for land near Pune for the proposed factory and was expected to be allotted 250-300 acres in the Chaken auto hub within two months. Beiqi Foton has signed a MOU with the Maharashtra government to invest INR1,676 crore (about US$450m) in a factory to make light, medium and heavy commercial vehicles for sale in India. Beiqi Foton Motor has 14 plants in China and JVs and partnerships with Cummins and Daimler Trucks. Cummins India makes diesel and natural gas engines for power generation, industrial and automotive sectors. Recent media reports said Beiqi Foton Motor plans to conduct a private placement with 10 investors (including Beiqi Group and a number of mutual funds) to raise up to CNY5bn to upgrade its vehicles and to inject capital into Chinese JV Beijing Foton Cummins Engine. Beiqi Foton Motor: As you are aware, this company is at an advanced stage of negotiations for land within the Pune area for setting up a $ 350-400 million commercial vehicle plant.

We believe that this is an area where it may be beneficial for Tata Motors for us to carry out an assessment not only in India but also in China. Certainly an assessment carried out in China would be significantly more expensive but we believe that in terms of understanding the actual plans of the senior and top management in China, this would bring significant value to yourselves.

1. Ashok Leyland and Nissan Motor. Once again you are obviously aware of the joint
venture between Ashok Leyland and Nissan Motor. This is for a new LCV that they are planning to launch in India which would be powered by a Diesel/CNG Power Pack. a. In this specific case, we believe that an understanding from both Nissan Motor and Ashok Leyland on their perspectives on technology and R&D contribution, specifications of the model to be launched, sourcing strategy for components, marketing and positioning strategy and subsequently price build up for key models would be of interest.

b. My understanding is that Tata Motors looks for an in-depth assessment. In many

cases, some of the key details may not be available at the levels that we would target in India but are certainly likely to be more freely available in the country where the joint venture partner is based. Clearly carrying out a study in Japan is significantly more expensive but once again we believe it could give significant value to really get in-depth information.

2. Mahindra Navi Star. Once again, the joint venture between Mahindra and Mahindra
and Navy Star Inc is a potential threat. They have also recently launched three new models that is MN- 31, MN-40 and MN- 25 tipper.

a.

We also believe that Mahindra Navy Star is aggressively pursuing a dealership expansion strategy on a pan India basis.

b. We believe that a study to understand how much has been invested in the project, contribution of Mahindra and Mahindra and Navy Star in terms of technology and R&D, future product launches, price build up of key models, sourcing strategies for components, marketing and positioning strategy could be of assistance.

3. AMW to roll out new truck models by June: (11 Jan 2012)
To be priced in the range of Rs 15-30 lakhs per unit. With its two new truck model, along with a bus, being successfully unveiled at the recent 2012 Auto Expo in Delhi, Asia Motor Works (AMW) is now planning to roll out the same in next six months. To be priced in the range of Rs 15 lakhs to Rs 30 lakhs, the 4928 TR tractor and 2528 tipper will be aimed at construction and mining industry.

"We are one of the largest players in the construction and mining trucking business and these two new models will enhance our portfolio. Rather, these models will complete our construction mining trucks range in the country once they are rolled out in next six months," said Anirudh Bhuwalka, managing director and CEO of AMW. The 4928 TR tractor is a 49-tonne tractor gets a new cabin and is powered by a 270 PS, common-rail, electronically controlled, Cummins diesel engine, mated to a nine-speed Eaton gearbox. On the other hand, the 2528 TP tipper also gets a new cabin and the same engine as the 4928 TR tractor with the same power but with a 9-speed ZF transmission. What's more, the new truck models will soon replace AMW's existing range of 2518 tipper and 2523 mining truck in near future, thereby resulting in production of 1,000-1,500 trucks per month at its Bhuj plant in Gujarat. "These will be premium range of trucks which will replace our current models," said Bhuwalka. Keeping the premium range in mind, cabins of both the truck models are believed to be one of the largest in the market. The company claims a length of 2307 mm, width of 2435 mm and height of 2913 mm, equipped with GPS navigation system, LED screen for entertainment and sleeping berth for the driver. According to Bhuwalka, currently the country witnesses a 5,000 units per annum market each for 49 and 25 tonners in the industry. As far as the new bus model is concerned, the company is aiming to roll out the same in next 6-8 months. "The new luxury coach liner will join the slew of 2,000-3,000 bus market in the country," he added. In last three years, the company has invested around Rs 1,500 crore for rolling out new models and capacity expansion. AMW currently utilised about 25 per cent of the total 50,000 commercial vehicles per annum capacity.

4. General Motors Targets Indias LCV Market (11 Oct 2011) U.S.-based General Motors, alongside its joint venture partner in China, Shanghai Automotive Industry Corporation, will enter the rapidly expanding light commercial vehicles market in India by 2012. We are working very aggressively for the launch of commercial vehicles in India and GM hopes to corner sizeable numbers in the market soon after their launch, GM India President Karl Slym told The Times of India. The Halol facility will be the main hub for these commercial vehicles that we plan to offer with diesel and alternative fuel option. We are investing Rs.250 crore at Holol and will increase the production capacity there to 100,000 vehicles, most of which will be used for commercial vehicles, Slym continued.

Light commercial vehicles are compact trucks and vans that are built to have low operating costs, fuel-efficient engines that are still powerful enough to carry a heavy payload, and to be used in intra-city operations. Car-titan Tata will be GMs chief competitor, and to that end the company will set up a separate sales network for the LCV business. We have consciously decided for a separate sales network as the customer profile for the LCVs will be different to a regular car customer, Slym said. We understand that it is important to have a sizeable network before we start LCV sales and plan to have at least 100 dealerships at the time of the launch. 5.