December 2007 Newsletter

9th Edition of the Newsletter

December 07

Making Market Intelligent Disclaimer: This manual is for internal purpose of Minda Group only and circulation externally without the prior permission of the publishers is strictly prohibited

Contents Plans for Future • • • •

4-Wheeler PV Two-Wheelers CV, Tractors & 3Wheelers Construction Equipment Vehicles

1 9 13 17

Tier I Manufacturer

20

Minda JV Partners

25

Market Watch • Production, Sales, Exports November 2007 • Growth Potential of Indian Auto Component Industry

29 33

PLANS FOR FUTURE 4-WHEELER PASSENGER VEHICLES: MAHINDRA & MAHINDRA, RENAULT & NISSAN M&M pulls out of joint venture with Renault, Nissan Mahindra & Mahindra (M&M) will go its separate way and what was to be a three-way joint venture involving Renault and Nissan for car production on the outskirts of Chennai has become just a Franco-Japanese venture involving Renault and Nissan. M&M said that it is deferring its investment in the car plant, capable of producing up to 400,000 cars annually, that was to have come up in Oragadam, a village just off Chennai. The announcement thus effectively ends speculation, rife for some time now, that M&M is pulling out of the project. According to the company, it will now focus on its existing plants. The company will utilise capacity available at its new plant in Chakan and other existing plants to meet its medium-term requirements and hence shall not participate in the joint plant at Oragadam. The company shall continue its Mahindra Research Valley (MRV) at Chengalpattu off Chennai and MRV test track and tractor plant plans in Oragadam.

Mahindra Launches Scorpio Variant Driven by the customers feedback, Mahindra and Mahindra has launched a new variant of Scorpio, VLX edition, equipped with ‘mHawk’ engine. The vehicle that has been developed at a project cost of about Rs 125 cr would be priced at Rs 9.66 lakhs, ex-showroom in Chandigarh that is Rs 1,00,000 costlier than the current SLX model.

Nissan plans to bring Infiniti to India Nissan is eyeing the fast-growing super-luxury segment and is planning to bring its popular Infiniti range to India. The Infiniti brand, famous for its luxury sedans, coupes and sports utility vehicles (SUVs), will be pitted against the DiamlerChrysler and BMW range in India, even as Chrysler, Lexus, Alfa Romeo and Maserati are also expected to hit the Indian market. Nissan Motor director (marketing & sales) Neeraj Garg told that they are strongly considering the Infiniti range for the Indian market as there is immense potential for such luxury vehicles. Like all premium car makers they are also studying the growing market though they are yet to commission any market study to determine the right potential for such brand.

Renault to Roll Out 12 new Models in Global Assault French carmaker Renault is to unveil 12 new models - including several low-cost autos - in an aggressive global strategy to turn around stagnating sales. Renault was also looking at making a new budget car in India costing just 3,000 dollars to compete against the local manufacturer Tata. The vehicle, the Sandero, is being built in a Brazilian factory for the national market and for export to neighboring South American countries. The French auto group already brought out seven new models last year.

1

MARUTI SUZUKI Honour for Jagdish Khattar The London Metropolitan University, UK, has conferred Doctor of Business Administration (Honorary) on Mr Jagdish Khattar, Maruti Suzuki India Managing Director, at the university convocation, in London. According to a communication from the university, the degree is to “recognise Mr Khattar’s contribution to the Indian automobile industry and his popularity as a visionary leader of a successful organisation.”

Person of the Year Award to Jagdish Khattar Jagdish Khattar, Managing Director, Maruti Udyog Ltd. was conferred with most prestigious, Person of the Year Award. This is an attempt to acknowledge his contribution to the automotive industry in the year gone by. These Awards, now in its third year, honour the best in automotive excellence, and were given out in eight categories including Human Resource Initiative of the Year, Corporate Social Responsibility initiative of the Year, Commercial Vehicle Manufacturer of the Year, Auto Component Manufacturer of the Year, Young Achiever of the Year and two special Awards — Car Manufacturer of the Year and Bike Manufacturer of the Year Award. Auto Monitor had invited entries from companies across the country for the Young Achiever of the Year Award. While Metzler Automotive Profiles India Ltd bagged the Human Resources Initiative of the Year Award, Mahindra & Mahindra won the Corporate Social Responsibility Initiative of the Award for its project Nanhi Kali — a KC Mahindra Education Trust project for the under privileged girl child. Volvo India won the honour of Commercial Vehicle Manufacturer of the Year. Minda Industries Ltd bagged the Auto Component Manufacturer of the Year Award. Bajaj Auto Ltd was declared the Bike Manufacturer of the Year, while Maruti Udyog Ltd won the Car Manufacturer of the Year Award.

Maruti Wants New Car to be A-Star in Europe Cashing in on the rising fuel prices and increasing concerns on carbon dioxide emissions in Europe, Maruti Suzuki has set an ambitious first-year export target of 1 lakh units of A-Star, which is still under development at its Manesar plant. This is in addition to the 50,000 units that are likely to be sold under the Nissan brand in Europe. The new car, which is set to be launched in 2009, will be the first indigenously designed, styled and produced Indian car with Europe as the primary target.

Maruti to Start Designing Products from 2010 Maruti Suzuki India Ltd will start designing cars in India by 2010, for which it has sent close to hundred employees for training in Japan. They are training about 100 people in research and development area at Suzuki Japan. They have been sent to Japan for two years and would come back in batches between 2008-10. The training includes hardcore designing as well as 2

developing research-related capabilities and is aimed at enabling the company to start designing cars in India by 2010.

Maruti to Invest Rs 1,750-3,500 Crores in India Maruti Suzuki India will put up a research and development (R&D) facility in India at an investment of between 50-100 billion yen (Rs 1,750-3,500 crore) over the next three to five years. They are yet to identify the location for the proposed facility. Anyway, it will come up at a place nearby to their existing facilities.

Suzuki's Next Global Car to Drive Out From India After identifying India as a global export hub, Japanese auto major Suzuki Motor Co is planning to roll out its next 'world car' from the country. The car that is being targeted to the European market will be rolled from Maruti Suzuki India's (MSI) facility at Manesar. The new car will be fifth global model from Suzuki after Swift, Grand Vitara, SX4 and Splash (which is yet to be launched in India).

Maruti Suzuki to Drive in 2 new Compact Cars in '08 Maruti Suzuki India (MSI) will add two new compact cars to its portfolio in 2008. MSI will roll out its fifth world car, currently called concept A-Star, in India in October 08. The A-segment car will also be exported to Europe. It will sport a 1 litre, Euro V-compatible, aluminium engine. The manual transmission for the car will be manufactured by Suzuki Powertrain India, a Suzuki subsidiary. Besides the A-Star, the company is also planning to introduce another global model Splash to India. The Splash will be powered by a 1.2 litre petrol and 1.3 litre diesel engine. To be launched in Europe and other overseas markets, the Splash will also be an A-segment car and will be produced at Maruti’s Manesar plant.

Maruti to Expand Diesel Line in India India’s largest car maker Maruti Suzuki (MSI) plans to add a new set of engines to its diesel range as part of its long-term growth strategy. It is moving away from the solitary diesel car maker image and will expand its portfolio beyond the bestselling Swift diesel. Currently, they have the 1.3 litre multijet diesel engine being used only in Swift. They are considering more types of engine that can be introduced as there is a need to expand the diesel portfolio. Some options are being studied for smaller diesel engines.

TATA MOTORS, FIAT Fiat in Top Gear; Lines Up 7 Launches in 24 Months Exactly a decade after it was set up, the Ranjangaon plant near Pune is finally humming with activity, as the Italian car major pushes through a major expansion programme, which should set the stage for a decisive comeback. Over the 24 months, Fiat will roll out seven new cars from its global portfolio, including its European best seller, the two-door Cinquecento, the Linea saloon and even the worlds best known sports car, Ferrari. It is bringing in the modern multijet engine technology to Ranjangaon to power most of its new launches. While presently the Ranjangaon plant makes two versions of the Palio. 3

Tata Small Car Set to Offer 25 Kmpl Mileage Ratan Tata and the Tata group have for months zealously kept a tight lid on the details of the Rs 1-lakh car that is slated to roll out of Tata Motors Singur factory in June 2008. Its an eco-car with a 25 km-per-litre mileage on petrol, meets every international standard and specification, including Euro-4 norms. Acceleration wise, its the same as a Maruti 800. In a bid to reduce weight of the car, Tata Motors engineers have used more plastics. The car does not use too many bolts which also helps in reducing weight. Instead, its all a new kind of welding a new technology altogether. About the general scepticism that the car would initially be priced at Rs 1 lakh which could later be raised. It does not look like the Indica and they have styled it differently, it has a sloping front. It can bring a transformation in low-cost transportation around the world. Tata Motors will conduct the first test run of its ambitious small car in April 2008 before the scheduled roll out during the middle of next year.

Tata Motors’ Auto Component Units to come up at Singur Fifty-five auto component makers, including 54 from outside West Bengal, will set up auto component manufacturing facilities in the vicinity of the Tata Motors’ small car plant at Singur. The State Government will allot land for the purpose. While some of them have already been allotted land, the process of land allotment was under way in the case of others. West Bengal’s Minister for Industries and Commerce held a meeting with 35 out of the 55 auto component makers who were looking forward to setting up auto component units in Singur. The Minister promised an appropriate infrastructure that would provide a boost to the auto components sector in the State.

Tata's Small Car May Become Taxi Operators' Choice The Tata Motors’ Rs 1-lakh car may soon become the car of choice for taxi operators across the country. Taxi operators’ are postponing their plans to buy Indica and other small cars and waiting for the Tatas to showcase their small car in the Delhi Auto Expo in January 2008. BPO cab vendors are also eagerly awaiting the car. The Rs 1-lakh car could also provide the autorickshaw manufacturers a run for their money as it will be cheaper than an auto rickshaw.

Tata-Fiat Set to Double Car Capacity at Ranjangaon The Tata-Fiat combine’s plant at Ranjangaon, Maharashtra, may see huge capacity additions as new models line up to go under production at the site. Tata Motors and Fiat Auto each own 50 4

per cent in the venture. They may increase the plant’s production capacity beyond 200,000 cars and 300,000 engines and transmissions annually. This will double the plant’s car production capacity from 100,000 units per annum presently to 200,000 units and also increase the production of engine and transmission units by 50 per cent to 300,000 units.

VOLVO, FORD Ford to Make India Engine Hub, Fine-Tuning Chennai Project The new facility will make 300,000 petrol and diesel engines for supply to Europe and the AsiaPacific region. Ford Motor Co. is betting big on its Indian operations and plans to make it a major hub for supplying petrol and diesel engines to its operations in the entire Asia-Pacific region, as well as markets in Europe. Ford India Pvt. Ltd, has commenced work on a new engine-making facility in India, which will make 300,000 petrol and diesel engines. While the company has been maintaining that it is still evaluating the feasibility of making a diesel engine plant in India, the Ford work has indeed begun on the project and that it will come up at its existing facilities in Chennai. Work has already started on localization of components for the engines.

HONDA SIEL CARS INDIA Honda to Set up Rajasthan Unit Japanese car manufacturer Honda has announced plans to set up a manufacturing unit in Bhiwadi in Rajasthan at an investment of around $250 million with a capacity to produce 60,000 cars in the initial phase. Honda Siel Cars (India unit) first phase of the proposed unit is expected to be operational by the year 2009. Apart from the new unit, Honda is also planning to establish a suppliers’ park which will host and also aid the development of auto ancillary units to cater to the needs of the company in future. They also intend to double the capacity of our Greater Noida plant. This plant is expected to manufacture at least 1,00,000 units by January 2009.

Honda to Build New Engine Plant in China Japanese automaker Honda Motor Co. will spend about 270 million dollars to build an engine factory in China. Honda will build the new factory in the southern Chinese city of Guangzhou and start production in 2009 with capacity of 200,000 units a year. The automaker plans to invest USD 270 in the new plant, which would increase its output capacity for automobile engines by 40 percent. The move would enable Honda to eventually double its production of finished automobiles in China to 700,000 units a year. Guangzhou Honda Automobile Co., which is Honda's 50-50 joint venture with Chinese automaker Guangzhou Automobile Group Co., will establish the new engine production plant.

CHEVROLET, GENERAL MOTORS Chevrolet Spark Fails to Ignite General Motors Fortunes Chevrolet Spark, the small car with the iconic bow tie marquee from General Motors, has turned out to be a dampener for the ailing American carmaker in India. In the seven months between 5

April and October this year, the Chevy Spark has managed to sell less than 12,000 units, or an average of 1,700 units a month, while its peers Alto and WagonR (Maruti Suzuki), Indica (Tata Motors) and Santro (Hyundai) have had average monthly sales of 10,000-18,000 units.

GM Eyes Indian Market to Launch Luxury Car Cadillac Spurred by its small car success, global auto major General Motors is now eyeing the Indian market to introduce its luxury car Cadillac. Cadillac might run on the Indian roads either in mid-2008 or in the beginning of 2009. Initially, the company would import Cadillac as a completely built unit (CBU) from its global manufacturing facilities.

GM Opens Design Studio General Motors India has opened its India Design Studio here to work on mid-cycle development of existing car models and advanced designs for future models. GM’s Vice-President of Global Design, Ed Wellburn, said the studio would have virtual reality and other advanced technology.

HYUNDAI MOTOR Hyundai to Roll out New Santa Fe New Model Hyundai Motor India Limited (HMIL), is planning to roll out a new model of 'Santa Fe'. Santa Fe is an SUV totally imported from South Korea. The company's Getz Prime (diesel) and i10 rolled out recently has been appreciated by our customers in the country. The HMIL is marketing 22 variants of passenger cars in six segments and the Santro in the small car segment has recorded highest sales in the country.

DaimlerChrysler Daimler's 60% Stake in Bus & Truck JV with Hero German auto maker Daimler Trucks has zeroed in on the Munjals of Hero Honda for a joint venture to make commercial vehicles in India. Daimler will hold 60% stake in its commercial vehicle joint venture in India with the Hero group holding the remaining 40%. The total investment in the project will be around Rs 3,500 crore, although the final numbers are still being worked out. Daimlers move has been widely anticipated as it has already expressed its intention to move beyond luxury cars in India. Daimler will bring its expertise in manufacturing and its huge technological assets to the joint venture. Hero, on the other hand, will bring in knowledge of the local market and marketing and distribution muscle.

6

TOYOTA Now, Corolla & Innova to Fire on CNG Too Toyota Kirloskar Motor has decided to join the low-cost compressed natural gas (CNG) fuel bandwagon. It will launch CNG fuel variants of its premium sedan Corolla and multi-utility vehicle Innova. The Corolla and Innova will be the first ever CNG fuel based offering by the Japanese major in the world. The company is currently testing various types of CNG kits on these models at its Bangalore based facility. The new kits for CNG are being supplied by Minda Auto Gas.

BMW BMW to Augment Global Sourcing Share from India Luxury carmaker BMW, which recently set up the International Purchasing Office in the country, is exploring sourcing of global requirements from India. Mr Peter Kronschnabl, President, BMW India, said the purchasing office would focus on the development of exports from India to the BMW Group International Production Network and thus increase the sourcing share from India in the coming years. He said the activities include identification and assessment of potential suppliers and exploring procurement of production material (components), as well as IT and engineering services. He, however, noted that it was still in the initial stages and no contract has been signed as yet. Purchasing offices have been set up in Japan, Singapore, China and Gurgaon in India for the sourcing of components.

BMW Launches 10th Dealership in Pune Eyeing the fast growing luxury car market in India, BMW India launched its 10th dealership outlet in Pune. The company plans to sell 1,350 cars annually in the country, where the total luxury car sale is expected to touch 4,500 next year.

DAEWOO Daewoo Plant to Make Cars on Contract The former Daewoo facility at Surajpur in Noida will become the first automobile plant in the country to manufacture cars for third parties. The Daewoo plant new owners — Mr Ajay Singh, Mr Ashish Deora and Mr B.V.R. Subbu — have already started negotiations with German and US car makers. They are in talks with German and US firms who do not have a base in India but plan to take advantage of lower costs to produce locally for the Indian market.

Argentum to Infuse Rs 500 cr in Daewoo Facility Argentum Motors, the present owners of the erstwhile Daewoo Motors's India unit in Greater Noida, will infuse Rs 500 crore to modernise the facility over the next 18 months as it gears up to 7

host global commercial vehicle maker Daimler for the latter's proposed LCV roll out. The current promoters of Argentum Motors, plan to start contract manufacturing operations at the facility for which the company is in talks with various international players, including Daimler, Volkswagen, Renault, Citroen and Peugeot. Argentum is likely to rule in favour of Daimler which intends to roll out its LCVs from the manufacturing unit.

VOLKSWAGEN Volkswagen Small-Car Plan Hobbles Volkswagen (VW) is doing a rethink on its small car plan for India. The company is taking a careful look at the project, mainly because of a feasibility study holding out little promise on the cost front. Frequent changes at the top management level are also believed to be an impeding factor.

8

TWO WHEELERS BAJAJ Bajaj Auto Hikes KTM Stake, Rajiv to Join Board Bajaj Auto has increased its stake in KTM Power Sports from 14.5 to 18.8%. The company plans to finally hold 25% in KTM, which is Europe’s second largest sport motorcycle maker. Bajaj Auto MD Rajiv Bajaj has been inducted to the board. Bajaj would up its stake to 25% in KTM when the deal was announced. Bajaj picked up the 14.5% stake in the KTM from the open market for around Rs 300-350 crore as part of a “wide-ranging co-operation” arrangement. Bajaj Auto picked up the stake through its 100% Dutch subsidiary.

Bajaj Auto to Roll out More Efficient Two-Stroke Bikes Bajaj Auto is all set to bring the two-stroke engine bikes back to the Indian market. The legendary two-strokes engine technology, which was launched in the early 1990s (Bajaj Chetak, Kawasaki Bajaj 100), have already been launched in three-wheelers as gasoline direct injection (GDi), which is superior with increased mileage and substantially less emission. The gasoline direct injection (GDi) engine has substantially lower emissions than even alternate clean fuels like CNG and LPG. Additionally, it has lower operating costs than four-stroke technology that currently dominates the bike market. Bajaj is working to combine its proven DTSi technology with the GDi technology on bikes with smaller engines. Bajaj Auto is in the process of developing two-wheelers that will run on CNG fuel. The two-stroke engine had been a success in the past due to its higher torque (power), faster pickup and better vehicle stability due to the smaller engine.

After 10 yrs, Bajaj to Ride Scooters Ten Years after phasing out its iconic Bajaj Super and the Bajaj Cub, Bajaj Auto is now planning to revive its scooter business. The world's fourth largest maker of motorcycles and scooters, which built its fortune in the eighties and nineties selling lakhs of the geared scooters, is planning a series of steps, including setting up dedicated showrooms for scooter-buyers on the lines of its 'Probiking' showrooms. Probiking is a series of branded, exclusive showrooms for Bajaj Motorcycles that offer an exclusive sales and service experience to prospective buyers. These would display and sell new models in the scooter segment, currently in the pipeline.

HERO HONDA Hero Honda Drives Into Used-Bike Market Hero Honda, the largest two-wheeler manufacturer in the world, has forayed into the used twowheeler trading business under the ‘Hero Honda SURE!’ brand. Taking a cue from the passenger car market leader, Maruti Suzuki India (MSI), which spearheaded the used-vehicle 9

business through Maruti True Value, Hero Honda has started SURE! at its 40 dealerships across India on a pilot basis. Maruti has sold around 90,000 cars through True Value, which was 16% of its total sales last year. As part of its strategy to remain India’s top two wheeler company, it has introduced a 110-check point quality parameter to assess the condition of used two-wheelers to develop SURE! as a reliable place to buy, sell and exchange pre-owned two-wheelers in India. Hero Honda engineers re-condition these used vehicles with genuine spare parts and the company also offers warranty on different vehicles and free service benefits. Convenient and easy finance options for both new and used two wheelers are also available at its different dealerships.

HONDA MOTORCYCLE SCOOTER INDIA HMSI to Tighten Grip on 2-Wheeler Mkt Honda Motorcycle & Scooter India (HMSI) is revving up for a firmer foothold in the country's twowheeler market with three new products. HMSI, at present sells three scooter models, 100 cc Dio & Activa and 150 cc Eterno. While the first offering is scheduled to be unveiled at the Auto Expo, the company is not divulging the timing for the second product. A bike will also be rolled out in the first half of 2008-09 in the heavier segment.

HMSI Mulls Second Facility; to Launch New Scooter by Feb A robust growth in the Indian two-wheeler market may push the manufacturing facility of HMSI beyond the rated capacity to meet a projected demand of 1.2 million units, a development that can necessitate a second production unit by March 2012. HMSI current plant would operate on full capacity of 1.2 million units per annum by 2010-11 and would require a second plant to meet the market demand beyond that. The company would require at least two years to conduct a feasibility study for a new plant and plans to start the process by 2009.

Honda Lines up Rs300 Crore for India Shinji Aoyama, CEO of Honda Motorcycle and Scooter India Pvt. Ltd said the firm would launch a premium scooter in Auto Expo 2008. Japan’s Honda Motor Co.’s Indian two-wheeler unit will invest Rs300 crore in its plant over the next three years, and launch two new models in calendar year 2008. The investment is for new models and for capacity expansion at the Manesar plant.

HERO MOTORS Hero Motors Forms Jt Venture with Kiriu Corp of Japan Hero Motors Ltd, part of the Hero Group, entered into a joint venture with Kiriu Corporation, Japan. The joint venture company, Munjal Kiriu Industries Pvt Ltd (MKIPL), would manufacture brake discs, drums and knuckles for automotive original equipment manufacturers at Manesar, Haryana. At an overall investment of Rs 240 crore, the plant would have a capacity to produce 35,000 tonnes of machined castings for the domestic as well as overseas manufacturers. “This alliance is a strategic move to focus on high technology, quality and high precision automotive manufacturing,” said Mr Pankaj Munjal, Managing Director, Hero Motors. 10

KINETIC Kinetic Sym Flyte Launched Targeting women, India's pioneering scooter manufacturer Kinetic Motor in collaboration with Taiwan's $1.1 bn automotive giant SYM launched the scooter 'Flyte'. Kinetic Motor Company said the 125cc Kinetic SYM Flyte is based on the SYM X'Pro, SYM's "current bestseller" across 62 countries. Flyte is a superior gearless scooter in terms of design and styling, engine and technology, ride quality and international level of quality. It is available in five colours and offers a threeyear warranty. Over 20 percent of Flyte's components were being imported from Taiwan. 'It is a great feeling to present the Flyte to youngsters who are looking for a set of wheels as cool as themselves. Buyers are intelligent and appreciate convenience and high quality in their scooters.

Kinetic Targets to Sell 10,000 'Flyte' in 5-6 Months Aiming to tap about 20 per cent market share in the scooter market, two-wheeler maker Kinetic Motor Company is expecting to sell 10,000 units of its newly launched 'Flyte' scooter within next five to six months. They have set a target to sell 10,000 'Flyte' scooters within next 5-6 months.

TVS TVS Motor launches Flame Signalling its keenness to secure its presence in the dominant executive segment of the motorcycle market, TVS Motor Company, launched its 125cc ‘Flame’. The launch comes even as the company is engaged in a legal battle on the technology usage in the bike with Bajaj Auto. Executive segment forms over 50 per cent of the Indian motorcycle market. After the launch of Victor in the wake its disengagement with Suzuki of Japan, TVS Motor had not seen any significant new product roll-outs in this category. With Victor sort of fading out, TVS Motor is now filling its absence in this segment with the launch of Flame. Flame is priced at Rs. 45,000 exshowroom Chennai and comes with disc brakes as an option. Addressing a press conference, Venu Srinivasan, Chairman and Managing Director, TVS Motor, said, “This is the highest technology product in the country. A three-valve bike has been rolled out earlier, but this is the first time that a mass market roll-out is happening.” According to the Indian Driving Cycle (IDC), the bike could deliver a mileage of 82 km a litre. “No vehicle (in this segment) anywhere nears this on mileage,” Mr. Srinivasan said. TVS Motor had set a sales target of 20,000 Flame vehicles a month once the bike was launched across the country by January. Flame, along with a new Star Sport (an entry-level mass market bike), expected to hit the roads in January, would stem the sagging sales of the company. Once these two bikes were launched across the nation, TVS Motor would be hoping to hawk 75,000 bikes a month. 11

In a First, TVS Fits ABS in 2-Wheelers The Chennai-based TVS Motors is all set to become the first global company to launch anti-lock brake system (ABS) on its two wheelers. ABS, often referred as a ‘sure braking system’ for automobiles, is a high-tech feature and is currently available in all premium four wheelers and commercial vehicles across the globe. Banking on the rich rewards from this ‘in-demand’ safety feature, TVS is currently testing the indigenously developed ABS technology on its bikes and scooters to reduce multiple vehicle and the runof-road crashes. TVS Motors confirmed that the technology in the final stages of development and is undergoing testing at its Hosur facility. ABS is part of the 30 different technologies that they are developing for two -wheeler range. The ABS will help in avoiding skidding of twowheelers and allow sure stopping on wet and slippery roads and help in reducing fatalities on two wheelers.

TVS Bike Sales Dip 17% in November TVS Motor Co, reported a 17.08 per cent dip in motorcycle sales during November. Bike sales fell to 57,113 units in November, against 68,874 units in the corresponding month last year.

YAMAHA Yamaha Launches 2 high-end Models Company rebuilding the Yamaha brand in India. Aimed at re-inventing and repositioning its brand in the market, Yamaha Motor India has introduced two high-end models targeting biking enthusiasts. The company hopes to ride on the aspirational values of new age consumers, besides raising its market share from a mere three per cent to 10 per cent by 2010 with the new launches. “The DNA of Yamaha is changing in India and we will move over to a retail identity by riding on the aspirational values of the new age consumer,” Mr P. Sam, Head of marketing and sales at Yamaha Motor India, told.

12

COMMERCIAL VEHICLE, TRACTORS & 3 WHEELER ASHOK LEYLAND Leyland to Focus on Luxury Ashok Leyland is pitching for an aggressive drive through the bus segment as work on newer projects for the segment picks up pace at the company’s research center. The company is presently working on various projects, which include buses suited for inter-city and inter-state transport systems. The range includes buses, which have low floors and ideally suited for transport within city limits and also the ultra luxurious high-end buses favourable for long haul trips. The company is working with its manufacturing and technical design teams on various projects at its Chennai center. The vehicle will be available in both rear and front engine formats.

Ashok Leyland Launches First Multi-Axle Vehicle Ashok Leyland made its entry into the multi-axle vehicle segment with the launch of its 3121 H (8x2) truck. The new vehicle is powered by a 210 HP indigenously developed six-cylinder, turbocharged inter-cooled engine from the Hseries which is renowned for its fuel-efficiency and reliability. The multi-axle vehicle (MAV) has the highest permitted gross vehicle weight of 31 tonnes. The twin steerable front axles give the vehicle greater maneuverability. The vehicle has a greater braking area with duel line air brakes the largest in its category- for efficient braking in all conditions. Altogether, the 3121 H (8x2) is tailor-made for applications such as cement, coal, iron ore tanker (petroleum bitumen chemicals) bulkers, parcel and market load.

FORCE MOTORS Force Motors Launches Two Models in AP Force Motors has announced the launch of two new models of commercial vehicles – Traveller New Facia and Traveller Strong in Andhra Pradesh. Announcing the launch, Mr Ravinder Singh, President of Force Motors (formerly, Bajaj Tempo) said they expect to boost the commercial vehicles market in the State. The company has appointed Anshu Force as its dealer. Mr Singh inaugurated the Anshu Force showroom also. Force company plans to expand its market share and this partnership is a step in that direction. The Force range of products includes Traveller, Toofan and M4.

13

ASIA MOTORS Asia Motor to Launch Buses with Chinese Partnership Truck maker Asia Motor Works (AMW) is all set to launch buses in association with a Chinese manufacturer and light motor vehicles from its own stable next month. AMW might enter into a venture with a Chinese manufacturer to source key parts for launching buses in the country while LCVs will be made at its plant in Bhuj in Gujarat. According to industry estimates, the total size for such a project is between $350 million and $400 million.

Asia Motor Works Launches New Tractor Asia Motor Works (AMW) launched 4930-tractor in the 49-tonne segment aimed at heavy cargo and over dimensional cargo segments. This launch is towards consolidating respective segments, AMW MD & CEO Anirudh Bhuwalka told. "With better road infrastructure and the Supreme Court ruling ban on overloading of trucks, the demand for 49 tonnage truck has increased tremendously. The 49 tonnes segment is expected to be a high-growth segment with a potential market size of 3,000 to 5,000 units per annum," he added.

SONALIKA New MUV from Sonalika Group to be Launched With the launch of its new Rhino Rx, scheduled for January 2008, International Cars and Motors Ltd (ICML) aims to capture 10 per cent market share in the Multi Utility Vehicle (MUV) sector. The entry of Rhino would certainly have an impact in the MUV sector, witnessing an annual growth of 20 per cent.

HYUNDAI Hyundai to enter commercial vehicle space within a year Hyundai Motor Co plans to launch commercial vehicles in the country within a year and it is in the process of roping in a local partner. They are looking for a joint venture with a local partner. The company has shortlisted two firms and are close to selecting one. The Korean auto manufacturer plans to launch mid-size buses in the 25-seater category and large buses first. Hyundai Motors India Ltd said the company plans to sell 5.3 lakh cars by end of 2008. Last year, the company sold 3.27 lakh units. Besides, the company unveiled LPG variant of its largest selling brand Santro which would hit the market by the end of September.

TATA MOTORS Tata Motors introduces new range of Comm. Vehicles The new M&HCV range includes multi-axle trucks, heavy-duty trucks, tractor- trailers and tippers and fully-built solutions like tip-trailers, load bodies, etc. These vehicles will cater to sectors like 14

mining, construction, road works, logistics, petrochemicals, agricultural products and many more. Tata Motors unveiled its new and exciting range of Medium and Heavy Commercial vehicles in Pune. Tata Motors will be redefining motoring solutions in the country with its all-new range in Medium and Heavy Commercial Vehicles. The Medium and Heavy Commercial Vehicles range includes: The Tata LPS 4930 Novus - 6x4 BSII Tractor is a 49 ton 6X4 Novus tractor. The Tata LPS 4923 TC 6x4 BS II Tractor is a 49ton GCW Tractor-Trailer. The Tata LPT 3118 TC 8x2 BS II Truck is India’s first 8 X 2 Multi Axle truck with ‘Lift Axle’. The Tata LPT 2516 Super Turbo Multi Axle Truck provides the best fuel efficiency in its class coupled with superior power pick-up and speed. The Tata LPK 2518 TC 6x4 BS II Tipper has high power and torque with a higher gradeability of 24%. The Tata LPK 1618 BS II Tipper is India’s first 4 X 2 front end tipper with 176HP Cummins engine, which delivers a maximum power of 176.9HP @ 2500 rpm and a high torque of 650 Nm @1500 rpm.

Tata Sells 5000 Mini Trucks in Sri Lanka Tata Motors has sold 5000 vehicles of its Tata Ace mini-truck in Sri Lanka. "The demand for the sub-one tonne mini truck developed by the Tata's had picked up ever since the vehicle was launched last year with sales touching 5,000 vehicles in November," Diesel & Motor Engineering PLC (DIMO) which is the sole distributor for Tata vehicles in Sri Lanka said. Sri Lanka was the first country outside India where the Tata Ace was launched after successfully competing domestically with the prevalent threewheeler goods carriers in India from other automakers. This Tata Ace mini-truck was launched in India in May, 2005.

Tata Motors to Invest $43 Mn in Thai Plant Tata Motors, India’s biggest truck and bus maker, will invest 1.3 billion baht ($43 million) in a Thai factory to produce pickup trucks as economic growth boosts the country’s demand for vehicles. Production will start in March, with Tata targeting sales of 5,000 vehicles within the first year. The company is aiming for a 5 per cent share of the Thai pickup market within five years. Tata will compete with Isuzu Motors, the biggest maker of pickup trucks in Thailand. The plant has the capacity to build 35,000 trucks a year. The venture is 70 per cent owned by Tata Motors and 30 per cent by Thonburi Automotive Assembly Plant Company.

MAHINDRA & MAHINDRA Mahindra launches India`s first biodiesel-compliant tractor Automobile and farm equipment major Mahindra & Mahindra Limited launched biodiesel compliant Arjun International 75757, a 75 HP tractor, targetted at the Maharashtra market. The new tractors will be able to use five per cent biodiesel. The company’s research and development team has developed a fuel injection system that will allow mixing of five per cent biodiesel, which will soon become a norm in the country. The tractors will also be able to run without biofuel. The company will use major towns in the state as hubs to supply biodiesel within 15

a 50 km radius. M&M dealers in these hub cities will stock biodiesel and distribute it within their territories. The new tractor was unveiled at Kisan 2007, a national exhibition of range of products and services directed at the farming community. Maharashtra is the top-selling market for the company, with sales of 18,000 units per year - 40 per cent of the total tractor sales in the state.

M&M to gain from sale of GM's Truck Business Navistar International’s acquisition of General Motors’ medium-duty truck business will enable Mahindra & Mahindra to access those products as part of their JV arrangement with Navistar subsidiary International Truck and Engine Corporation (ITEC). The GM portfolio includes brands like Kodiak, TopKick and Isuzu T-Series. The deal also covers GMC and Chevrolet brand vehicles in the class 4-8 gross vehicle weight range. All of that would now be available to M&M. M&M and ITEC, announced a JV for making diesel engine with additional investments of $90 million over the next five years. The venture, to be owned 51% by Mahindra and 49% by ITEC, will make diesel engines for medium and heavy commercial vehicles.

Bajaj Launches Fuel Efficient Autorickshaw Bajaj Auto launched a "highly fuel efficient and low emission" autorickshaw model powered by Gasoline Direct Injection (GDi) engine with prices starting from Rs 92,000. The RE-GDi delivers a substantial 33 per cent better fuel efficiency than the conventional RE autorickshaw and drastically reduces emissions with virtually no visible smoke. The emissions are also comparable or lower than the alternate clean fuel engines using LPG/CNG. Bajaj said although the product has good export potential, it would be confined to domestic market for next couple of years, adding the innovation was likely to spur replacement demand. The vehicles would be manufactured at the company's Walunj plant at Aurangabad in central Maharashtra.

16

CONSTRUCTION EQUIPMENT VEHICLES Telcon to set up new plant in West Bengal Telco Construction Equipment Co. Ltd. (Telcon), a joint venture of Tata Motors and Hitachi Construction Machinery Co. Ltd (Japan), announced a state-of-the-art manufacturing facility for earthmoving and construction equipment along with a Research & Development Centre at Kharagpur in West Bengal to upgrade its capacity and capability to meet the burgeoning demand for construction equipment in the country. The construction of the facility will commence shortly. The Telcon Managing Director, Mr. Ranaveer Sinha, and the Managing Director of the West Bengal Industrial Development Corporation (WBIDC), Mr. M.V. Rao, today signed a lease agreement for 250 acres of land for setting up the facility. Telcon will invest about Rs.600 crores in the facility, to be completed in three phases. The first phase will be completed by March 2009, and the final phase by March 2011. In addition, a vendor park will be set up on a 90-acre plot for about 20 strategic partners, who will separately invest about Rs.500 crores. In 2006-07, Telcon posted a Gross Revenue of Rs.1814.16 crores, and a Profit after Tax of Rs.183.86 crores. The company already has two manufacturing facilities in Jamshedpur (Jharkhand) and Dharwad (Karnataka).

TIL rolls out 5000th crane TIL [formerly Tractors India] celebrated a landmark achievement when it rolled out its 5000th crane from Kamarhatty plant. The company has been actively involved in the infrastructure sector and is amongst the country’s leading providers for a wide range of technology intensive equipment. TIL's cranes are used in all the core sectors like construction, mining, defense, refineries, steel, and power. The event was attended by all senior members of Manitowoc Crane group - TIL’s technology partner.

Terex acquires stake in India joint venture Terex Corporation announced that it has acquired a controlling share of its ongoing joint venture, Terex Vectra Equipment, which builds loader-backhoes, skid steer loaders and compaction rollers at a facility occupying 36 acres in Greater Noida, Utter Pradesh, India. Terex now owns 70 percent of the venture, which began operations in 2003. The acquisition of majority ownership of Terex Vectra is a logical step in our strategy of expanding the Terex market presence in India. The increased ownership also provides Terex with control over operations and manufacturing, which will allow them to accelerate integration strategy and business systems implementation. Terex Corporation is a diversified global manufacturer with 2006 net sales of $7.6 billion. Terex operates in five business segments: Aerial Work Platforms, Construction, Cranes, Materials Processing & Mining, and Road building, Utility Products and Other. Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining, and utility industries.

17

Escorts Construction Equipment Ltd ECEL Launches TRX Series of Pick-n-Carry Cranes in the 23T, 17T and 16T Category. ECEL, a subsidiary of Escorts Limited and a leader in the Indian Construction and Material handling Equipment Industry, launched TRX Series of Pick-n-Carry Cranes in the 23T (TRX 2319), 17T (TRX 1713) and 16T (TRX 1614) category. ECEL has been a pioneer in Pick-n-Carry Cranes and it has always come out with new products and innovations in line with the customer needs. TRX series cranes have been designed while keeping in mind the requirement of handling heavier loads to higher heights due to scaling-up of construction and infrastructure projects and to meet the global operational and safety standards. In another development, a partnership with Alpha Services, leading manufacturers and pioneers of Mobile Tower Cranes in India, ECEL will exclusively be marketing its range of mobile tower cranes. They are self-erecting and self-folding through a cable remote and are available in tow able/Self propelled versions.

Volvo Construction Equipment The first Volvo excavator to be built at the Volvo Construction Equipment manufacturing facility in Asheville, North Carolina, rolled off the production line. The company will also invest $25 million to $56 million over the next several years to the expansion of the company’s fabrication and assembly capabilities to meet growing requirements in the excavator market in North America.

AEM The Association of Equipment Manufacturers (AEM) has joined its association counterparts in Europe, Japan, China and Korea in a formal partnership to advance the construction equipment industry worldwide. The five associations in the new International Associations Committee (IAC) have signed a letter agreeing to general terms of cooperation. They are already holding regular meetings to provide guidance and direction from the executive level on issues including emerging markets, global statistics, exhibitions and intellectual property rights. All companies and countries will benefit by the IAC focus on an open and cordial exchange of ideas, exploring opportunities of mutual interest,” stated AEM President Dennis Slater. In addition to AEM, the associations in the IAC are the China Construction Manufacturers Association (CCMA), the Committee for European Construction Equipment, (CECE), the Japan Construction Equipment Manufacturers Association (CEMA) and the Korea Construction Equipment Manufacturers Association (KOCEMA).

MANITOWOC Manitowoc’s crane division has broken ground on a new 50,000-square-foot addition and expansion project at its crawler crane assembly facility in Manitowoc, WI. The addition is part of a $25 million renovation and modernization investment that the company is making in its Wisconsin-based manufacturing facilities. Manitowoc previously announced plans to expand its Port Washington, Wisconsin fabrication facility in late August. 18

Thomas Equipment Thomas Equipment Inc. announced its Thomas Model 250 Series Skid Steer top-of-line loader is available for 2008 and offers outstanding performance and dependability equal to the challenges of rugged construction and work sites where power, speed and reliability are vital. The company added that the Thomas 250 combines strength and agility for tough jobs ranging from loading and digging to drilling and lifting when big muscle is a must to get tough job done. Petter Etholm, President and Chief Executive Officer, said, “The Thomas 250 is the power hitter in the Thomas Equipment loader line-up. The tough Thomas 250 Skid Steer Loader has dependable power to perform under demanding worksite conditions and combines speed and reliability with full range cab comfort and visibility to make the 250 an indispensable workhorse at any efficient construction site. The Thomas 250 sports an 87.5 horsepower Kubota turbo-charged diesel engine offering tremendous power and high bucket lift capacity of 2,500 pounds, the Thomas 250 moves at a consistent 7.5 mph pace on worksites where time is money and safety and performance are paramount. Thomas Equipment is emerging from a period of financial difficulty and embarked on a restructuring program to regain its market position and financial strength. With manufacturing plants in Canada and South Korea, Thomas Equipment is a global manufacturer and marketer of industrial and construction equipment through its Thomas Equipment 2004 subsidiary and of pneumatic and hydraulic systems for the fluid industry through Pneutech Inc., and designs wireless devices for the telecommunications industry, among its other businesses.

19

NEW DEVELOPMENTS IN AUTO COMPONENT SECTOR Minda Industries Files for 10 Patents Automotive component manufacturer Minda Industries Ltd has filed for about 10 patents through its R&D division, and plans to step up investments to meet the increasing demand for automotive research. One of the company’s innovations “Intelligent non-contact handle bar with self cancellation blinkers” has received National R&D Award for 2007 by the Department of Scientific and Industrial Research, Ministry of Science and Technology, recently. This product, designed by the company R&D labs, hosts a new handle bar control system for motorcycles. This includes left and right hand side handle bar switch, mounting bracket assembly for self cancellation blinkers and electronic body control unit for motorcycles.

India Pistons Forms 50:50 JV with German Firm Following the announcement of its 50:50 joint venture with the Germany-based Mahle GmbH, auto component manufacturer India Pistons is drawing up an expansion programme involving an outlay of about Rs 200 crore over the next 2-3 years. The investment corpus will be equally split between India Pistons’ operations and the joint venture operations. The expansion envisages India Pistons and its JV emerging as a technologically-advanced manufacturer in the automotive industry and catering to specialised applications in defence, construction, railways, marine applications, tractors and off-highway segments, besides doubling its annual exports. The financial terms of the JV were not disclosed. The company said substantial investments will be made over the three years, which will primarily focus on making pistons for engines requiring future emission norms such as Euro IV and above. It will also produce advanced design pistons such as oil cooled gallery pistons for diesel engines for automotive applications.

TVS Logistics, Global Rush form JV TVS Logistics Services Ltd has joined hands with the US-based Global Rush to set up TVS America Inc, which will offer door-to-door logistics services to and from India for import and export of products to the US. Global Rush will have a 51 per cent stake in the $1-million equity capital of the joint venture. TVS America will also offer component assembly, warehousing, distribution, product engineering and sourcing services. TVS Logistics will be involved till the product reaches the US shores, from where the American company will take over the local distribution. TVS Logistics has been present in the US for the last two years and sends around 3,000 containers a year from India. To begin with 50 per cent of business for TVS America will come from TVS group companies, and the rest from non-TVS companies.

Birla Auto Plans Investing in Components Manufacture Birla Auto & Engineering Group, which comprises Birla Precision Technologies, Birla Peruchinni, Indian Tool Manufacturers (ITM) and Dagger Forst, announced that the company will invest Rs 90 crore in auto component manufacturing. The company is looking for external funding and raising money from the stock market for its expansion plan. “With these investments, which will happen in 15 months, they target to raise the annual revenue to Rs 400 crore by 2009 from the current Rs 200 crore.

20

Tudor India Plans Rs 35-cr Capacity Expansion Tudor India Ltd (TIL), makers of the Prestolite brand of lead-acid batteries for both automotive and inverter applications, announced plans to invest Rs 35 crore for capacity expansion at its transportation manufacturing facility in Gandhinagar, Gujarat. The company is investing in equipment upgrades, line expansions, infrastructure and utilities to increase operational capacity from six lakh batteries to ten lakh per year.

Cie in Second Brazilian Biofuels Venture Spanish auto parts maker Cie Automotive has agreed a joint venture with Brazil's NNE Minas Agro to supply jatropha crops to the South American country's booming biofuels industry. As part of the venture, in which Cie will own 49%, the companies will invest EUR3.7m to harvest and expand crops of jatropha curcas, an unedible seed that can be used to make biodiesel, the leading biofuel alongside ethanol. The companies plan to produce 172 tonnes a year of jatropha curcas seeds and more in future. They will operate from a 160-hectare field (expandable to 320 hectares) in the northern region of Minas Gerais state in Brazil. Cie said the new unnamed entity may build a biodiesel oil refinery in future. It will also provide technical and training services for farmers interested in planting jatropha curcas as energy crops.

Porwal Auto to Diversify into Car Components Porwal Auto Components said it wanted to diversify into car components aiming to generate about 40-50 per cent of the revenue from this segment by 2010. "We are first putting up 18,000 tonne per annum capacity high pressure moulding line which would produce cylinder blocks for car engines. The first line would help us to generate close to 15 per cent of our total revenue from the car component business," Porwal Auto chairman Surendra Jain said. The company said the first line project would be complete by June 2008 and in another one year it hoped to install a second high pressure moulding line with higher capacity.

Linamar Corporation to set up Base The $2.4-billion Linamar Corporation, Canada’s second-largest automotive component company, is setting up a manufacturing facility in India to supply powertrains and industrial components. Linamar, which has 37 manufacturing centres across North America, Europe and Asia and is an original equipment supplier (OES) to General Motors, Ford Motor and Caterpillar, among others. It is looking at the option of setting up a wholly-owned subsidiary and is also negotiating with some potential Indian companies for a JV. They want to start operations in automotive hubs like Chennai and Pune and are already in talks with some Indian companies for a possible JV. Linamar Corp would like to have a facility in India after our China facility comes full swing in 2009.

Eaton India to Come up with Truck Transmissions Eaton India, which is part of the US-based $12.4-billion Eaton Corporation, the diversified industrial manufacturers, said that it will come up with truck transmissions manufactured in its Ranjangaon plant in April 2008. The plant is already operational and has started manufacturing on a trial basis. They will start production on a regular basis in April. They are in talks with the OEMs for the supply of our truck transmissions. Eaton, which manufactures power control systems and hydraulic systems other than automotive components, had introduced its 21

Powerware 9395 275-550 kVA uninterruptible power system (UPS) to meet the current and future power protection requirements for large system applications in the domestic market in November.

Jamna Auto to Double Capacity, Launch Exports World's leader in high precision commercial vehicle springs, Jamna Auto Industries (JAI) intends to double capacity to 200,000 metric tonne per annum with two new greenfield plants while pursuing exports to Europe from 2009. JAI is the largest producer of multi and parabolic leaf springs in India with close to 60 per cent market share and expects to be in the top three spring suppliers of the world by 2010. It will spend about Rs 140 crore over the next two years to build new capacities in Jamshedpur and Pantnagar apart from a research & development centre to be announced shortly.

Autoline Ind to Benefit on Diversification The acquisition of Dura Automotive Systems, US, is strategic for Autoline Industries on two counts. For one, in line with the company’s strategy of product diversification and entry into highvalue segments, the acquisition will bring the jack and toolkit business of Dura into its fold. Two, it will give the company access to high profile clients such as General Motors, Ford, Honda and Nissan. Autoline is primarily in the business of moulding sheet metal for various assemblies, which is a high volume and low value auto component business. To move up the value chain and improve its margins, the company has been attempting to upgrade its product mix by providing larger and more complex assemblies, silencers and exhaust systems, it has also grown through the inorganic route.

Robert Bosch to Invest Rs 850 cr more in India All subsidiaries including MICO to be renamed Bosch Ltd. The world’s leading auto parts’ maker, Robert Bosch, has decided to invest Rs 850 crore more in its Indian operations. It takes the total investment into India to Rs 2,650 crore for the 2005-2010 period. Robert Bosch has also made two more key announcements: all the subsidiaries in India including Motor Industries Company (MICO) will now be renamed Bosch Ltd. MICO, in which the parent recently increased its stake to about 70 per cent from 60 per cent.

Bosch Parts for Bajaj-Renault Small Car Likely Bosch, formerly Mico Bosch, is likely to supply fuel-injection systems for the Bajaj-Renault sub$3,000 small car. The German auto component maker, incidentally, also supplies similar systems to the Tata small car and Bajaj Auto’s (BAL) motorcycles. BAL and French automaker Renault’s small car is likely to hit the roads in early 2010. For the Tata small car, the component giant has worked to cut costs. They have cut down on the use of sensors, hardware and have used intelligent software to scale down the costs for the Tata small car.

Ricardo-Delta Electronics Global automotive technology provider Ricardo and leading international electronics company Delta Electronics, Inc. have announced a joint-development alliance which aims to challenge the current paradigm of automotive electronics supply. The innovative business model of the jointdevelopment alliance will mark a new generation of Tier 1 suppliers. The alliance will enable 22

automakers to access advanced electronics R&D technology and high quality manufacturing resources, while allowing them to maintain brand identity and protect intellectual property. By combining their respective strengths in advanced electronics R&D and high quality manufacturing capabilities, the Ricardo-Delta alliance will create an entirely new business model to provide total solutions. While both partners will continue to operate independently as dictated by the needs of their respective businesses, they both believe that the benefits of the alliance.

Ricardo - Total Vehicle Fuel Economy solution Ricardo, Inc., a leading independent engineering firm specializing in fuel economy and vehicle efficiency, unveiled a new engineering service designed to help automakers address the 35mile-per-gallon CAFE standard. TVFE(tm) (Total Vehicle Fuel Economy) is based on Ricardo's unique in-depth understanding of the design and control of complete powertrain and vehicle systems. It employs a systems approach that quickly identifies, validates and implements the most cost-effective strategies to achieve light-vehicle fuel economy and CO2 goals. TVFE also can be applied to commercial vehicle and military sectors. Manufacturers and Tier 1 suppliers must determine how to meet these very aggressive fuel economy targets in the most costeffective manner. TVFE draws on Ricardo's almost 100 years of experience in maximizing fuel efficiency and performance. The company is deeply involved in research and development of advanced technologies in powertrains, controls and vehicle engineering including advanced gasoline and diesel engines, fuel cells, hybrid and electric propulsion systems, and dual-clutch transmissions.

EASi announces partnership with the ITB Group EASi Engineering (“EASi”) and the ITB Group (“ITB”) join hands to establish a “win-win” partnership. EASi and ITB together will offer a wide range of services to the automotive market and also conduct seminars to facilitate exchange and development of ideas and innovations in automotive interiors and front end modules. ITB’s competencies in manufacturing technology and business consulting together with EASi’s engineering, design and CAE, create new value in the market.

Continental to Make Customised Products Global auto parts’ giant Continental Corporation will make products specifically for the small and mid-sized car segment in India and has invested about Rs 100 crore to set up an automotive electronics plant in Bangalore. Continental’s Managing Director for automotive systems business in India, Dr Markus Distelhoff, told that his company has developed strategies and products suited for the Indian market. He said in the next decade one of the main focuses of the automotive industry will be the “so-called affordable cars”, especially in growing markets like India and China.

Cummins opens second factory in Pithampur Cummins Turbo Technologies, maker of turbochargers for the medium heavy duty diesel engine market, has broken the ground for a new facility at the Pithampur Special Economic Zone in Madhya Pradesh. Cummins Turbo Technologies said that the company would invest $15 million at 80,000 sq ft facility. The construction is scheduled to begin in January 2008 and production in the third quarter of 2008. The capacity would be around 25,000 high horsepower turbo chargers and would cater to the 19 to 60 litre engines. The plant would focus on manufacturing high 23

horsepower turbochargers for both domestic and global markets. The new facility would bring Cummins’ worldwide manufacturing locations to seven, building on its existing presence in Brazil, the UK, the US, India and its joint venture in China. The new plant is around 70 kms from Dewas.

Tata Auto Comp GY Batteries to hike production Tata Auto Comp GY Batteries (TGY), a Joint Venture between Tata Auto Comp Systems Ltd and GS Yuasa of Japan is scaling up its production capacity of Automotive Batteries to one million units in the financial year 2008-09. Production of Tata Green Batteries would further be increased to 2 million units by 2010-11. Tata Green Batteries uses harmless Calcium alloy in the Calcium-Calcium technology instead of the traditional chemical elements to ensure high performance. The process adopted is environment friendly too. Tata Green Batteries are already marketed across the country by 3000 plus outlets in less than a year of its launch.

Apollo Tyres Lines up Rs 108 cr Expansion Apollo Tyres will pump in over Rs 100 crore in the next fiscal to hike production capacity of its passenger car radial (PCR) tyres to 4.5 lakh units a year from 3 lakh now to serve both the domestic and overseas markets. They have earmarked Rs 108-crore investment for the next fiscal to increase our production capacity to 4.5 lakh tyres per annum. This will suffice the expansion plan given that this will be an expansion of existing capacity as opposed to creating greenfield site.

Varroc in JV Auto Exteriors Plastic Omnium Auto Exterior will hold a 51% stake. The Rs 1,200 crore Varroc group, based in Aurangabad, has entered into a joint venture with Plastic Omnium Auto Exterior of France to make automotive exterior components at a new plant in Chakan, Pune, to be operational next year. The French company will hold a 51% stake in this venture, which will be called Plastic Omnium Varroc Pvt Ltd. The products planned for manufacture include bumpers, bumper modules, claddings, rocker panels, finishers, structural parts and painted body panels.

Sundram Fasteners Acquires Upasana Sundram Fasteners Ltd has acquired the entire equity share capital of Upasana Engineering Ltd, a step-down wholly owned subsidiary at cost from Sundram Fasteners Investments Ltd, another wholly owned subsidiary, according to information provided by the company to the stock exchange. Following the acquisition of 100 per cent of the equity capital, Upasana Engineering, has become a wholly owned subsidiary of the company. Upasana Engineering has two units in Chennai and Hosur where it manufactures tools, spokes and nipples and other components.

24

MINDA JV PARTNERS VALEO Following the closing of Valeo's sale of its wiring harness business, this activity became part of Leoni on January 1, 2008. As per news release published on 16 October 2007 - Valeo announced that it has signed a contract with Leoni regarding the sale of its wiring harness activity, Valeo Connective Systems, for an enterprise value of 255 million euros. The activity generated sales of 545 million euros and an EBITDA of 36 million euros in 2006. It employs 11,700 people at 12 industrial sites, including 9 in cost-competitive countries. The divestiture of the wiring harness activity is in line with Valeo’s strategy, initiated in 2005 and confirmed at the 2007 Annual General Meeting of Shareholders, to reinforce its offer in the Domains of Driving Assistance, Powertrain Efficiency and Comfort Enhancement. This sale is another step in the implementation of this strategy through targeted divestitures and acquisitions. This sale will result in a capital loss of around 51 million euros for Valeo. The closing of the sale should occur by year end following clearance from the anti-trust authorities.

STONERIDGE Stoneridge Raises 2007 Earnings Outlook Stoneridge, Inc. announced that earnings for the fourth quarter of 2007 are expected to be in the range of $0.24 to $0.30 per diluted share. As a result, the Company said that the full-year 2007 earnings are expected to be in the range of $0.67 to $0.73 per diluted share, which is higher than its previously announced range of $0.45 to $0.55 per diluted share. Current earnings estimates include restructuring expense of approximately $1.0 million for the Company's previously announced restructuring initiatives. "Our fourth-quarter results were positively impacted by a more favorable sales mix in our North America electronics business, continued strength in our European electronics business and improvement in our China operations," said John C. Corey, president and chief executive officer. "These improvements offset the continued decline in the Class 8 truck market in North America." Stoneridge will report its fourth-quarter results on January 31, 2008. Forward-Looking Statements Statements in this release that are not historical fact are forward- looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied in this release. Things that may cause actual results to differ materially from those in the forward-looking statements include, among other factors, the loss of a major customer; a significant change in automotive, medium- and heavy-duty truck or agricultural and off-highway vehicle production; a significant change in general economic conditions in any of the various countries in which the Company operates; labor disruptions at the Company's facilities or at any of the Company's significant customers or suppliers; the ability 25

of the Company's suppliers to supply the Company with parts and components at competitive prices on a timely basis; customer acceptance of new products; and the failure to achieve successful integration of any acquired company or business. In addition, this release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Further information concerning issues that could materially affect financial performance related to forward-looking statements contained in this release can be found in the Company's periodic filings with the Securities and Exchange Commission.

Stoneridge Reports Improved 4th-Quarter and Full-Year 2007 Results Stoneridge, Inc. (NYSE: SRI) today announced net sales of $185.5 million and net income of $6.5 million, or $0.28 per diluted share, for the fourth quarter ended December 31, 2007. Net sales increased $14.3 million, or 8.3 percent, to $185.5 million, compared with $171.2 million for the fourth quarter of 2006. Net income for the fourth quarter was $6.5 million, or $0.28 per diluted share, compared with $1.5 million, or $0.06 per diluted share, in the fourth quarter of 2006. The improvement in fourth-quarter results was primarily attributable to new program sales of electronics in Europe and North America and a more favorable sales mix in the Company's North America electronics business. These improvements were accomplished in spite of the approximate 42% fourth- quarter decline in the medium- and heavy-duty truck market in North America. "The 2007 results reflect our organization's responsiveness to meeting the challenges of the market, especially the decline in the North America commercial vehicle market, and our continuing focus on improving the operating performance of the Company," said John C. Corey, president and chief executive officer. "We made significant progress in improving our profitability and generating cash in 2007. We look forward to continuing the execution of our operating and restructuring plan in 2008." For the year ended December 31, 2007, net sales were $727.1 million, an increase of $18.4 million compared with $708.7 million for the year ended December 31, 2006. The improvement in net sales was predominantly attributable to new activity in the Company's European and North American commercial vehicle businesses and emissions sensing in our North American light vehicle business and favorable foreign exchange translation. These improvements were partially offset by lower medium- and heavy-duty truck production volume in the North American market. Net income for 2007 was $16.7 million, a 14.9% increase from net income of $14.5 million in 2006. Net income per diluted share increased 12.7% to $0.71 in 2007, compared with $0.63 per diluted share in 2006. Full-year 2007 net income includes pre-tax restructuring expense of approximately $1.0 million for the Company's previously announced restructuring initiatives. Stoneridge began these initiatives in the fourth quarter of 2007 and expects to substantially complete them by the fourth quarter of 2008. The Company anticipates incurring total pre-tax charges of approximately $9.0 million to $13.0 million in 2008 for the restructuring after the expected benefit of a facility sale. Stoneridge expects to generate annual savings of $8.0 million to $12.0 million beginning in 2009 as a result of these initiatives. Net cash provided by operating activities for the year ended December 31, 2007 was $33.5 million, compared with $46.5 million for the year ended December 31, 2006. The decrease in 26

cash provided by operating activities was primarily due to higher working capital requirements related to an increase in sales in the electronics segment to customers with contractually longer payment terms. Outlook Because of the previously announced IPO transaction filing of the Company's PST Eletronica S.A. joint venture in Brazil, Stoneridge is not providing earnings guidance for the year 2008 at this time due to the volatility and uncertainty in the capital and equity markets. "For 2008, we expect to continue making the progress that we exhibited during 2007 with our previously announced restructuring plans," Corey said. Conference Call on the Web A live Internet broadcast of Stoneridge's conference call regarding 2007 fourth-quarter results can be accessed at 11 a.m. Eastern time on Thursday, January 31, 2008, at http://www.stoneridge.com/, which will also offer a webcast replay.

FURUKAWA Notice Regarding Riken Electric Wire Company Limited Becoming a Wholly Owned Subsidiary of The Furukawa Electric Co., Ltd. through a Share Exchange The Furukawa Electric Co., Ltd. (Furukawa) and Riken Electric Wire Company Limited (Riken) are pleased to announce that each of their Boards of Directors at meetings held today has resolved to conduct a share exchange to be effective on April 1, 2008, through which Riken becomes a wholly owned subsidiary of Furukawa (the “Share Exchange”). The two companies have entered into a Share Exchange Agreement. As of April 1, 2008, the effective date of the Share Exchange, Furukawa will be the sole shareholder of Riken and Riken will be a wholly owned subsidiary and Riken shares are scheduled to be delisted on March 26, 2008 pursuant to the delisting rule (the last trading date is scheduled to be March 25, 2008). Purpose of making Riken a wholly owned subsidiary through the Share Exchange. (1) Purpose of the Share Exchange In March 2006, Furukawa launched “Innovations 09,” a new medium-term management plan that adopted a management vision of “With evolution of technology, Toward a more profitable, innovative and dynamic global presence.” Under this plan, Furukawa is reorganizing and integrating its subsidiaries, as part of changes to its Group management, to bolster their business position and governance, streamline their operations and reduce their administration costs. Riken, incorporated in 1934 to operate a business based on the technology of Riken Laboratory, became a member of Furukawa Group in 1949. Riken primarily manufactures magnet wires, solder-plated wires, stainless steel wires, electric wires, cables, electronics components and optical components. It has been steadily developing its business under the Riken brand, based on unique technologies for specialized cables such as fine and super-fine magnet wires and stainless steel wires and precision manufacturing. In today’s very competitive global environment, it has become necessary for Riken to develop new markets and diversify its 27

product lineup to maintain and improve its business. To do this, Riken needs to strengthen its cooperation with Furukawa under the Group management strategy, so that it can call on the resources of the Furukawa Group in marketing and technology development. Through the Share Exchange to make Riken a wholly owned subsidiary, Furukawa will be able to improve its business by defining Riken’s position in the Furukawa Group strategy, accessing Riken’s technology and cooperating with Riken in marketing. After discussion, Furukawa and Riken have reached the conclusion that it would be in the best interests of both companies to conduct their businesses jointly to develop the business of each company. Furukawa and Riken will strengthen Riken’s business and increase the enterprise value of the Furukawa Group by tapping the business resources that are amalgamated through the Share Exchange. (2) Schedule for delisting As of April 1, 2008, the effective date of the Share Exchange, Furukawa will be the sole shareholder of Riken and Riken will be a wholly owned subsidiary. Riken shares are scheduled to be delisted on March 26, 2008 pursuant to the delisting rule (the last trading date is scheduled to be March 25, 2008). (3) Reasons for delisting Although the delisting of Riken shares is not the main purpose of the Share Exchange, Riken shares are scheduled to be delisted on March 26, 2008 pursuant to the delisting rule described in the preceding section, as a result of the Share Exchange through which Furukawa becomes the sole shareholder of Riken. Furukawa shares of common stock to be allotted and delivered in exchange for Riken shares in the Share Exchange are listed on the Tokyo, Osaka, and Nagoya stock exchanges and these Furukawa shares in exchange for Riken shares are available for trading on every stock exchange (except for shares of less than one share unit (1,000 shares), please refer to note. 2 under section 2. (2) for information about shares of less than one share unit.) (4) Measures to achieve a fair share exchange ratio To ensure that the share exchange ratio is fair, Furukawa and Riken each appointed an independent financial advisor to calculate the share exchange ratio. Furukawa and Riken held repeated discussions and negotiations based on the calculations and agreed on the share exchange ratio at which the Share Exchange is to be conducted. (5) Measures to prevent conflicts of interest To avoid conflicts of interest, the two statutory auditors of Riken, namely Kiyoshi Takeuchi, who concurrently serves as a statutory auditor of Furukawa and Mitsuyoshi Shibata who concurrently is an employee of Furukawa, have not taken part in the deliberations about the Share Exchange held at meetings of Riken’s Board of Directors. No Riken director is serving as a director of Furukawa or is an employee of Furukawa.

KABA Group No recent news.

28

Production, Sales, Exports - November 2007 Category Segment / Subsegment Manufacturer

Production Domestic Sales For the month of Cumulative For the month of Cumulative November April - November December April - November 2006 2007 06-07 07-08 2006 2007 06-07 07-08 Passenger Vehicles (PVs) A: Passenger cars - No. of seats including driver not over 6 A1: Mini - (upto 3400mm) Maruti Suzuki India Ltd. 8,303 8,956 65,632 55,282 6,040 5,653 52,839 44,795 A2: Compact (3401-400mm) Fiat India Automobiles 0 123 830 2,349 73 243 1,228 2,181 Ford India 6 198 6 1,155 0 132 0 1,074 General Motors India 0 2,440 0 20,834 0 2,520 0 21,122 Hyundai Motor India 21,662 29,970 178,657 195,834 13,425 16,335 111,326 112,419 Maruti Suzuki India Ltd. 37,329 44,615 273,022 344,641 37,060 47,641 267,197 327,820 Tata Motors 15,669 10,646 101,133 98,028 13,047 10,488 91,773 90,614 Total 74,666 87,992 553,648 662,841 63,605 77,359 471,524 555,230 A3: Mid size (4001-4500mm) Fiat India Automobiles 0 0 489 0 40 0 470 79 Ford India 2,838 2,479 24,865 23,918 2,841 1,804 24,664 20,912 General Motors India 22 644 7,855 3,378 602 576 7,921 3,647 Hindustan Motors 991 715 8,834 7,164 993 713 8,890 7,307 Honda Siel Cars India 3,171 1,671 28,140 24,481 2,732 2,468 26,982 23,785 Hyundai Motor India 3,365 3,622 27,991 30,119 2,970 2,671 18,801 21,923 Mahindra Renault 0 1,035 0 16,786 0 1,560 0 16,267 Maruti Suzuki India Ltd. 2,716 3,719 21,359 32,352 2,083 4,260 20,743 33,611 Tata Motors 3,996 2,182 24,733 20,936 2,857 2,014 21,222 18,679 Total 17,099 16,067 144,266 159,134 15,118 16,066 129,693 146,210 A4: Executive (4501-4700mm) BMW India 0 80 0 537 0 109 4 611 Daimler Chrysler India 55 32 598 671 59 45 586 531 General Motors India 0 964 1,076 5,219 301 557 2,683 3,949 Honda Siel Cars India 1,859 968 10,016 11,950 1,528 1,375 9,544 10,890 Hyundai Motor India 279 0 1,615 0 60 1 1,251 192 SkodaAuto India 1,070 583 8,268 7,152 842 901 7,820 7,066 Toyota Kirloskar Motor 508 359 4,490 4,135 475 394 4,400 4,134 Total 3,771 2,986 26,063 29,664 3,265 3,382 26,288 27,373 A5: Premium (4701-5000mm) BMW India 0 120 0 497 10 43 55 319 Daimler Chrysler India 117 88 543 764 108 67 491 652 Honda Siel Cars India 101 0 1,560 2,130 195 268 1,607 2,010 Hyundai Motor India 3 14 92 507 35 34 317 421 SkodaAuto India 40 75 512 474 58 36 498 340 Toyota Kirloskar Motor 0 0 0 0 29 48 693 720 Total 261 297 2,707 4,372 435 496 3,661 4,462 A6: Luxury (5001mm & above) BMW India 0 0 0 0 18 30 120 164 Daimler Chrysler India 20 65 149 346 20 45 141 296 Total 20 65 149 346 38 75 261 460 Total A 104,120 116,363 792,465 911,639 88,501 103,031 684,266 778,530 B: Utility Vehicles B1: Max Mass upto 3.5 tonnes No. of seats not exceeding 7 BMW India 0 0 0 0 0 8 11 32 Force Motors 123 0 568 326 109 6 590 318 Ford India 213 255 1,319 1,549 169 226 1,287 1,628 General Motors India 729 730 5,467 5,708 644 729 5,115 5,547 Hindustan Motors 83 110 588 957 119 127 662 1,108 Honda Siel Cars India 0 0 0 0 220 314 1,066 2,317 Hyundai Motor India 0 0 0 0 16 11 280 160 Mahindra & Mahindra 3,969 5,102 30,526 44,513 3,091 5,294 27,418 41,186 Maruti Suzuki India Ltd. 0 0 0 0 0 98 0 645 Tata Motors 1,831 2,501 13,828 18,079 1,747 2,410 9,930 15,522 Toyota Kirloskar Motor 1,426 1,463 10,311 12,204 1,243 1,533 10,544 12,476 Total 8,374 10,161 62,607 83,336 7,358 10,756 56,903 80,939 B2: No. of seats over 7 but under 9 Force Motors 1 0 10 73 0 0 0 21 General Motors India 149 249 1,475 1,374 107 210 1,610 1,390 Mahindra & Mahindra 2,664 2,332 20,701 21,719 2,223 2,512 18,815 20,581 Maruti Suzuki India Ltd. 384 310 2,529 2,082 241 233 2,076 1,836 Tata Motors 54 287 1,757 2,188 73 317 3,827 1,932 Toyota Kirloskar Motor 1,876 2,202 17,558 18,465 1,861 2,081 17,465 18,464 Total 5,128 5,380 44,030 45,901 4,505 5,353 43,793 44,224 Total B 13,502 15,541 106,637 129,237 11,863 16,109 100,696 125,163 C: Multi Purpose Vehicles MPV / Van type vehicles Maruti Suzuki India Ltd. 8,208 8,198 53,969 59,055 7,150 7,331 52,235 57,525 Tata Motors 0 499 0 3,748 0 873 0 4,815 Total C 8,208 8,697 53,969 62,803 7,150 8,204 52,235 62,340 Total of all M1 category 125,830 140,601 953,071 1,103,679 107,514 127,344 837,197 966,033

29

Exports For the month of Cumulative January April - November 2006 2007 06-07 07-08

941

1,870

10,180

9,443

0 0 0 8,426 1,418 473 10,317

0 0 0 9,114 2,510 663 12,287

5 0 0 66,241 11,616 7,484 85,346

1 0 0 77,650 23,665 5,307 106,623

0 1,960 0 0 7 0 0 12 401 2,380

0 350 0 0 0 784 0 2 171 1,307

0 18,198 0 5 25 9,289 0 62 3,601 31,180

0 1,607 0 0 16 9,802 0 50 3,324 14,799

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 6 0 0 0 6

0 0 4 0 0 0 4

0 0 0 13,638

0 0 0 15,464

0 0 0 126,712

0 0 0 130,869

0 0 0 0 0 0 0 62 0 71 0 133

0 0 0 0 0 0 0 64 0 69 0 133

0 6 0 0 0 0 0 836 0 1,212 0 2,054

0 1 0 0 0 0 0 1,502 0 1,768 0 3,271

0 0 59 0 1 0 60 193

0 0 38 15 4 0 57 190

9 0 875 96 16 0 996 3,050

2 0 301 72 29 0 404 3,675

88 0 88 13,919

86 0 86 15,740

783 0 783 130,545

655 0 655 135,199

Category Segment / Subsegment Manufacturer

Production For the month of Cumulative November April - November 2006 2007 06-07 07-08 N1 Category: Max mass upto 3.5 tonnes (Goods Carrier) A: Max Mass notover 3.5 tonnes Force Motors 335 831 1,684 3,849 Hindustan Motors 18 0 67 1 Mahindra & Mahindra 3,955 4,399 24,935 33,384 Piaggio Vehicles 0 459 0 2,047 Tata Motors 10,476 10,766 67,362 74,121 Total of all N1 Category 14,784 16,455 94,048 113,402 M2 category: More than 9 seats Max. Mass upto 5 tonnes (Passenger Carrier) A: No. of seats not over 13 Force Motors 758 665 4,763 4,578 General Motors India 1,172 732 7,846 7,201 Mahindra & Mahindra 1,512 413 8,555 5,067 Tata Motors 1,655 1,174 13,984 10,316 Total 5,097 2,984 35,148 27,162 A2: No. of seats over 13 Force Motors 277 355 2,355 2,954 Hindustan Motors 19 0 129 20 Mahindra & Mahindra 96 260 1,251 2,732 Tata Motors 188 146 1,351 1,503 Total 580 761 5,086 7,209 Total of all M2 Category 5,677 3,745 40,234 34,371 N2 Category: Max Mass over 3.5 tonnes But under 12 tonnes (Goods Carrier) A: Max mass over 3.5 tonnes but less than 5 tonnes Force Motors 0 78 0 408 Mahindra & Mahindra 217 101 1,075 895 Tata Motors 144 54 746 497 Total 361 233 1,821 1,800 A2: Max Mass between 5 tonnes and 7.5 tonnes Ashok Leyland 0 0 2 0 Eicher Motors 626 340 3,995 2,362 Force Motors 20 13 464 170 Mahindra & Mahindra 271 261 1,731 2,298 Swaraj Mazda 275 201 1,706 1,543 Tata Motors 2,713 2,162 18,408 16,053 Total 3,905 2,977 26,306 22,426 A3: Max Mass between 7.5 tonnes and 12 tonnes Ashok Leyland 292 225 1,126 1,660 Eicher Motors 1,210 1,594 8,418 10,726 Swaraj Mazda 379 442 2,656 2,907 Tata Motors 1,741 1,871 12,275 13,617 Total 3,622 4,132 24,475 28,910 Total of all N2 Category 7,888 7,342 52,602 53,136 M3 Category: More than 9 seats Max Mass over 5 tonnes (Passenger Carrier) A: Max mass between 5 tonnes and 7.5 tonnes A2: No. of seats over 13 Ashok Leyland 20 79 289 513 Eicher Motors 124 56 1,329 1,479 Force Motors 0 5 0 63 Mahindra & Mahindra 119 85 1,285 1,504 Swaraj Mazda 205 135 1,597 1,441 Tata Motors 1,111 1,362 9,811 11,042 1,579 1,722 14,311 16,042 Total A B: Max mass between 7.5 tonnes and 12 tonnes B2: No. of seats over 13 Ashok Leyland 55 127 320 920 Eicher Motors 128 59 820 1,240 Swaraj Mazda 142 255 1,010 1,749 Tata Motors 13 107 764 432 Total B 338 548 2,914 4,341 C: Max mass between 12 tonnes and 16.2 tonnes C2: No. of seats over 13 Ashok Leyland 1,358 1,750 8,899 15,801 Eicher Motors 69 46 277 316 Tata Motors 1,099 1,319 7,580 10,282 Volvo India 13 20 134 66 Total C 2,539 3,135 16,890 26,465 Total of all M3 Category 4,456 5,405 34,115 46,848

Domestic Sales For the month of Cumulative December April - November 2006 2007 06-07 07-08

Exports For the month of Cumulative January April - November 2006 2007 06-07 07-08

231 12 3,887 0 8,673 12,803

691 0 4,073 450 9,035 14,249

1,444 56 21,894 0 55,960 79,354

3,462 7 29,138 1,924 62,989 97,520

12 2 305 0 961 1,280

0 0 585 2 893 1,480

95 8 3,488 0 9,525 13,116

162 0 4,819 2 9,034 14,017

544 900 1,052 1,751 4,247

663 764 804 1,352 3,583

4,682 7,540 8,766 13,767 34,755

4,511 6,663 5,219 10,978 27,371

0 0 6 13 19

0 0 20 10 30

6 0 83 61 150

36 0 158 144 338

299 18 125 73 515 4,762

316 0 288 140 744 4,327

2,342 131 1,112 1,145 4,730 39,485

2,595 45 2,277 1,262 6,179 33,550

22 0 0 15 37 56

102 0 0 3 105 135

139 0 40 74 253 403

209 0 22 11 242 580

0 196 0 196

79 138 0 217

0 1,099 1 1,100

422 926 0 1,348

0 0 106 106

0 0 7 7

0 2 541 543

0 2 197 199

0 501 43 276 141 1,920 2,881

0 300 11 268 142 1,459 2,180

0 3,177 458 1,788 1,564 14,727 21,714

1 1,884 121 2,158 1,338 11,987 17,489

0 40 0 11 20 348 419

0 17 0 20 6 486 529

2 560 32 73 174 2,727 3,568

4 432 13 158 89 4,027 4,723

127 1,120 324 1,498 3,069 6,146

177 1,440 344 1,733 3,694 6,091

878 8,196 2,667 10,669 22,410 45,224

1,293 10,078 2,484 11,485 25,340 44,177

22 16 0 54 92 617

19 6 40 152 217 753

184 68 85 478 815 4,926

263 210 245 871 1,589 6,511

20 92 0 81 189 674 1,056

43 81 9 97 82 703 1,015

231 1,079 0 1,171 1,519 6,655 10,655

350 1,398 60 1,471 1,364 7,729 12,372

1 15 0 0 0 409 425

9 25 0 0 0 500 534

1 149 0 55 5 2,521 2,731

54 164 0 47 19 2,890 3,174

43 43 121 56 263

58 42 105 81 286

412 725 886 790 2,813

582 1,004 1,306 605 3,497

2 13 6 129 150

30 11 21 0 62

17 164 70 241 492

152 136 122 48 458

1,076 30 1,047 27 2,180 3,499

1,039 47 1,069 17 2,172 3,473

6,204 282 7,515 152 14,153 27,621

11,823 275 9,522 132 21,752 37,621

342 4 244 0 590 1,165

338 5 191 0 534 1,130

2,321 13 2,309 12 4,655 7,878

2,460 77 2,968 0 5,505 9,137

30

Category Segment / Subsegment Manufacturer

Production For the month of Cumulative November April - November 2006 2007 06-07 07-08

Domestic Sales For the month of Cumulative December April - November 2006 2007 06-07 07-08

N3 Category: Goods Carrier A: Max mass under 16.2 tonnes A1: Max mass between 12 tonnes and 16.2 tonnes Ashok Leyland 1,237 1,240 10,075 9,013 807 Eicher Motors 212 256 1,254 1,990 156 Tata Motors 5,281 4,305 35,139 29,448 4,284 6,730 5,801 46,468 40,451 5,247 Total A B1: Max mass over 16.2 tonnes Rigid Vehicles (a) Max mass between 16.2 tonnes and 25 tones Ashok Leyland 4,070 3,153 25,891 20,969 3,815 Eicher Motors 153 168 895 1,400 142 Tata Motors 6,710 6,314 49,032 41,610 6,184 Volvo India 1 0 2 7 0 Total 10,934 9,635 75,820 63,986 10,141 (b) Max mass exceeding 25 tonnes Eicher Motors 0 5 0 43 0 Tatra Vectra Motors 5 0 41 36 5 Volvo India 33 50 253 405 38 Total 38 55 294 484 43 Total B 10,972 9,690 76,114 64,470 10,184 B2: Max mass over 16.2 tonnes Haulage Tractor (Tractor - Semi trailer / Trailer) Ashok Leyland 0 0 0 0 0 Total 0 0 0 0 0 (b) Max mass between 26.4 tonnes and 35.2 tonnes Ashok Leyland 250 150 2,080 1,464 192 Tata Motors 612 382 3,650 3,364 521 Total 862 532 5,730 4,828 713 c) Max mass over 35.2 tonnes Ashok Leyland 381 317 4,483 2,361 340 Eicher Motors 0 28 0 49 0 Tata Motors 998 749 6,742 6,663 863 Volvo India 16 3 78 41 3 Total 1,395 1,097 11,303 9,114 1,206 Total B 2,257 1,629 17,033 13,942 1,919 Total of all N3 Category 19,959 17,120 139,615 118,863 17,350 Three Wheeler Category A: Passenger carrier A1: No. of seats under 4 Max mass under 1 tonne Atul Auto 594 288 4,021 2,485 594 Bajaj Auto 26,906 21,976 182,501 176,601 11,825 Force Motors 118 34 340 610 110 Piaggio Vehicles 6,496 6,910 49,806 60,214 6,228 Scooters India 353 274 1,623 1,927 287 Total 34,467 29,482 238,291 241,837 19,044 A2: No. of seats between 4 and 7 Max mass under 1.5 tonnes Force Motors 190 275 1,520 1,061 191 Mahindra & Mahindra 402 243 2,120 1,320 329 Piaggio Vehicles 13 0 45 26 9 Scooters India 805 275 3,483 2,125 722 Total 1,410 793 7,168 4,532 1,251 35,877 30,275 245,459 246,369 20,295 Total A B: Goods Carrier B1: Max mass under 1 tonne Atul Auto 907 467 5,727 3,369 901 Bajaj Auto 3,813 2,092 31,176 19,726 3,612 Piaggio Vehicles 6,099 4,777 44,667 41,716 6,237 Scooters India 404 295 2,524 2,220 366 Total 11,223 7,631 84,094 67,031 11,116 B2: Others Force Motors 862 346 8,087 2,162 922 Mahindra & Mahindra 2,160 2,890 22,075 22,460 1,894 Piaggio Vehicles 45 0 551 130 32 Scooters India 168 315 1,254 1,416 160 Total 3,235 3,551 31,967 26,168 3,008 Total B 14,458 11,182 116,061 93,199 14,124 Total of all TH Category 50,335 41,457 361,520 339,568 34,419

31

Exports For the month of Cumulative January April - November 2006 2007 06-07 07-08

982 191 4,445 5,618

7,817 1,123 29,511 38,451

7,450 1,712 26,332 35,494

124 22 482 628

27 7 403 437

1,123 93 2,739 3,955

856 101 3,598 4,555

2,509 63 6,029 0 8,601

25,326 944 46,941 7 73,218

19,817 1,051 39,642 4 60,514

12 7 86 0 105

4 4 172 0 180

127 15 776 0 918

114 137 1,301 0 1,552

15 0 43 58 8,659

0 41 266 307 73,525

38 36 385 459 60,973

0 0 21 21 126

0 0 0 0 180

0 0 21 21 939

0 0 0 0 1,552

0 0

0 0

0 0

0 0

0 0

0 0

19 19

186 371 557

2,073 3,292 5,365

1,667 3,281 4,948

0 0 0

7 0 7

28 1 29

43 9 52

372 1 698 4 1,075 1,632 15,909

4,343 0 6,313 92 10,748 16,113 128,089

2,731 13 6,315 72 9,131 14,079 110,546

0 0 0 20 20 20 774

0 0 6 0 6 13 630

0 0 18 20 38 67 4,961

1 0 36 0 37 89 6,196

270 10,518 52 7,381 228 18,449

3,898 92,688 394 49,572 1,995 148,547

2,497 88,075 694 58,213 1,907 151,386

1 13,946 0 260 0 14,207

0 11,251 0 162 0 11,413

149 86,748 84 1,184 0 88,165

1 89,911 0 2,195 0 92,107

131 217 0 297 645 19,094

1,347 2,090 36 3,579 7,052 155,599

830 1,349 24 2,722 4,925 156,311

9 0 0 0 9 14,216

28 0 0 0 28 11,441

172 8 4 0 184 88,349

304 0 0 4 308 92,415

451 2,428 4,771 246 7,896

5,845 30,012 44,332 2,983 83,172

3,398 20,329 41,285 2,261 67,273

13 1 13 0 27

0 0 36 0 36

58 1 212 0 271

4 100 259 0 363

338 2,594 0 202 3,134 11,030 30,124

8,301 19,228 167 1,331 29,027 112,199 267,798

2,759 21,751 21 1,424 25,955 93,228 249,539

0 0 0 0 0 27 14,243

0 12 0 0 12 48 11,489

20 9 390 0 419 690 89,039

14 27 96 0 137 500 92,915

Category Segment / Subsegment Manufacturer

Production For the month of Cumulative November April - November 2006 2007 06-07 07-08

Domestic Sales For the month of Cumulative December April - November 2006 2007 06-07 07-08

Two Wheeler Category A: Scooters / Scooterette Wheel size less than or equal to 12" A1: Engine capacity less than 75cc Kinetic Motor Company 735 20 6,593 3,030 876 LML 0 0 0 0 0 TVS Motor Company 1,375 2,712 5,509 23,165 1,274 Total 2,110 2,732 12,102 26,195 2,150 A2: Engine capacity 75cc - 125cc Bajaj Auto 110 1,627 7,206 17,638 8 Hero Honda 11,670 11,086 66,610 71,846 10,904 Honda Motorcycle & Scooter India 43,444 45,203 282,499 377,637 42,056 Kinetic Motor Company 4,313 2,216 30,101 17,801 4,085 LML 0 0 0 0 0 Suzuki Motorcycle India 0 3,530 0 5,347 0 TVS Motor Company 22,253 21,210 149,089 167,827 20,423 Total 81,790 84,872 535,505 658,096 77,476 A3: Engine capacity 125cc - 250cc Bajaj Auto 0 0 30 0 0 Honda Motorcycle & Scooter India 9,791 3,850 63,180 43,136 9,205 LML 0 0 0 0 0 Total 9,791 3,850 63,210 43,136 9,205 93,691 91,454 610,817 727,427 88,831 Total A B: Motorcycle / step through Wheel size more than 12" B2: Engine capacity 75cc - 125cc Bajaj Auto 161,787 84,763 1,028,855 726,200 123,420 Hero Honda 270,059 233,789 2,124,871 2,035,041 253,846 Kinetic Motor Company 286 264 4,131 3,541 250 LML 0 0 0 0 0 TVS Motor Company 67,776 44,250 535,074 325,667 46,705 Yamaha Motor India 18,296 3,829 156,277 70,405 10,061 Total 518,204 366,895 3,849,208 3,160,854 434,282 B3: Engine capacity 125cc - 250cc Bajaj Auto 84,145 124,774 629,582 747,335 68,762 Hero Honda 8,193 14,029 42,608 107,891 8,297 Honda Motorcycle & Scooter India 16,718 22,974 95,318 181,968 15,898 LML 0 0 0 0 0 Suzuki Motorcycle India 8,100 5,284 49,853 38,862 6,417 TVS Motor Company 22,834 13,791 132,653 76,091 15,645 Yamaha Motor India 7,250 2,897 68,165 33,898 4,389 Total 147,240 183,749 1,018,179 1,186,045 119,408 B4: Engine capacity 250cc and above Royal Enfield (Unit of Eicher) 2,720 3,047 20,416 25,153 2,922 Total B 668,164 553,691 4,887,803 4,372,052 556,612 C: Mopeds: Engine capacity under 75cc fixed transmission Wheel size more than 12" C1: Engine capacity less than 75cc Kinetic Motor Company 293 986 8,186 8,413 1,800 Majestic Auto 1,497 37 15,217 8,533 957 TVS Motor Company 28,621 29,866 217,864 269,012 26,492 Total C 30,411 30,889 241,267 285,958 29,249 D: Electric Two Wheelers Electrotherm (India) 4,563 1,749 20,333 12,668 4,523 Total D 4,563 1,749 20,333 12,668 4,523 Total of all TW Category 796,829 677,783 5,760,220 5,398,105 679,215 Grand Total of All Categories 1,025,758 909,908 7,435,425 7,207,972 865,708

32

Exports For the month of Cumulative January April - November 2006 2007 06-07 07-08

219 0 2,259 2,478

7,418 0 7,836 15,254

3,432 0 23,579 27,011

106 0 0 106

0 0 0 0

311 0 0 311

192 0 0 192

1,620 10,740 45,001 2,633 0 3,448 19,318 82,760

7,214 64,819 264,123 29,467 0 0 167,605 533,228

17,389 71,043 370,502 17,863 0 5,180 165,719 647,696

0 0 236 31 0 0 94 361

104 112 436 10 0 0 989 1,651

1 976 16,911 775 0 0 6,142 24,805

112 1,008 7,330 1,878 0 0 7,112 17,440

0 3,840 0 3,840 89,078

4,152 62,419 0 66,571 615,053

0 43,553 0 43,553 718,260

0 0 0 0 467

0 0 0 0 1,651

1,102 0 0 1,102 26,218

0 0 0 0 17,632

70,335 918,201 511,630 257,060 2,050,451 1,983,751 177 6,921 1,828 0 0 0 41,494 481,854 292,845 12,845 124,311 64,011 381,911 3,581,738 2,854,065

13,585 6,953 299 0 4,217 5,002 30,056

18,973 4,846 34 0 6,016 1,605 31,474

125,066 69,708 1,107 0 42,352 31,013 269,246

186,102 48,323 1,609 0 53,965 21,413 311,412

104,601 14,191 20,818 0 5,212 6,851 4,107 155,780

539,899 652,345 40,853 104,032 93,481 165,534 0 0 41,831 42,215 116,212 58,528 37,799 20,510 870,075 1,043,164

8,554 171 416 0 0 2,307 1,863 13,311

15,967 1,078 1,992 0 46 2,752 3,229 25,064

73,426 1,503 2,566 0 0 12,933 15,087 105,515

133,664 4,378 16,012 0 223 14,503 22,087 190,867

2,862 19,504 22,488 540,553 4,471,317 3,919,717

155 43,522

247 56,785

1,289 376,050

2,087 504,366

1,021 100 32,436 33,557

710 1,191 1,000 2,901

0 0 651 651

5,559 12,291 10,924 28,774

1,098 4,525 8,329 13,952

0 0 46,890 78,944

0 0 59,087 90,444

0 0 431,042 681,910

0 0 535,950 800,505

10,761 4,068 210,150 224,979

8,152 3,831 261,040 273,023

1,993 20,069 12,928 1,993 20,069 12,928 665,181 5,331,418 4,923,928 866,698 6,756,186 6,462,914

GROWTH POTENTIAL OF INDIAN AUTO COMPONENT INDUSTRY Indian automobile industry crossed a historic landmark 10 million vehicles in 2006-07 • Indian auto industry sales grew to 11.12 billion units in 2006-07, exhibiting an impressive CAGR of 15.5% during the past 5 years • Two wheelers have the maximum share in the industry by volume, followed by passenger vehicles, three wheelers and commercial vehicles • Maximum growth has been witnessed in the commercial vehicles segment, followed by threewheelers

Indian automobile industry crossed a historic landmark 10 million vehicles in 2006-07

33

The OEM as well as the component industry is highly competitive • The Indian auto industry is highly competitive with a number of global and Indian auto companies present • The supplier industry is equally competitive with a mix of global and Indian players

Indian auto industry has evolved around 3 major clusters • Major automotive clusters - Mumbai - Pune - Nasik - Aurangabad (West), Chennai - Bangalore - Hosur (South) and Delhi - Gurgaon – Faridabad (North) • The state of Uttaranchal is turning in to an autohub, because of the industry friendly government policy

34

35

36

Growth in automobile production has driven growth in Indian auto component industry • The Indian auto component industry has reached a size of US$ 15 billion in 2006–07, growing at a CAGR of nearly 29% in the last four years • Industry has developed strong backward and forward linkages • The industry is characterised by the presence of technically capable companies in areas such as manufacturing, design, testing, product development

Exports of auto components have also exhibited an impressive growth • The exports of auto components industry has reached around US$ 2.9 billion in 2006-07, having grown at a rate of 40% CAGR over the last four years • The Indian auto component industry is well positioned to capitalise on the growth in outsourcing to low cost countries

37

More than 60% of exports are made to the developed markets of Europe and USA • Over 60% of the exports are to developed markets such as US and Europe, indicating the capability of Indian manufacturers to meet stringent quality and technical standards • A significant characteristic of exports is the shift in the market in which the components are sold - 75% of the supplies are today made to OEM/Tier-I players as compared to only 35% in the 1990’s

The Indian auto component Industry is highly fragmented • Around 500 organised players account for the 77% of the value added in the sector. • Unorganised players are mainly replacement market players or tier 3/4 component manufacturers • Automotive Manufacturers Association of India (ACMA) represents the auto component industry in India and has around 500 registered members

38

Demand from the OE segment dominates the Indian component industry • OE demand accounts for half of the auto component market in India.

Demand from the OE segment dominates the Indian component industry • Engine parts accounts for a third of the auto components made in India

39

Two and Three wheeler’s along with car segment account for a major portion of the component market in India • Two and Three wheelers, along with passenger cars account for two-thirds of the components manufactured • However, CV components have shown the fastest growth rate over the last 5 years. The growth rate of components of various vehicle categories are as follows: • 2/3Wheelers: 14.95% • Cars : 15.4% • CVs : 26.1%

Indian auto components companies are making significant strides on the quality front • Driven by needs of export markets and the increasing demands of Indian OEMs, quality awareness of Indian companies has increased over the last decade • Quality awareness has increased across all levels of management and is being viewed as a “must have” instead of “nice to have”, which is reflected in the drastic reduction in the number of problems of vehicles over the last decade • Nine Indian auto component manufacturers have got the prestigious DEMING award

40

Indian auto component companies are spreading their operations globally, mainly through acquisitions • Acquisitions made overseas are helping Indian auto component companies get access to new set of skills, technology and customers

The companies are capable of carrying out product development activities at low cost

41

Government of India Initiative to strengthen Automotive R&D Infrastructure National Automotive Testing and R&D Infrastructure Project (NATRIP) NATRIP envisages an investment of US$ 380 million in setting up the following facilities NATRIP is expected to strengthen the automotive R&D infrastructure in India Rae Bareilly Centre • Complete homologation services to Agri Tractors, off road Vehicles, Gensets as per Indian or Global standards & Driver Training centre • Center of Excellence For Accident Data Analysis • Commissioning Schedule Phase-I: July 2010, Phase-II: Aug 2010 Manesar - iCAT • Complete homologation services to all vehicle categories as per Indian or Global Standards • Center of Excellence For Component Development, NVH • Commissioning Schedule Phase-I: 2008, Phase-II: 2010 Silchar Centre • Hill area Driver Training Centre and Inspection & maintainence Facilities • Center of Excellence For Driver Training • Commissioning Schedule Phase-I: 2008, Phase-II: 2010 Ahmednagar - VRDE Up-Gradation • Research, Design, Development and Testing of Vehicles • Center of Excellence For Photometry, EMC, EMI,Test Tracks • Commissioning Schedule April 2008 Indore -Proving Grounds • Complete Testing Facilities to all vehicle categories as per Indian or Global Standards • Center of Excellence For Vehicle Dynamics, Tyre Development • Commissioning Schedule Phase-I: 2009, Phase-II: 2010 Pune - ARAI Up-Gradation • Complete homologation services to all vehicle categories as per Indian or Global Standards • Center of Excellence For Power Train Development, materials, fatigue • Commissioning Schedule Phase-I: 2008, Phase-II: 2009 Chennai Centre • Complete homologation services to all vehicle categories as per Indian or Global Standards • Center of Excellence For Infotronics, EMC, Passive Safety • Commissioning Schedule Phase-I: 2008, Phase-II: 2011

42

Indian Productivity is on a rise - Analysis of Return On Capital Employed (ROCE) • ROCE% levels in India have shown an increase in the past few years, indicative of the productivity increase • Average ROCE levels in India are estimated to be in the range of 24-28% • MNC/Collaborations have achieved significantly higher ROCE levels in India

Capacity utilisation is also on an increase • The huge growth in demand has improved the capacity utilisation of Indian auto component manufacturers

Capacity utilisation is also on an increase • Most of the Indian manufacturers have utilization levels in excess of 80%, even after taking into account the recent capacity additions

43

Indian auto component industry is expected to grow to US$ 33-40 billion by 2015 • The size of the Indian automotive industry is expected to grow at 13% p.a over the next decade to reach around US$ 130-159 billion by 2016. • In volume terms the market is expected to grow to 31.96 million vehicles

Indian auto component industry is expected to grow to US$ 33-40 billion by 2015 • The Indian auto component industry is well positioned to capitalise on the growth in outsourcing to low cost countries • Exports would lead the growth in the component industry, which is expected to be around US$ 33- 40 billion by 2015, from the current size of roughly US$ 15 billion

44

Several factors make India a favourite investment destination

Indian auto component offers a balance between quality and cost Quality Services • Indian IT Recognized worldwide Quality Manpower • 0.4 Million Engineering Graduates Quality Suppliers • 456 Nos ISO 9000 Certified Suppliers Lower • Labour Cost Lower • Design Cost

45

Many global auto companies have made India a manufacturing base - a robust supply base exists in India

OEMs have made India components requirements

as

a

46

sourcing

hub

for

their

auto

Leading global auto components companies are also sourcing from India

Conclusions • India has a cost advantage when compared to Brazil, however suffers from a cost disadvantage vis-à-vis China and Thailand (to a lesser extent), primarily due to high level of taxes and their cascading impact. • India, in the near future is expected to go ahead with the abolition of interstate Central Sales Tax (CST), which will reduce the cascading impact of taxes to some extent. • Implementation of Goods and Services tax (along the lines of VAT) and abolition of all other taxes by 2010 is under consideration, which will reduce the taxation loading on the automotive sector considerably. This step is expected to strengthen India’s future position as a leading automobile manufacturing hub. • Various steps being taken by the Indian government in improving infrastructure would reduce the disadvantage that India suffers from because of poor infrastructure that causes project delays, delays in deliveries and others. This would increase the demand for road transportation in the country and consequently demand for auto components. • India’s exports of auto components have the advantage of proximity to automotive manufacturing nations like Thailand; trade agreements being signed with ASEAN nations are expected to give further boost to exports.

47

Minda Management Services Limited D-6-11, Sector-59, Noida-201301 U.P. (India) Tel: +91-120-2580249/50/52 Fax: +91-120-2580247/2581824

48