Automotive Updates - 21st May 2014

• In a quiet assertion of Indian manufacturing capabilities, Korean chaebol Hyundai has asked its Indian subsidiary to prepare itself to manage some of the group's plants. To begin with, some facilities in Europe may come under the supervision of the Indian arm.

• The forging industry is expected to grow at 8 per cent annually and the production is likely to touch 35.1 lakh tonnes by 2020, on the back of strong policy reforms and stable governance likely to provide the boost, according to a industry report.

• TVS Motor Company today launched here an upgraded variant of its 110cc motorcycle, the StaR City+, targeted at the mileage conscious customer claiming a mileage of 86 kms per litre.

• Homegrown auto major Mahindra & Mahindra Ltd today announced stoppage of production for up to three days during the rest of the ongoing month in view of the slump in demand. 

• "As part of aligning its production with sales requirements, (Mahindra & Mahindra) would be observing no production days at the company's automotive plants for up to three days during the remaining period of May, 2014," Mahindra & Mahindra said in a BSE filing. 

• Egypt lifted a the 3-month ban on import of two wheelers and three wheelers, after more than three months.The move will benefit Bajaj Auto, one of the biggest exporters of two-and three wheelers to Egypt.

• ET has learnt that Bajaj Auto has been officially communicated on the decision and the company has received an export order from Egypt for 5500 three wheelers and 3500 motorcycles for the month of June, a person close to the company said.

• Isuzu Motors India, which recently launched its D-Max pickup truck in the domestic market, has begun identifying suppliers in a bid to achieve high levels of localisation. In the first stage so far, the company has brought on board around 30 local suppliers. Isuzu will commence production at its new plant at Sri City in Andhra Pradesh from 2016 with 70 percent localisation. The company has committed an investment of Rs 3,000 crore for the greenfield manufacturing facility.

• Volkswagen India is considering assembling certain engines and locally sourcing some key components from local vendors, and a decision on the localization scope expansion is close to being made, say reports. VW India President and Managing Director, Mahesh Kodumudi says the localization of products currently is 70 percent and the aim is to increase it to 90 percent.

• Daimler India Commercial Vehicles Pvt. Ltd. (DICV), announced yesterday that it had commenced exports of FUSO trucks to Zimbabwe. DICV started exports of FUSO trucks in May last year, and Zimbabwe is now the fourth African market to get the India-made trucks, apart from Kenya, Zambia, Tanzania and Sri Lanka. 

• Three-wheel manufacturer Atul Auto has entered into a Memorandum of Understanding (MoU) with IDBI Bank to avail of inventory funding for its dealers at attractive interest rates. As part of this arrangement, IDBI Bank will provide funding to over 150 dealers of Atul Auto across the country. This will enable them to increase their working capital, vehicle stocks and consequently enhance retail sales.

• After spreading Dilip Chhabria's car magic in 10 States , DC Designis bringing the magic to Punjab through its North India franchisee 'Swift Initiative' with the launch of their first exclusive DC Design Showroom on Ferozpur Road , Ludhiana.

•  image from Mahindra XUV website.