Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in December 2011 were 82,278

vehicles, higher by 22% over December 2010. The company's domestic sales of Tata commercial and passenger vehicles for December 2011 were 76,663 nos., higher by 24% over 61,685 nos., sold in December last year. Cumulative sales (including exports) for the company for the fiscal are 626,770 nos., a growth of 11% over 567,004 nos., sold last year. Commercial Vehicle The company's sales of commercial vehicles in December 2011 in the domestic market were 47,747 nos., a 14% growth, compared to 41,986 vehicles, sold in December last year. LCV sales were 29,500 nos., a growth of 20%, compared to 24,558 vehicles sold in December, last year. M&HCV sales stood at 18,247 nos., a growth of 5%, compared to 17,428 vehicles sold in December, last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal are 374,332 nos., a growth of 19% over last year. Cumulative LCV sales are 226,965 nos., a growth of 25% over last year, while M&HCV sales stood at 147,367 nos., a growth of 9% over last year. Passenger Vehicles The passenger vehicles business reported a total sale and distribution offtake of 29,417 nos. (28,916 Tata + 501 Fiat) in the domestic market in December 2011, higher by 47% compared to 19,973 nos. (19,699 Tata + 274 Fiat) in December last year. Sales of Tata passenger vehicles for December 2011 are at 28,916 nos., a growth of 47% over 19,699 nos., sold in December last year. Sales of the Tata Nano were 7,466 nos., higher by 29%, compared to 5,784 nos., sold in December, last year. The Indica range sales were 9,307 nos., higher by 57%, over 5,923 nos., sold in December, last year. The Indigo range recorded sales of 6,888 nos., higher by 32%, over 5,233 nos., sold in December, last year. The Sumo/ Safari/ Aria/ Venture range accounted for sales of 5,255 nos., a growth of 90%, over 2,759 nos., sold in December, last year. Jaguar Land Rover sales in India continued their upward trend. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 218,100 nos. (207,225 Tata + 10,875 Fiat), against 223,894 nos. (208,709 Tata + 15,185 Fiat) last year, lower by 3%. Cumulative sales of Tata passenger vehicles were 207,225 nos., compared to 208,709 nos., till December last year. Cumulative sales of the Nano are 47,112 nos., compared to 46,760 nos., till

December last year. Cumulative sales of the Indica range are 72,328 nos., higher by 3%. Cumulative sales of the Indigo family are 51,571 nos., lower by 19%. Cumulative sales of the Sumo/Safari/ Aria range are 36,214 nos., higher by 28%. Exports The company's sales from exports at 5,615 vehicles in December 2011 are lower by 3% compared to 5,809 vehicles in December last year. The cumulative sales from exports for the fiscal at 45,213 nos. are higher by 6% over 42,660 nos., in the same period last year.

Automobile Domestic Sales Trends

Category 2004-05 2005-06 2006-07 2007-08 2008-09 Passenger 1,061,572 1,143,076 1,379,979 1,549,882 1,552,703 1,951,333 2,520,421 Vehicles Commercial 318,430 351,041 467,765 490,494 384,194 532,721 676,408 Vehicles Three 307,862 359,920 403,910 364,781 349,727 440,392 526,022 Wheelers Two 6,209,765 7,052,391 7,872,334 7,249,278 7,437,619 9,370,951 11,790,305 Wheelers Grand Total 7,897,629 8,906,428 10,123,988 9,654,435 9,724,243 12,295,397 15,513,156

(Number of Vehicles) 2009-10 2010-11

Alan Roger Mulally is the CEO of Ford Motors and the man credited with turning around the fortunes of the iconic US car-maker. Last week, Mulally and a few other big gun car manufacturers were in attendance at the Auto Expo in New Delhi. As huge crowds thronged the show to gawk at the beauties on display (and not just the ones on wheels), they seemed to match the enthusiasm of car honchos like Mulally, who are looking upon India with fondness, terming it a "tremendous market." Auto Expo 2012: Full Coverage While Mulally chose to launch his company's new SUV Eco Sport here - before it made its debut in about 100 markets across the world - others likeNissan, BMW, Audi, Mini and Jaguar unveiled their new vehicles to rapturous audiences. Most of these cars would be on the roads in a few years' time. Auto enthusiasts are delighted but many are already dreading the havoc that additional vehicles will create on India's already over-stretched roads. In an ominous sign of things to come, it suddenly became very hard to drive around, the week the Auto Expo came to Delhi. This, when only a 100 people per thousand own cars in Delhi. "Imagine what it'll be like when we get to 450 cars per thousand like in the West," says Anumita Roychowdhury of the Centre for Science and Environment (CSE).

The explosion on India's roads, though, is not a recent phenomenon . Ever since the economy opened up, the number of vehicles have been steadily rising along with concerns about lack of urban planning , traffic mismanagement and parking. Despite this, the auto market in the country has shown phenomenal growth. Auto analyst Murad Ali Baig attributes it to cars increasingly becoming objects of desire than of utility. "If someone wants to buy a car, they will go ahead and buy it. They won't wait for the parking to get better or the traffic scenario to improve," he says. Not surprising then that India's love affair with wheels is growing. Car sales stood at 2.5 million in the last financial year. And even though this year was touted as a bad year, certain segments of the industry like diesel cars and two-wheelers still did well and the growth story continued. The future is expected to be rosy as well. According to a report released last week by consultancy firm Ernst & Young, India's passenger vehicle sales and production is expected to grow between 14 to 16% by 2021, reaching over 9 to 10 million units annually. What's propelling this roller-coaster ride is obviously the country's 250 million-strong middle class which is on a consumption over-drive and impatient to flaunt that cool set of wheels. But it is the potential of the luxury car segment (cars costing upwards of 12 lakh) that has many salivating (and a few dreading the prospect of bigger jams).

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Cops probe sale of fake tickets worth Rs 1cr at Auto Expo Mini SUVs in Rs 10-lakh category to hit Indian roads soon Auto Expo 2012 ends, next edition may move out of Pragati Maidan Short on most emerging markets, including India: Jim Rogers Carmakers see flat growth in FY12 despite 8.5% jump in December Already, the luxury car market is a billiondollar business in India, fuelled not just by demand in big metros but also smaller towns. In 2010, a group of more than 150 local businessmen in Aurangabad created a record of sorts by placing an order for a Mercedes Benz each, which served as an eye-opener to the humungous amount of big money and aspiration in small cities. As more choices become available and customers become discerning - Baig says that rich buyers would soon be choosing models like their forefathers picked out horses for their stables - it may be good news for the economy. But the old bugbear of poor traffic infrastructure and chaotic urban planning will come back to haunt those riding high on fancy wheels (and even those who aren't ). Many ideas have been tried as possible solutions - like encouraging the use of bicycles

(flopped miserably since cycling is seen as a poor man's activity) and use of CNG to combat pollution (partial success - even though air pollution levels have dipped, vehicular pollutants are still responsible for 72% of air pollution in Delhi). Proponents of a better public transport system have hailed the success of the Delhi Metro as a viable model to follow in other cities. But quick back-of-the-envelope calculations show that may not be the only viable solution. CSE's Roychowdhury points out the link between the large number of two-wheelers on Indian streets and an inadequate public transport system. "The cheapest Metro ticket costs Rs 10. The cost of using a twowheeler is about a rupee a kilometre. A motorcycle or a scooter then is cheaper to run than using public transport, "she says. But topping the list of issues that need urgent attention is the problem of parking. Donald Shoup, professor of urban planning at University of California, Los Angeles, says that it's time India seriously looks at paid parking on streets and in residential areas. "The country has some of the most valuable land in the world. It should be monetized properly so that the resultant revenue can help to improve public transport and infrastructure." Many would cry foul at what may seem like a drastic step. But such drastic measures may be the bitter medicine required so that a country on wheels does not get stuck in the mother of all traffic jams.

New Delhi: Car sales in India climbed 8.5 per cent in December, an auto industry body said on Tuesday, the second consecutive monthly rise as the industry continued to rebound from record falls in sales in late 2011. Sales are down 2.3 per cent so far this fiscal year that began in April, as high interest rates, rising fuel prices and increased input costs for manufacturers deter first-time buyers and harm small-car sales, the biggest segment. Demand for cars in India, where sales grew 30 per cent in the 12 months to March 2011, shrank in July for the first time in nearly three years, and continued to slide for three consecutive months, falling by the most in over a decade in October.

Indian automakers sold 159,325 cars last month, data released by the Society of Indian Automobile Manufacturers (SIAM) showed. Total sales for 2011 stood at 1.95 million vehicles, an annual rise of 4.2 per cent. Sales of trucks and buses, a key pointer to the country's economic activity, rose 14.5 per cent in December from a year previous to 72,192 vehicles. Asia's third-largest economy is a key growth market for global automakers that have seen demand hit by economic turmoil in developed markets. Firms such as Ford Motor Co and General Motors Co have ramped up activity in the country. Executives at a recent auto event said the slowdown is a passing phase caused by macroeconomic factors such as high interest rates and sluggish GDP growth, but cautioned that a return to sales seen in previous years would not be easy. Rising prices of fuel and materials such as steel, aluminium, plastics and rubber have pushed up costs and dented demand. SIAM has already cut its cars growth forecast twice this year, slashing it to 2-4 per cent in October from a revised forecast of 10-12 per cent. The industry body had initially forecast growth of 16-18 per cent in April.

Indian auto industry to witness major changes in a decade of growth & opportunities, suggests Ernst & Young report
New Delhi, 10 January, 2012 Despite increase in fuel costs, macro-economic issues and slow growth in 2011, the long term growth story of Indias auto Industry remains intact, suggestsErnst & Young report titled Mega trends shaping the Indian passenger vehicle industry. The countrys passenger vehicle sales and production is expected to grow by 14 to 16% over 2011 to 2021, reaching over 9 to 10 million units

annually. Consequently, India is evolving to become not only a regional base for small car production, but also an exports hub to other emerging markets. Commenting on the outlook for the auto industry, Rakesh Batra, Partner & National Leader Automotive Practice, Ernst & Young, said, While the Indian automotive industry defied the recent global recession, the cooling of domestic demand in 2011 took the industry by surprise. As competition intensifies among vehicle manufacturers, companies across the value chain must adapt their strategies to aim for market share growth, sustainable profitability and operational flexibility to preserve their long-term competitive position. The report identifies seven mega trends that will significantly impact the revenues, costs and profitability of stakeholders across the Indian passenger vehicle value chain: Increasing urbanization and evolving customer needs to have greater influence on OEM strategies and buying behaviour than reactive regulatory policies. An estimated 200 million people are likely to be added to Indias urban population by 2020, piling further pressure on an already strained transport infrastructure. OEMs are likely to increase their offerings in terms of alternate fuel variants (CNG, LPG and also hybrids) and also advanced safety features across segments. Increasing risks across value chain position OEMs to deploy range of mitigation strategies Indian auto industry to be short of 300,000 skilled personnel by 2020 across functions including R&D and manufacturing With logistics infrastructure lagging behind the pace of the auto industrys expansion, OEMs will need to consider multi-plant strategies and clustering of suppliers to be closer to regions with strong demand potential and to have better control of the supply chain Global OEMs gain market share with glocalization, while competition drives domestic OEMs to bridge technology gap Apart from localizing production to achieve cost parity and product differentiation, global OEMs also continue to expand their distribution network to tier II, III and IV cities.
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In response, domestic OEMs are strengthening their technological capabilities through organic and inorganic investments While meeting local demand remains the priority of domestic and Global OEMs, they will be looking to leverage India as an export hub to emerging markets including Africa, Eastern Europe, and South-East Asia.

OEMs leverage digital marketing for urban consumers and non-traditional distribution channels for rural markets OEMs are likely to increase their digital marketing spend, especially on social media, with a focus on innovative promotion tools such as live launch webcasts and online customer service among others. In rural markets, OEMs will increase their focus on non-traditional distribution methods including resident sales executives and satellite outlets.

Indian social media users growing at 100% annually; over 38 million users on Facebook third largest globally; 16 million users on Twitter eighth largest globally; over 20 million smartphone sales annually. Consumers are sharing uncensored feedback and information of products and services via social media New entrants using creative business models for mobility, in-vehicle services and after-sales support With Indias urban population to reach 500 million and the growing infrastructure concerns, consumers will need alternative personal mobility solutions. New entrants such as car-rental companies, multi-brand service networks and group buying companies are already taking a lead to leverage the Indian consumers needs for mobility, after-sales services, and need for enhanced bargaining power. Suppliers to enhance local product development capabilities, supply chain competency, and flexibility to meet diverse OEM expectations By 2020, the OE market for auto components is expected to hit US$100 billion and aftermarket will reach $13 billion. Indias auto component exports to reach US$26 billion, by end of this decade. Global suppliers are setting up R&D centers in India to increase local content in vehicles and at the same time leverage it as a global hub for design and technology. The supplier community will need to adapt to diverse expectations of OEMs, with domestic manufacturers expecting greater flexibility and closer engagement and global OEMs expecting quick responsiveness and global quality standards.at local cost levels. Dealers to focus on managing their capital agenda, skill development and shifting revenue contribution of high- margin allied services In particular, franchises of global OEMs will become attractive because of higher margin offers and flexible payment options. Apart from expanding their portfolio of brand franchises, dealers will also look to increase share of high-margin allied businesses including service, parts and vehicle financing/insurance.

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Automobile sector eyes smooth ride in New Year

Healthy growth prospects and strong fundamentals of the economy to auger well for the industry Samiran Saha New Delhi

Moderation in interest rates coupled with a stable economic outlook will be the key drivers of sales in passenger car segment

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The Indian automobile sector, which was hit poor sales and growth in 2011, is expected to grow moderately in 2012 due to healthy growth prospects and strong fundamentals of the economy.

According to a sector report prepared by global consulting firm Dun and Bradstreet, after the robust 30.8% increase in sales in 2010, growth in domestic automobile sales volumes had slackened to a mere 4.6% in 2011 (January-November). Nevertheless, for 2012, the overall economic growth indicators remain positive auguring well for the automobile industry. W e expect the deferred purchases to get converted into actual sales driven by steady economic growth and strong industrial activity, Arun Singh, senior economist with the consulting firm, said in the report. According to Singh, The expected moderation in interest rates would also give the much-needed boost to sales in the year ahead. The industry as a whole is expected to gain significantly from initiatives in infrastructure development and improved road infrastructure. Vehicle exports will remain on growth trajectory. Exports of automobiles id expected to grow strongly in 2012 although the industry may not be able to sustain the high growth (27-33%) recorded in the recent couple of years, the report maintained. While two-wheelers dominate with a majority share in total vehicle exports from India, in 2012, all the segments are expected to witness healthy performance, the report suggested adding that increased exports could be achieved by the automobile industry if it shifted focus to emerging markets, including the South Asian Association for Regional CooperationPakistan, Nepal, Afghanistan, Maldives, Bhutan, Maldives, Bangladesh and Sri Lankaapart from Brazil, Africa, Indonesia and other new and emerging markets. Regarding the passenger vehicle segment, the report said that moderation in interest rateswhich were increased 11 times in 2011coupled with a stable economic outlook would be the key drivers of sales.

Last month, passenger car sales surged by 7 per cent to 171,131 units in contrast with the sales of 159,939 units in the same period in 2010, according to data from the apex industrial body, the Society of Indian Automobile Manufacturers. Rising disposable income, aspirations for a better lifestyle and a slew of new product launches in 2012 would aid overall car sales, the report projected. Similar factors would also lead to an increase in sales of two wheelers in the country, the report added. Both in 2010 and 2011, scooters were the fastest growing twowheeler segment and in 2012 also we expect sales of scooters to record strong growth. Attractive product offerings, along with rising number of working women and higher aspiration levels among the youth, would keep demand robust. According to the report, With prices of steel and rubber likely to remain firm, and an unlikely rise in prices of other commodities coupled with the auto industry resorting to cost-cutting measures, the industry is expected to maintain profit margins. The report added that if vehicle manufacturers launched new models, enhance availability of vehicle finance and expand their footprint in the new and emerging markets, 2012 would augur well for the industry. However, 2011 was the year that Indias largest carmaker Maruti Suzuki would want to forget. Repeated labour unrest at the companys Manesar plant caused huge losses. Besides, the plunging value of rupee also hit the compay. Following a combination of factors, the companys production fell by nearly 19 per cent to 505,148 units in the April-November period. Similarly, the Chennai-based Indian arm of US car maker Ford Motors also reported a dip in sales by 6.1 per cent to 505,148 units

while Tata Motors sales declined by 9.8 per cent to 147,350 vehicles as well.