New Delhi, September 14
High interest rates have led to renewed demand for used cars. In fact, the pre-owned car market has been outperforming the new car market over the past few months.

Industry estimates suggest that the used car market, which is currently around 18 lakh units a year, has already incraesed between 20 per cent and 
25 per cent.

The auto industry has already revised its sales growth figure twice this year due to the prevailing low sentiment in the market. Thus, the growth in the used car segment is unprecedented.

Customers waiting with down-payments to pick up loans for new cars are opting to use the same sum to buy pre-owned cars in the wake of high interest rates.

This has also had a reverberating effect on the used cars prices, which have also increased with the increase in demand.

Industry experts point out that since people will hold on to their old cars as they put off buying new ones, the supply side will also dry up a bit making the cars dearer, but still affordable.

A used car dealer said that in his outlet people were ready to pay full advance for a car, but there were not enough sellers.

The demand is greater for diesel and CNG cars as operating costs for these are down drastically compared with petrol-run ones due to a 50 per cent price differential between the fuels. The resale value has also has gone up drastically.

Diesel variants of Maruti Swift, Dzire, Tata Motors Indica, Indigo are very much in demand. Older models of Hyundai Verna, Hyundai Accent, Indigo Marina, Ikon were also in demand, said another dealer.

The situation is quite the same for the new diesel cars with the sales tilting 80 per cent to 20 per cent in favour of diesel as the operating costs go down.

Car dealers say that the demand for diesel cars, especially in the hatchback section, has gone up and is expected to remain high as interest rates go up further.

The market analysts see the Reserve Bank going in for another rate hike at its mid-quarterly policy review on September 16 to fight sticky inflation.

Analysts say that there would be no respite for the auto industry even during the forthcoming festive season, but the slowdown would not be visible in the used car market.

Tokyo/Mumbai, September 14
Suzuki Motor will likely locate a planned $1.3 billion passenger car factory in Gujarat, Japan's Kyodo news agency said on Wednesday, as the automaker looks to expand capacity in its key market.

The report came two days after the company said it wanted to end its alliance with Volkswagen, a tie-up that had been expected to help Europe's biggest car maker expand on the Indian subcontinent.

“We haven't come to a decision yet. We plan to announce the location of the plant by the end of October,” Suzuki spokesman Ei Mochizuki told Reuters.

He added, however, that the automaker's chairman and CEO, Osamu Suzuki, visited Gujarat last week.

Commenting on the factory, a Maruti Suzuki spokesman in New Delhi said: "Nothing has been finalised yet."

Suzuki controls about half the Indian car market through a 54.2 per cent stake in the country's top car maker, Maruti Suzuki.

If it adds capacity in Gujarat, the automaker will join rivals who are building plants in the business-friendly state, turning it into an upcoming auto hub.

Maruti Suzuki currently operates two manufacturing facilities at Gurgaon and Manesar, both in north India, with total manufacturing capacity of one million cars per year.

In July, Ford Motor Co said it would build a $900 million production plant at Sanand in Gujarat, doubling its investment in a country where foreign car makers have been ramping up investment, attracted by a growing market.

Earlier this month, PSA Peugeot Citroen said it was investing around 650 million euros ($933 million) to build a new manufacturing plant in the same city.

Tata Motors also makes the Nano, billed as the world's cheapest car, in Sanand. — Reuters

New Delhi, September 14
Inflation soared to its highest level in more than a year at 9.78 per cent. The Reserve Bank of India (RBI) is now grappling with the twin issues of controlling inflation as well as reviving falling industrial growth.

However, RBI’s balancing act between inflation and growth received a further setback this week, with industrial growth in July slipping to 3.3 per cent, a 21-month low.

Bankers expect the RBI to raise interest rates again by 25 basis points in its monetary policy review on Friday.

The Federation of Indian Chambers of Commerce and Industry (FICCI) said that the latest inflation data released by the government hides more than it reveals. Inflation has begun to taper, it said and called for the RBI to pause rate hikes.

Associated Chambers of Commerce and Industry (ASSOCHAM) said that any rate hike by RBI at this juncture will impact growth.

New Delhi, September 14
A high-level committee to approve public private partnership (PPP) projects today cleared five infrastructure sector projects envisaging total investment of about Rs 7,000 crore.

The projects, which have been sanctioned by the PPP Approval Committee, include development of highways (Agra-Etawah, Rampur-Kathgodam and Raipur-Bilaspur), a Finance Ministry official said.

The committee, chaired by Economic Affairs Secretary R Gopalan, has also asked the ministries concerned to submit status report on development of PPP projects approved earlier, the official said.

"It also sought details on those projects which did not receive any bids though they were approved by the committee," he added. — PTI

Tokyo, September 14
Sony Corp will launch its new PlayStation Vita handheld games device on Dec. 17 in Japan, kicking off a global rollout, and insisted it will not reduce the price in the face of discounting by rival Nintendo.

Sony has been criticised for setting the PS Vita's price too high for the mass market but some analysts say the gadget will likely appeal chiefly to hardcore gamers, who are generally willing to spend more.

Hiroshi Kawano, president of Sony Computer Entertainment Japan, presented the domestic launch plans to reporters a day ahead of the annual Tokyo Game Show.

The PS Vita, first unveiled in Tokyo in January, is expected to go on sale in the US and Europe in early 2012, but exact dates have yet to be revealed. — Reuters

New Delhi, September 14
An overwhelming majority of over 97 per cent of Cairn India shareholders today voted in favour of company reversing its earlier stand and conceding to pay royalty and cess on its mainstay Rajasthan oilfields.

Cairn India board, however, added a caveat that it will agree to making royalty cost recoverable and pay Rs 2,500 per ton cess on the Rajasthan oil only after partner ONGC issues a no-objection certificate to its parent, Cairn Energy's proposal to sell controlling stake to mining group Vedanta Resources.

The company said "an overwhelming majority of 97.29 per cent" of its shareholders had voted for accepting the two conditions that the government had set for approving Cairn Energy’s sale of 40 per cent stake in its Indian unit to Vedanta. — PTI

Chandigarh, September 14
Dell India will focus on small and medium businesses (SMBs), especially in Tier II and Tier III towns. By bringing out custom made technology for these SMBs; providing them with round the clock support services; and, offering them technology at right price points, Dell India hopes to retain its leadership in providing hardware to the SMB sector.

The company claims to be the leader in selling PCs to SMBs, with a market share of 15.6 per cent.

Not just in India, but in the entire Asia Pacific region, including Japan, the company claims to have had a commendable increase in market share and revenue from SMBs.

The revenue from this sector saw a jump of 11 per cent from Asia Pacific region and Japan, whereas in India, the company has seen a revenue growth of 21 per cent from SMBs in the first two quarters of this fiscal (for Dell, the financial year is from Februray 1 - January 31).

Avik Rudra, senior product consultant for Asia Pacific Japan (APJ) enterprise product consultant, SMB, Dell India, said that with tremendous growth coming from the SMB sector, Dell is looking at increasing its market share.

“Mid-market customers have been under-served by traditional IT companies, though they represent the fastest growing segment. Since there is a huge opportunity here, we are offering to address customer pain points and resolve their problems through our pro- support services, thus allowing them to focus on their business needs,” he said.

The company is creating its pro-support services in all Tier II towns, besides trying to set up its online support service where a customer can log in, list his grievance and get instant solutions.

New Delhi, September 14
Tata Group firm Titan Industries is mulling entry into new categories such as footwear, writing instruments and fragrances as it looks to tap luxury segment and expects to touch a turnover of $3 billion by 2014-15.

The company that sells watches, jewellery and eye-wear under brands such as Titan, Xylys, Sonata, Tanishq and Fastrack is aiming to become a total lifestyle company.

"We plan to add a new category every two or three years and are continuously exploring new categories like footwear, writing instruments, fragrances, leather, etc. Luxury could be our next big step," Titan Industries MD Bhaskar Bhat said in an interview to the group's in house magazine — Tata Review. — PTI

New Delhi, September 14
The Securities and Exchange Board of India (SEBI) today renewed recognition to MCX Stock Exchange (MCX-SX) for one year.

The exchange received an extension of a year in September 2010 without prejudice to the right of SEBI to decide the application of MCX-SX dated April 7 on its merits.

The same matter is now being heard in Mumbai High Court and the final hearing is expected to be held on September 16 to grant extension without prejudice to the case.

The extension will allow MCX-SX to continue offer trading in currency futures segment only. Introduction to offer any new segment would depend on the verdict of the court. — TNS

BRIEFLY

Expert group to revise minerals royalty
New Delhi: The government will set up an expert group to look into royalty rates, which are due for review next year, for all major minerals other than coal, lignite and sand. The 17-member group will submit its report in six months. — PTI

ICICI Pru launches 2 life insurance products
New Delhi: ICICI Prudential on Wednesday launched two life insurance products, ICICI Pru Elite Life and ICICI Pru Elite Wealth, that offer customers the flexibility of choosing the frequency of their premium payments. The products offer customers the flexibility of either choosing a single pay option or a limited pay option for premium payments over a period of five years, the company said. — PTI

Luminous Power launches LED
New Delhi: Luminous Power Technologies has launched LED (light emitting diode) based solar lighting solution, an ideal low cost solution for rural home lighting requirements. Around 62 million rural households depend upon kerosene to meet their day to day lighting needs. Access to clean lighting is key to better quality of living. — TNS

Two French banks downgraded by Moody’s
Paris: Moody’s on Wednesday downgraded two leading French banks, Societe Generale and Credit Agricole SA. The US-based agency has cut Credit Agricole's rating from AA1 to AA2 and of Societe Generale from AA2 to AA3, citing Greek exposure for the former, reported Xinhua. — PTI

Lupin gets USFDA nod for drug
New Delhi: Lupin on Wednesdya said it has received approval from the US health regulator to market a generic version of UCB's Keppra XR tablets, an anti-epilepsy drug, in the American market. — PTI