Toyota drops 'plain vanilla' styling with eye on Hyundai's
rise
14/01/2013
Omkar Rane
President Akio
Toyoda, Toyota Motor Corp in a rare move has brought back Tokuo Fukuichi to
head the design part of a car. Fukuichi, 61 is known as "egg-van"-for
designing first generation Previa, one of the most love it or hate it Toyota
vehicles ever.
Toyota's designs
have started to show signs of change. From luxury brand Lexus's pinched-in-the-middle "spindle"
grille to the Auris hatchback's sharply angled headlights, Toyota is taking
steps to distance itself from a legacy of "plain vanilla" styling. At a shareholder's meeting in June not
everyone is happy with new face of Lexux models. But Fukuichi says "if we
don't take risks now, there will be no future for us".
Toyota cars have traditionally sold on quality
rather than looks. But now Hyundai has hired former BMW designer Christopher
Chapman as chief design at its US design centre. Also Kia promoted Peter
Schreyer, a former Volkswagen designer, as the first foreign president. Now
experts suggest that Toyota's challenges will be building a continuity into its
styling so consumers can recognise one of its model from a block away- as they
can with Audi or BMW.
Fukuichi has shaken up a tradition of design in
Toyota. 100 panel members used to give scores to designs and 30 executives were
involved in making the final decision. Now, designers recommend the model and
comments by panel members are taken only as considerations. Also number of
executives with a say has been cut to a third of what it was.
Car Sales to See Weakest Growth in Nine Years
10 Jan 2013
Prashant Satvi
Car
sales in India are predicted to report their weakest growth in nine years, as
shrinking demand and a sluggish economy hit carmakers. The Society of Indian
Automobile Manufacturers, the body of Indian automakers, predicted 0-1%
increase for FY13. According to the data released by SIAM on Wednesday, cars
are likely to post lower growth than the 1.37% clocked in FY 2008-09 and would
be closer to 2003-04 fiscal growth rate, when it hit negative territory with a
2.09% decline in sales.
Retail companies soar on 100% single brand FDI 12thJan,2013
Pooja Venkat
MUMBAI:
Shares of retailers rose on Wednesday as investors perceived the government's
move to allow full foreign ownership in the country's single-brand retail
market as a precursor to opening up the multi-brand format to global
supermarket chains.
But, the details in the notification to allow 100% foreign direct investment (FDI) in single-brand retail has made analysts more cautious about the sector's prospects. "While this may be perceived as a positive for prospects on FDI in multi-brand retail being allowed, we would adopt a more cautious approach," said Jaibir Sethi and Anirudha Dutta, analysts of CLSA Asia-Pacific.”The tight riders on this relatively uncontroversial subject suggest that any rule change in multi-brand retail would likely be accompanied by even tighter rules," they said in a note to clients. The Nifty rose 0.2% to 4860.95. Sentiment in the retail sector has been downcast since the government's decision to put an earlier move to allow 51% FDI in India's supermarket chains on hold. Analysts said the renewed optimism in these shares may not last for long, though a section of the market hope the government may revive efforts to push through the law to allow global giants such as Wal-Mart Stores, Tesco and Carrefour to buy stakes in Indian retailers after the Uttar Pradesh elections in February."The small scale sourcing requirements may discourage companies as compliance will prove difficult given the requirement to brand goods at the manufacturing stage. This, along with the rules on brand ownership, dilutes the change," the CLSA analysts said.
Implication: The new policy is advantageous for international players such as Adidas, Nike, Louis Vuitton, Hermes and Gucci as it allows them to buy out domestic partners and fully own Indian operations, said Edelweiss Securities. "While the move is likely to have limited impact on listed players, it could be negative for domestic home retail solution players with the entry of Ikea," said Abneesh Roy and Harsh Mehta of Edelweiss, in a note to clients.
But, the details in the notification to allow 100% foreign direct investment (FDI) in single-brand retail has made analysts more cautious about the sector's prospects. "While this may be perceived as a positive for prospects on FDI in multi-brand retail being allowed, we would adopt a more cautious approach," said Jaibir Sethi and Anirudha Dutta, analysts of CLSA Asia-Pacific.”The tight riders on this relatively uncontroversial subject suggest that any rule change in multi-brand retail would likely be accompanied by even tighter rules," they said in a note to clients. The Nifty rose 0.2% to 4860.95. Sentiment in the retail sector has been downcast since the government's decision to put an earlier move to allow 51% FDI in India's supermarket chains on hold. Analysts said the renewed optimism in these shares may not last for long, though a section of the market hope the government may revive efforts to push through the law to allow global giants such as Wal-Mart Stores, Tesco and Carrefour to buy stakes in Indian retailers after the Uttar Pradesh elections in February."The small scale sourcing requirements may discourage companies as compliance will prove difficult given the requirement to brand goods at the manufacturing stage. This, along with the rules on brand ownership, dilutes the change," the CLSA analysts said.
Implication: The new policy is advantageous for international players such as Adidas, Nike, Louis Vuitton, Hermes and Gucci as it allows them to buy out domestic partners and fully own Indian operations, said Edelweiss Securities. "While the move is likely to have limited impact on listed players, it could be negative for domestic home retail solution players with the entry of Ikea," said Abneesh Roy and Harsh Mehta of Edelweiss, in a note to clients.
After Vespa re-entry, Piaggio to launch other brands in India 13thJan,2013
Pooja Venkat
MUMBAI: Europe's largest two-wheeler maker Piaggio, which will relaunch its iconic Vespa scooter in March, may drive in other brands such as Piaggio scooters and Moto Guzzi motorcycles to India in the long run. "We are doing a comprehensive and exhaustive research in India as to what could be the product line for the next few years," Piaggio Vehicles India MD Ravi Chopra told ET. "We will be clear about what should be the road map for Piaggio in India in the next few months," he said. The findings of the study are likely to be completed by March. The Italian two-wheeler maker's global brands include Vespa, Aprilia, Moto Guzzi, Piaggio, Derbi, Gilera and Laverda. While Vespa will be positioned in the premium segment, with 20-25% higher price tags than Honda or Suzuki scooters, the Italian company may bring in Piaggio branded scooters in the mass market. "We have to get into mass market scooter segment that is the large chunk of the market. If we don't exploit at the right time, then I think we will miss out on the opportunity," said Chopra.
Implication: The company may also enter the
executive and premium segments-that is, 110-250 cc and priced between
50,000-1,50,000-and also bring in the Moto Guzzi in the big premium luxury
motorcycles segment. The immediate focus, however, is Vespa.
Chopra declined to comment on its likely price tag, but said the company is
convinced that there are enough takers for a premium scooter. "After an
intensive research, we are more than convinced that there are enough people who
would like to have a lifestyle product, who would like to be part of the
exclusive club," he said. While Piaggio will roll out Vespa 125 cc scooter
first, it eventually plans to bring in the entire range (125-300 cc).
Is Bajaj Corp’s Rally Sustainable?
NEHA sankpal
14th Jan 2013
·
Small – cap FMCG firm Bajaj Corp is the
company to report its quater in this sector. The financial statements are
strong and state an increase in sales by 30.5%.
·
Post this news the stocks of the company
have risen over 1.5 times during this period becoming a re-rating case.
·
The company is a benefiting gain from
light hair oil category. The brand under this category is Bajaj Almond Drops.
This is also their flagship brand.
·
The company’s stock is trading at a
price to earnings multiple of 24.7 on a when compared to Marico. This is one of
the leaders in the hair oil segment.
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