CORPORATE REVIEW: TRACTORS-- BUMPY RIDE
Article Abstract:
The Indian tractor industry lacks innovation. Eicher has taken 5- 6 years of in-house research and development to produce a 50 HP conventional tractor. The innovation in the Indian tractor industry is expected to be slow due to take-overs by big companies, mergers and marketing arrangements. In the nine months ended December 31, 1998, about 187,673 tractors were sold in India. Mahindra & Mahindra (M&M), Punjab Tractors (PT) and Eicher have posted growth in sales volumes. Escorts and HMT have shown decline in the sales volumes. The growth rate of tractor industry is likely to be in single digit in 1998-99 compared to 15 percent in 1997-98. The levying of excise duty of eight percent on tractors with less than 1,800 cc engines has stunted the growth rates and made them uncompetitive. During the nine months ended December 31, 1998, PT's sales were 34,074 tractors, M&M's sales increased by two percent to 50,568 units and Eicher's sales up by five percent to 17,762 units. During the same period HMT's sales declined to 11,560 units from 13,400 units. (rk)(psr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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CORPORATE REVIEW- TWO-WHEELERS -- WELL TRADED
Article Abstract:
The sale of scooters went up by 4 percent, motorcycles by 24 percent and mopeds by 8 percent during the nine-month period ended December 1998. This growth is due to the increase in personal disposable income and the poor public transport system. The bad condition of roads in the rural and semi-urban areas, growth in income and replacement demand will increase the demand for motorcycles. In urban areas, scooter demand will rise due to the shift from mopeds to the scooter segment. Scooterettes demand is expected to increase due to the shift from the moped segment and also due to the increasing preference among the working women and students. Two methods are identified to tackle the anti-emission problem facing the industry. One is making changes in the design of the vehicle and the other is the replacement of two-stroke engine by a four-stroke one. Fitting a catalytic converter in the exhaust tube is another method ,but it is not an economical one. (kp)(psr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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