It has been a bad beginning for the Auto Industry in stock market this fiscal. First it was hike in interest rates, followed by stringent measures adopted by financial institutions and now increases in prices of raw materials. The downward performance this fiscal follows the impressive performance in 2006 - 2007. The higher interest rates, hard financial options have resulted in negative sales figures of automobile companies resulting in poor performance of the auto stocks.
But, financial observers see downward trend in car sales figures only as a time phrase which could recover by the second quarter. The Indian auto Industry has been in the global news this week with the Tata Motors clinching the Jaguar and Land Rover deal from Ford Motor. But the stock markets have not been favorable for the Tata Motors yet. Soon after the announcement of the deal on Thursday Tata Motors shares plunged by 6.39 per cent at Rs 636 dragging the BSE Auto Index down 1.79 per cent. Tata Motors share had been on the downtrend ever since Ford announced that Tata Motors was the preferred bidder for its luxury brands in January.
Tata Motors on Friday opened at Rs 654 and closed at 645.85 a loss of Rs 9.50. Similarly, Maruti Suzuki which is heavily affected by increase in raw materials opened at 834.75 and closed at 829.25 a loss of Rs 9.05.
Labels: Auto market competition, auto share market in India, Car-Sales, JLR deal, Maruti, raw materials, scenario in India auto industry, Tata Motor
Is any one know that how much
Ford spent initially to buy
luxury car brands-Jaguar and Land Rover?
Ford bought these two high end brands in 1989 at a whooping $10 billion. Ford has invested such a big amount in
Jaguar and Land Rover but failed to reap profits.
Ford suffered a huge loss by selling its luxury brands to Tata for merely $2.3 billion. As far as global players are concerned, they are firmly committed to make their vehicle more appealing and luxurious than their rivals. It is still not known as to why Ford failed to make these brands profitable. Big wigs of world’s auto industry are now thinking of revamping their brands to avoid selling of their brands to any other company after Ford’s failure in Jaguar brands.
Labels: Economical buy, Expansion in Indian auto industry, Ford, JLR deal, luxury cars, Tata Motor
