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It is called the game of survival, that which makes species like “In-Car Navigation Systems” reinvent themselves against the assault by alternate devices. In the mid 2000s, it was the advent of PNDs (Personal Navigation Devices) - which were available for less than $100,clung on to the wind shield and seemed to offer everything that a $500-$2000 in-car navi could offer. There were predictions of the entire infotainment systems market getting wiped out, but what looked like an explosive new product saturated and now shows significant decline. The in-car navi survived. In the recent past, it is the invasion of the all pervasive smart phones. With the smart phone market growing by 50 per cent and 2 billion devices expected to be sold to end consumers this year, it is obvious that the trend cannot be ignored. The threat of a new device disrupting many individual markets looms around all the time. But people do not seem to prefer a single ubiquitous device that could be your computer, mobile phone, audio player, video viewer and in-car navi system. The famous question of ‘convergence of devices’ pops up often, but coexistence of multiple devices appears to be the way. In the near term, smart phones will not outsmart in-car navihead-units. Rather, the trend is clearly towards strong integration, giving rise to a new symbiotic technology trend.Automotive Apps are leading at the forefront of this innovation wave due to integration. Broadly, two types of apps are emerging. There are apps that enable locking the car and switching on the heater/cooler remotely, which provide car functions on a smart phone. There are Apps like in-car version of Facebook or internet radio Pandora that runs on the infotainment platform and makes smart phone features available in the car. This makes the smart phone and the car infotainment system an inseparable pair, rather than a competition to each other. There are a wide range of utility apps available for users. The simple app called GasBuddy gives cheap gas prices nearby, helping users to save on fuel costs. Technology savvy users could use apps like “Dynolicious Fusion” which gives vehicle performance measurements – real time horsepower, 0-60 miles acceleration time, lateral G-forces etc.Diagnostic codes can be read and issues fixed faster by knowledgeable users. In the context of electro-mobility, Apps are indispensable. Apps help monitor charge levels, plan routes with charging schedule and act as a guide to charging stations.The ecosystem to support automotive apps is evolving rapidly. GM calls it Mylink, Ford calls it AppLink, Nissan offers Carwings for Leaf, almost all OEMs are creating platforms to explore the possibilities of automotive and smart phone integration. In every autoshow and Consumer Electronics event, new solutions with smart phone integration are showcased. Emerging open platforms allow independently developed apps to be launched. What remained as a closed space between OEMs and suppliers is opening up.The Apple model is getting replicated with business models and strong user communities. OEMs are seeing clear business benefits and brand value in establishing their own platforms to deploy Apps.Like any other emerging technology trend, there are challenges to battle. The idea of automotive apps is not to grant the pleasure of playing Angry Birds while driving. There is a definite risk of business models pushing pop-up ads which load the display. Till automatic driving becomes an everyday reality, driver distraction will remain a fundamental topic not to be ignored. Already there are concepts to disable certain distracting functions depending on driving conditions, these will get further strengthened.Looking in to the future, just replicating the screen from a mobile device on the in-car display would not be enough value. More and more automotive functions would get tightly coupled to smart devices. Enough has been done to bring the internet in to the car and now the effort is on to take the car on to the internet, on to the cloud. Automotive apps could continue to lead the innovation wave, connecting cars and its users.(The author is Sri Krishnan, Vice President, Robert Bosch Engineering and Business Solutions Limited)
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State-run gas utility GAIL India is in talks to buy a stake in the Tanzanian assets of British oil explorer Ophir Energy Plc, the Indian company's marketing head said.Ophir had offered to sell a 40 per cent stake in the Tanzania gas field, half of which has already been sold, said Prabhat Singh."There are various options. We are negotiating with them," Singh told reporters, without elaborating how much stake GAIL plans to buy.(Reuters)
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The rupee is weaker at 62.375/385 compared with previous close of 62.315/325 on global dollar strength after strong US ISM data.Dealer says sharp fall in the September-quarter current account deficit, though on expected lines, is positive for the rupee.The pair continuing to have strong technical support at 61.9.Power Grid Corp of India follow-on share sale opens for subscription, plans to raise Rs 7083 crore.Foreign funds were buyers of $127.05 million in Indian equities on 2 December, provisional data showed.Asian currencies are mostly trading weak.The yen remained on the backfoot early in Asia on 3 December, having succumbed to further selling pressure on prospects of more stimulus from the Bank of Japan.(Reuters)
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Belying hopes raised by a higher-than-expected GDP growth in the July-September period and expectations of manufacturing growth as PMI figures rose to the highest since March, output of eight core sector industries contracted by 0.6 per cent in October due to poor showing by coal, oil and gas sectors.The decline in output of eight core sector industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity — was especially disappointing as it followed a robust 8 per cent growth in September.According to the data released by the government on Monday (2 December), the output of eight infrastructure industries in April-October was a mere 2.6 per cent against 6.8 per cent in the same period of the last fiscal.The eight core industries have a combined weight of about 38 per cent in the Index for Industrial Production (IIP).The October IIP numbers will be released in the second week of December. Commenting on the data, Crisil's Chief Economist D K Joshi said the performance of the core sector is likely to remain subdued in the coming months as well.Natural gas output contracted by 13.6 per cent in October year-on-year.Coal production declined by 3.9 per cent.Crude oil output was also poor with 0.8 per cent fall in the month under review.Petroleum refinery production declined by 4.8 per cent.Read Also: Manufacturing Returns To Growth In NovAmong those which put up good performance, fertiliser output registered a growth of 4.1 per cent and steel production grew at 3.5 per cent.Cement and power generation sectors posted marginal growth of over 1 per cent each in the month under review. PMI GrowsIndian manufacturing returned to growth last month as a strong rise in orders pushed factories to step up production, a business survey showed on Monday, suggesting a slow economic recovery is on its way.After sluggish growth of the first quarter, the economy had grown at a higher-than-expected 4.8 per cent in the three months through September, helped by an uptick in farm, manufacturing, construction and services sectors.An expansion in manufacturing can only boost optimism after data on Friday showed Asia's third-largest economy grew at a higher-than-expected rate in the three months through September.The HSBC Manufacturing PMI, compiled by Markit, rose to 51.3 in November from October's 49.6.The PMI index is the highest since March and marks its first time above the watershed level of 50 that divides growth from contraction in four months."Manufacturing activity picked up, led by a rise in new domestic orders, which helped pull up output growth," said Leif Eskesen, chief economist for India at survey sponsor HSBC.
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The rupee is trading higher at 62.31/33 from its previous close of 62.44/45 on marginally stronger-than-expected September quarter GDP numbers and stronger Asian FX.Asian currencies are mostly trading firmer.An expansion in farm output and some infrastructure helped India's economy recover slightly in the September quarter, but growth still hovered close to decade lows, tempering hopes of a sustained rebound ahead of elections due next year.RBI's special FX swap windows, which have garnered over $25 billion, closed on November 30, which will remove a key support for the rupee.Foreign funds were buyers of $119.22 million in Indian equities on 29 November, provisional data showed.(Reuters)
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The rupee is higher at 62.30/31 versus Thursday's (28 November) close of 62.41/42 on weakness in the global dollar. India to release September-quarter GDP data with the economy expected to show marginal pick-up in growth.Pair headed for a second week of losses, down 0.9 per cent; however, on a monthly basis, it is up 1.3 per cent. Month-end oil-related dollar demand will keep the pair bid.The central bank's special FX swap windows, which have garnered over $25 billion, will close in end-November, leading to some jitters on flows.The pair may be in a 62-62.50 range during the session. Foreign funds were buyers of $16.5 million in Indian equities on 28 November, provisional data showed.Asian currencies are mostly trading firmer.The euro rose to a five-year high against the yen on 29 November, as the Japanese currency faced heavy pressure on expectations it will be used as the funding currency of choice for carry trades given Japan's commitment to easy monetary policy.(Reuters)
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Government bonds higher on 29 November tracking early gains in the rupee. However, dealers expect some selling ahead of the Rs 14,000 crore bond sale.The yield on the new 10-year bond is flat at 8.72 per cent, after falling to 8.70 per cent. The existing 10-year benchmark bond yield is 2 bps lower at 8.99 per cent.Bond sentiment took a minor hit after Economic Affairs Secretary Arvind Mayaram said the government is in no rush to have India included in global bond indexes.India to release September-quarter GDP data at 1200 GMT. Economic growth probably picked up slightly in the quarter, but weak investment levels have tempered hopes that strong rural demand and a rebound in exports will drive a sustained recovery ahead of elections due early next year.(Reuters)
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The rupee fell in early trades with the unit at 62.31/32 per dollar versus Wednesday's close of 62.14/15. Month-end oil-related dollar demand will keep the UD/INR pair bid.USD/INR bulls need to defend 61.9 levels.RBI's special FX swap windows, which have garnered over $25 billion, will close in end-November, leading to some jitters on flows.The pair may be in the 62.10-62.50 range for the session.Foreign funds were sellers of $7.8 million in Indian equities on 27 November, provisional data showed.Asian currencies are trading mostly weaker.The yen languished at fresh lows against the euro and dollar early in Asia on Thursday on track for one of its worst monthly performance this year, while sterling climbed on more evidence of a stronger economic recovery at home.(Reuters)
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Pandurang Ghorpade has the weather to thank as he hands out celebratory sweets to neighbours eager for a ride on his prized new possession, a gleaming red tractor bought in anticipation of a bumper harvest."Unlike last year, there wasn't any shortage of water this year," Ghorpade said. "My earnings are likely to rise from sugarcane and ginger crops that have grown vigorously."The best monsoon in six years means similar scenes to the one in Shirdhon southeast of Mumbai are being played out across much of rural India, home to two-thirds of the 1.2 billion population. It also means sales of tractors and motorbikes are surging, raising hopes this pick up in activity will spread and feed a wider revival in an economy that has slumped to its worst growth in a decade.But the benefits may be fleeting because rural growth alone will not be enough to pull India's economy out of the doldrums longer term. The countryside produces only a third of India's gross domestic product and in the urban areas that drive growth, business in showrooms and shopping malls is still shrinking."As we sit in mid-November, we have not seen signs to suggest that there is a significant increase in output," Tushar Poddar, chief India economist at Goldman Sachs, said in a conference call last week.The economy is battling to recover from a significant slump. Growth slid in the fiscal year to March 2013 to just 5 per cent, the lowest pace since 2002/03, as a stalled reform agenda prompted investors to flee. A vulnerable current account swelled to a record deficit, knocking the rupee to a record low.Since then, rural demand and other encouraging signs - a revival in exports and a narrowing of the current account deficit - have given India's policymakers reason to think the worst of the two-year slump may be over.Tractor sales in India rose nearly 29 per cent in October from a year earlier, reaching a record high of 94,227 units. Sales of motorbikes, bought when farmers graduate from bicycles, jumped 18 per cent in the same month.Consumer goods companies like Hindustan Unilever and natural health care firm Dabur are trying to boost rural sales. Helped by the boon, Dabur's net profit jumped by 23 per cent in the September quarter from a year earlier."We are seeing demand from rural India outpacing the urban markets," Dabur said in its earnings release late last month.Finance Minister P. Chidambaram also sees the rural rebound and exports revival as encouraging, suggesting they would help the economy recover in the second half of the fiscal year ending on 31 March.But by the government's own estimates, expansion for the full fiscal year could be as low as the 5 per cent recorded last year, a far cry from the 8-9 per cent growth rates the government of Prime Minister Manmohan Singh has aspired to in recent years.Some economists, such as Poddar, argue even 5 per cent may be ambitious. High inflation is impinging on urban demand and businesses are holding back investment until they can see the shape of a new Indian government due to be elected by May 2014.The central bank under new governor Raghuram Rajan has already raised its policy interest rates twice to counter inflation, adding to borrowing costs.The competing pressures on the economy are expected to be reflected in a report on Friday on India's GDP for July to September. Although annual growth is seen rising to 4.6 per cent, a little better than the previous quarter, the data will likely show the economy is not firing in all areas.That is familiar to India's largest utility vehicle maker Mahindra and Mahindra.While the company's tractor sales jumped 21 per cent as the monsoon rains fell between July and September, sales of passenger vehicles including SUVs, mostly bought in the cities, slumped 25 per cent.Bright SpotsExports have gained sharply from the competitive boost from India's weak currency, which is now above its record low but still near historically weak levels.Overseas sales generate nearly a quarter of GDP and merchandise exports have been posting double-digit growth since July, the best run in nearly two years.Textiles, in particular, have made the most of a weak rupee. Exports from the sector have grown an annual 12 per cent this year compared with a 9 per cent fall last year. Most garment exporters are either running at full capacity or have outsourced manufacturing jobs to meet rising overseas demand.But the good times have so far not encouraged other industries to make the kinds of investment in adding production capacity that would help kickstart wider economic growth - partly because domestic demand remains depressed.India's iron and steel industry, for example, is relying on its idle capacity to sustain double-digit growth in overseas sales that it recorded between April and September.Seshagiri Rao, joint managing director of JSW Steel, blamed subdued domestic demand from major steel consuming industries such as real estate, infrastructure and autos."This will have to come back again only then we will see steel consumption growth in India," he said.Weak investment lies at the heart of India's economic malaise. Capital investments crawled at a decade-low of 1.7 per cent last fiscal year. Goldman Sachs expects investment growth to slow further to 1.2 per cent this fiscal year, dragging down overall economic growth to 4.3 per cent.To lift the sagging investment rate, the government has expedited clearances for big ticket infrastructure projects. But the impact on the ground has yet to be felt."Do I see a significant improvement in (investment) activity over the next three to four months? I would say we have not seen evidence to suggest that," Poddar said. (Reuters)
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The rupee opened higher on corporate dollar inflows, with the pair at 62.28/29 versus its previous close of 62.50/51. Dealers speculate inflows relate to Mylan Inc's purchase of a unit of Strides Arcolab Ltd. The deal was valued at around $1.6 billion when announced in February."The deal-related flow has been hitting the market for the past few days," says dealer.Month-end oil-related dollar demand will keep the pair bid.Foreign funds were sellers of $54.27 million in Indian equities on 27 November, provisional data showed.Asian currencies trading lower. SeeThe dollar wallowed at one-week lows against a basket of major currencies on Wednesday, undermined by lower Treasury yields after a batch of data failed to sway markets one way or the other over when the Federal Reserve will scale back stimulus.(Reuters)
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