Car sales help Tata12 August 2010
Large India group, Tata have announced a rise in profits thanks to improving sales in its automotive division, Tata Motors. The group are also a major manufacturer of leather and leather products in India. Indian benchmark indices edged higher at the onset of the trading session, driven by a solid surge in shares of commercial vehicles major Tata Motors triggered by turnaround Q1 June 2010 results. Tata Motors share price jumped close to 6% on extending August 10. The group acquired the Land Rover and Jaguar brands from Ford which helped lift sales.
Car sales in India rose an annual 38% in July 2010 to a record 158,764 units, compared with 115,084 units a year ago, as per the latest data. Sales of trucks and buses, a barometer of economic activity, rose an annual 37% to 51,481 units in July 2010. Motorcycle sales in July 2010 rose to 7,10,621 units from 546,233 units a year earlier.
In other news affecting the leather industry. The Reserve Bank of India on August 10 extended the interest subsidy scheme of two percentage points on rupee export credit to additional sectors including leather and leather product manufacturers. The subvention scheme will be available from 1 April 2010 to 31 March 2011, the Reserve Bank of India said in a notification