South East Asian Automotive News

The Association of Indian Automobile Manufacturers (AIAM) reported that Indian vehicle production and sales dropped sharply in February. Truck output in February dropped 23.6%, car production fell 9.7%, and car sales were down 10.9% on February of last year. (March 31^st 1998)

CP Pokphand, the Hong Kong subsidiary of Thailand’s CP Group, is in talks to sell its 50% stake in Shanghai-Ek Chor Motorcycle to a Chinese partner. Shanghai-Ek Chor is the largest motorcycle factory in China, controlling 7% of the market. (March 25^th 1998)

Fiat India Automobiles Pvt Ltd (FIAL) has denied rumours that it will close its Indian operations. FIAL’s stated that its proposed joint venture with Premier Automobiles Ltd (PAL) will increase production to 3,000 Uno cars per month. (March 17^th 1998)

Mahindra and Mahindra, the Indian vehicle group, is increasing wages by 30% in return for more flexible working practices and improved production flow at its utility vehicle plant. The company aims to raise output without increasing its workforce. (March 30^th 1998)

Mahle, the German automotive parts group, is to acquire a further 24.1% stake in Izumi Kogyo, a Japanese maker of parts for diesel engines. The German group will now hold 28.6% of the company, which makes Mahle the joint largest shareholder with Tokyo Izumi. Izumi Kogyo has a 90% share of the Japanese market for truck diesel engine pistons. (March 30^th 1998)