South East Asian Automotive News

The Association of Indian Automobile Manufacturers (AIAM) proposed a reduction in excise duty on passenger cars, two wheelers, commercial vehicles, auto components and tires. The AIAM proposed reducing the excise duty on passenger cars from 40% to 25% and on commercial vehicles from 15% to 10%. (May 28^th 1998)

Corning Inc, of the US, is building a facility in Shanghai, China which will include sales, marketing, engineering and manufacturing operations for the company's substrate products used in automobile, truck, bus and motorbike catalytic converters. The facility will be wholly owned by Corning with an investment of US$77m. Construction of the plant is expected to begin in the fourth quarter of 1998. (May 7^th 1998)

Delphi Automotive Systems, the GM auto parts subsidiary, is increasing capital in its Indian venture from Rp285 crore (US$57m) to Rp450 crore (US$90m). Delphi has 100% ownership of the venture, which manufactures brakes, catalytic converters, condensers, drive shafts, steering elements and wiring harnesses. The Delphi venture is expected to generate significant export revenues. (April 20^th 1998)

Deng Feng Motor Corp, one of China's largest car manufacturers, is set to double its output in the next two years. Deng Feng has set a goal of US$4.3bn in revenues on sales of 350,000 units by the year 2000. It also intends to increase market share to 14% from its present 11% share. (May 5^th 1998)

Fiat Auto plans to set up ten car maintenance and repair centers in China by the year 2000. Last year Fiat Auto reported US$26bn in worldwide sales, a 19% increase from 1996. (May 25^th 1998)

Ford Motor Coplans significantly to increase its presence in Asia. It currently holds a 1% market share but plans to increase it to 10% within 12 years. It is currently opening a Ford dealership facility in Singapore to be owned by Regent Motors, a subsidiary of Sime Singapore Ltd. Along with the S$25m (US$15m) facility, Ford has car assemblies in Thailand, Malaysia, India, the Philippines, Vietnam and China. (May 22^nd 1998)

Guangzhou Automobile Group of China has signed a contract with Honda Co of Japan to establish a JV, Guangzhou Honda Automobile Co Ltd. Each side will hold a 50% stake in the JV which is valued at US$142m. The JV will begin operations with an annual production of 30,000 Accord series sedans. (May 12^th 1998)

Mitsubishi Motors Corp has cancelled its plan to invest US$70m to manufacture 20,000 high performance 1,800cc diesel truck engines with China North Industries Group. The decision was based on poor demand. (May 27^th 1998)

Samsung Motor Inc, of South Korea, and Ford Motor Co have temporarily suspended discussion on a possible JV. The proposed JV would have involved a tie-up in car production, sales and financing in South Korea. Both sides stressed that talks may resume in the future. (May 26^th 1998)

Suzuki, the Japanese carmaker, and the Indian Government have agreed to a settlement regarding their ten-month dispute over management at Maruti, India's largest auto manufacturer. Suzuki and the Indian Government each hold an equal stake in Maruti. The dispute revolved around the appointment of Maruti's managing director and was resolved when the government agreed to install a Suzuki appointee as MD at the expiration of the current MD's term. (June 9^th 1998)