As part of the new exchange program, several Indian automobile manufacturers like GM Motors India, Toyota Kirloskar, Hyundai Motors and Honda Siel have started focusing and aggressively expanding their used car business to increase sales.

The various models of auto companies like Hyundai, General Motors and Toyota You Trust are being aggressive in promoting their models through their used car outlets all across the country. Also, Toyota Kirloskar has set a target of generating 25 to 30% of the sales for its new car, Etios which is a compact car that would be on the road next year, through their pre-owned car outlets.

At Toyota Kirloskar, The Deputy Managing Direct for Marketing, M Sandeep Singh said : “We now have five outlets of Toyota You Trust. Within the next three years, we plan to have 50 outlets. Our aim is to sell 25% of our new cars through Toyota You Trust. We are already selling Innova and Altis through the used car exchange programme. We are expanding our used car outlet footprint, keeping in mind the launch of our compact car, Etios, next year. Toyota You Trust will be one of the major avenues for selling Etios.”

Auto Analysts have said that in India, with newer models with better features and the constant upgrade of technology, customers do not stick to the same car for more than  3 yeas unlike earlier when they used to have the same cars with them for close to 10 to 15 years. The customers these days go for an upgrade within 3 years of purchasing their cars.

As a result of this and also because of the increase in the number of OEMs that have entered this market if used car segments and changing life styles of Indians, the number of choices that they have and favorable demographics, the pre owned segment has been increasing a tremendous growth.

Honda Siel’s used car outlet company is Auto Terrace. The heads of Autto Terrace, My Sunil Ghambir commented  that today, they have close to 117 outlets across India. He also said “In AutoTerrace, we have exchanged more than 4,300 preowned cars for new cars and liquidated them through various channels. In about 70% of the cases, the customer needs exchange at the time of buying a new car. So, AutoTerrace helps the new car department at Honda to present a complete package deal to the customer by buying the used car of the customer”.

He also feels that in the near future, the used car segments would grow much more than the new car segment even though at present both the segments are equivalent to each other.

The Sales and Marketing director Arvind Saxena for Hyundai Motors mentioned “As for the volume, we do around 15% of the total sales through those dealers who also have the Hyundai Advantage dealership. Used-car sales, we expect, will grow at the same rate as the new car sales. Santro is the most popular model sold through the exchange programme.”

Vodafone Essar, one of the top mobile service providers in the country launched an eco-friendly solar-powered mobile phone VF 247. At a function held at the Vodafone store in Fort, Mumbai on Tuesday, Marten Pieters, MD and CEO, Vodafone Essar Ltd. unveiled the instrument along with UK’s Chancellor of the Exchequer, Rt Hon George Osborne MP.

“I’m very pleased to help launch Vodafone’s new solar powered handset. It’s the new UK-India economic partnership in action. The handset will get more people connected, paying less and doing their bit for the environment,” said Rt Hon George Osborne MP after the launch.

“Reflecting a strong commitment to the Indian market, Vodafone continues to launch affordable products and services to cater to the differentiated needs of consumers,” Mr. Pieters said. “Vodafone’s solar powered phone is launched for people residing in areas where electric supply is unstable, so that consumers can rely on solar charging to remain connected. This launch is likely to enable more people in rural India to go mobile and thus increase penetration from the current 20%. We will continue to invest to uplift the quality of telecom services and products in India.”

VF 247 comes with an extended solar power battery, which will be immensely useful for rural subscribers who face the problem of erratic electric supply. The phone charges by itself on exposure to ambient light, even inside a room on a normal day, thanks to Sun Boost, the special in-built hardware and software. Eight hours of direct sunlight can fully charge the unit. This would support four hours of talk time or eight days on standby. The solar phone also has all regular features such as color screen, FM radio and a powerful torch light.

Introducing the solar phone will be helpful in boosting Vodafone’s rural network coverage, which stands second nation-wide at 65%. Vodafone also has the second largest subscriber base in India.

Vodafone VF 247 is expected to cost around Rs 1,500, which includes an electronic charger and will be commercially available in India shortly.

In the coming two to three weeks the Telecom Regulatory Authority of India (TRAI) will come up with details regarding the pricing of the 2G spectrum which has been held in excess by the telecom operators.

TRAI had proposed in May this year that telecom operators should pay for the spectrum that has been held by them beyond 6.2 MHz and the prices should be higher and linked to the price of the 3G spectrum.

TRAI chairman Mr. J S Sharma mentioned that “When we gave our recommendations to the government in May, we had said that we are studying the issue. We have not asked for any extension. We expect to give recommendations in 2-3 weeks,” His comments were regarding the linking of the 2G spectrum price with that of 3G.

A majority of the GSM operators are not in favor of linking the 2G spectrum prices with that of 2G and are not willing to pay a onetime charge for the extra spectrum beyond 6.2 MHz held by them. The operators are taking a stand that the spectrum allocations were made in accordance to the policy and no one is holding any extra spectrum.

The TRAI chairman was asked about his views regarding the observations reported by solicitor general Gopal Subramanium which mentioned that the telecom ministry has all rights to change the conditions governing the existing license and that recommendations made by TRAI are not binding, Mr. Sharma mentioned that “I have seen it in the media today I don’t know what the opinion is about, so I don’t want to comment on that. The question is about the Act and certain provisions in the Act and one goes by those provisions.”

Mr. Sharma also mentioned that “The issue of amendment in the Act is under consideration by the government. They have recently referred to us for our comments. We are considering the matter. We will tell the government what amendments we require. The regulator will continue to be guided by the provisions of TRAI Act 1997.” This was with regards to the amendment in the TRAI act.

The global ratings agency, Moody’s Investors Service upped India’s sovereign local currency rating by one notch from ‘Ba2′ to ‘Ba1′. Despite this raise, the rating is one notch below the investment grade. India’s foreign currency rating has been retained without change at the lowest investment grade of ‘Baa3′. This means that the country’s local currency sovereign rating outlook is positive, while that of the foreign currency sovereign rating is stable.

“The upgrade of the local currency sovereign rating to Ba1 was prompted by the Indian government’s adoption of a medium-term (2010-15) fiscal consolidation strategy, which is supported by a broadening structural reform programme,” elaborated Aninda Mitra, Moody’s VP and lead sovereign analyst.

To combat recession, the government had introduced various stimulus packages during 2008-09, which derailed plans of narrowing fiscal deficit. This led to further widening of fiscal deficit and various international rating agencies issuing warnings of downgrading sovereign ratings. However, with the government systematically tackling the issue of fiscal deficit with diverse stimulus exit strategies of varying scales, it is expected to reach below 5.5% of the GDP during the current fiscal.

The rating agency said, “Moody’s will consider unifying India’s local and foreign currency ratings at Baa3 should the track record of fiscal reforms deepen, and if — currently higher than usual — inflation pressures normalize.” This would provide the much-needed boost to government’s fiscal reforms and help in improving the creditworthiness of rupee.

The latest development means added confidence in the country’s economy and is useful in reassuring foreign investors and in attracting funds to India. This could also help in strengthening the rupee against foreign currencies, which in turn could bring in additional funds.