Berlin  - Europe's biggest carmaker Volkswagen AG said Thursday worldwide sales of its flagship VW brand slipped 1.5 per cent to 305,000 during July in the face of growing economic uncertainty and high fuel prices.

However, the German-based auto giant said it set a new record for worldwide deliveries during the first seven months of the year, rising by 4.7 per cent to 2.21 million vehicles.

In particular, the world's leading emerging economies continued to power VW sales, with China reporting a 12.9 per cent increase in deliveries between January and July.

Hero Honda, the country’s largest two-wheeler manufacturer, has increased motrocycle prices across various models by up to Rs 1,500 owing to rising input costs.

The price hike makes its high-end bike ‘Karizma’ dearer by Rs 1,500, while mid-range bikes like ‘Splendor Plus’, ‘Passion Plus’, ‘Hunk’ and ‘CBZ’ will be costlier by Rs 600 to Rs 850.

The CD Deluxe, entry level two-wheeler manufacturer will now be costlier by Rs 100. Earlier this month, the company has increased the price of its 100cc bikes by up to Rs 850 to offset rising costs.

Mahindra and Mahindra Financial Services (Mahindra Finance), a non-banking finance arm of USD 6.7 billion Mahindra Group, has got into an understanding with car makers General Motors and Hyundai to provide finance for their vehicles in the rural and semi-urban markets.

The latest move corresponds with the automakers’ plans to strengthen their presence in the rural markets, where Mahindra Finance has a fairly large network.

Hanover - Giant German auto supplier Continental AG approved a takeover offer by smaller rival Schaeffler early Thursday morning after weeks of talks.

Bearings manufacturer Schaeffler agreed to increase its offer to 75 euros per share from 70.12 euros, the companies said. Continental chief executive Manfred Wennemer will step down by August 31.

Schaeffler will maintain only a minority share of tyre-maker Continental for four years.

The Continental board last month formally rejected Schaeffler's earlier 70.12 euros a share bid as too low.

A slump in the car industry combined with an 11-billion- euro acquisition last year had helped to drive down Continental's shares, leaving the group exposed to takeover.

General Motors had put up its brand Hummer for sale SUVs as it saw a sharp drop in the sales of these vehicles and it now plans to shift its focus from trucks and SUVs.

Meanwhile Mahindra and Mahindra’s Vice President, Anand Mahindra, scrapped all speculations about Mahindra and Mahindra acquiring the gas guzzling Hummer from General Motors.

The Company does not wish to tarnish its image by acquiring Hummer, which does not carry the eco-friendly image.

Due to the increase in input costs, Hero Honda, country’s largest two-wheeler maker has increased prices of its product across its various models up to Rs 1,500.

Anil Dua, Hero Honda Motors Senior Vice President (sales and marketing), informed, “A couple of weeks back; we have increased the price across various models in order to partially pass on the increase in input cost to the customers.”