Page 43 - Automobile Industry

Automobile dealers' body seeks cut in GST on two-wheelers from 28% to 18%

Automobile dealers' body FADA on Thursday sought a cut in GST on two-wheelers from 28 per cent to 18 per cent, saying the segment being essential for millions should not be categorised as luxury item. The industry body said it has appealed to the finance minister, chair of the GST Council, all GST Council members, the ministry of heavy industries, which supervises the automobile sector, and the ministry of road transport & highways. This timely and decisive intervention would help in making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years, the Federation of Automobile Dealers Associations (FADA) said in a statement. "The two-wheeler industry is at a critical juncture, grappling with unprecedented challenges such as rising inflation, stringent emission norms and the post Covid-19 effects. Now is the opportune moment for the GST Council to reduce the GST rate on two-wheelers, making them ..

Automobile dealership industry revenues to grow by 11-13% in FY24: Icra

Aided by robust sales, revenues of domestic automobile dealership industry are expected to grow by 11-13 per cent in the current fiscal, rating firm Icra said on Thursday. The revenue growth this fiscal will be aided by expected 6-9 per cent volume growth and an increase in vehicle prices during the current financial year, it added. Factors like improving consumer sentiments, as seen through a continued preference for personal mobility and rising disposable income, easing supply-side constraints, better features in the new product models, change in product-mix with increasing skew towards high-priced vehicles, etc., are expected to favourably support the sales growth in the consumer segment, Icra said. In the commercial segment, improving economic activities, rising spends in infrastructure and mining activities, a stable financing environment shall support the growth, it added. Potential headwinds could arise from adverse monsoons or the occurrence of the El Nino and its impact on

Hero MotoCorp partners Motosport SA in Costa Rica for sales, services

Hero MotoCorp on Friday said it has roped in Motosport SA as a partner in Costa Rica. As the exclusive distributor for the sale and service of Hero MotoCorp motorcycles and scooters in the country, Motosport SA will play a key role in the rapid expansion of the company's network in Costa Rica, a key market in Central America. "With their expertise in the motorcycle market, Motosport is the ideal partner for Hero MotoCorp as we introduce our technologically-advanced and globally benchmarked products and services here. Our immediate focus is to develop a robust and widespread sales, service and spare parts network across the entire country. We expect our new range of motorcycles and scooters to excite the customers," Hero MotoCorp Head-Global Business Sanjay Bhan said in a statement. Established in 2002, Motosport SA has more than two decades of expertise in the motorcycle industry, with its sales, service and parts network spanning across the entire country. Hero MotoCorp plans to h

PV dispatches highest ever in April, grow 13% YoY, shows SIAM data

2W dispatches up 15% YoY, auto body says all segments have posted growth this April, indicating smooth shift to BS VI Phase 2 emission norms

Suzuki Motor to invest aggressively to grow auto industry in India

Suzuki Motor Corporation will continue to invest aggressively to grow the automobile industry in India, a senior company official said on Thursday. "We will continue to make investments aggressively to grow the industry and make people happy in India and continuously contribute to Atmanirbhar Bharat," Suzuki Motor Corporation Executive VP Kenichi Ayukawa said. In a tweet shared by the Finance Ministry, Ayukawa said Maruti Suzuki India has announced an increase in annual production capacity by one million units last month. "This could never have happened without the continuous support from the government of India," Ayukawa, who previously headed Maruti Suzuki India, stated. He noted that India is now the third-largest automobile market which is expected to expand in the future. "The automobile industry requires long-term, large scale capital investment. In this regard, the consistent support by the government to the manufacturing sector is very very important, also including the PL

myTVS parts division on expansion spree, to add one store a day in FY24

Under Ki Mobility, two brands are functioning at present, which includes myTVS for the automobile service business and myTVS Partsmart for the parts business

Gabriel India ties up with Inalfa to manufacture sunroofs for PVs

Auto component maker Anand Group on Tuesday said its unit Gabriel India has inked a technical collaboration with Netherlands-based Inalfa Roof Systems to manufacture sunroofs for the passenger vehicles. The newly formed Inalfa Gabriel Sunroof Systems (IGSS), which will initially be a wholly-owned subsidiary of Gabriel India, will produce sunroofs at a new plant in Chennai with operations set to commence in the first quarter of 2024 with an investment of around Rs 170 crore. The entities noted that the IGSS will be later converted into a joint venture with Inalfa holding 51 per cent shareholding. IGSS will have an installed production capacity of 2 lakh units in the first phase with first line catering to South Korean automakers Hyundai and Kia. "This partnership supports the government's AtmaNirbhar manufacturing drive; provides our OEM (Original Equipment Manufacturer) customers with a domestic and resilient supply chain for sunroofs," Anand Group Executive Chairperson Anjali Sing

FADA flags concerns over 2-wheeler sales by unauthorised multi-brand stores

Automobile dealers' body FADA on Tuesday said the illegal practice of unauthorised multi-brand outlets selling two-wheelers is making legitimate dealerships lose business and turn unviable. The Federation of Automobile Dealers Associations (FADA) said it has approached various authorities to take strict action against the practice. The multi-brand outlets (MBOs) are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates, higher than the prices offered by original equipment manufacturers (OEMs) through authorised dealers, without any commitment to after-sales service, FADA said in a statement. This has not only impacted the legitimate dealerships but has also shaken customers' confidence in the brand and dealer partners, it added. Furthermore, the outlets indulge in evasion of GST, income tax, issuance of fake/ undervalued insurance policies, delivery of vehicles without registration/ HSRP and helmets, resulting in revenue loss on ..

Overall connected vehicle technology grows 60% on year in Jan-Mar

Overall connected vehicle technology grew more than 60% (on-year) in first quarter of this year, with the electric vehicle market showing stupendous growth by 48% YoY, a report showed

Q4 earnings: India Inc's net profit growth slowest in 11 quarters

Slowdown in revenue growth, spike in interest expenses hit Q4 earnings

General Motors lays off several hundred full-time contract workers

The Detroit automaker did not immediately respond to a Reuters request for comment. GM shares were up about 2.5% to $33.86

TVS Motor's total sales sees 4% YoY uptick to 3.06 lakh units in April

TVS Motor Company on Monday reported a 4 per cent rise in total sales to 3,06,224 units in April 2023 compared to 2,95,308 units in the same month last year. Total two-wheeler sales grew by 5 per cent to 2,94,786 units last month as against 2,80,022 units in April 2022, with domestic sales rising to 2,32,956 units from 1,80,553 units in the year-ago period, TVS Motor Company said in a statement. Sales of electric scooter TVS iQube Electric were at 6,227 units in April 2023 as against sales of 1,420 units in the same month last year, it said, adding the production was constrained last month due to new battery safety norm AIS156 changeover and supply chain challenges. On the export front, the company said overseas shipments were at 71,663 units last month as against 113,427 units April 2022 with two-wheeler exports at 61,830 units, down from 99,489 units in the year ago-month. Three-wheeler sales were at 11,438 units in April 2023 as against 15,286 units in the same month last year,

To match Indian aspirations, carmakers to launch 81 new vehicles this year

Carmakers are looking at new sub-segments in the SUV space and trying to expand their offerings to lure in more and more customers

Maximum waiting period accelerates for India's best-selling cars

Only five of India's top 20 car models have seen a reduction in wait times over the past year

Govt releases regulations under PLI scheme for automobile industry

The Union government on Thursday announced the standard operating procedure of the production linked incentive scheme for automobile sector, whereby applicants can submit applications for testing and certification of advanced automotive technology products, which will help them qualify for incentives. Minister of Heavy Industries Mahendra Nath Pandey said his ministry is trying to align itself with the Prime Minister's vision of Aatmanirbhar Bharat, and these SOPs (standard operating procedures) will not only help achieve that but will also help in increasing the manufacturing foothold. With this, the ministry aims to boost the domestic manufacturing sector and reduce dependence on imports, thereby creating more job opportunities for Indians. Pandey also added that it would contribute to the overall economic growth of the nation. The scheme is expected to attract significant investments and help India become a global hub for automobile manufacturing, an official statement said. The

Don't see growth in small car segment in this fiscal year: R C Bhargava

With rising commodity prices and increasing inflation, the cost of acquisition for small cars has increased significantly during the last few years

Maruti Suzuki Q4 net profit up 42.6%; firm declares dividend of Rs 90/share

The automaker also declared a dividend of Rs 90 per share

Mahindra & Mahindra to increase LCV production capacity as demand rises

As per the SIAM data, M&M's domestic sales of LCVs in this segment reached 198,121 units in 2022-23, indicating that production capacity is almost fully utilized

Is Apple's focus on India as momentous as Suzuki's entry 40 yrs ago?

The full measure of Apple's success in India will depend on its becoming more than a phone company. Still, this promising start is sufficient for the moment, writes T N Ninan

Jaguar Land Rover raises EV drive bill to £15 bn to catch up with peers

Jefferies, in a report this month, noted that JLR had been focusing on improving profit and cash flow with an emphasis on selling higher-margin SUVs