Tata Motors, India's third largest passenger vehicle maker, took pole position in the competitive sport utility vehicle (SUV) market in October, reveals the data from industry sources. Riding high on the Punch - the sub-compact SUV offering launched on October 18 - the Tata group flagship sold a record 23,381 units in October, higher than 20,022 units sold by archrival Mahindra & Mahindra, 18,538 units sold by Hyundai Motor India, and 15,931 units sold by Kia Motors India. Utility vehicles - that include SUVs and multipurpose vehicles - accounted for almost one in every two passenger vehicles sold in India in the first seven months of the current financial year, according to the Society of Indian Automobile Manufacturers.
The eighth Auto Expo kicks off on Thursday promising new launches and big announcements by domestic and global automobile giants, even as the booming industry sought flexibility in labour laws to maintain the growth momentum.
GST collections in February grew 18 per cent to over Rs 1.33 lakh crore in February even as the Omicron wave dented the month-on-month collection momentum. This is for the fifth time in the current fiscal that the Goods and Services Tax (GST) collection has crossed Rs 1.30 lakh crore mark. Also, this is the first time, cess collection has crossed the Rs 10,000 crore mark, signifying recovery in certain key sectors, especially automobile sales, the finance ministry said on Tuesday.
On Day One of the lockdown announced by the Maharashtra Government, it wasn't business as usual for automobile manufacturing units in the State. Confusion prevailed over regulations-what is allowed and what isn't. While some units ran with less than half the workforce, others sought clarity from the government on what is permissible and what isn't.
However, the World Bank has projected India's GDP growth rate at 7.5 per cent for the next three financial years, including the current one.
Auto sales, particularly of two-wheelers, may not bounce back immediately and may take another two months to come back on track even as car bookings have started seeing an initial uptick. Various states started Unlock 2.0 on Monday, following a fall in the number of Covid-19 cases. Auto sales were hit in May following the impact of Covid-led lockdowns.
This rise was spurred by record kharif sowing - after a good rabi season - that ensured high disposable incomes in rural India.
Maruti Suzuki India continued its grip in the passenger vehicles market in India with five of its models in the top ten best selling models in June.
Mercedes Benz, BMW and Audi have sharply increased their sourcing from India.
The first leg of the 35-day festive period, which ended with Dussehra, failed to bring any cheer for auto companies. While makers of passenger vehicles struggled to meet demand due to the persistent shortage of semiconductors, a recovery in demand remained elusive for two-wheeler manufacturers despite offers and schemes. The overall season, which ends two days after Diwali, is unlikely to bring any turnaround in either the supply or the demand scenario, said dealers and officials at auto companies.
With entry-level cars being preferred amid the pandemic, market leader Maruti Suzuki has strengthened its hold, along with Hyundai Motor India.
The compact segment where Sonet will be launched is crowded with the Maruti Vitara and Brezza, which top the sales' list, and a bevy of models from Mahindra & Mahindra apart from Hyundai's offering. But volumes in this are slightly higher than those in the mid-segment, making it attractive, says Surajeet Das Gupta.
The government hopes that the PLI schemes would provide 200,000-300,000 direct employment over five years, according to sources in the know.
India's water future remains very bleak. The monsoon season, which once extended to 4 months, is now down to less than 30 days of heavy rain.
First off the block will be a new multi-purpose vehicle which is being co-developed with Toyota - Suzuki's alliance partner. The model will also wear a Toyota badge.
For Mahindra & Mahindra (M&M), which has just started executing a comeback strategy for wresting back ground it lost to rivals, this could not have come at a worse time. The maker of the Bolero Neo and the Thar models on Thursday said it would have to halt production at its automotive plant for a week due to the worsening supply situation of semiconductors.
Retail sales of passenger vehicles - the largest component of the pie - jumped 11 per cent year-on-year in October to 248,036 units, largely because of discounts offered during Navratri and Diwali.
Indian auto industry's dependence on China is high and it will continue to be so in the BS-VI era and as the country moves towards electric mobility. Domestic players lack both technological competence and the sheer pricing advantage that support Chinese imports.
After a very weak December quarter and a poor year-to-date fiscal year volumes-when sales plunged to the lowest in nine years, the signs in the first 15 days of January haven't been encouraging either. "Though the severity of the current wave is not as high as the previous one, it has hit the sentiments hard impacting conversion of enquiries into sales," said Vinkesh Gulati, president, Federation of Automobile Dealers Association (FADA).
India on Sunday announced temporary suspension of e-visa facility for Chinese travellers and foreigners residing in the neighbouring country and issued a fresh advisory saying anyone with travel history to China since January 15 can be quarantined.
Owing to the poor market conditions and tepid sentiments, the size of the show has shrunk compared to the last edition, which took place in 2018. A majority of the two-wheeler makers, and several car and commercial vehicle makers, have opted out of this year's show, which opens for the media on Wednesday.
While commercial vehicle (CV) sales were the worst hit, down by 21 per cent to 67,793 units from 85,833 units, two-wheeler sales dropped by 16 per cent to 12,64,169 units from 15,00,545 units. Passenger car sales dropped nine per cent to 215,716 units from 236,586 units.
The $100-billion SAIC would have a dedicated manufacturing facility in India, and would be the first Chinese automaker to do so.
For automakers, the festive season is about raking it in through ramped up sales and attractive consumer offers. However, despite the robust demand, what may spoil the party this year is a global shortage of semiconductors.
The auto component industry caters to automobile industry through a whole gamut of auto parts such as engine parts, body & chassis, electrical parts, drive transmission & steering parts, braking, suspension etc.
The global semiconductor shortage hit passenger vehicle sales in September, with major manufacturers like Maruti Suzuki, Hyundai and Mahindra & Mahindra reporting a decline in sales on Friday. Kia India and Honda Cars also reported a dip in wholesales last month as compared with the year-ago period. Carmakers like Tata Motors, Toyota Kirloskar Motor, Nissan and Skoda, however, reported an increase in passenger vehicle dispatches last month despite supply chain issues.
The auto ancillary industry - one of the worst hit due to the labour exodus - will need at least three months to get its factories up and running.
Samsung is betting on core capabilities like R&D to stay prepared for the new wave of technologies like 5G and IoT (internet of things).
Maruti Suzuki India's grip on the country's car market tightened in October with six of its models, including the newly launched mid-sized sedan Ciaz, featuring in the top 10 selling brands in the month.
As per the conditions set by General Motors, a dealer who does not accept its offer by July 15 would get only 50 per cent of the compensation amount being offered.
'We have the geographic advantage, demographic advantage, we have the necessary technical skills.' 'We just have to get all of these together. Then, we can very well compete.'
Fiat India Automobiles Pvt Ltd (FIAPL), the three-year-old joint venture company formed through the association of Tata Motors and Fiat Auto SpA, is facing rough weather, as it posted record losses last year.
With its political colour dominated by less than democratic trends, BRICS currently leaves some of us wondering -- where in this grouping is there an assurance that human freedom will be respected unconditionally? It would be nice to see the new members of BRICS drawn from the ranks of countries wedded to preserving and guarding human freedom, observes Shyam G Menon.
Apart from the growing adoption of the internet in the country, brands are drawn to the agility of the medium, its targeted and data driven approach and the increasing cost of offline channels for sales and distribution.
'The August phenomenon of decline in sales occurs every year.' 'What they have done cleverly is, using the economic slowdown as an excuse, they want a package from the government to compensate the expenditure they will incur while converting BS4 to BS6.' 'That's why they are making a hue and cry.'
What explains India's love affair with SUVs? They are not exactly "value for money" -- the watchword for brands across segments -- nor always practical. Is it for the badge value? Or the butch imagery associated with SUVs? Maybe both, says Alokananda Chakraborty.
Increasing the duties on auto parts and putting an additional cess on petrol and diesel could drive up costs of vehicles, specially where volumes are low and localisation is not viable.
The entire range of Hyundai's diesel cars - from compact ones to SUV models, including the soon-to-be-launched Aura - will be eco-friendly.
Renault will start with a slew of new products that will be launched over the second half of this year and next year, apart from giving facelifts to the Kwid and Duster.
As macroeconomic numbers continue to disappoint, reaching pre-Covid level is unlikely in FY21.
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