The $ 93 billion automotive industry contributes 7.1% to India’s GDP
The automotive industry in India has been on a growth trajectory with impressive spikes in sales, production, and exports over the last two years. With an average production of around 24million vehicles annually and employer of over 29 million people (direct and indirect employment), the automotive sector in India is one of the largest in the world.
India is the largest tractor manufacturer, 2nd largest two- wheeler manufacturer, 2nd largest bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car manufacturer and 8th largest commercial vehicle manufacturer.
For every vehicle produced, direct and indirect employment opportunities are created with employment of 13 personsfor each truck, 6 persons for each car and 4 for each three- wheeler and one person for two-wheelers. The $ 93 billion automotive industry contributes 7.1% to India’s GDP and almost 49% to the nation’s manufacturing GDP (FY 2015-16).
As a major employment generator, GDP contributor and FDI earner, the automotive industry is instrumental in shaping the country’s economy and hence regarded as a 'Sunrise sector' under Make in India. In order to further promote the sector, initiatives are being undertaken by the Government of India to promote innovation and R&D and create a favourable policy regime to make India a prominent manufacturing destination. Read More
Post demonetisation - Demand for trucks has fallen by 15-30%
With demonetization of the high denomination currency notes of Rs 500 and Rs 1,000 implemented, it is expected to negatively impact Commercial Vehicle (CV) sales in the near-term on account of the cash crunch. Despite high financing penetration in the CV space, the impact of tight liquidity is likely to cripple the road logistics sector in the near-term and would prompt the transport community to put their vehicle replacement or addition plans on the back burner.
Over the past 3-4 months, CV sales, especially M&HCVs (Trucks) have been on a declining trend on account of waning replacement demand, weak industrial activity and uncertainty related to the impact of Goods & Services Tax (GST) regime on vehicle prices. With the recent demonetisation move, the demand for CVs is expected to come under further pressure, which was otherwise expected to get a boost by the end of the fiscal from pre-buying following the implementation of BS-IV emission norms from April 2017 onwards. Read More
Tata Motors EGM on Dec 22 to remove Cyrus Mistry as Director; Wadia as directors
Tata Motors Ltd has informed BSE that the Board of Directors of the Company, at its meeting held on November 23, has pursuant to the Requisition and Special Notice dated November 10, 2016 received from Tata Sons Limited, Promoter and Shareholder of the Company, holding 26.51% of the voting share capital of the Company and in recognition of the legal rights vested in them as a Shareholder, decided to convene an Extraordinary General Meeting (EGM), to consider and if thought fit, pass an Ordinary Resolution for removal of Cyrus P Mistry and Nusli Wadia as Directors of the Company. The EGM will be held on Thursday, December 22, 2016 in Mumbai. Read More
Volvo S90: Come, fall in love!
I had driven the gorgeous Volvo XC90 in June-July and was impressed with what Volvo’s design team had churned out vis-à-vis competition. And then I got a call in October inviting me to come to Jodhpur to drive the second of Volvo’s offerings from their latest Scalable Product Architecture or SPA-based platform. This is the very impressive Volvo S90 sedan, which will take on the likes of the Mercedes E-Class, Jaguar XF, Audi A6, and BMW 5-series. While the S90 will replace the Volvo S80 sedan, there is actually very little in common between the two. The S80 was the typical Volvo car of yore – boxy, practical, loaded with safety features, and dare I say, boring too. But the S90 speaks the new design language at Volvo – despite the change in ownership with headquarters based in China, the design is very Scandinavian. It is still the typical Volvo car – safe and practical, but now also proudly exudes a sense of refined elegance, luxury, style, and could very well be called the best-looking Volvo to date.
Ahem! Maybe, old timers will disagree and say that the distinction of being the best-looking Volvo car ever should go to the iconic Volvo P1800 – a two-seater, rear-wheel-drive, sports car, marketed as a coupe by Volvo from the early 60s till the early 70s. But then that's like trying to compare Don Bradman vs. Sunil Gavaskar vs. Sachin Tendulkar, and trying to wonder who was the best – different eras, different strokes! Read More
Suzuki Motorcycle offers cashless schemes on all Suzuki products; partners with Paytm and HDFC Bank
Suzuki Motorcycle India Private Limited (SMIPL), asubsidiary of one of the world's leading two-wheeler manufacturers, Suzuki Motor Corporation, Japan is now offering cashless schemes on all Suzuki products in partnership with Paytm and HDFC Bank to help prospective customers during demonetisation.
Customers can book any Suzuki two wheeler by paying an amount of Rs. 20,000 through Paytm and finance the remaining amount, hence eliminating the need for any cash transaction. They would also get a Rs. 3000 cashback from Paytm upon vehicle delivery. In addition, any Government employee or HDFC bank account holder can avail 100% finance for Suzuki two wheeler products from HDFC Bank. Read More
Early chills for automobile sector; long-term demand inching past demonetisation crunch: CarDekho
After ambivalence and uncertainty following the announcement of demonetisation earlier this month, prospective domestic carbuyers are showing signs of return, searching online for their favoured set of wheels, according to traffic data analyses by CarDekho.com, India’s leading auto portal. However, traffic is currently choppy and erratic, with its own sets of highs and lows.
Shobhit Mathur, Director - Strategy, CarDekho: “Although consumption-led sectors are expected to bear the impact of the liquidity crunch, our analyses highlight that car sales and purchase are likely to be cushioned as financing through bank loans play a significant role within the four-wheeler segment. There are apprehensions of disruptions in the rural market - substantial part of the business here is governed by cash transactions - but that would be of temporary nature.” Read More
Toyota Kirloskar Motor selected for “Manufacturing Skill Transfer Promotion Programme’’ by Govt of Japan
Toyota Kirloskar Motor announced its dedicated support to the partnership between India and Japan on the human resource development in the manufacturing sector in India. In Tokyo, on November 11, 2016, the Ministry of Economy, Trade and Industry, Government of Japan (METI) and Ministry of Skill Development and Entrepreneurship, Government of India (MSDE) had signed a Memorandum of Cooperation (MoC) for a “Manufacturing Skill Transfer Promotion Programme”.
This programme will enhance the manufacturing base of India and contribute to "Make in India” and "Skill India,” through training 30,000 persons over next 10 years with Japanese style manufacturing skills and practices through the establishment of the Japan-India Institutes for Manufacturing (JIM) and the Japanese Endowed Courses (JEC) in engineering colleges designated by Japanese companies in India in cooperation between the public and private sectors. The first three such institutes would start in summer next year in Gujarat, Karnataka and Rajasthan. This was announced after talks between honourable Prime Minister Narendra Modi and Honorable Japanese Prime Minister Shinzo Abe. Read More