Commercial vehicle sector continues to see production cuts

Source: The Hindu Business Line, Sept 09, 2019

Chennai: Commercial-vehicle makers continue to plan production halts at their factories as the demand for trucks remain depressed.

September will be another month characterised by production cuts as truck makers see no visible green shoots despite the start of the festival season in many parts of the country.

The second-largest medium and heavy commercial vehicle maker Ashok Leyland has planned massive production cuts across its factories for this month. Read the rest of this entry »

Slowdown blues: Auto sales down 23.5%, worst slump in two decades

Source: Business Standard, Sept 10, 2019

New Delhi: Passenger vehicle sales in the country declined for the 10th straight month as carmakers resisted increasing inventories at dealerships, signalling that it would be a muted festive season this year.

Domestic sales of passenger vehicles fell 31.6 per cent year-on-year to 196,524 units in August, according to the data released by the Society of Indian Automobile Manufacturers (Siam). That’s the steepest decline since 1997-98 when Siam started recording data. Read the rest of this entry »

Auto component companies put $2 billion investments on hold

Source: The Economic Times, Sept 09, 2019

NEW DELHI: The slowdown has forced the Indian auto component industry to hold at least $2 billion (about Rs 14,330 crore) investment planned for this year, said Deepak Jain, the recently appointed president of the Automotive Component Manufacturers Association.

Jain said investments in capacity expansion have been put on hold but the industry is still doing certain investments in innovation. He said the industry has invested about Rs 90,000-110,000 crore in switchover to the more stringent BS-VI emission norms, which will come into effect from April 1, 2020, and that of this amount the auto component industry has invested about Rs 30,000 crore. Read the rest of this entry »

From Maruti Suzuki to Tata Motors, auto sales see steep fall in August

Source: Business Standard, Sept 02, 2019

New Delhi: In a clear sign of the slowdown in the economy persisting, India’s automakers on Sunday reported their monthly sales numbers, which showed that sales of four- and two-wheelers almost halved in August, compared to the equivalent month last year.

The numbers indicate the upcoming festive season may not be enough to revive customer sentiment. This also led to fears that contrary to automakers’ expectations that car sales have bottomed out, the worst may not be over. Read the rest of this entry »

Auto industry welcomes government steps to revive sales

Source: LiveMint.com, Aug 24, 2019

Senior executives of automobile manufacturing companies and various lobby groups have welcomed the steps announced by the union government on Friday to arrest the downturn in the sector.

Most believe the liquidity situation at both the dealer and customer end will ease after the recent announcements.

To boost demand for automobiles and arrest the precipitous decline in sales the Centre on Friday announced a slew of measures like mandating government agencies and departments to replace old vehicles, increasing depreciation on new vehicles for commercial fleet service providers, urging banks to make automobile loans cheaper and increase credit availability to non-banking finance companies. Read the rest of this entry »

Govt softens stance on time frame for transition to electric vehicles

Source: Business Standard, Aug 01, 2019

The government seems to have softened its stance on the time frame for transition to electric vehicles (EVs).

The Ministry of Heavy Industries, the Ministry of Road Transport and Highways, the power ministry, and the NITI Aayog — tasked with the policymaking and implementation of the government’s e-mobility plan — have extended an olive branch to the beleaguered automobile industry by agreeing to a “softer, pragmatic, phase-wise approach”. Under the revised plan, highly-polluted urban cities will be targeted first.

The change in stance follows a strong opposition by automakers of the proposed government plan to ban two-wheelers (below 150cc) and three-wheelers by 2023 and 2025, respectively, and replace them with battery-operated EVs. The industry had said the move was not well-thought-out and would create unwanted disruptions in a market where infrastructure and ecosystem for EVs was non-existent. Read the rest of this entry »

Auto slowdown: 286 dealers closed down in 18 months, 32,000 jobs impacted

Source: Business Standard, Jul 29, 2019

Chennai: A slowdown in the automobile sector has resulted in 286 dealers winding up operations across India. This has affected 32,000 jobs. A big chunk of the closure was reported in urban and semi-urban markets and mostly in the car segment.

Industry representatives are hopeful of a revival in the second half of the year. According to the Federation of Automobile Dealers Associations (FADA), the apex automobile retail industry body, the closure was reported in 18 months, ending April 2019. The worst-hit is the passenger car segment. Maharashtra leads with 84 closures, followed by Tamil Nadu (35), Delhi (27), Bihar (26), Rajasthan (21) while the rest is spread in other parts of the country.

Vinkesh Gulati, vice president, FADA, said dealers in tier-II and III cities were not affected much since operation costs are low there. Besides poor sales, he alleged that OEMs have been aggressive in expanding dealerships, which resulted in unhealthy competition. Read the rest of this entry »