Connect with us

Auto

Indian auto industry facing one of the toughest times in history, needs govt support: Kenichi Ayukawa

Published

on

The Indian auto industry is facing one of the toughest times in history and needs government support through reduction of GST and incentive-based scrappage policy, Maruti Suzuki India Managing Director and CEO Kenichi Ayukawa said on Friday. Ayukawa, who is the president-elect of auto industry body SIAM, said the sector has been “set back by many years” by a combination of the coronavirus pandemic and the slowdown that has been going on since last fiscal. As the global health crisis broke out, he said, the auto industry in India also played its part by getting into manufacturing of ventilators, Personal Protective Equipment (PPEs) and importing testing kits from abroad to fight the virus although sales have been hit hard.

“In August we can say we just came back on our feet to achieve performance comparable to last year. Also last year is not a good comparison as the industry saw negative growth of 15-25 per cent. This negative growth has set back the industry by many years,” Ayukawa said at the 60th annual convention of Society of Indian Automobile Manufacturers (SIAM) conducted online. Reiterating the long pending demand of the auto industry to reduce Goods and Services Tax (GST) on automobiles by 10 per cent, Ayukawa said, “we are facing one of the toughest times in history. The industry needs your support”.

“We are eagerly waiting for GST reduction and scrappage incentive scheme. We believe that taxes on the increasing turnover will be more than the government expenditure on the scrappage scheme and GST reduction,” he said. He thanked heavy industries minister Prakash Javadekar, who assured the gathering that he will take up the matter of GST reduction with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman. Ayukawa also said the growth witnessed in the last couple of months is on a very low base of last year and “we are also not sure whether this is sustainable in future” while festival demand is very important.

“So, at some point of time we definitely need some support from the government,” he said, adding the industry is waiting for a government decision to encourage demand. Ayukawa said maximising production and increasing sales volumes of the auto industry can help in generating tax revenue, which the government can put to use for funding welfare initiatives.

In the next two years, he said the Indian auto sector will focus on “building the nation responsibly, through sound development of the industry”. Sound development of industry would mean increase in production and sales volumes, exports, more localisation of parts, including electric vehicle components and make India self-reliant or Atmanirbhar Bharat.

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Auto

Mahindra Electric eyes investment, bulk deals with e-commerce companies

Published

on

By

Mumbai: Mahindra Electric is eyeing the leadership position in electric last-mile delivery vehicle space and has been in discussions with several e-commerce companies including Flipkart, Amazon, and Reliance Retail among others for a potential deal. The company has also been in discussions with e-commerce companies for capital investment and is close to finalising a deal, said Pawan Goenka, managing director of parent company Mahindra and Mahindra.

“We have significant interest from many players – e-commerce providers, financial investors and strategic investors and we are in the process of finalising (a deal) with one or two of these players,” said Goenka. He declined to comment by when could a deal be concluded. The company launched its electric cargo vehicle under the brand Treo Zor on Thursday. The vehicle was designed in consultation with e-commerce companies, said Mahesh Babu, managing director, Mahindra Electric. “While we have made this also to meet retail demand, it is very specifically designed to meet e-commerce demand. We are in touch with many of them and you will hear when we jointly announce,” he said. Inquiries have also come in for these vehicles from Europe and Japan, but India remains the focus market, Babu said.

Mahindra Electric also makes electric three-wheelers for passenger transport under the Treo brand and has sold over 5,000 units since its launch in 2018. It has spent about Rs 100 crore in developing the Mesma 48 platform on which these vehicles are built, according to Babu. The company has localised most of the components on the vehicle barring battery cells and a few other small electronics which are imported.

The vehicles receive government subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. Goenka said that government subsidies continue to remain critical to keep these electric vehicles competitive with combustion engines vehicles. While EVs are cheaper to own over their lifetime due to low fuel and maintenance costs, the purchase price still remains much more expensive than conventional vehicles. For example, the Treo Zor starts at Rs 2.73 lakh after government subsidies and lower GST rate as compared to about Rs 2 lakh for three-wheelers with diesel engines.


Source link

Continue Reading

Auto

Mahindra Electric launches new cargo 3-wheeler Treo Zor

Published

on

By

Mumbai: Mahindra Electric on Thursday announced the launch of its new electric 3-wheeler cargo model Treo Zor at starting price of Rs 2.73 lakh (ex-showroom Delhi). Built on the Treo platform, the new offering comes in three variants – pick up, delivery van and flat bed – and will be available at Mahindra small commercial vehicle dealerships in select cities across the country from December.

“Our Treo platform demonstrates our commitment to Aatmanirbhar Bharat through the latest technology and make in India. The Treo Zor will provide a clean, sustainable and affordable solution for last-mile delivery,” Mahindra & Mahindra Ltd’s MD and CEO Pawan Goenka said at the launch.

The company claims that the new e-three wheeler offers higher savings of over Rs 60,000 a year, compared to the existing diesel cargo 3-wheelers, owing to its low maintenance cost, which stands at just 40 paise per km, the company claimed.

“The proven Treo electric 3-wheeler platform has already redefined last-mile mobility with 5,000+ satisfied customers who have traversed 35 million kms on Indian roads. Treo Zor has been developed with cutting edge technology to deliver substantial customer value proposition and is available in 3 variants to meet every customer needs,” said Mahesh Babu, MD & CEO, Mahindra Electric.

Treo Zor comes with an 8kW advanced lithium-ion battery and best-in-segment payload of 550 kgs. It gives higher earning opportunities. Also, the new vehicle comes with a standard warranty of 3 years/80,000 km, the company said, adding the vehicle can be charged by plugging into a 15AMP socket.

The wide service network of over 140 dealerships across India ensures timely after-sales service as well, it added.

The other features include telematics unit and GPS, windscreen and wiping system, spare wheel provision, among others, the company said.


Source link

Continue Reading

Auto

Ceat Tyres eyes export opportunities for speciality tyres in Europe, North America

Published

on

By

Tyre maker Ceat is looking at export opportunities for its speciality tyres in Europe and North America, and is also exploring new markets for radial tyres for buses and trucks, a senior company executive said. The RPG Group company, which produce tyres for segments such as two- and three-wheelers, cars, buses, light commercial vehicles (LCVs), trucks and tractors, currently exports its range of products to over 100 countries.

The company has six manufacturing plants at Ambernath (for off-highway tyres), Bhandup, Nashik and Nagpur in Maharshtra, Halol in Gujarat and in Chennai.

“We are trying to make more inroads in the Europe and North American market for speciality sectors. We are also looking at new market for our bus and truck radial tyres,” Ceat Tyres Ltd Chief Financial Officer Kumar Subbiah told .

He said the commissioning of Chennai plant in February this year will boost the company’s export business, which generally accounts for 12-13 per cent of the overall revenue.

Ceat has a specialised subsidiary, Ceat Speciality, for off-highway tyres in domestic and international markets.

Stating that exports are picking up gradually, he said the recovery from the COVID-19 impact started happening in the later part of September quarter.

Earlier this week, the tyre maker reported over four-fold increase in consolidated net profit at Rs 182.18 crore for the second quarter ended September 30.

The company had posted a net profit of Rs 43.64 crore in the July-September period of previous fiscal.

The company’s revenue from operations during the second quarter stood at Rs 1,978.47 crore as compared to Rs 1,691.55 crore in the year-ago period.

During the quarter, it also commissioned the second phase of its Nagpur-based manufacturing facility with effect from August 24.

Subbiah attributed a rebound in replacement market demand, improvement in other two verticals — exports and original equipment manufacturers (OEMs) — and better cost management to the good financial performance in the September quarter.

“We managed our supply situation better both from the manufacturing as well as servicing point of view. These are broad reasons why we have been able to give growth in the topline,” he said. He said the demand has returned in the aftermarket segment, while for OEMs and exports, the demand is very close to where it was before the COVID-19 pandemic. However, he said, only time will tell if the demand is sustainable or not.

Subbah said the company has added capacity at its three plants in Halol, Chennai and Nagpur (two-wheelers) in anticipation of higher demand and to corner additional market share going forward.


Source link

Continue Reading

Breaking News

Shares